As an agency, we’re often presented with products that are looking for help in finding their voice. There are several ways this may show itself:
- It may come across as another ‘me too’ product, or
- It tries to fight the incumbents on pre-established terms and ground rules, or
- It thinks it is the answer for everyone, or
- It doesn’t clearly know where it fits.
Most of the time a brand can work within an existing category through positioning and appropriate messaging. Because consumers prefer some choice there’s almost always room for a strong number 2 or 3.
But sometimes the product appears to be something new and different - deserving of the chance to create a category all its own. But what are the elements that drive a successful category? How can we identify a potential category-creator? There are three elements we look for: Ideas, Insights and Innovation.
- Idea: The product is new or different; it defies easy comparison to established brands. “It’s close to ____ but not really.” It does something different than what we would expect for the category, e.g. Curves or Online Law Schools.
- Insight: The difference has real value to a group of people. And this group isn’t likely who we thought at first. “You know who really needs this, its __________”. The ah ha moment where the right audience becomes clear; e.g. ‘law school is not just for lawyers’.
- Innovation: The functionality, delivery mechanism and business model have to be different; or at least 2 out of 3. If not, the 800# gorilla will make their category bigger by swallowing the product up. It must be painful for incumbents to compete.
These three elements often present a challenge to established brands and companies. New companies are much better suited to find their niche; although they may be challenged to execute. Established brands can execute but their legacy retards change.
