Should you Create a new Product Category?

Differentiation
Product Category

Should you create a new category? 🤔

↳ you need time, money, and a killer product 🚀

(three things most startups don't have 🥴)

Everyone wants to create a category... but is this smart?

The most common reason given for creating a category:

âś… "If we create the category, we'll OWN the market!"

But this actually obscures what's really going on.

Take spicy mustard.

The first creators of spicy mustard had a choice.

→ Should we use an existing category to describe our new sauce?

→ Or should we create an entirely new category?

If they had chosen to create a NEW category, several things would happen at once...

❌ they would essentially have to create demand for the new sauce (which requires a ton of time, marketing dollars, etc. to even generate AWARENESS).

❌ they would remove the frame of reference (existing mustard), which makes positioning the product extremely difficult

❌ they'd be asking the grocery stores to create a brand new shelf just for their new sauce — which relies on OTHER brands coming into the space and using the same new definition

Instead, they leaned into an existing category (i.e. "mustard") and created a differentiated product that would live on the EXISTING shelf.

âś… this makes positioning the product EXTREMELY simple

âś… this capitalizes on the EXISTING demand

âś… this builds on existing use cases for mustard

FletchPMM
Best Practices

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