Be The Market Leader In Your Business
The One Who Defines the Category… Leads the Category
Self-promotion without a big marketing budget is difficult. No one wants to hear someone harp on about how awesome they are with no substance behind their claim; however when you’re promoting something outside of yourself (particularly if you have some quantifiable expertise) it’s no longer self-promotion, it’s adding value.
This is where category promotion pays off. If you are not currently the category leader then define a new category to lead.
What Category Are You In?
Chances are your business exists as part of a wider category. To find your category leadership position, ask yourself the following…
- What category are we in?
- Is there a subset within that category where we shine?
- Does that sub-category have a label?
If it does go a layer deeper until you find clear space. A space where you can defend your expertise as the leader.
Category first, brand second: One of my favourite examples is Red Bull
Inspired by functional drinks from East Asia, Dietrich Mateschitz founded Red Bull in the mid-1980s. He developed not only a new product but a completely new product category was also born – Energy Drinks.
I can only imagine that when PepsiCo and Coca-Cola entered the fledgling Energy-Drink category the team at Red Bull would have been elated. Rather than being threatened as one might assume, they likely understood what was about to unfold. Millions of dollars got poured into promoting Energy Drinks.
And who was the market leader… “Red Bull”.
Coke and Pepsi not only validated Red Bull’s position, but they also catapulted it to completely new heights.
I have deployed this approach in multiple ventures, along with assisting many of my clients to develop their own Category-Leadership Position.
Be The Market Leader
My growth strategy with Icarus Canopies was to promote the new category of ‘High Performance’ parachutes. Thanks to my partner Paul (or Jyro as he was known in the industry), we revolutionised parachute flight and created ultra-high-performance wings. Not only did this make flying parachutes lots of fun, but it was also the catalyst to several new adventure sports, Blade Running, Pond Swooping and Speed Flying. We went from an unknown small brand in NZ to the Global Leader in High Performance Canopies. The behemoth in the Industry ‘Performance Designs Inc’ followed suit and in doing so validated our position.
Soon high performance canopies were all the rage and we found ourselves leading this exciting new era in parachute design. We were seen as a market leader, rather than some fringe brand from down-under.
Similarly, when launching The RESULTS Group in the US, it was clear to me that competing as another strategy company would mean we’d get lost in the noise alongside the myriad of other consulting businesses already supporting businesses to create a plan.
Instead we launched as ‘The Business Execution Experts’.
Surprisingly in 2007 no one was staking a leadership claim around EXECUTION. Even though most business leaders were well aware that executing a plan is significantly more difficult than creating one.
We promoted Business Execution as being the primary challenge for Business Leaders; and other consulting businesses followed suit by promoting their own capability to assist with Execution. It not only validated our position we also developed yet another new category to stay ahead; ‘Business Execution Software’ was also born.
Rebranding to RESULTS.com, we were seen as leaders in both Business Execution and Business Execution Software. Having pathed the way for this new category, RESULTS.com was subsequently acquired by a private equity firm.
So what category do you lead?
If you don’t currently lead the category you’re in, perhaps you should consider creating one that you can.
Category leaders are typically seen as the brand of choice. and when competitors enter the race they can fuel the incumbents leadership position.
Market leaders not only command a higher price, they are typically the brand of choice for businesses and consumers alike.
Category first, Brand second. Keep this simple rule in mind; and invite competitors into the position you lead. Chances are you’ll be pleased you did.
Simon Mundell
Strategic Advisor
Advisory.Works