In brand building, in addition to creating positioning concepts such as leaders and experts in existing categories, it is also possible to create new categories to allow brands to have the positioning status of "creators". In brand competition, category creators have a significantly greater chance of winning. In 1969, the father of positioning, Mr. Ai text message service Rees and his partner, Mr. Jack Trout, introduced a new marketing idea to the world in 1972: positioning. In the next half century, positioning thinking has rapidly developed into the most advanced marketing theory in the world. Positioning thinking emphasizes: "Brands that enter the mind with a new concept have a huge advantage." In addition to creating positioning concepts such as leaders and experts in existing categories,
another method is called creating new categories. Once a company creates a new category, the brand has the positioning status of a "pioneer". And category creators win big. A 2013 study by Harvard Business Review claimed that category creators accounted for 74% of total market capitalization growth and 53% of total revenue growth. The numbers in Play Bigger are more illustrative: Apple captured 91% of smartphone market profits in 2014; in 2015, Uber was valued at $51 billion, while Lyft was valued at just $5.5 billion. The category pioneer opens up a new market and captures most of the profits, while the second entrant has to sell its product or service at a lower price. The remaining players' market and profit shares are so insignificant that they don't even make it into the pie chart. When the brand is in a relatively passive situation in the category or does not dominate the category,
it is indeed necessary for the enterprise to enter other categories or innovate a category, so as to have the opportunity to become the leader of the category. If your text message service business meets any of the following criteria, it may be time to leave your current category and create an entirely new one. The business model of the industry in which the brand operates is changing; The category the brand is in is in crisis or has fallen out of favor; Brands become "discretionary" in categories due to lack of differentiation; The brand has created a significant innovation or proprietary advantage; Powerful competitors are stifling brand growth. Time to create a new category. Creating new categories is a viable brand strategy. Although this is a higher risk method, it can provide greater returns. Creating new categories can be the best way for a brand to successfully position itself.