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Category design 101

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The company that designs the space,
is best positioned to dominate it.

This simple, powerful idea is changing the way people think about company building. To increase the odds, savvy technology CEOs are proactive about designing their product, their company and their category.

Category design is the discipline of creating and monetizing new markets. It is a strategy for taking control over the development of a new market. The goal of category design is to create a new space and become the Category King.

Published in: Marketing

Category design 101

  1. 1. Category Design 101 Want to create and dominate a new technology category?
  2. 2. The company that designs the space is best positioned to dominate it. This simple, powerful idea is changing the way people think about company building. To increase the odds, savvy technology CEOs are proactive about designing their product, their company and their category.
  3. 3. The Odds Are Against Us
  4. 4. Less than 1% of VC-backed technology companies are ever worth $1B or more. Play Bigger Time To Market Cap Report
  5. 5. Since 2000 the United States has produced only 83, $1B+ market cap technology companies. Play Bigger Time To Market Cap Report
  6. 6. Winning technology companies are growing in value almost 3X faster now vs. the early part of this century. Leading consumer tech startups are growing market cap at more than $600m per year. Leading enterprise companies are growing market cap at more than $100m per year. Play Bigger Time To Market Cap Report Survival of the Fastest
  7. 7. A 6 year old startup that is not worth $500m today, will likely never be worth a $1 billion.
  8. 8. Never mind become A Category King.
  9. 9. And yet, the rewards for the winners are proven.
  10. 10. Category Kings Earn 70-80% Market Cap of Their Space
  11. 11. How do you increase the odds?
  12. 12. Most technology CEOs focus on two dimensions of competition:
  13. 13. 1) Build a great technology (product) 2) Build a great company (sales)
  14. 14. They believe that when enough people see their new, better, faster, cheaper, and cooler technology the category war will be won.
  15. 15. Some even say things like,
  16. 16. “We make shit and sell shit. Everything else is bullshit.”
  17. 17. Winners do not leave their category to chance.
  18. 18. They take control over the development of a new market.
  19. 19. Introducing Category Design The discipline of creating and monetizing new markets.
  20. 20. Winning today requires dimensions of competition
  21. 21. Category Design Category King
  22. 22. Company Design: How you want you organization to work. Product Design: How you want your technology to work. Category Design: How you want your market to work. Category Category King
  23. 23. The Category Is The Strategy • Customers need new categories as mental tags to organize new products in their minds • Before customers care about what a new product does they have to understand what problem it solves • Categories create hierarchies of value • Must have • Nice to have • Not interested Rapid innovation creates rapid confusion.
  24. 24. Category design requires a shift in thinking.
  25. 25. Category Design Strategy Traditional Strategy Category Design Strategy • Focus on products & sales • Existing TAM • Known problem • Sales / mktg push • Product plans • Partners • Focus on product, sales & category • Category potential • New problem • Market pull • Category blueprint • Category ecosystem
  26. 26. Marketing Vs. Category Design Marketing Category Design • Compete for share • Compete for market cap • Existing competition • Capture demand • Messaging • Evangelize features • Attack competitors • Create new space • Create new value • No competition • Create market pull • Point of View • Evangelize category • Attack the problem
  27. 27. Too much is at stake to leave the category to chance.
  28. 28. Design the category Dominate the market
  29. 29. Christopher Lochhead, Al Ramadan, Dave Peterson
  30. 30. About Play Bigger Play Bigger is on a mission to help great company builders increase the odds of winning. We specialize in Category Design - the discipline of creating and monetizing new markets. It is a strategy for taking control over the development of a green-field potential. The goal of category design is to create a new space and become the Category King. As audacious as it may sound, we aspire to improve the win rate across our industry by making category design a core competency practiced by the best technology companies. Just like you can design a great company and a great product, you can and should design a great category. And category design works for both startups and existing companies looking for a growth breakthrough. Based in the San Francisco Bay Area, Play Bigger was founded by Dave Peterson, Al Ramadan and Christopher Lochhead - former entrepreneurs and operating executives turned advisors. More information about Play Bigger can be found at the www.playbigger.com and by following the company on Twitter @playbiggeradv, Facebook, and Linkedin.
  31. 31. Copyright property of Play Bigger Advisors, LLC For permission to use any of this copyright protected property contact mary@playbigger.com This information is solely for informational purposes. Objects in mirror are closer than they appear. Coffee is a hot beverage that will burn your crotch. In the event of a water landing, pray your airplane captain is “Sully” Sullenberger. Johnny Cash was right. Party on Wayne. The materials contained herein are copyright property of Play Bigger Advisors, LLC. This content may not be reproduced or redistributed, in whole or in part, without the prior written consent of Play Bigger Advisors, LLC. This document does not constitute conveyance of any intellectual property rights. Play Bigger Advisors, has created materials, methodologies, and practices that are proprietary. All intellectual property associated with these works and any derivatives works are the property of Play Bigger Advisors, LLC. No part of this document may be reproduced by any mechanical, photographic, or electronic process, or in any form of a phonographic recording, nor may it be stored in a retrieval system, transmitted, or otherwise copied for public or private use without written consent from Play Bigger Advisors, LLC. WARNING: All products contain nuts.

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