to build a new category instead of competing for just referring to your marketing budget. Not only does Part II: market share in an existing one. But having the right category design require you to develop a new message circumstances isn’t enough. Your team has to have the and evangelize it over a period of many years. You also Category Design right capabilities if it’s going to be successful at category have to spend energy keeping your product roadmap Is Powerful, but design. on track and convincing investors, employees, and partners to wait for the payoff. All of that takes resources Not For All Not for the faint of heart: category – money yes, but also in terms of time, attention, and designers need the right capabilities energy. “Category design requires sufficient runway, Just because you’re in a situation where category design too,” said Gina Hortatsos, CMO at LogicGate, where could make sense, does that mean you’re in a position she’s designing a category to stand out from the process to pull it off? Not necessarily. Executing category design automation space. “It takes time and a tolerance for is hard, and it takes a certain kind of company to pull mistakes and frequent pivots.” it off. Here are some points to help you assess whether Can you get your leadership team on board? you’re ready. By “on board,” I don’t mean “everyone nodding their Do you have patience and perseverance? heads because the CEO said so”. Your entire executive Category design is a long-term play. It’s not a one-time team has to be excited about pursuing the strategy and campaign or something you can focus on for a quarter commit to executing category design together. That’s or two. “People are skeptical. When you create a because category design is a business strategy that category, it is hard to get people to pay you for your requires effort and input from every department. If the solution at first,” said Lindsay Tjepkema. “Getting process is something delegated to a single department, them to change the way they are thinking is hard work then the effort will fall short of its potential. – especially when you are the first.” Do you have the right culture? It will probably take a few years for an emerging In my view, this is the most important factor. Your category to turn into a legitimate market. If you’re chance at category design might look great on paper, expecting your category evangelization efforts to pay off but if your team doesn’t have the right attitude, nothing sooner than that, you’re setting yourself up for failure. else will matter. You will have to move quickly. You will have to coordinate across departments, making Do you have courage? strategic decisions without succumbing to groupthink. There will always be cynics and skeptics. And when You will have to be able to rally each other when things you try to convince them about the need for your new get tough. And most of all, you need a culture that’s category, they won’t hesitate to tell you all the reasons willing to try new things and take risks. why you’re wrong. Sticking to your guns in the face of such people takes courage and conviction. Not everyone Do you have the right investors? will be a detractor, but the minority that exists will According to Kevin Maney, “If you have investors make sure they’re heard. Especially if you start to show who are cautious and want to only go after easily- signs of success. defined markets in a me-too way, you have the wrong investors.” While category design can greatly improve Do you have enough resources? your chances of success, it also demands patience as Category design doesn’t come cheap – and I’m not you build a new market from scratch. If your investors The Newcomer’s Guide to Category Design 16

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