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Achievement brand, please pay attention to category strategy
The success of a brand is fundamentally rooted in the success of its category. This is an undeniable truth. Without a clear position within a specific category, a brand will struggle to build recognition or loyalty. Many well-known brands around the world have achieved their status by first dominating a particular category. For example, Coca-Cola has long been the leader in carbonated soft drinks, while Wanglaoji holds a revered place as the pioneer of herbal tea. In the liquor industry, Moutai is the benchmark for sauce-flavor baijiu, and Wuliangye has become the king of strong-aroma baijiu.
From a strategic perspective, a brand’s identity is closely tied to the category it represents. Brand positioning begins with defining the category itself. It's like the eyes of a brand — without a clear category strategy, the brand may feel directionless. From the consumer's point of view, their initial perception of a brand often starts with the category. Therefore, in corporate branding strategies, category strategy should be the foundation and one of the most critical components.
However, many companies today lack systematic planning in both brand and category strategies. Some are overly broad in their approach, leading to unclear positioning. This is where the importance of a category-based brand-building approach becomes evident. The author would like to share some insights on how to build a strong brand through a well-thought-out category strategy.
For pioneers, strategic awareness is essential. If you are the first to enter a category, you must establish your "pioneer status" and "leadership image" from the very beginning. This helps defend against future competitors and also builds stronger consumer awareness over time. For instance, Sichuan Guangyou was one of the earliest brands in the instant noodle market, but many consumers associate the brand with "White Home." This is because "Light Friend" (a different brand) had earlier and more effective brand image planning, especially in shaping the category. Similarly, Sanhui Maifeng, an early French-style bread brand, was overshadowed by Panpan, which captured the public's imagination with the slogan, “French small bread, still hopeful.†In Sichuan, many mushroom companies have entered the deep-processing market for fungi, but due to low brand visibility and fragmented marketing, consumers are often confused about who is leading the category.
Followers, on the other hand, can't claim to be the first, but they can strive to be better. Many successful brands started as followers and eventually surpassed the original pioneers. The key is how to differentiate and innovate. For example, "Fragrant Fluttering" didn’t invent milk tea, but through technical improvements and precise positioning — such as “milk tea will be fragrant fluttering†— it managed to leap ahead in the market.
In conclusion, followers need to first clearly define their role and ensure they have the resources and strategy before attempting to compete. They shouldn’t aim to segment the market too aggressively, but instead focus on finding the right position. Take herbal tea as an example: consumers haven’t yet fully recognized it as a distinct category. Attempting to create subcategories too soon may confuse the market. Jinshayuan’s success lies in staying within the herbal tea category but focusing on a specific product, such as “light bamboo leaf herbal tea.†However, when the brand tried to promote a concept like “going to your greasy,†it failed to resonate with consumers, resulting in poor market performance.