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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 strong presence within a specific category, a brand’s journey toward recognition and loyalty becomes significantly more difficult. Many globally and locally renowned brands 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 position as the pioneer of herbal tea. In the liquor industry, Maotai is the benchmark for sauce-flavored baijiu, and Wuliangye stands as the king of strong-aroma baijiu.
From a strategic perspective, the category is inseparable from the brand. A brand's positioning begins with its place in the category, much like how eyes allow us to see. Without a clear category strategy, a brand may feel directionless or lack soul. Moreover, consumers typically start their relationship with a brand through the category itself. That’s why, in corporate branding strategies, category strategy plays a central and essential role.
Unfortunately, many companies today lack systematic planning when it comes to both brand and category strategies. They often act impulsively, without clear positioning, leading to confusion among consumers. In this context, I would like to share some thoughts on how to build a brand through the lens of category strategy.
For pioneers, strategic awareness is crucial. If you are the first to enter a category, you must establish your “pioneer identity†and “leadership image†from the very beginning. This not only helps defend against future competitors but also enhances consumer awareness and gradually builds brand loyalty. For instance, in the convenience food sector, Sichuan Guangyou was one of the early players, but many consumers still associate it with “White Home.†This is because “Light Friend†had a more structured brand image and marketing strategy, especially in shaping the category. Similarly, Sanhui Maifeng, a French-style bread brand, was among the first, but the term “Pan Pan†became more popular. The phrase “French small bread, still hopeful†was widely used, showing how brand image can shape perception.
In the edible fungi industry in Sichuan, many companies have entered the deep processing market in recent years. However, despite claiming to be earlier, consumers remain unclear about who is truly leading the category. The industry is still small, marketing efforts are scattered, and products lack differentiation, resulting in no clear market leader.
For followers, brand segmentation is key. While there are few true pioneers in any category, most companies are followers. Followers may not be the first, but they can claim to be better. There are many examples of followers surpassing pioneers. The key is how to differentiate and innovate. For instance, “Fragrant Fluttering†wasn’t the original milk tea brand, but through technical innovation and precise positioning—such as “Milk tea will be Fragrant Flutteringâ€â€”it managed to leap ahead.
In my view, followers must first clearly define their position. They need the strength and strategy to execute effectively, even if they aren't the first. Additionally, during the follow-up process, companies should avoid over-segmenting the market. Instead, they should focus on finding the right positioning. Take herbal tea as an example: Consumers haven’t yet fully recognized it as a distinct category. Therefore, creating subcategories too early can confuse the market. Jinshayuan’s success lies in its clear positioning within the herbal tea market, focusing on “light bamboo leaf herbal tea.†However, their slogan “going to your greasy†failed to resonate, leading to poor market performance.
In conclusion, whether you're a pioneer or a follower, understanding and leveraging the power of the category is essential for long-term brand success.