What Category Design Really Means (and Why It Matters to Startups)
Most startups aim to disrupt markets. Few realize the true path to dominance lies in creating them. Category design isn’t just a buzzword—it’s the strategy behind the success of companies like Tesla, Salesforce, and Airbnb. Here’s how it works and why it matters.
Idea #1: Category Design Is About Framing the Problem
Category design starts with a question: What is the problem only we can solve? It’s not just about your product—it’s about changing how the world sees the problem.
Why It Matters:
• Customers don’t just buy solutions; they buy beliefs.
• If you define the problem, you control the narrative—and the market.
Example:
Airbnb didn’t just offer alternative accommodations. They redefined the idea of belonging anywhere, turning homeowners into hosts and travelers into explorers.
Actionable Takeaway: Instead of selling features, frame your product around the problem it uniquely solves.
Idea #2: Building a Category Starts with a Bold POV
Your Point of View (POV) is the story that reshapes how people think about the market. It’s what makes your category real.
Key Components of a Bold POV:
1. The Problem: Clearly articulate the issue your audience faces.
2. The Enemy: Identify the outdated solution or belief holding people back.
3. The Vision: Paint a picture of a better future—one your product makes possible.
Example:
Tesla’s POV wasn’t just about electric cars—it was about transitioning the world to sustainable energy. By framing combustion engines as outdated, Tesla positioned itself as the leader of a movement, not just a product.
Actionable Takeaway: Develop a POV that challenges the status quo and positions your brand as the guide to a better future.
Idea #3: Category Design Creates Long-Term Value
Unlike traditional marketing, category design isn’t about quick wins—it’s about building enduring value.
Why It Works:
• Differentiation: You’re not competing on price or features because you own the space.
• Customer Loyalty: People align with brands that represent something bigger than a product.
• Market Leadership: Category kings capture 76% of market value in their industries.
Example:
Salesforce created the “cloud CRM” category and captured the lion’s share of the market. Competitors couldn’t keep up because Salesforce wasn’t just selling software—it was selling a vision of accessible, scalable customer management.
Actionable Steps:
1. Define a problem that no one else is solving.
2. Create a POV that inspires and aligns with your audience’s aspirations.
3. Build momentum through campaigns that educate, excite, and empower.
The INGENIZE Perspective
At INGENIZE, we specialize in turning bold ideas into market-defining categories. We help startups craft their POV, define their market, and build a movement that leads to long-term success.
