The Category Design Canvas
How to Create an Early Draft of your Product Category and Category Management
Category Design is an impressive way to see the world and to position your product in it. It doesn’t fit everybody, but understanding the world of categories is extremely helpful. In this short article I will show you a canvas-based way to draft Categories and define and integrate them into your business.
Is it even a Thing?
When looking for exceptional ways to position your product, you will find various approaches. Traditional methods like those described in Geoffrey A. Moore's Crossing the Chasm, or content marketing strategies, may suit some products and businesses. However, for truly innovative products that solve known or unknown problems in novel ways, Category Design might be the ideal approach.
Category Design is a strategic method that frees your product from existing market categories defined by competitors. Existing product categories limit innovation because the domains for the positioned products are pre-shaped and static. The idea of evolving new categories allows you to position your product in a unique sweet spot. The entire Category Design approach is thoroughly covered in the must-read book Play Bigger by Al Ramadan, Dave Peterson, Christopher Lochhead, and Kevin Maney. Also make sure to subscribe to the
here on Substack.In Short
Category Design involves positioning your product outside the existing categories by focusing on two main principles: "We do it different" instead of "We do it better" and "This category is a new development that would happen anyway—you are just the first to recognize and fill the gap." This strategy positions you as the leader of a new category, avoiding direct competition with established companies.
Of course you really need to be different! The Category not only shapes the market, but the Category Design approach and thoughts behind it also shape your business and organization.
This approach enables you to name and define a new category, enter the market, and actively shape it. It also allows for innovative marketing strategies. However, it's crucial that your product is genuinely different. The category shapes the market, and the thoughts behind Category Design shape your business and organization.
The idea is to create a canvas that serves as a starting point and template for workshops or drafting sessions. Over time, you might identify new categories to explore, and the canvas can become a centralized tool to track these opportunities. It makes sense to collect more detailed information for all elements of the canvas continuously.
The Canvas
In the following chapter I am going to explain the different aspects of the canvas including a few tips.
For all those who want to use the template, I have published a Miro template in the Miroverse:
The Category
Name and Description
The central element names the Category and adds information about the value and the basic and unique attributes.
What I learned is that you have to select the name with the target group inn mind. The goal is not to achieve a technically perfect or fancy name but to ensure recognition. For example, "smartphone" effectively differentiates products like the iPhone from traditional phones and mobiles, immediately conveying the message: “It’s a phone, but it’s smarter.”
Existing Categories
One color for the ones you emancipate from, another for the ones related
Document existing categories using distinct colors to differentiate those you are moving away from and those related to your new category. This helps in understanding the categories your product will be positioned against, including future targets and potential competitors. Recognizing these categories is crucial for establishing differentiation and identifying competitor weaknesses.
Differentiation from other categories
The USPs of you product, but also what differs in your philosophy and approach
Highlight the unique attributes of the new category, as well as the distinct philosophy and approach that set your category apart from existing ones. This is tightly connected to your Point of View (PoV) and your Blueprint, which outline your unique market stance and future vision.
Ecosystem Mapping
Customers, Competitors, Partners
Building a new category involves creating an ecosystem that includes your company, customers, prospects, partners, and competitors. Competitors can help legitimize the category, so include them but strive to maintain a competitive edge.
Point of View (PoV)
What is your deep insights that leads to the product and the category?
Your product and category are based on unique insights. Expand on these insights to provide a holistic view of the market and how your category emerged. This narrative should clearly articulate the problem your category solves and its broader implications.
Blueprint
What will be the future of the category and the world associated to it?
The blueprint outlines the projected future of the category and its impact on the world. Look beyond immediate developments, projecting 5-10 years into the future to challenge and refine your vision, mission, and strategy.
Implications for the Product
Implications for Prioritization and Design of the Product
Focus on differentiating your product from others in existing categories and aligning it with the projected future outlined in your blueprint.
Use the blueprint as a tool to refine your vision, mission, and strategy continuously.
Implications for Marketing
Could consist of Messaging & Content, Hijacks & Events and Brand Identity (Tone of Voice)
Promote your product indirectly by promoting the category. Category Design and Content Marketing work synergistically, enabling marketing strategies that might otherwise be unattainable.
You get a good idea about hijacks and category related campaigns in the book Behind the Cloud by Marc Benioff.
Implications for the whole Company
New or changed Metrics, Economics, Brand Identity, Tone of Voice
New categories may necessitate new metrics and a shift in company identity, often requiring a louder, more purpose-driven approach. Integrate your PoV and Blueprint with your Vision, Mission and Strategy and also into your company’s culture, ensuring all employees are part of the campaign.
An Example
Of course the example is just a simplified one, but it might give you a better understanding of what to do when drafting your own Category Design.
Learnings
The approach to actively shape a new category is nothing you decide by yourself. It is more like there are measures you can take if you product falls within the area of a newly developing category.
In contrast a Category Management approach, meaning to actively manage your positioning via the categories your product is placed in, makes sense for everybody.