The Big Brand Lie: How Categories Make Brands & Why Brand Marketers Never Believe It
Categories make brands. Not the other way around.
Arrrrr! đ´ââ ď¸ Welcome to the free edition of Category Pirates. Each month, we publish mini-books that share radically different ideas to help you design and dominate new categories. Thank you for reading, and of course, forward one of our âmini-booksâ to a friend you think needs to hop aboard the Pirate ship.
Dear Friend, Subscriber, and Category Pirate,
Have you ever met someone whoâs been drafted into a cult?
Did you know itâs possible to be in a cult and not know it?
A meaningful percentage of marketers, entrepreneurs, and executives are in what we like to call âThe Brand Cult.â Theyâve been taught the best (aka: âthe most well knownâ) brand wins.Â
Even though the data shows this is not true.
Ford spends $2.5 billion per year on brand advertising, with a market cap of $50 billion. General Motors spends $3 billion, with a market cap of $70 billion. Meanwhile, Tesla spends $0, but has a market cap of $700 billion. What?!?
In 2011, Google spent almost $600 million building and launching a social network to compete with Facebook and Twitter called Google+. If âthe best brand wins,â how come Google+ failed? After all, Forbes named Google the 2nd âmost valuable brand in the worldâ in 2020.
Comcast spends more than $5 billion on branding and advertising each year. And yet, Comcast has long been considered âAmericaâs Most Hated Company.â Thereâs even a Wikipedia page dedicated to the companyâs inadequacies, titled âCriticism of Comcast.â (United Airlines is a close second, if you ask us.) So if branding and âshouting from the rooftopsâ is the key to winning the game, how come $5 billion per year canât solve Comcastâs problems? Maybe they need $10 billion?
But sharing data with a cult member is about the worst thing you can do. Thatâs because facts are upsetting to feelingsâparticularly facts that disprove everything youâve been taught to believe.
Well, hereâs a fact:
Categories make brands. Not the other way around.
Want to listen to this mini-book instead? Head to the AI audiobook version, available to all paid subscribers.
How The Brand Cult Began
In 2011, The Atlantic published a piece titled, âHow Brands Were Born: A Brief History of Modern Marketing.â
âIn the 1950s, consumer packaged goods companies like Procter and Gamble, General Foods and Unilever developed the discipline of brand management, or marketing as we know it today, when they noticed the quality levels of products being offered by competitors around them improve. A brand manager would be responsible for giving a product an identity that distinguished it from nearly indistinguishable competitors.â
Note that last sentence.
From our perspective, the obvious response and clear âno brainerâ solution to being ânearly indistinguishableâ is to get different: design a new space, come up with something new, and make others play a game you created.
But thatâs not what most âmarketing & branding expertsâ decided.
Instead, they said, âLetâs ignore the fact there is nothing unique about us, our product, or what we do for the world. Instead, letâs do some branding.â As if sprinkling some kind of magic dust on your âbrandâ (changing the colors, the font, the logo design, etc.) is going to drive a breakthrough in growth. Or, even worse, âLetâs call ourselves a community. Letâs use big, all-encompassing, undifferentiated language to make ourselves appeal to everyone. Something like, âWe are an authentic, purpose-driven brand.ââÂ
And thus, âthe brand cultâ was formedâand The Big Brand Lie began.
âThe Room Where It Happenedâ
We will live the rest of our lives wondering how branding as a solution to a lack of differentiation ever made it out the room (âThe room where it happenedâ).
âNo one else was in the room where it happened, the room where it happened, the room where it happened.
No one else was in the room where it happened, the room where it happened, the room where it happened.
No one knows how the game is played, the art of the trade, how the sausage gets made.
We just assumed that it happens.
But no one else is in the room where it happens.â
And yet, every single day, we are shocked by how many MBAs, entrepreneurs, founders, even very smart investors, accept this premise.
How could the answer to the problem, âWeâre indistinguishable,â possibly be cosmetic attributes?
How could the answer to the problem, âWeâre the same thing,â be, âLetâs say weâre the same thing, but better and louder and more often?â
How could the answer to the problem, âWeâve run out of ideas,â be, âLetâs make the logo BIGGER!?â
There are approximately 7,000 books on âbrandingâ on Amazon.Â
Our guess is that many of them extol the value of âbuilding a brandâ as a path to success.Â
Make The Logo BIGGER!
(We encourage you to watch the above in full because weâre going to be singing the chorus all the way down the page. Arrrrrrr!)
âMake the logo BIGGER!â is the opposite of Category Design.
Category Design is the process of moving customers FROM the way the world is TO a new and different way. Categories are about customers, their problems, their opportunities, and their futureâwhich means category marketing is about educating customers on a new and different solution that unlocks transformational outcomes by solving a specific problem.
Branding, on the other hand, is about us. Our name. Our logo. Our team. Our âmission statement.â Which means brand marketing is about screaming, âLOOK AT ME, LOOK AT ME!â Whereas category marketing is about evangelizing a different outcome altogether.
Said differently:
Brand marketing is something we do to customers.
Category marketing is something we do for customers.
The Story of Ralph Lauren
Ask any person on earth why Ralph Lauren was successful, and 99% of them will say the same thing:
âHe built an incredible brand.â
But is that actually what caused his success? Or was the Ralph Lauren brand the result of his creating a DIFFERENT category?
If you havenât seen the documentary on Ralph Lauren, called Very Ralph, we highly recommend it.
Most people donât know that Ralph Lauren is credited with creating the menswear industry as âa designer reality.â In the 1960s, men had gotten used to prescriptive dressing, and wore suits as uniforms with very little differentiation and personality. âDesigners were for the women. The tailor was for men.â Lauren was the first designer to turn American âlifestyleâ moments and characters (a carpenter, a railroad worker, a cowboy) into fashionable everyday looks.Â
And it all started with his unique âwideâ ties.
In the documentary, he tells the story:
âI like these ties. Iâm going to make them wider. Iâm going to bring them over to the store, I think theyâre going to like it. So I took them over to Bloomingdaleâs, because Bloomingdaleâs was the entree into every storeâbecause every store at that time was shopping Bloomingdaleâs to see what was new. Who were the new resources? Whatâs happening? The buyer looked at the tie and said, âItâs too wide, and would you make it a little narrower, and will you take the label off? We want to have our store brand.ââ
To which Ralph Lauren closed his sample case and walked awayâand the rest is history.
The misunderstanding here is that what made Ralph Lauren different from all the other ties in the market was the brand, and thatâs not it at all. What made Ralph Lauren ties (the companyâs first successful product) different was the fact that they were wider. They were the first tie to break the mold of what a tie should look like for menâand the first tie that even remotely resembled having its own distinct style. Ralphâs ties were different, and as a result, created a new category of wide designer ties. The âbrandâ and the tag simply let people know where they could get more DIFFERENT ties like it.
And in the 1960s, what happens when you wear a wide tie?
Well, you need different shirts, with different collars. You need a different suit. (Remember: new categories create more new categories.) And suddenly, Ralph Lauren was creating a whole new category of menswear. What Lauren was not doing was copy/pasting his brand onto similar, commodity products. He was inventing new and DIFFERENT productsâwhich, after the fact, were paired with the Ralph Lauren tag and brand.Â
Fast-forward to today, and despite the fact that Ralph Lauren will go down in history as one of the greatest fashion designers ever (and the company boasts an $8 billion market cap), itâs differentiation strategy today amounts to little other than, âMake the logo BIGGER!â
The Definition Of Branding
But before we go any further, letâs think deeply about this word the business world loves so much.
Remember:
thinking about thinking is the most important kind of thinking.
BRANDING. What did this word originally mean?Â
It meant âlivestock branding.â
âThe practice of brandingâin the original literal sense of marketing by burningâis thought to have begun with the ancient Egyptians, who were known to have engaged in livestock branding as early as 2,700 BCE. Branding was used to differentiate one personâs cattle from anotherâs by means of a distinctive symbol burned into the animalâs skin with a hot branding iron. If a person stole any of the cattle, anyone else who saw the symbol could deduce the actual owner. The term has been extended to mean a strategic personality for a product or company, so that âbrandâ now suggests the values and promises that a consumer may perceive and buy into.â
OK, so letâs just think about this for a second.Â
The marketing world thought it would be a good idea to borrow a word that meant âburning a symbol into a cowâ to represent the act of claiming customers as your own. HmmmâŚ. So branding is a violent, painful approach to showing a living being as belonging to you.Â
That sounds about right.
Enduring most branding efforts, as a customer, is painful.
Maybe this this is why advertisers use the term âimpressionsâ as a feeble proxy for a real outcome when selling advertising to corporations?Â
Maybe this means brands think of customers as their own property?
Maybe this is why companies that spend billions of dollars in brand advertising per year also happen to be the companies at the top of the âmost-hatedâ lists?
Things that make you go hmmmâŚ
For example:
Mmmmm. Nothing we love more than a sweet, sweet Capital One ad taking up 50% of the screen, talking about themselves.Â
We bet this big banner ad is getting lots of brand impressions, which means it must be working! Right? Actually, if we sober up for half a second and look, the data shows us itâs not. Capital One spent $1.6 billion on advertising in 2020, and has been averaging $1.9 billion per year in ad spend for the past 5 years. And yet, after the stock failed to move from 2015 to 2020, the company authorized a ânew share buyback program of up to $7.5 billion for 2021,â causing the stock to artificially rise. So basically, $1.6 billion (or more) per year advertising Capital Oneâs brand has done nothingâso much so the company decided to deploy $7.5 billion more in cash to prop up the stock.
Let us really soak in this for a second. Capital One could not drive growth in their value through marketing. So they cooked-up fake growth with stock buybacks. CEOs buying their own stock communicate at least three (horrible) things about the company. Â
They have run out of ideas
They are using shareholderâs cash, to increase their own stock compensation
And worst of all, they have given up trying to increase their value in a real way
Capital One is not alone here. In 2014, HBR published a piece by William Lazonick, a University of Massachusetts professor, called âProfits Without Prosperity.â Here he noted 449 companies in the S&P 500 index from 2003 to 2012 used 54% of their earnings to buy back their own stock. Another 37% of earnings were used for dividends, meaning 91% total corporate earnings from the S&P 500 went to buybacks.
Given that stock options and awards comprise the lion share of executive compensation, executives who are stewards are self-dealing at the expense of investing in growth. Stock buybacks plus stock-based compensation at slow growth companies is one of the single greatest examples of âlegal larcenyâ committed in plain sight.Â
Now, we didnât get invited to the Marketing Leadership Council meeting where âmarketing expertsâ decided âbrandingâ and âbrand advertisingâ was the best way to spend a billion dollars per year. Had we been invited, we would have slammed our mugs down on the table and shouted, âThatâs a chantey without a clap oâ thunder down from Davy Jonesâ locker if we ever heard it!â (If you are still learning to speak Pirate, that means we think âbrandingâ is a horrible name and makes absolutely no sense.)
Are we being cheeky?
No. THINK.
Branding is defined as burning your name on someone to claim ownership.
Imagine branding as an idea doesnât exist. Imagine youâre a marketing executive at Procter & Gamble and the guy next to you is saying, âMan, everybodyâs detergent is the same. What do we do? I know. Letâs make it look different. Letâs give it a different identity. Letâs make it stand out by giving it unique colors on the box.â This is what eventually becomes âbrandingâ (as a multibillion-dollar industry) and NOBODY goes, âWait, hang on a minute. Maybe the solution to the problem, âWeâre not different,â is to actually get different.
Opposed to whatever the hell you and a bunch of âmarketing expertsâ just talked about.
But this is what brand marketers do. Their entire job is predicated on their ability to burn their companyâs name and logo into the minds and bodies of their customers. Success is then measured by how many people they *believe* theyâve prodded with a hot poker (example: Capital One). âCongratulations! This month we reached a new high score of X million impressions. We believe we branded themâtherefore, we did brand them. Keep buying more branding efforts!â
Smooth Brain Brand Plus
Thereâs a term that rumbles in the underbelly of the Internet (also known as Reddit) that represents people who canât think for themselves.
âSmooth brained apes.â
âOne of the first things people notice about the human brain is its intricate landscape of hills and valleys. These convolutions derive from the cerebral cortex, a two- to four-millimeter-thick mantle of gelatinous tissue packed with neurons sometimes called gray matter that mediates our perceptions, thoughts, emotions and actions. Other large-brained mammals such as whales, dogs and our great ape cousins have a corrugated cortex, too each with its own characteristic pattern of convolutions. But small-brained mammals and other vertebrates have relatively smooth brains.â âScientific American
Well, one of the smoothest brain brand strategies in marketing today is to take your brand and then slap it on anything and everything you can find. Because the brand is what made you successful, right? Brands drive growth, right? Everybody knows how important branding is! The brand is what people love!
In 1994 (so ahead of their time), Al Ries & Jack Trout wrote one of the definitive books on âbusiness thinking,â The 22 Immutable Laws Of Marketing. And in Chapter 18, The Law of Success, they state the following:Â
âSuccess is often the fatal element behind the rash of line extensions. When a brand is successful, the company assumes the name is the primary reason for the brandâs success. So they promptly look for other products to plaster the name on. Actually, itâs the opposite. The name didnât make the brand famous (although a bad name might keep the brand from becoming famous.) The brand got famous because you made the right marketing moves. In other words, the steps you took were in tune with the fundamental laws of marketing. You got into the mind first. You narrowed the focus. You preempted a powerful attribute. Your success puffs up your ego to such an extent that you put the famous name on other products. Result: early success and long-term failureâŚâ.
If blindly branding customers with a hot poker is mistake numero uno, then mistake number two is taking your brand and doing what Ries & Trout famously languaged as âline extensionâ: taking your brand and extending it across multiple categories.
Disney+
Apple TV+
ESPN+
Hulu+
Samsung TV+
BET+
Paramount+
Did we learn nothing from Google+?Â
Hereâs how this stupidity gets rationalized. In 2020, FastCompany (a commodity, undifferentiated business âbrandâ) published a piece titled, âWhy adding âPlusâ to the name of every streaming service is actually good.â In it, ViacomCBS president and CEO, Bob Bakish, explains, âParamount is an iconic and storied brand beloved by consumers all over the world, and it is synonymous with quality, integrity, and world-class storytelling.â
Pause.
Real quick, name one Paramount film.
Just one.
If Paramount is SUCH an iconic brand, and branding is all that matters, then surely you can remember which films Paramount has made versus which films 21st Century Fox has made, versus Universal Pictures, versus Columbia Pictures, right?Â
Canât?
Moving on.
Bakish continues, âWith Paramount Plus, weâre excited to establish one global streaming brand in the broad-pay segment that will draw on the sheer breadth and depth of ViacomCBS portfolio to offer an extraordinary collection of content for everyone to enjoy.â
Letâs go back to how we started this letter, and the origin of branding: âA brand manager would be responsible for giving a product an identity that distinguished it from nearly indistinguishable competitors.âÂ
Whether Bob Bakish realizes it or not, he is explicitly announcing to the world that Paramount Plus is no different from any of its competitors. The only difference is that its catalog of products (and by extension, itâs viewers) have been âbrandedâ with the Paramount logo. (A brand who is so âiconic,â no one can name a single one of their movies.)
The (rocket-surgeon) author of the FastCompany article then goes on to explain, âAhhh, but there is a method to all this Plus madness. What if it was all designed to make our lives less confusing?â Listen to the words.
Translation: The reason a big brand like Paramount decides to use âPlusâ to describe itâs new product offering is because executives (and FastCompany writers) believe you are too âsmooth brainedâ to understand anything different. If they DIDNâT call it Paramount Plus, how would you possibly find the content you were searching for?
The article then closes out the argument with a quote from the Chief Creative Officer of Initial, Initial & Initial, âItâs such a complex landscape out there for consumers. Thereâs so much content, so much choice, so many different layers of everything. I think brands have sort of banded together with these signifiers to make it easier for people to peg what kind of product it is.â
Listen. To. The. Words.
âWe think fitting in (not differentiating) is a wise growth strategy.â
âYou are too dumb to figure out what you want to watch on your own.â
âYour content preferences arenât relevant. You will blindly follow whichever logo is the biggest (SING IT...âMake the logo BIGGER!â).â
âTodayâs media landscape is so big, and so complex, that the best path forward is for brands to all use the same signifiers so that products can be more easily compared against each other.â
Bob Bakish, FastCompany, and most Chief Creative Officers, are all premium members of âThe Brand Cult.â
Unfortunately, this sort of comparison marketing leads nowhere except âThe Better Trap.â
And companies that fall into âThe Better Trapâ all fight for 24% of the category.
A few other great examples of how âline extensionâ never works:
Red Bull Cola
In 2008, on the heels of Red Bullâs meteoric rise creating the âenergy drinkâ category, the company decided it was time to broaden their horizons. Unfortunately, instead of creating a new category, the company decided to take its brand and try to extend it into another already established category: Cola.Â
At the time, Red Bull UKâs managing director said in a press release, âThe new product will benefit from full integration into Red Bullâs brand marketing initiatives, sitting alongside Red Bull energy drink.â Well, if Red Bull was one of the most recognizable brands in the world, and if brand marketing is so successful, why did Red Bull pull the plug (along with its other âline extensionâ product, Red Bull Energy Shots) three years later? Because Coke owns the Cola category, and 5-Hour Energy owns the Energy Shot categoryâand you will never overthrow the category leader by extending your brand into someone elseâs category.
We find it stunning how some of the greatest category creators ever forget what made them successful. Categories are about customers. Brands are about us. Weâre not shrinks, shamans, or doctors of any kind, but we do suspect this has to do with the human ego. We want to believe we make us successful. When the truth is, customers make us successful.Â
Categories make brands. Not the other way around.
The Microsoft Store
In 2009, another one of the most well-known brands and most valuable companies in the world, Microsoft, decided to take on Appleâs legendary in-store customer experience by launching The Microsoft Store.
âWe want to showcase whatâs possible with the full Microsoft brand,â said David Porter, corporate VP of Microsoft Retail, in a press release promoting the launch.
By 2015, the company announced, âToday, more than 80 percent of Americans live within 20 miles of a Microsoft store, with more than 110 stores across the U.S., Puerto Rico and Canada.âÂ
Fast-forward to 2020, and Microsoft decided to shut the doors on the operation, âresulting in a pre-tax charge of approximately $450 million,â according to CNBC. Thatâs half a billion dollars spent trying to extend their brand into Appleâs category. âMicrosoft even built a store on 5th Avenue in New York City, just blocks away from Appleâs iconic glass cube store.â
Line extension doesnât work.
You canât take your brand and stroll up into someone elseâs category.Â
And yet, executives at some of the most legendary companies in the worldâcompanies that, at one point, designed and dominated massive categoriesâcontinue to spread the gospel of âThe Brand Cult.âÂ
Trillions in market cap has been destroyed with these asinine branding âstrategies.âÂ
And trillions more will be.
Your New Role As CMO: Prepare 3 Envelopes
Success in most marketing roles means changing jobs every 18-36 months.
Thatâs how you know youâre climbing the ladder.
Especially in Fortune 500 companies, the pattern is as follows:
First 6 months: Dump on the person before you (âThey did it all wrongâ).
Next 6 months: âMake The Logo BIGGER!â
Final 6 months: Move onto your next gig.
Let us show you how this works by telling you a short Pirate fable.
Youâre the new CMO. Congrats!Â
The old CMO says, âI wish you all the success in the world. Good luck. And to help you out, Iâve left 3 envelopes on my desk with some adviceâin case you ever need it.â
So you get settled. You move into your new office. But then after the welcome parties simmer down, and your responsibilities pick up speed, people start asking questions. âWhat are you contributing to revenue? Whatâs our ROI? How do we know we are gaining market share?â Turns out, being a CMO is hard! A bit harder than things seemed in the job description.
You arenât sure how to handle it, so you open Envelope #1.
You pull out a sheet of paper, and all it says is one word:
âRebrand.â
Terrific idea! Branding is the solution to everything.
So, you put together a fancy PowerPoint presentation. You call all the other executives into a meeting. And you say, âListen. Growth isnât where we want it to be. Weâre not distinguished from our competitors. We need a rebrand.â And all the smooth-brained executives start nodding their heads, Yes⌠YesâŚ
*Note: If a company hires a new CMO and rebrands within the first 12 months, quit or sell the stock. Youâre screwed.
The good news is, most rebranding initiatives take anywhere from 8 to 24 months to complete. Anytime someone asks you what youâre doing or why the companyâs marketing isnât yielding meaningful results, all you have to say is, âThatâs because weâre in the middle of a rebrand.â Ah, OK. Got it.
Fast-forward a year, and the rebrand is done. You have a brand new shiny logo. Canât you tell the difference?
(We guarantee SAP wasted tens of thousands of person hours and many tens of millions on this đ)
For a while, everyone on the team is ecstatic. âI LOVE THE COLORS!â Itâs practically a work of art. (Meanwhile, Andy Warhol is rolling in his grave.) Until a few months pass and people start asking questions. âDid the rebrand work? Is revenue up? Have our competitors waved the white flag yet?â The questions wonât stop!
In a jam, you open Envelope #2.Â
âRe-org.â
An amazing idea!
You start to think about it, and of course it makes sense why the rebrand didnât change the companyâs position in the marketplace. Just look around! The office is a disasterânobody knows how to communicate with anybody. Itâs time to move from a centralized model to a decentralized model. (Because if youâre not the category leader, youâre fighting for just 24% of the value in the category. So you can position, reposition, brand, and rebrand all you want, but growth will be very hard.)
âHow long will it take?â another executive asks.
âProbably 12 to 18 months,â you say, shaking your head. âItâs going to be tough, but we have to do it.â
And off the company goes, rebranding and re-orging.
Until finally, after youâve been with the company for a little over two years, you realize things arenât going anywhere. âItâs time for me to jump ship,â you say over drinks with an executive at another company. When you return back to the office, people wonât leave you alone. More questions, always more questions. âDid the rebrand work? Did the re-org work?â Youâve had enough. Clearly, nobody onboard is up to your caliber of talent! And so you open the last envelope, hoping for some parting advice from the previous CMO.
You open it up, pull out the sheet of paper, and it saysâŚ
âPrepare three envelopes.â
The Role Brands Should Play In Category Design
If brand marketing doesnât work, then whatâs a marketer, an executive, an entrepreneur to do?
The answer is certainly not to come up with airy-fairy attributes and qualities in an attempt to âdistinguishâ the company, product, or service from identical offerings (âMake the logo BIGGER!â).Â
The only time you should ever rebrand is when you are launching a new category design.Â
However, branding in the absence of category design is asinine.
Remember: categories make brands, not the other way around.
Googleâs brand is only valuable in the context of the category it created and dominated, which is Search. Take Googleâs brand and extend it into Facebookâs âsocial networkâ category, and itâs worthless. Same goes for Microsoft and itâs attempt to extend its brand into Appleâs category of in-store experiences.Â
Instead, branding should be used in conjunction with the new and different category you are creating. The category and brand have to come together in some meaningful way for the customer, consumer, or user.
For example:
Barcade: The original Arcade Bar. Itâs not a bar, and itâs not an arcade. Itâs an Arcade Bar. Itâs a different thing, in a different category. The brand then reflects all the things that make this thing fundamentally different.
5-Hour Energy: Energy shots. The category is âenergy shots.â And the brand is â5-hour Energy.â The brand name reflects the differentiated category. The two are inextricably linked.Â
Under Armour: Athletic undergarments. The category is, âclothes you wear under your clothes when youâre being athletic.â And the brand is, âUnder Armour.â The brand name is telling customers what the category is. âUnder Armour is the originator of performance apparelâsportswear engineered to keep athletes cool, dry and light throughout the course of a game, practice, or workout.â Their brand, in the context of this new and different category they created, is legendary. Outside of this category, Under Armour is a next-next-next-best alternative to Nike, Adidas, and so on.
Amazon.com: eCommerce. Amazon was the first company of consequence to put dot com in their name. This immediately communicated that Amazon was radically different from any other âbookstore.â And itâs tagline in the beginning screamed their digital difference. âThe Earthâs Biggest Bookstore.â (Thousands of companies followed in their footsteps and realized, âHey, if we put dot com in our name, weâll be valued as a futuristic eCommerce company too.â)
When done successfully, your companyâs branding efforts do not (just) create the style guide for your company, but the style guide for the category. You can see this happening in plain sight when competitors start:
Talking like you
Looking like you
Using similar features as you
All of which makes the category bigger (of which you, as the category leader, will capture the lionâs share of the economics).
Most small âeâ entrepreneurs intuitively understand branding hierarchy in category design.
Whereas most MBAs from Ivy League schools (wearing pleated pants and blue button-downs) do not.
For proof, look at any local sign for a dentist.
BIG FONT: DENTIST
Small font: Mark Johnson, DDS.
Or, how about your local landscaping company?
BIG FONT: LANDSCAPING
Small font: Millerâs Landscaping Since 1992
Or how about your plumber? What does the side of their truck say?
BIG FONT: PLUMBER
Small font: OâConnor Plumbing. Call us today!
Category first, brand second.
Because if we are plumbers, and we say, âHey you should really call Eddie, Cole, and Christopher,â you donât care. You donât have a clue what weâre talking about. Are we plumbers? Are we fast-food delivery guys? Are we landscapers? You need to know what category of thing we are, first. Then, once you understand the category, you start searching for the âbest brandâ within that category.
Big âEâ Entrepreneurs, on the other hand, have a much harder time keeping their ego in check.
Itâs as if the moment your startup passes $100 million funding you black out and forget what made you successful wasnât your brand, your logo, your name, or even you and your incredible track record as an entrepreneur.
What made you successful was your ability to create a new and differentiated category of product, service, or offeringâto which your brand name just happened to be attached.
Again: Ralph Laurenâs brand isnât what made his âwide tiesâ successful.
His new and differentiated category of product, âwide ties,â were successful, which made his brand successful as a result.
Force A Choice. Donât Invite A Comparison
So, if you are an entrepreneur, an executive, or a marketer, we urge you to ask this very important question:
What are you DOING with your marketing?
Are you forcing a choice? âWe are a different thing altogether.âÂ
Or are you inviting a comparison? âWeâre like everybody else, PLUS some more.â
The answer to this question is the seminal difference between brand marketing and category marketing.
Somehow, the business world got duped into solving a problem called, âWeâre not different,â by putting drapes on the paintingâopposed to creating a different painting.
Stop arguing over whose drapes are the best.
Paint a different painting.
Arrrrrrr,
Category Pirates
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Agree with all of this! But I do have a confession to make, and I hope it doesn't get me banned from the CP mailing. My name is Dave, and I am a brand management consultant đąđąđą.
Let me first defend myself. The very point of my company is to re-brand âbrandâ. That is to say a brand is NOT a logo (seared into flesh or otherwise), it is an earned reputation based upon the true value of your offer, the way in which that value is conveyed, and the greater good giveback of your company (aka social responsibility). I spend most of my time in this role working on clients' reputations based upon these 3 tenets. Unwittingly I was delighted and found some vindication, in my work, when I read âPlay Biggerâ. But category design helped put an over-arching framework around the way I think, and attempt to educate and advise in the world of brand. I have used the book A LOT and passed it along to multiple clients.
I love this platform by the way. Thank you Christopher, team and wise members of this exciting new community!
Great newsletter. Keep em coming. Iâd love to see more content for some of us Small E entrepreneurs. Also, looking forward to reading about how we use the strategies in different mediums such as newsletters, blogs, podcast, etc.