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The Iceberg: Why To Create Category, Not Brand?

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Category Or Brand

Do we have an answer to the question “Which came first the chicken or the egg?”  No but, today, we have an answer to another question. Tell me, what comes first? The brand or the category? Category>brand>category>brand?

Well, some marketers think that brand comes first and category second. (In fact, the opposite is true). They are in love with their brands and never want to lose them. If any one brand is successful and famous, they want to attach the original brand name to all other brands. To take the benefit of shelf space, instant sales, etc.

All of a sudden, they forget the most important part of the life of the brand: what made them successful in the first place. Do you wanna know the answer? It’s hidden in this cartoon video.

It’s the world’s only marketing cartoon video series, Marketube.

[box type=”yellow”]If you haven’t been to my blog, perhaps you’re missing the “quickest” and the “easiest” way to learn marketing concepts. (Please share this cartoon video with others. Al Ries loved this idea. You will too!)[/box]

[youtube cDwJDrxj-gw 640 390]

Cartoon: Why To Create Category, Not Brand? The Category-Brand Iceberg

Video Script:

Eric: Consumers buy categories, not brands. They don’t love your brand, they are ,actually, in love with your category,

Kimberly: What? You’re a marketing expert, and you’re saying that, brands aren’t that important?

Eric: Yes, consumers love categories, but they refer to these categories by brand names, To avoid confusion, they ask simply what category, exactly, they would like to have.

If you want to get into consumer’s mind, you have to launch the brand, via, creating a new category, in the mind of consumer, by being first.

For example, there was no brand in the energy drink. Red Bull created the energy drink category, by being first to the mind of consumer. Today, it’s a leading brand

Yet, some marketers think the opposite. They want to get into consumer’s mind, by creating brand, not category.

While, the right way to get into consumer’s mind is by creating category, not brand.

Category-Brand Iceberg:

Brand and Category are directly related to each other. For example, think of an iceberg, and tip of an iceberg, the category, is an iceberg, while the brand is a tip of an iceberg.

Here’s the rule of thumb: how big and how deep the iceberg is, will determine how valuable the brand is.

Now, tell me, what happens when the iceberg melts?

Kimberly: The tip of an iceberg also melts!

Eric: Correct! Same goes here, when category melts, brand also melts. That’s why create a valuable category first, to create a valuable brand

No marketers on earth should save the brand, if its category is dying

According to Interbrand, In 1993, brand equity of Marlboro was 47 billion in dollar. In 2008, it was 21 billion, as smoking iceberg melts; one day Marlboro brand will be worthless

Kimberly: But consumers buy brands, not categories.

Eric: Who told you this?

Kimberly: Who will? A consumer!

Eric: Who is the marketer? You or consumer?

Kimberly: Me, of course!

Eric: Then you have to tell consumers what they buy. Consumers are so confused.  To know what consumers buy, you’ve to understand, how consumers make decisions of what they buy. (We’ll talk about it in the next video)

Summary:

  1. If you want to get into the consumer’s mind, create a new category by being first.
  2. Create a valuable category first, to create a valuable brand.
  3. If you’ve created a successful category, brand success will follow, by effectively applying marketing strategies.
  4. Consumers love categories, but they refer to these categories by brand names. To tell what, exactly, they would like to have.

Did I miss something?  Any suggestions, comments or questions? Let me know in the comments below at the end of the page! I would love to hear from you. I read every single comment!

About

Marketing asks to develop a category by being first to the consumer’s mind by recognizing new opportunity. So I’m trying to do it and still learning. I spent years studying marketing, advertising, branding, online social media, and I believe strongly that everyone should benefit from it. That’s why I’m here.Here's more about me:http://KamilAli.com/about-kamil-ali/

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{ 18 Responses }

  1. Noel Addison says:
    Great Post Kamil Ali! You've change my perspective in marketing. Before I thought that branding is the base of marketing but you have debunked that erroneous belief. In your video I learned that a strong category is the base of a successful marketing strategy.
    • Kamil Ali says:
      Thanks for your comment Noel, Marketing is the base of branding. Branding is based on category. To build a strong house you need a strong foundation, to build a strong brand you need a strong category! Branding is the most powerful idea of marketing. But require all steps to be complete sufficuantly.
  2. Evan says:
    I think you are right. But I think it might take a long time and a lot of money. I'm not sure it applies to a solopreneur like me. I don't have the budget of Coke or Red Bull.
    • Kamil Ali says:
      Thanks for the short and astute comment Evan! Yes it takes time and money. As marketing asks for resources. When we say new category, it is not only mean a breakthrough product or truly new product. It also means creating a pie of the market segment.What Dell it in its early days is perhaps the best example. IBM was the leader, it truly created a category. Dell focused on direct delivery of computers and rest is the history. Marketing is also for creating personal brands. So it's also for you and you blog! Now for breakthrough products: mostly, people think ad campaign as a heave budget. Guess what>? For breakthrough products or category, we don't need ad campaign budget to introduce PR budget will do. (comparatively inexpensive than that of ad)
  3. Anthony says:
    I love love love this. I was JUST thinking about this the other day. You explained it so clearly that it's even more clear (in my head) now. Just wondering what you meant about create a category first in their minds. You mean how Apple kind of created a category for the iPad first?
    • Kamil Ali says:
      Thanks for the lovely comment Anthony!:) Yes, you're right. Category or brand, supposed to be created in the mind first (in the marketplace second) Apple always does it well, specially, through Steve Jobs. Apple did the same with iPod! Thanks for the confirmation! According to my audience, my cartoon series is sticky! Which makes possible to revise the marketing concepts in the mind which leads to memorization of concepts.
  4. sam says:
    Interesting one i can't say any things about that which thing came first from between them Brand or Category. If we want to get better response from customer we should see our brand quality which is very important thing because this is that thing which increase sell of our product. Alongwith that you mentioned very great tactics to increase the business.
    • Kamil Ali says:
      Sam thanks for the astute comment! Yes, we are supposed to develop brand quality in order to get good feedback or should improve our customer service. Yet, the idea over here is antidote to many marketing problems. It's a root cause! Which one is quality watch? Rolex or Timex? Both? Do you think Timex does not provide quality product/brand or services? It does! Still consumers think Rolex is better watch. Why? Because it's expensive product means quality product? Did any one opened up to check the quality of Rolex ? I don't think so. Consumers buy Rolex because it's a prestigious watch! Marketing strategy: It was 1st to create expensive watch category in consumers mind and locked this category with brand, Rolex. Now consumer will give benefit of doubt to Rolex. Even if Rolex make mistake in product or services sometimes.
  5. courtney stodden says:
    I was struggling to understand what it was you meant until you gave some examples, then it all made sense!
    • Kamil Ali says:
      Thanks for taking time out of your valuable schedule to watch the cartoon. Sorry I made you struggle, yet that's the better way to learn, i think:) Thank you Courtney!
  6. Ivin says:
    Hello Kamil. The Iceberg is a great analogy and I must say, for me the concept of marketing or pioneering a category is revolutionary.
    • Kamil Ali says:
      Thanks Ivin, There are many analogy thorough which marketing concepts can be made understand! The concept has been revolutionizing and have been practiced by many marketing gurus, like Al Ries
  7. Robert says:
    Hmm it's an interesting and valid point. I was struggling to understand what it was you meant until you gave some examples, then it all made sense! It's not something we ever think about, you only realise it once it's shown to you! Thanks
    • Kamil Ali says:
      Thanks for the appreciation Robert! There are many example to get through the concept. Think, of the photographic film category. It's is no more used for still camera. Kodak 'stands for' photographic film (in the mind of consume) Is it a good idea that Kodak still promote it self as a photographic film. Nope (it will be a waste of resources) Is it a good idea that Kodak promote it self as a digital camera. Nope, either (it will be a waste of resources again, as Kodak 'stands for' photographic film in the mind of consumer) Let me know if I can help you out in getting through other marketing concepts!
  8. Alan Tay says:
    I always think that Brand comes first. It seems that in your article, you manage to put it in the way that Category comes first. This is a valuable lesson. I do agree that Category comes first based on the article and probably already confused after noted that consumer does not know what they are actually buying. Looking forward for your next video
    • Kamil Ali says:
      Alan, Thanks for your comment! Category comes first, yet it must be locked by some brand name. Actually, marketing is very complex and difficult field. A few months back I started this video series and received a great response. You know why? Because people usually misunderstood marketing concept through their common sense. And guess what? marketing is discipline and it's concepts are not a common sense.
  9. Patrice says:
    Hi, Kamil. Great article. I think it's better to get into mind the category first, cos it's concrete. A brand is only a name. Is there a category of Roberts ??? No. Is there a category of strong guys called Robert... Yes ! I think it's more easy to remember concrete thing that you can represent you. I think the example of red bull is the best. Thx.
    • Kamil Ali says:
      "I think it’s more easy to remember concrete thing that you can represent you." You get it Patrice! Category should be synonymous to some brand name. Energy Drink represents Red Bull Here's the next interesting idea: Brand name should synonymous (personify) somebody. Apple is personifies Steve Jobs. I think, this is the best way to make your brand stronger. Make your CEO a celeb! Thanks for your comment Patrice!