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Category design involves creating a new and distinct market category. This approach focuses on solving a problem in a unique and innovative way, rather than simply trying to be a better version of an existing product or service. By reframing, naming, and claiming a problem, entrepreneurs can create demand for their solution and differentiate themselves from competitors.
Languaging plays a crucial role in category design. By using new and strategic language, entrepreneurs can change how people think about a problem or solution. Successful examples include Starbucks using new names and sizes for their beverages and Otis Elevator framing their product as a vertical railway. Languaging helps create new thinking and perceptions of value.
When designing a category, it is essential to spend more time understanding and analyzing the problem you are trying to solve. By deeply understanding the pain points and frustrations of customers, entrepreneurs can develop unique and innovative solutions that address these needs. Listening to customers and gaining different perspectives on the problem can be invaluable.
Rather than focusing on traditional forecasting, entrepreneurs can benefit from backcasting. This involves envisioning the ideal outcome or impact you want to achieve with your solution, and then working backwards to determine the necessary steps to get there. Backcasting helps entrepreneurs align their vision with their goals and purpose, and can guide decision-making and strategic planning.
Category design is a powerful strategy for entrepreneurs and innovators who want to make an exponential difference in the world. It involves designing a new market category and reframing the problem or opportunity in a way that resonates with customers. By rejecting the premise and forgetting everything we know, we can unleash our creativity and think in unconstrained ways about a radically different future. Category designers compete against the status quo, not against competitors, and they focus on damming the demand by presenting a new and compelling solution. This approach requires a deep understanding of super consumers, targeting them through native digital channels, and evangelizing a category point of view. The future needs innovative and entrepreneurial minds to create new value and dominate new categories of innovation.
The concept of product-market fit has been widely regarded as crucial in business, but it can be a dangerous idea. Instead, category designers understand that categories make products and not the other way around. They focus on designing a market category for their product rather than fitting their product into an existing market category. Positioning is often seen as a way to differentiate, but in the context of category design, positioning against competitors can limit growth. Instead, category designers compete against the status quo and reframe the problem or opportunity, capturing the attention of customers. By embracing a lightning strike model, where they matter for a short period of time, they can drive warm and viral growth. Ultimately, category designers understand that differentiation comes from competing against the status quo, not against other products or brands.
Now is the greatest time in history to be an innovator, creator, or marketer. The future needs individuals who are willing to make an exponential difference and challenge the status quo. Innovation and entrepreneurship require courage and the willingness to create a unique place in the world. Those who are different are the ones who make the biggest difference. Category design empowers individuals to make their place in the world and create new value where there wasn't any. By rejecting conformity and embracing their unique ideas and perspectives, people can shape the future and deliver massive value to others. The key is to go out into the world and make a distinct, unique place for oneself while making a positive impact on others.
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Christopher Lochhead is a 14-time #1 bestselling author, top podcaster, and former 3x public tech company CMO and has been an advisor to over 50 VC-backed tech startups. He is best known as a “godfather” of category design, and Adobe named his book Play Bigger one of “the five greatest marketing books of all time.” In this episode, we discuss:• What exactly category design is
• The “Frame It, Name It, Claim It” framework
• How to go about designing your category
• Why “languaging” is so powerful
• Rating yourself on the category design scorecard
• Why Chris considers “product-market fit” a dangerous concept
• Chris’s spicy take on positioning
• The “better trap” and why it’s crucial to avoid it
• The magic triangle of product, company, and category
• How to embrace negative feedback
• Why the greatest time in the history of innovation is now
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Find the full transcript at: https://www.lennysnewsletter.com/p/how-to-become-a-category-pirate-christopher
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Where to find Christopher Lochhead:
• Twitter/X: https://twitter.com/lochhead
• LinkedIn: https://www.linkedin.com/in/christopherlochhead/
• Website: https://www.categorypirates.com/
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Where to find Lenny:
• Newsletter: https://www.lennysnewsletter.com
• Twitter/X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/
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In this episode, we cover:
(00:00) Chris’s background
(05:08) Why Chris shares his negative criticism on his website
(11:58) A simple explanation of category design
(18:00) How Purell mastered category design
(23:07) What Gong got right (and wrong)
(29:01) The “better trap” and why it’s crucial to avoid it
(38:51) Reflective thinking vs. reflexive thinking
(44:45) How Lomi created a revolutionary solution for food waste
(48:50) The “Frame It, Name It, Claim It” framework
(49:08) The concept of “languaging”
(54:00) Examples of languaging
(59:19) Spend more time on the problem than the solution
(1:01:37) The power of “backcasting”
(1:07:33) The truth behind building legendary brands
(1:10:39) The problem with product-market fit
(1:16:11) Chris’s spicy take on positioning
(1:19:20) “Damming the demand”
(1:24:49) Laws from Chris’s book The 22 Laws of Category Design
(1:29:46) Word of mouth: the most powerful form of marketing
(1:34:05) Chris’s closing message to listeners
(1:39:01) Lightning round
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Referenced:
• Rick Rubin Says Trust Your Gut, Not Your Audience: https://podcasts.apple.com/us/podcast/rick-rubin-says-trust-your-gut-not-your-audience/id1570872415?i=1000606447333
• How to identify your ideal customer profile (ICP): https://www.lennysnewsletter.com/p/how-to-identify-your-ideal-customer
• Grant Cardone on Twitter: https://twitter.com/GrantCardone
• Tai Lopez on Twitter: https://twitter.com/tailopez
• The Difference Between a First Mover and a Category Creator: https://hbr.org/2019/11/the-difference-between-a-first-mover-and-a-category-creator
• Gojo Industries: https://www.gojo.com/
• Gartner reports: https://www.gartner.com/
• Forrester reports: https://www.forrester.com/bold
• Gong: https://www.gong.io/
• Clari: https://www.clari.com/
• Threads, Instagram’s “Twitter Killer,” Has Arrived: https://www.nytimes.com/2023/07/05/technology/threads-app-meta-twitter-killer.html
• Kevin Maney: https://kevinmaney.com/
• Red Bull cola: https://www.redbull.com/int-en/theorganics/organics-simply-cola
• Microsoft Copied Apple’s Successful Retail Plan. Now It’s Shutting the Whole Thing Down: https://www.inc.com/jason-aten/microsoft-copied-apples-successful-retail-plan-now-its-shutting-whole-thing-down.html
• A New Way to Think, with World’s #1 Management Thinker Roger Martin: https://lochhead.com/roger-martin/
• A New Way to Think: Your Guide to Superior Management Effectiveness: https://www.amazon.com/New-Way-Think-Management-Effectiveness/dp/164782351X
• RJ Scaringe on Twitter: https://twitter.com/rjscaringe
• Lomi: https://lomi.com/products/lomi
• Otis elevators: https://www.otis.com/en/us
• How to build a breakthrough … the secret of Backcasting: https://medium.com/@m2jr/how-to-build-a-breakthrough-3071b6415b06
• John Bielenberg’s website: https://www.thinknado.com/
• Eddie Yoon: https://www.eddiewouldgrow.com/
• Marc Andreessen on Twitter: https://twitter.com/pmarca
• Snow Leopard: How Legendary Writers Create a Category of One: https://www.amazon.com/Snow-Leopard-Legendary-Writers-Category/dp/1956934456
• Play Bigger: How Pirates, Dreamers, and Innovators Create and Dominate Markets: https://www.amazon.com/Play-Bigger-Dreamers-Innovators-Dominate-ebook/dp/B015MOJ80G
• Niche Down: How to Become Legendary by Being Different: https://www.amazon.com/Niche-Down-Become-Legendary-Different-ebook/dp/B07FLKJJQQ
• The 22 Laws of Category Design: Name & Claim Your Niche, Share Your POV, and Move The World from Where It Is to Somewhere Different: https://www.amazon.com/Laws-Category-Design-Somewhere-Different/dp/195693457X/
• An inside look at Deel’s unprecedented growth | Meltem Kuran Berkowitz (Head of Growth): https://www.lennyspodcast.com/an-inside-look-at-deels-unprecedented-growth-meltem-kuran-berkowitz-head-of-growth/
• Illusions: The Adventures of a Reluctant Messiah: https://www.amazon.com/Illusions-Adventures-Reluctant-Richard-Bach/dp/0440204887
• What They Don’t Teach You at Harvard Business School: Notes from a Street-Smart Executive: https://www.amazon.com/What-Teach-Harvard-Business-School/dp/0553345834
• Inventing Anna on Netflix: https://www.netflix.com/title/81008305
• The rise and fall and rise of Tony Eltherington: https://www.swellnet.com/news/swellnet-dispatch/2017/04/27/rise-and-fall-and-rise-tony-eltherington
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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.
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Lenny may be an investor in the companies discussed.
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