Category Design - Create and Dominate New Markets

Become the Category King by creating new markets instead of competing in existing ones

When to Use This Skill

• Launching a company or product that doesn't fit cleanly into existing categories
• Stuck in commodity competition where you're compared feature-to-feature with competitors
• Redefining your market position when "better" isn't working as a strategy
• Planning a major market announcement or product launch
• Escaping price pressure by creating net new demand instead of fighting for existing pie
• Building your company narrative for investors, employees, and customers
• Feeling like you're losing to entrenched incumbents despite having a superior solution

Methodology Foundation

Aspect	Details
Source	Play Bigger: How Pirates, Dreamers, and Innovators Create and Dominate Markets (2016)
Experts	Al Ramadan, Dave Peterson, Christopher Lochhead, Kevin Maney
Core Principle	"Companies that design and dominate new categories capture 76% of the total market value. Being better isn't enough—you must be different."

What Claude Does vs What You Decide

Claude Does	You Decide
Structures analysis frameworks	Strategic priorities
Synthesizes market data	Competitive positioning
Identifies opportunities	Resource allocation
Creates strategic options	Final strategy selection
Suggests implementation approaches	Execution decisions

What This Skill Does

This skill helps you escape the trap of "better" and create something "different." Most companies fail because they try to out-compete entrenched incumbents on their terms. Category Design flips the script.

Instead of fighting for scraps in existing markets, you'll:

1. Find problems others don't see - Identify costly problems hidden in plain sight
2. Design the category - Create the rules that favor you
3. Condition the market - Make your problem feel urgent and your solution inevitable
4. Execute Lightning Strikes - Launch in ways that change how people think
5. Become the Category King - Capture 76% of market value, not 24%

The result: You stop competing and start creating markets where you make the rules.

How to Use

Prompt Examples

Help me identify if my product/company is a true category creator or just a "better" competitor.
Here's what we do: [description]. Walk me through the category design diagnostic.

I'm competing in [existing category] against [competitors]. Help me find a new category
framing that makes our competition irrelevant. Use the Play Bigger methodology.

Write a POV (Point of View) document for my company using the category design format.
Our product: [description]. Our audience: [audience]. The problem we solve: [problem].

Plan a Lightning Strike for launching our new category. We have [budget] and [timeframe].
Include event strategy, PR, content, and sales enablement components.

Create a Category Blueprint for [my product/service] that shows how all the components
work together as a unified category solution.

Instructions

The Category Design Framework

┌─────────────────────────────────────────────────────────────┐
│         THE THREE PILLARS OF CATEGORY CREATION              │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│    PRODUCT DESIGN     COMPANY DESIGN     CATEGORY DESIGN    │
│    ──────────────     ──────────────     ──────────────     │
│    Solves the         Creates culture    Battle for         │
│    category           and org that       public opinion     │
│    problem            supports both      about the problem  │
│                                                             │
│         ↓                   ↓                   ↓           │
│                                                             │
│                  ALL THREE MUST ALIGN                       │
│                                                             │
└─────────────────────────────────────────────────────────────┘

The Five Golden Rules

Before starting, internalize these principles:

Rule	What It Means
1. Fight the status quo, not competition	Make what competitors do irrelevant, not inferior
2. Know who it's for (and who it's not)	Narrow focus creates stronger category claim
3. See problems others can't	The best problems are hidden in plain sight
4. Solve with a vision for the future	Paint a compelling picture of what's possible
5. Frame it. Name it. Claim it.	Own the language and definition

---

Step 1: Find the Problem

The problem is the foundation. Without the right problem, there is no category.

Requirements for a category-worthy problem:

Requirement	Test
Unsolved or poorly solved	Current solutions have significant gaps
Costly	Not solving it costs time, money, reputation, or opportunity
Widespread	Enough people have it to create a market
Creates an "aha" moment	When framed correctly, people immediately recognize it
Non-obvious	If it were obvious, incumbents would have solved it

Category Potential Formula:

CP = Pr × P

CP = Category Potential
Pr = Number of people/companies with the problem
P  = What they're willing to pay to solve it

Example:

• 500,000 companies have the problem
• They'd pay $5,000/year to solve it
• CP = $2.5B annual category potential

Problem Discovery Questions:

1. What do our best customers complain about that we thought was "just how it is"?
2. What takes our customers 10x longer than it should?
3. What are our customers apologizing to THEIR customers about?
4. What would our customers' CEO care about that their current vendors can't solve?
5. If we could wave a magic wand, what reality would we create?

---

Step 2: Name the Category

The name unifies all your solution components into a single concept.

Good Category Names:

• Content Streaming (Netflix)
• Experience Management (Qualtrics)
• Ridesharing (Uber)
• Connectivity Cloud (Cloudflare)

Naming Principles:

Principle	Explanation
Single-minded	One name, not a Lego set of features
Searchable	People will eventually Google this
Ownable	You can claim it and defend it
Expandable	Room to grow without renaming
Intuitive	New people get it quickly

Naming Exercise: Complete this sentence: "We invented _____________ so that [customer] can [outcome]."

---

Step 3: Create the Category Blueprint

The Blueprint shows how your category works—not just your product, but the entire category ecosystem.

Blueprint Components:

┌─────────────────────────────────────────────────────────────┐
│                    [CATEGORY NAME]                          │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  ┌─────────────┐    ┌─────────────┐    ┌─────────────┐     │
│  │  COMPONENT  │ ↔  │  COMPONENT  │ ↔  │  COMPONENT  │     │
│  │     ONE     │    │     TWO     │    │    THREE    │     │
│  └─────────────┘    └─────────────┘    └─────────────┘     │
│         ↕                 ↕                  ↕              │
│  ┌───────────────────────────────────────────────────┐     │
│  │              DATA / INTELLIGENCE LAYER            │     │
│  └───────────────────────────────────────────────────┘     │
│         ↕                 ↕                  ↕              │
│  ┌─────────────┐    ┌─────────────┐    ┌─────────────┐     │
│  │   OUTCOME   │    │   OUTCOME   │    │   OUTCOME   │     │
│  │     ONE     │    │     TWO     │    │    THREE    │     │
│  └─────────────┘    └─────────────┘    └─────────────┘     │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Why the Blueprint Matters:

• Defines what a "complete" solution looks like
• Forces competitors to match your definition
• Educates customers on what to demand from vendors
• Creates the "RFP" for your category

---

Step 4: Write Your POV (Point of View)

The POV is the single most important deliverable. It arms your company with a unique perspective that conditions the market.

POV Structure:

## [Category Name] POV

### 1. Context
What's happening in the world that sets the stage for this problem?
[2-3 sentences about trends, shifts, changes]

### 2. The Problem
What problem hasn't been solved—or hasn't been solved well?
[Describe in visceral, specific terms]

### 3. The Villain
What's the shorthand name for this problem?
"The [X] Gap" / "The [X] Crisis" / "[X] Chaos"

### 4. Why Current Approaches Fail
Why haven't existing solutions worked?
[2-3 specific reasons with evidence]

### 5. The Costs
What are the specific, quantifiable costs of not solving this?
- Cost 1: [$ or % impact]
- Cost 2: [$ or % impact]
- Cost 3: [$ or % impact]

### 6. Our Vision for the Future
What does the world look like when this problem is solved?
[Paint a compelling picture]

### 7. The Category
We call this [CATEGORY NAME].
[One sentence definition]

### 8. How It Works (Blueprint)
[Walk through the components and how they connect]

### 9. Outcomes
When companies/people adopt [CATEGORY NAME], they get:
- Outcome 1
- Outcome 2
- Outcome 3

### 10. Call to Action
Here's what you can do right now:
[Specific next step]

---

Step 5: Mobilize the Company

Everyone must align behind the category. This is CEO-driven.

Mobilization Checklist:

• POV presented to entire company
• Every team understands how their work supports the category
• Sales has new talk tracks aligned to POV
• Marketing has new messaging and content
• Product roadmap reflects category vision
• Recruiting looks for category believers
• "Zeds" (skeptics) given chance to buy in or exit

Gravity Warning: "Gravity" is the day-to-day grind that pulls you back to old ways—current customer demands, existing sales motions, quarterly targets. You must actively fight gravity to create a new category.

---

Step 6: Execute Lightning Strikes

Lightning Strikes are coordinated moments of maximum impact that establish your category leadership.

Lightning Strike Components:

Component	Purpose
Event	Centerpiece (your event or hijacked conference)
PR	Major media coverage timed to event
Website	Complete refresh with new messaging
Content	Blueprint, POV, thought leadership
Sales Enablement	New decks, battlecards, talk tracks
Product	Feature or milestone announcement
Analyst Relations	Briefings to create coverage

Timing:

• 2 Lightning Strikes per year maximum
• 80% of marketing budget to strikes
• 3-6 months to prepare properly

Success Metric:

"A lightning strike is an efficient way to start altering brain patterns and establish the idea that your company is the category leader."

---

Examples

Example 1: B2B SaaS Repositioning

Before (Competing): "We're a project management tool that's faster and more intuitive than Monday.com and Asana."

After (Category Design):

Problem Identified: Remote teams waste 30% of their time on "work about work"—status updates, finding information, and coordinating across time zones.

Category Name: Async Work Intelligence

POV Excerpt:

"We live in a world where work happens across time zones, yet our tools were built for everyone being in the same office at the same time. The result? 'Work about work' has exploded. Remote workers spend 30% of their day just figuring out what's happening. We call this the Sync Tax.

Traditional project management tools try to organize the chaos. But they don't solve it—they systematize it. What if instead of better ways to coordinate, we could eliminate the need to coordinate at all?

We call this Async Work Intelligence—a new category of software that eliminates the Sync Tax by making work self-aware. Projects know their own status. People know what matters without asking. And the 30% comes back to actual work."

Blueprint:

• AI Status Layer (automatic progress detection)
• Async Communication Hub (time-zone-aware messaging)
• Decision Intelligence (who needs to know what, when)
• Work Graph (relationship between tasks, people, time)

---

Example 2: Consumer Product Launch

Before (Competing): "We make premium athletic wear that's more sustainable than Lululemon."

After (Category Design):

Problem Identified: Athletes want to perform AND live their values, but "sustainable" athletic wear means compromising performance.

Category Name: Performance Activism

POV Excerpt:

"A new generation of athletes has emerged. They train hard AND care deeply. They want to perform at their best AND leave the world better. But every brand forces a choice: performance OR values.

'Sustainable' athletic wear uses recycled materials that absorb sweat, stretch weird, and fall apart in months. Performance wear uses plastics that will outlive your grandchildren.

We rejected this choice. We call it Performance Activism—apparel that performs at the elite level while actively healing the planet. Not 'less bad.' Actually regenerative. Every piece sequesters carbon. Every purchase restores ecosystems. And it out-performs any synthetic."

---

Checklists & Templates

Category Potential Assessment

## Category Potential Assessment: [Idea/Product]

### The Problem
**Problem Statement**:
[One sentence]

**Who Has It**:
- Segment 1: [# of people/companies]
- Segment 2: [# of people/companies]
- Total Addressable: [total]

**Costs of Not Solving**:
- Direct cost: $___/year
- Indirect cost: $___/year
- Opportunity cost: $___/year

**Willingness to Pay**:
- Low estimate: $___/year
- Mid estimate: $___/year
- High estimate: $___/year

### Category Potential Calculation
CP = [# with problem] × [$ willing to pay]
CP = ___ × $___
**CP = $___/year**

### Problem Quality Check
- [ ] Unsolved or poorly solved currently?
- [ ] Creates visceral reaction when described?
- [ ] CEO-level concern (not just department)?
- [ ] Getting worse over time (not better)?
- [ ] Non-obvious to incumbents?

POV Document Template

# [Category Name]: Point of View

## The World Is Changing
[2-3 sentences on macro trends creating the problem]

## The Problem
[Problem described in visceral, human terms]

### The [Villain Name]
[One-line definition of the shorthand villain]

**The Costs**:
| Impact | Annual Cost |
|--------|-------------|
| [Impact 1] | $X or X% |
| [Impact 2] | $X or X% |
| [Impact 3] | $X or X% |

## Why Current Solutions Fail
### [Current Approach 1]
[Why it doesn't work]

### [Current Approach 2]
[Why it doesn't work]

## A New Way: [Category Name]
[One paragraph vision of the future]

### How It Works
[Blueprint description with components]

## The Outcomes
When [customers] adopt [Category Name]:
1. [Outcome 1 - specific and measurable]
2. [Outcome 2 - specific and measurable]
3. [Outcome 3 - specific and measurable]

## Take the First Step
[Clear call to action]

Lightning Strike Planning Template

## Lightning Strike Plan: [Event/Launch Name]

### Timing
- Strike Date: [date]
- Prep Begins: [date - usually 3-6 months prior]

### Centerpiece Event
- What: [conference, webinar, launch event]
- Where: [location/platform]
- Expected Attendance: [number]

### Pre-Strike Checklist
**30 Days Before**:
- [ ] POV finalized and approved
- [ ] Website updates ready to deploy
- [ ] PR embargo packages sent
- [ ] Sales enablement complete
- [ ] Product milestone confirmed

**7 Days Before**:
- [ ] All teams briefed
- [ ] Content queued
- [ ] Analyst briefings scheduled
- [ ] Customer quotes secured
- [ ] Social campaign ready

### Day-Of Execution
- [ ] Website goes live: [time]
- [ ] Press release drops: [time]
- [ ] Social campaign launches: [time]
- [ ] Email blast: [time]
- [ ] Event begins: [time]

### Post-Strike (72 Hours)
- [ ] Follow-up emails
- [ ] Retargeting activated
- [ ] Sales follow-up begins
- [ ] Media coverage tracking
- [ ] Social engagement response

### Success Metrics
- Media mentions: [target]
- Website traffic: [target]
- Leads generated: [target]
- Social engagement: [target]
- Category name mentions: [target]

---

Skill Boundaries

What This Skill Does Well

• Structuring strategic analysis
• Identifying market opportunities
• Creating strategic frameworks
• Synthesizing competitive data

What This Skill Cannot Do

• Replace market research
• Guarantee strategic success
• Know proprietary competitor info
• Make executive decisions

References

• Book: Play Bigger by Al Ramadan, Dave Peterson, Christopher Lochhead, Kevin Maney
• Website: PlayBigger.com
• Research: Harvard Business Review on Category Kings
• Source: sources/books/play-bigger-category-design.md

Related Skills

• positioning-dunford - How positioning fits within category design
• sales-pitch-dunford - The sales narrative for category leaders
• storybrand-framework - Storytelling for category POVs
• grand-slam-offers - Offer design for category-creating products
• made-to-stick - Making your category message memorable