Definition of category: The formal definition of category is the last level of commodity classification involved in the purchase decision of the customer, by the classification can be associated with the brand, and in the classification can be completed on the corresponding purchase options. Category has a strong and weak points, weak category is the name of our professionals, consumers will not have a strong and weak category of this name, for the weak category, most consumers usually do not think it is a category.
The most critical role of category: category is the window to consumer demand, consumer demand is expressed in categories, category fuzzy it is difficult to dock consumer demand.
Interpretation of the definition of category:
1, category is the last commodity classification in the consumer's own purchasing decision, is based on the consumer's own understanding of the division of commodities, each person on the same commodity division of the category may be different. For example, wine in the view of many people on the red and white wine, but for people who understand wine, its know that wine has Cabernet, Pinot Noir, Cabernet Sauvignon and other types.
2. This categorization is what can be associated with a brand, because that's what completes the purchase. If a consumer divides a thing out, but can't find the corresponding brand to buy based on this classification, then this classification is invalid, and they need to go back to the previous layer of classification to choose a brand to buy. For example, if a consumer wants to buy a snow boot that generates solar power and heats the sole of the boot, but can't find the brand of the boot, then he has to go back to the category of snow boots, and the ability to generate solar power and heat the sole of the boot as a feature of the snow boot.
Abstract categories: There are some categories that consumers will be involved in decision making, but not the last level of classification, the customer can not complete the purchase choice based on the classification, and the classification is usually not associated with the brand, so the concept of such a classification is an abstract category. For example, electrical appliances and fruits, these are abstract categories.
Abstract categories plus the words that indicate the sales place can often be converted into specific categories, such as electrical appliances can be converted into electrical appliances store, fruit can be converted into a fruit store, so that they are no longer abstract categories but specific channel categories. Channel category involves the theory of category three boundaries, in this paper does not make expression.
Strong and weak categories
Category is the interface of customer demand, customers produce a demand, there are often more than one category can meet the demand, and the most vulnerable categories, its own difficulty in completing the mental pre-sale. For example, in Chongqing, Hunan cuisine is a weak category, when consumers have dining needs, Hunan cuisine will rarely enter the consumer choice, and thus can not complete the mental pre-sale.
Some other categories, although they are able to complete the mental pre-sale, but because these categories are usually very low unit price, or low frequency of purchase, or the customer is easy to judge the quality of their own, or belong to the private consumption does not need to show the value of the customer is not likely to bother to remember the product brand, so such a category is also a disadvantage, such as slippers, cups, nail clippers, and so on.
New categories in the birth of the early stage, is also very weak, because the vast majority of people do not know, and therefore it is difficult to complete the category mind pre-sale. But there is a big difference between new categories and weak categories. New categories represent needs that are not effectively met by existing categories, so potential customers urgently need new categories even though they don't know the names of the new categories.
? If the category can complete the mental pre-sale, and the unit price is high, it is difficult for customers to judge the quality on their own, or belong to the social and public consumption, then customers want to be provided by an expert brand to guarantee the value and manifest the value of these categories is a strong category, in order to build a strong brand.
? Strong categories can also become weak categories. Strong category development to a certain stage, there may be excess performance, innovation stagnation, the gradual homogenization of the brand will lead to the protection of the brand's value is getting weaker and weaker, then the category will gradually become a weak category, the customer's reliance on the brand will be transferred to the channel brand or the extension of the strong brand, only the luxury brands rely on the value of the manifestation of the brand can still survive. After becoming a weak category, because it is difficult to create a new brand, but also to prevent more resources into the homogenization of competition, which is the embodiment of the market's inherent efficiency.
The evolution and differentiation of categories
? The origin of the category is demand, the evolution of the category can better meet the demand, the differentiation of the category can meet the more abundant demand. The evolution of the category is the continuous improvement of the category, becoming more powerful, more stable performance, more convenient to use, more cost-effective. In this evolutionary process, there is also differentiation (often caused by the demand side of the differentiation), differentiation leads to new categories continue to occur, the new category may replace the old category to become the mainstream, the old category to lose the function of the last level of classification of goods as a consumer shopping decision-making into a large category. For example, in the early days, sneakers were a category that was the last classification in many customers' purchasing decisions, but not anymore, sneakers have become an abstract category. When you buy sneakers, people will ask you what kind of sneakers you buy, running shoes, basketball shoes or other?
? The evolution of the category better meets customer needs, the demand for the category will be more and more, but the demand will also become richer because of the existence of personalization. When personalized demand does not reach the economic scale feasibility, there is no enterprise production; only when personalized demand reaches the economic scale feasibility, there will be enterprises for the niche demand to do differentiated products, when this differentiation is large to a certain extent, consumers will think that this new product is a different category, resulting in cognitive isolation. Cognitive segregation is a sign of new category formation, just as reproductive segregation is a sign of new species formation. Of course, in the process of differentiation, there will also exist the phenomenon of inconsistent degree of differentiation, the degree of category differentiation in different customers, this phenomenon is the phenomenon of incomplete category differentiation. This phenomenon is the phenomenon of incomplete category differentiation, such as the example of wine. The phenomenon of incomplete category differentiation is often indicative of a trend. Because any category begins with the perception of a few customers, as to whether this differentiation can be expanded to a broad spectrum of people, to become a completely differentiated new category, this is a major problem that entrepreneurs need to judge, but also the opportunity to identify new categories.
The differentiation of categories is endless, but the existing categories are limited, because categories also like species will become extinct. The creation of new categories means competition, which will cause the decline of the old categories, and even replace the old category status as the mainstream. So the vitality of the brand depends on the vitality of the category, and when the category dies, the brand will die with it.
Anatomy of the emergence of new categories
For high heels just appeared, there is such a personalized demand for people, he needs to say to the production of shoes that he wants a pair of shoes with a heel height of xxcm high, so as to allow each other to understand. This individualized need of his was just a characteristic shoe for him, not enough for him to be categorized separately for that. If every somewhat differentiated thing needed to be individually categorized, the human brain would absolutely collapse. When personalized demand does not reach economic scale feasibility, one's personalized demand can only be treated as a distinctive product in an old category. When this personalized demand reaches the economic scale feasibility, there are manufacturers began to produce this personalized products, but the total demand is not large, at this time this product is in the incomplete differentiation state. When many manufacturers begin to produce this differentiated product to meet individualized demand, this product becomes available everywhere, this incompletely differentiated product becomes a new category. That is, when this differentiated product is used by a lot of people relative to other products in the old category, only then do consumers give this new thing a name for ease of expression and separate it into a category. Because the volume of this thing is already too large to fit in with the other things in the other old categories, it needs to take a separate pit. In addition, if the product differentiation is so huge that even if there is very little demand for such a thing, consumers will treat it as a new category, for example, flying motorcycles without wheels, a category that consumers will treat as a new category due to its huge differentiation.
It can be seen, to form a new category differentiation is necessary, and this differentiation is clearly perceivable, not a change of soup without a change of medicine, take a new name only, for example, no one will think that tomato is a new category of tomatoes. If the differentiation is not too big, to successfully launch a new category you need to make this differentiated product is clearly more than the other products in the same category is more consumption, its specific performance is that this product is a lot of business as the main product, otherwise it is difficult to form a category.
Is focusing on one dish creating a new category?
Many companies in the restaurant began to focus on a dish, some companies think that this dish is a category, and some even think that the creation of a new category. In fact, this practice in the eyes of consumers is a restaurant with specialties or signature dishes, and will not focus on that dish you think is a category. As I said before to form a new category, differentiation is necessary, differentiation is large enough to be directly treated by consumers as a new category, differentiation is not enough, the amount should be large. If you simply focus on a dish, not around this dish to form a set of different from the previous dining system, the eyes of consumers your dish is a signature dish. For example, because a lot of people do pickled fish, and some brands have formed a set of unique dining system around it (such as too two), so in the local area is considered by consumers as a new category. If you focus on a dish, but the differentiation of this dish is not big enough, it is difficult to make it big, want to make this dish to the point of a category by yourself, it is very difficult, it is difficult to guarantee that other people will follow you to push the same dish, so this road should be careful. In addition, the category is the window of the docking demand, category has a strong and weak points, dish is the same, some dishes are difficult to realize the pre-sale ability of the mind, consumers go to eat may not even think of the existence of this dish. But compared to other equally undifferentiated catering, the first to hit a dish is differentiation, cognitively the first to establish and then break, so that this dish becomes the hook of their stores, hooking consumers, and the formation of a brand of unified cognitive points.
? Small and medium-sized catering enterprises due to limited resources, focus on a dish is the most secure way to cut into the market. If the focus to a dish are not doing well, the catering business can change the line. When other catering brands have no differentiation or characteristics, the first to focus on a dish strategy can highlight the homogenization of the heavy enclosure, cognitively can form a unified cognition, operationally sales focus makes the cost down. However, if a lot of food and beverage are focused on a dish, then this approach is not desirable, because the differentiation has been lost, even if the focus to the dish is not the same.
? Catering enterprises to go to grasp the greater opportunity, can break through homogenization by focusing on a dish to improve performance, in the process of attracting talent to strengthen the strength, and then go to seek greater opportunities in the category, or even the category boss.