6 key points, small categories achieve big leap

　　Many people do not understand what a small category is, and it is difficult to define it. Most people understand it as: at a specific time, those categories that are temporarily not accepted by most consumers.

　　The development of small categories is very difficult because the things to do in small categories usually range from 0 to 1, so the ending of most small categories is either dying or has disappeared, and only a small number of small categories can become large categories.

　　Six key points for doing a good job in small categories:

　　1. Be sure to break out of the thinking circle of "small categories = small market"

　　Most companies make products based on resource orientation. For example, a company wants to transform into deep-processed products related to agricultural and sidelines. Because the company's location is rich in blueberries, the company decides to produce deep-processed products such as blueberry beverages, blueberry wine, and blueberry enzymes. The industry that companies benchmark is the blueberry industry, and they study how others are doing every day, but the more you study, the more you think you are a small category, so the only thing companies can think of is to seize other markets for deep processing of blueberry. If a company limits itself so much from the beginning, it will definitely not be able to go long.

　　Small categories are definitely not equal to small markets. The reason why you think it is a small market is that the company's own resource-oriented thinking problem. Returning to the most essential topic, you make deep-processed blueberry products not because your company is located in a lot of blueberries, but because it can bring different value to consumers. This value can be effectively continued for a long time, which is your original intention of choosing to make this product.

　　2. Don’t stare at similar competitors, but consumers

　　If Jiaduobao had only focused on competitors in the traditional herbal tea market in Guangdong and died, it would not have been as large as it challenged Coke today; if the six walnuts were only focused on competitors in the plant protein beverage market, the ceiling it could see was Lulu; if Maopu buckwheat wine only focused on competitors in the buckwheat wine market, today you probably wouldn't be able to see the situation of following the trend in the entire industry.

　　The reason why these companies can break through the limitations of their categories is because they are not competitors in their categories, but consumers.

　　People usually like to take the lead. The raw materials of the product are the most likely to disrupt the judgment of business owners. For example, my product is made of buckwheat, so I will naturally find products made of buckwheat. The most common scenario I have encountered is that when an entrepreneur introduced his products to me, he proudly told me that our products are the only one in the country and are the first in this industry to do.

　　For example, when I met a company that made Pueraria wine, it seemed that they were the first in the country, but I would ask, how big does Pueraria wine have in terms of market share? He is very uncertain, maybe 1 billion? 2 billion? Every time I encounter such a scenario, I will talk to the business owner directly. If you just like this little market space, I suggest you don’t do it. 1 billion is scattered all over the country. You don’t even know who is drinking it, where to drink Pueraria wine, just make something else.

　　So what should be the correct posture?

　　Break out of the small category market you are in, position the direction of category demands based on consumers, and get a share of the pie in the bigger blue ocean.

　　3. Starting from the consumption scenario, discover the extended value of the product

　　In fact, every small category of products is quite distinctive, especially the common sense that raw materials are born with common sense. At this time, we need to change our perspective and start from the consumption scenario to discover the extended value of the product. The most representative case of counterattack in small categories is the "Tiandi No. 1" apple cider vinegar in Guangdong region.

　　The brand comes from Jiangmen, Guangdong. The boss made a fortune in breeding, and the No. 1 local pork in the supermarket belongs to theirs. A few years ago, when apple cider vinegar drinks were on the rise, everyone looked at me and I saw you. Only Tiandi No. 1 took the lead in putting forward a slogan "What to eat and drink, Tiandi No. 1" from the consumption scenario. This appeal that many people think is vulgar does not prevent the brand from becoming popular in Chaoshan beef restaurants, and has quickly become one of the best choices for catering in Guangdong.

　　The key to his success is to discover the extended value of the product from apple cider vinegar itself. What value is it? It is the function of appetizing, relieving greasiness and promoting digestion, because vinegar itself has this effect. The most suitable scenario for this function is to eat, which will make you appetizer before meals, relieve greasiness during meals, and promote digestion after meals. So a successful brand does not focus on my own small categories, but starts from the consumption scenarios and discovers the extended value of the product.

　　4. Turn random consumption into rigid demand

　　If small categories want to achieve a big leap, they must break through a bottleneck, that is, turn uncertain random consumption into rigid demand. A few days ago, I met a customer who made rice wine. Because he loved rice wine since he was a child, he built a rice wine brand across industries. In the past two years, he has been trying continuously in the market, and he has mastered the technical points of rice wine, but the market situation has been difficult to open up.

　　From my perspective, I think the core problem is that although rice wine is familiar to most people and is delicious, it is just a random consumption, because in everyone's mind, there is no rigid demand, in a specific consumption scenario. So, my suggestion is that if you want to make rice wine, you should learn Tiandi No. 1 and turn the product into a rigid demand through scene grafting. Only in this way can small categories have a real future.

　　5. If there are fatal common sense weaknesses, change the concept or give up as soon as possible

　　Some products naturally have common sense weaknesses, so the cost of educating consumers is too high, and few companies can succeed. I have said before that wolfberry naturally has common sense weakness - getting angry, so few categories that emphasize that the product is the raw material for wolfberry are successful. It is emphasized that products are medicinal-flavored liquors, which can easily make consumers suspicious of health wine, so stay away from formal occasions. The concept of Yanghe micromolecules is very good, but in the process of communicating with consumers, consumers think that the sense of technology is too strong, which is not very consistent with the traditional handicrafts of liquor. Therefore, using this concept, it is difficult to replicate the miracle of Yanghe soft liquor back then.

　　6. Recognize the reality, small categories are by no means shortcuts

　　If you want to make money quickly, I advise you not to start with small categories. It is best to choose a mature large category, such as liquor. The small category tests the patience of the company the most because the market cultivation of a successful large category can take at least three to five years, and at most ten years.

　　Thank you for your attention and support to Laogao Crown Club . Please indicate the source of the reprinting website www.shxuanming.net