Strategy & Positioning

Category Design · Building the Market, Not Just the Product

Why the most valuable companies don't compete in existing categories — they create new ones, condition the market to value them, and own the language of the category. The Play Bigger framework and how to apply it.

Attribution. Category Design as a named discipline was articulated by Christopher Lochhead, Al Ramadan, Dave Peterson, and Kevin Maney in the 2016 book Play Bigger: How Pirates, Dreamers, and Innovators Create and Dominate Markets. Lochhead has continued the work through his podcast and writing. This article reviews the framework.

The category design thesis

Play Bigger's central argument: the most valuable technology companies of the modern era don't win by being better than competitors in an existing category. They win by defining a new category — naming it, articulating what it means, conditioning the market to want it — and then being the default leader of the category they created.

Salesforce defined "CRM software." Uber defined "ridesharing." Slack defined "channel-based team messaging" (and worked to define a "modern work" category). The category language preceded mainstream awareness; the leader controlled the language.

What "category design" actually is

Category design is the discipline of doing three things in parallel:

  1. Designing the product. The thing customers buy.
  2. Designing the company. The team, the culture, the operating model that ships and scales the product.
  3. Designing the category. The frame that gives meaning to the product — including the language, the problems-it-solves narrative, the comparison set, the success criteria.

The argument is that you can't skip category design. If you don't design your category, you get put in someone else's — usually a category dominated by a larger competitor where you become a "better/cheaper/faster" alternative. That position is structurally weaker than category leader.

The 6/10 rule

The Play Bigger team's data showed that in technology categories, the category leader typically captures roughly two-thirds of the total category economic value (market cap, profits) over the long run. The #2 and #3 players split most of the rest. Anyone beyond #3 is largely irrelevant in long-run value terms.

This is why category design matters: being category leader is structurally far more valuable than being a strong #2 in someone else's category.

The "POV" — point of view

Category design starts with a point of view (POV) document — a 1500–2500 word manifesto that names the problem the world has, names the new category that solves it, and positions the company as the credentialed leader of that category.

The POV is not a marketing asset. It's a strategic foundation that every other decision — pricing, positioning, hiring, partnerships, PR — derives from. Without a strong POV, marketing produces inconsistent signals about what category you're in.

Category design isn't for everyone. If you're competing in a well-established category with strong incumbents, category design probably won't help you in any short timeframe — and pretending to create a new category when the market already has perfectly good language for what you do tends to confuse buyers rather than inspire them. Category design is most powerful for genuinely new product types where category language doesn't yet exist.

Common category-design failures

Faking a category. Claiming to be a "modern X" or a "next-generation Y" when the underlying product is incremental on an existing category. Buyers see through this.

Premature category creation. Trying to define a new category before you have a working product that earns the right to lead it. Buyers don't adopt categories from companies with no proof.

Category articulation by committee. The POV gets watered down by every stakeholder's feedback until it says nothing. The original sharp argument was the strategic insight.

Related on RGM

Sources & further reading
  1. Lochhead, C., Ramadan, A., Peterson, D., & Maney, K. (2016). Play Bigger: How Pirates, Dreamers, and Innovators Create and Dominate Markets. HarperBusiness.
  2. Lochhead, C. — Lochhead on Marketing podcast and ongoing essays.
  3. Ramadan, A. — Christopher Lochhead Follow Your Different podcast appearances on category design.
  4. RGM operator notes — category design engagements 2023–2026.