the secret to creating new categories in a sea of

THE SECRET TO CREATING NEW CATEGORIES
IN A SEA OF SAMENESS
THE SECRET TO CREATING NEW CATEGORIES IN A SEA OF SAMENESS
COPYRIGHT © 2011 AGENCY212, LLC
ALL RIGHTS RESERVED.
NEW YORK, NY 10011
YOU'RE ONLY IN A COMPETITION IF YOU RUN THE SAME RACE.
Competition. We study it in business school, we analyze it on the job, we build marketing
plans and set strategies around it, and we all know it never sits still. "Don’t let the
competition get an edge." "Look for your competitive advantage." "Differentiate yourself to
stand out in an increasingly competitive environment." We create new products to keep the
competition guessing. We develop new benefits so the competition doesn't beat us to the
punch. Why? Because market share matters, right? Right??
What if there was no more market share to worry about?
What if the competition not only didn't stand still, it ran a marathon, and you didn't even
notice?
That's when you begin to think clearly. That's when you build something entirely new.
The trap we marketers fall into too often is worrying more about what the other guys are
doing than what we should be doing. Competitive analyses and case studies are fine for
certain perspectives, but remember… leaders who pause long enough to look in the rearview
mirror don't stay ahead of the pack very long. In order to truly connect with a consumer in a
new way, you have to keep your eyes front, and wide open. In other words, be a visionary, not
a historian. The future is ahead, not behind.
Don't just think outside the box. Think outside the competitive stratosphere. The competition
is irrelevant. Only the consumers matter, and they're a fickle breed, changing every 40 years
or 20 years or 10 minutes…
This book is about carving out a place for a brand or a product in a category that is without
doubt cluttered (pick one!). Including the very crowded fashion industry. (Yes, this method
works with pretty pictures). The point is, when you hire us you get both style and substance!
Over the past 10 years or so, advertising and branding companies have decided it would be
best to migrate towards sameness and create conglomerates that mirror the very brands
they are trying to differentiate. Ironic, isn't it? After all, what's the point of hiring partners
who have the exact same skill sets as you do? Ad people are meant to be agents of change.
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They're supposed to stick their necks out, perhaps in a way their clients would not, and come
up with ideas that motivate people. But even the most creative minds can't pull this off
without unbridled permission to do so. At the end of the day, an agency should provide you
with the Rosetta Stone…the answer to all your consumer challenges in a new and exciting
way. If they don't, the answer is simple…fire them! But at least give them a fighting chance
by keeping your mind open, and your eyes…that's right…open.
But this isn't meant to be a book about hiring and firing agencies. This is about dealing with
the glut of cluttered categories out there. I mean, does the world really need another vodka?
Or wine? Or hotel chain? Or automotive aftermarket product that magically cures whatever
ails your vehicle? The answer is probably not. But that didn't stop Absolut, or [ yellow tail ],
or Quaker State from stepping outside the cluttered "box" and creating a whole new category.
So why doesn't everybody out there in Marketingland say, "No, we will not compete in our
category. Instead, we will create our own category!"?
The answer is simple, but it comes in a few parts:
1. It takes great courage (more about this in a moment).
2. The advertising must actually look different (this means no more "bottle and glass" shots
for you wine and vodka folks). This can be scary to some clients (see above).
3. You will want to work with creative people who have actually pulled this off (hint: they're
not at any of the large holding companies).
Before you run for the hills crying this method isn't for you, understand that while courage
is important, the point is not to make an ad agency famous. That's why we pledge to treat our
clients' courage with dignity. It's not easy taking a giant leap.
To that end, the following pages will provide you with a few cases where we have put our
category-building theory to work. And, of course, there's a bit of propaganda about us in
here too.
But first, here’s a few words about the process of creating categories and how it works.
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HOW OUR PATENT-PROTECTED PROCESS LEADS THE WAY TO THE CREATION
OF NEW CATEGORIES.
Really? I never understood why agencies (branding or otherwise) felt the need to gain credibility
by “branding” their cookie cutter approach to business. A very smart Creative Director of ours,
musing once about Account Planning and Research, simply said: Isn’t it really just about having
another really smart person in the room? Well, yes. And that is, of course, what you get with an
agency our size. You only work with very senior, experienced people. (No, I don’t believe that
brilliance is simply chronological, but I do think a bit more wisdom, which comes with that
experience, can make a huge difference.) But even brilliant people need some guiding principles.
Here are ours:
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It’s difficult to see the picture when you’re inside the frame.
You aren’t selling products, you’re selling the brand.
Knowledge is the process of piling up facts; wisdom lies in their simplification.
People aren’t just interested in you, they’re interested in themselves.
When you capture a consumer’s mind you gain interest;
when you capture a consumer’s heart you gain commitment.
It’s only great creative if it sells.
And because every client is different, so is our method for developing and delivering the strategic
opportunity to sidestep the competition—and ultimately put your brand in a category by itself.
Depending on the challenge, our strategic process could include everything from good
old-fashioned research (with the help of LexisNexis) to long-term quantitative studies.
WHAT DO WE DO WITH ALL THIS INFORMATION?
First we cull it down and separate the most relevant from the not-so-relevant information.
And once we’ve sorted through that information to find the real insight, we begin to distill the
motivating truth about the brand that will become the calling card for success. Not as simple
as it may seem. In fact we had yet another Creative Director years ago who told me that what
the client (read: prospect) really wants in a presentation is for someone to parachute into the
conference room with a Post-It note with five words on it that will solve their every problem.
I realized fairly quickly that this Creative Director was really a Flim Flam man and had no
respect for the strategic process. But back to the distillation of motivating truth; this is
where the really smart people come in. They take all the relevant information and develop
what we call our SIMPLE STRATEGY document (No patent, you are free to use the name). It is a
Creative Brief containing all the guidance the creative teams need to articulate the motivating
truths about your brand.
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Here’s how we map it out:
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Here is an example of our Brief (and yes, we do talk like this).
Billy’s Lemonade Stand
WHAT KEEPS THE CLIENT UP AT NIGHT?
Billy’s been running his Stand for a good three months now and has developed a solid base of loyal customers
from his seat in the front yard. But how does he expand beyond Elm Street? He knows full well the folks over
on Maple and Chestnut are just as thirsty as those on Elm, but how can he reach out to that crowd?
Ultimately, he has his eye on Main St. and beyond. His product is a good one, superior even, but if he doesn’t
reach the right consumer, he might as well stop squeezing lemons and close up shop.
ROLE OF ADVERTISING
To get the word out that Billy’s Lemonade is the real deal. No concentrate here. Only Mother Nature’s genuine
juice, reasonably priced.
THE PEOPLE WE WANT TO MOTIVATE
Those who thirst for something better.
WHERE WE CAN TAKE BUSINESS FROM
Joey’s Lemonade Stand over on Cherry Street. School bake sales. Pepsico.
BRAND INSIGHT (Motivating truth about brand)
The neighbors know: you want a good, tall, natural glass of lemonade, put your quarter in the cup at Billy’s.
The ice is clean, the lemons are fresh, the sugar is pure, the preservatives are non-existent, AND the location
is convenient.
CUSTOMER INSIGHT (Relevance to target’s life)
Water bores the hell out of me. But soda is all chemicals and fake sugars. I’m looking for something
to quench my thirst that’s both good and healthy, something just sweet enough to keep me happy.
The truth is, I’ll pay a nickel more for a good thing.
— continued on other side —
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SIMPLE SELL
THE local stand for the best lemonade—just like your Mom would make
if she actually made lemonade
WHY THEY'LL BELIEVE THAT
• Testimonials: everyone in the neighborhood will tell you that this is the best lemonade
that his/her Mom never made
• One sip of Billy’s lemonade on a hot July day is a real convincer
• Go to the source: Mom agrees that these are all the ingredients she would use if she actually
had the time to make lemonade
• More Moms buy from Billy’s Lemonade Stand than any other spot in town
BRAND PERSONALITY/TONE:
Friendly
Neighborly
Superior-quality
Natural
Just like Billy
AND NOW FOR THE FUN PART:
some examples of our work and the stories behind them
(Yes, all cases were worked on by individuals who are still available to work with you).
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YELLOW TAIL
WHAT'S IN A NAME? FOR THAT MATTER, WHAT'S IN A LABEL?
The Casella family (Casella Wines, Australia) developed a mid-priced wine for the US market.
The most unique aspect of the brand came about by accident when an artist sketched a
graphic kangaroo on an airport cocktail napkin—a kangaroo that would become the focal
point of the [ yellow tail ] label. Despite the stigma that associates Australian wines with
“mass quality,” [ yellow tail ] made an immediate impact, and the competition reacted
(incorrectly, but) quickly, sending a flurry of bottles blazoned with furry-friends into the
market.
[ yellow tail ] was off to a great start with an iconic label—graphic, modern, clean and simple—
that made the brand stand out in an extremely fragmented category. But to continue the
climb, ultimately becoming the number one wine sold in the United States—and more
importantly, to sustain the position—they needed a push from advertising.
Looking to the competition would have led to vineyard-focused advertising or generic lifestyle
campaigns targeted to core wine drinkers in specialty publications such as Wine Spectator
or Travel and Leisure. But, we noticed that something interesting was happening—the
consumer was changing, and a shift in wine consumption was beginning. Slowly, some Baby
Boomers were starting to drop out of the market while Millennials were more likely to come
of age as wine drinkers than previous generations. At the same time, Generation-Xers were
discovering wine in their 30’s. The challenge was to find a way to speak to these younger,
more image-driven consumers while still appealing to the core wine drinker. The approach
was simple: Don’t compete in the category. Create your own. Focus on stealing share from
beer, spirits, and ready-to-drink cocktails, which captured three times as many US consumer
alcohol sales as wine.
The idea was to make wine more approachable and less elitist. Don’t talk down to the
consumer, and keep the message simple with a touch of wit and metro sophistication. Price
it favorably ($6.99 per bottle), and deliver an image that still makes it a “cool” call brand in
bars and restaurants. Also, make it acceptable to serve at parties. So the agency set out to
help Casella Wines become a fun, non-traditional wine that’s easy to drink for everyone. We
branded [ yellow tail ] in a way that made it less intimidating and pretentious vs. the wine
category. The media exposure chosen to do so was both groundbreaking for the wine
category and unexpected. We created an iconic word-of-mouth campaign that whispered
“Are you a member of the club yet?” by postering key urban metro areas and developing a
media campaign that focused on the mainstream hip and trendy, such as entertainment and
high fashion publications.
[ yellow tail ] is now the largest selling wine in America with over 10 million cases and still
growing. Not only has [ yellow tail ] been successful at luring new, younger consumers into
the wine market, they have successfully attracted the older, more “typical” wine drinker at
the same time. The wine category has finally learned that it’s not just about the kangaroo,
but have been unable to replicate the [ yellow tail ] success story. After all, they’re still just
looking at the competition.
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[ yellow tail ]
now spotted outside australia.
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[ yellow tail ]
now spotted outside australia.
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[ yellow tail ]
now spotted outside australia.
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QUAKER STATE MOTOR OIL
A STORY EVERY CAR LOVER CAN GET ENTHUSIASTIC ABOUT.
Back in the late ‘70s/early ‘80s, Quaker State Motor Oil was riding high. It was the number one
brand of motor oil, based more on tradition than anything else. If your dad changed his oil
every 3,000 miles and used the Quaker State Brand, it was just about written in stone that
you would, too.
Lurking in the shadows was a little known brand of motor oil with a cult following called
Castrol. Castrol had a .05% share of market and was sold only in specialty stores. It was
known as British Racing oil. And if you had a BMW (which made you quite the quirky one in
those days!) you went to great lengths to find a “can” of Castrol. The Castrol folks approached
Bill and his team with the dream of breaking through the iron-clad barrier of father/son
loyalty. The first thing we did was travel to Kansas to talk to real staunch DIY’ers (Do-ItYourselfers). After many different stops and starts the “Rosetta Stone” appeared: Take
Castrol out of the Automotive Aftermarket business and put them in the Automotive
Investment business. You see, it was right around that time that we had a huge gas crisis in
America and vehicles were downsizing from 8-cylinder Crown Victorias to 4-cylinder Chevy
Vegas. With that revelation in mind, we took Castrol out of the motor oil business and broke
that cycle of tradition. It became “The motor oil engineered for smaller engines.” Dad could not
help junior with this one, since he never owned a Vega. In the course of approximately five
years Castrol grew to the number one position in the category it was not competing in. In
fact, Quaker State actually took Castrol to court attempting to stop the rapid rise. Didn’t
work. But there was hope.
Fast forward to the early 1990s. Castrol was now firmly entrenched as the number one DIY
motor oil. Competitors in the industry were making claims that sounded more like they were
creating the “disease du jour” for that era’s automobiles. And following a decade of especially
limited product innovation or differentiation, motor oil had become a low interest but
crowded category led by the biggest spending competitors, and retailers began relegating
the category to “loss leader” status. Quaker State was struggling and Herb Baum was hired
as the CEO to change the course of the company. Bill Tucker offered up his expertise to see
if, along with his team, he could help Herb turn the brand around.
After all, the consumer was changing. Dual incomes, the desire for more free time and the
resulting explosion of 10-minute jiffy lubes had stripped away much of Quaker State's
traditional DIY market. Technology advances in the automotive industry meant that car
engines were increasingly trouble-free. All this was changing, and yet the motor oil industry
remained stagnant. If a company was going to succeed in revitalizing the motor oil industry,
they would have to start with a clean slate and forget everything they knew about the
business—and with the help of Bill Tucker’s team, Quaker State would be the brand to do it.
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We started by speaking to consumers and conducting both qualitative and quantitative
research, which led us to the creation of consumer segmentation as well as to a new product
development platform.
Consumer segmentation identified Quaker State's best prospects for long-term growth: the
untapped automotive enthusiasts. With unbridled passion for their vehicles and a strong
desire to share their knowledge and preferences with others, automotive enthusiasts could
become brand champions by not only using Quaker State but recommending it to others.
Through ethnography, we watched them shop and use the product to gain insights into their
automotive activities and product motivations.
That research, along with conversations with “expert consumers,” led us to create a new
product development platform for Quaker State. As a result we were able to identify some
missing elements. All vehicles are not alike, so why should they believe that the same motor
oil would work just as well for a 4x4 as a sedan with 154,000 miles? Enter the first synthetic
blend motor oils “formulated for the vehicles you drive, and the way you drive them,” with the
promise of reducing friction to meet the auto enthusiast's desire for more horsepower. Once
again Bill was looking at an opportunity to step outside the more traditional category of Motor
Oil and create something that had no competitors. Not only did the agency come up with
product extensions that were compelling reasons to make the switch to Quaker State, but
we also developed revolutionary packaging in the form of the patented clear bottle. Quaker
State now had a powerful combination: brand advocates with compelling product point-ofdifference.
The next step was creating breakthrough advertising directed towards the enthusiasts.
Using scrappy Denis Leary, our campaign laid out a very simple proposition to the consumer.
Straightforward and provocative, Denis could easily cut through and speak to the rough,
gruff, highly skeptical enthusiast. He's like your best friend who tells you when you've done
something dumb, but rather than getting upset, you believe him and appreciate “getting
straightened out.”
And while the competition was out spending money on the same old strategy, Quaker State’s
results were overwhelming. The new product strategy combined with the new clear bottles
began to quickly change perceptions. In fact, the new packaging was preferred 2:1 over the
old opaque green bottles. But the real proof is in the numbers - Quaker State’s total sales rose
38% and their share in the synthetics market rose 26%.
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WE HELP GIVE NEW MEANING TO THE TERM “LAND SPEED RECORD.” Bob Land, four-time Baja off-road race champion,
knows how to drive fast. But how does he make sure his hard working 4x4 doesn’t lose its power? By minimizing friction. That’s why Bob
uses only Quaker State® 4x4 & SUV Synthetic Blend. It’s proven to reduce friction and protect against engine stress under heavy loads. So
Bob can continue to punish his 4x4, as well as any speed records that may need breaking.
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www.quakerstate.com
QUAKER STATE® 4x4 & SUV SYNTHETIC BLEND. THE POWER TO REDUCE FRICTION.™
www.quakerstate.com
© 2004 SOPUS Products. Clear bottle is a trademark of SOPUS Products. All rights reserved.
THE BODY IS 1965. THE ENGINE IS 2004. THE OIL IS AHEAD OF ITS TIME. The Shelby GT350SR. Its styling is from another
decade, but its technology is from today, or perhaps even tomorrow. Including every ounce of motor oil that goes into its 410 horsepower engine.
All newly manufactured Shelby GT 350SRs are originally filled with Quaker State® High Horsepower Synthetic Blend. Because Quaker State® High
Horsepower is proven to reduce friction and deliver superior performance under high heat and RPMs for cars with over 200 horsepower. So even
if you never get to touch a body like this firsthand, superior performance is still just a few quarts of motor oil away. For more information on
Shelby GT 350SR, visit www.uniqueperformance.com.
QUAKER STATE® HIGH HORSEPOWER. THE POWER TO REDUCE FRICTION.™
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LOEWS HOTELS
THE NECESSITY OF REINVENTION.
Over the past five years, Loews Hotels, a relatively small competitor in the luxury hotel
industry, has rebranded itself to achieve a Four-Diamond AAA travel rating. And although the
physical properties themselves are as unique as their locations, every Loews Hotel shares a
common, constant reminder of its true inherent luxury...SERVICE. Simply put, Loews’ services
are top notch across the chain.
Fast forward to 2009 when the bottom fell out of the hospitality business. Some even
worried, “It is the worst since the Great Depression.” Quite a challenge to overcome,
particularly for those of us hanging our hats on “luxury.” The answer was to redefine the
term, making luxury an appealing notion, even in a down economy.
The approach was to connect a truly luxurious experience with value. Certainly, Loews knows
luxury, but fortunately for us, it was never in a gratuitous way. It was, after all, about
service, which is luxury that meets travelers’ emotional needs—namely, feeling special, and
yes...pampered.
In essence, we created a new category. The expression:
Value is the new luxury™. Fortunately we deliver both.
To date, the properties are delivering beyond expectations and see a clear path to picking up
where they left off in 2008.
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LINDSAY PHILLIPS
SURPRISE! IS NOW A CATEGORY (AND EXPECTATION).
Lindsay Phillips was in high school when she had her “aha” moment. After garnering rave
reviews from a school art project—a flip-flop adorned with ceramic pieces—she started
dreaming about a simple shoe with unlimited style options. From this seed of an idea,
SwitchFlops® were born—simple flip-flops with Velcro straps that are easily switchable for
any occasion. By the time Lindsay graduated from college, she had a patent and was ready to
go into business.
SwitchFlops® became an instant hit on the trade shows circuit in early 2007, in large part due
to the tenacity of Lindsay and her mother, Liz. Soon after, they hired a CEO and staff of fashion
and design professionals.
When Agency 212 came on board in early 2009, the company had plans to diversify and
expand the product line to establish itself as a legitimate fashion brand. Their obvious fear
was that with SwitchFlops® alone, the Lindsay Phillips brand could go the way of other
passing fads. Our challenge was to help establish the company in a way that would allow
them to grow beyond one innovation.
Through several rounds of research and new product development meetings, we discovered
that the current SwitchFlops® consumer was a bit older than the actual target consumer—
defined as those who were most interested in the brand concept. This told us that Lindsay
Phillips could: (1) drive younger traffic to current retailers; and (2) grow far bigger than the
gift store distribution.
In other words, the brand could be bigger than the outlet. What did that translate to? As we
love to say... Don’t compete. Create a category. In this case, create a “surprise” in the fashion
world. That meant that every new product designed by Lindsay Phillips would have an
element of surprise, just like the original. Which also made it easy to stop worrying about the
SwitchFlops® copycats that began flooding the market. The strategy and level of execution
was simply worlds apart. “Lindsay Phillips” is the brand. We knew it was important to
connect to the consumer’s world and our message was: Let Lindsay Phillips inspire your
spontaneity and bring out the fun in life that comes from the unexpected.
Results: In January of 2010, the company used the “Surprise” campaign to successfully
launch a range of innovative products from shoes to bags and scarves. The retailers noticed,
and year-over-year business was up by over 70% following the two biggest gift shows of the
year.
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surprise
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WARNER’S
A NEW CATEGORY WITH A VERY COMFORTABLE FIT.
Warner’s, a storied brand in the intimate apparel category since early in the twentieth century,
did a great job in becoming THE wire-free bra. And inherent to the wire-free category is the core
value of COMFORT. So it stood to reason that Warner’s owned that core value in the wire-free
segment. However, the brand was unable to gain a similar standing in the larger underwire bra
segment—a segment in which most women had given up on comfort as a core value.
Consequently, a simple, yet innovative approach such as “a great bra with the kind of comfort
most women would kill for” would never break through. UNLESS we created a category for it.
...We did.
The agency put together a multi-tiered research approach in order to test not only what we
thought was the most viable concept for this product, but also the most compelling strategy for
communicating it. Focus groups led the brand to develop the most comfortable underwire ever,
while maintaining a pretty aesthetic. In other words, a bra that women could feel good in—that not
only felt great, but that they were PROUD to wear. Subsequently, research helped us to develop both
the name and the category. THIS IS NOT A BRA (name of both the product and the category)
communicated one major core value to the consumer: COMFORT.
This story and category is less than a year old but it has already been Warner’s most successful
underwire launch in history. Warner’s is now a legitimate force in underwire bras.
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About us:
Entrepreneurial, independent, and loving it.
Early in 2005 after a series of acquisitions, The Tucker Partnership became a mini
boutique holding company and changed the name of the main company to
Agency212. As in the area code. The idea was very simple. Agencies are only as
good as the talent they recruit. All our capital goes down in the elevator at 5
(maybe 6) every day. And although I am certain that true talent may like to fish
and perhaps rope horses during their vacations, the truth is they want to work
in New York City to apply their talents. Simply said, New York City continues to
be the epicenter of Advertising and this is where the best and the brightest
reside. So why not flaunt the fact that we have the best talent in the country
right here at Agency212.
Facts:
The first thing you’ll notice is our size: We are big enough to deliver. Small enough
to think on our feet. We answer to no one but our clients. And while we have the
resources and staff that clients have come to expect from a full service agency,
we’re committed to maintaining a size that allows our senior members to be
intimately involved in every account. When you hire smart, experienced people
with a good dash of wisdom, the need for layer upon layer of supervision goes
out the window. Overhead is reduced. Turnaround time is dramatically decreased.
And the quality of work is exponentially better. That, along with a heavy dose of
collaborative problem-solving, is what separates us from other agencies. We
have, in short, bypassed the competition and created a category all our own.
$150MM billings. 60 people.
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GONE BUT NOT FORGOTTEN:
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ENTREPRENEURIAL, INDEPENDENT AND GREAT BELIEVERS IN ALLOWING AND SUPPORTING
INDIVIDUALLY TALENTED BUSINESSES WITH COMPLEMENTARY DISCIPLINES TO THRIVE
INSIDE OUR WALLS.
Here’s how we are organized:
, Inc.
A Company of
A flagship full-service advertising agency encompassing a full range of categories,
including hospitality + travel, publishing, entertainment, fashion + beauty,
wine + spirits and automotive.
Our INTERACTIVE division
with international
clients and
global capabilities.
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Our BOUTIQUE group,
offering agile, personalized
creative services focusing on
a limited list of clients.
Our ENTERTAINMENT division
bringing our expertise to Broadway,
Off-Broadway, Concerts,
Comedy Clubs and more.
112 WEST 20TH ST, NEW YORK NY 10011
AGENCY212.COM 212.994.6700 [email protected]