Innovative companies often lead the creation of new categories in the market, but it’s not always an easy process. Between stiff competition and consumers becoming increasingly selective with who and how they spend, adopting a new or unconventional approach can attract clients and set a company apart on the market.
Below, 20 Forbes Business Council members each share one step company leaders need to take to carve out a new niche successfully. Read on to learn more about why these strategies are essential, as well as the short- and long-term impact on business success.
1. Think Outside The Box
To create a new market category, companies need to think outside the box. Be willing to collaborate with others and clearly communicate your vision to the target market. Conducting thorough market research is also crucial to understanding unmet needs and refining the unique value proposition. This approach ensures distinct benefits are highlighted and effectively communicated. – Ryan Whitefield, Revilo Property Group
2. Instill A Culture Of Experimentation
Create a culture and methodology of experimentation. Innovation requires that employees have the ability and are encouraged to experiment constantly on innovative ideas. Out of 10 experiments, expect half to fail, four to have minor success and one to have big success. Experiment continually, otherwise you may fail to reach critical mass with the 10th experiment that finally succeeds. – Joseph Drups, Drups Ventures
3. Conduct Thorough Research
An important step is to research, research, research! Do research to find out why something isn’t currently a mainstream category, learn what’s already been done, understand why similar categories have failed and more. Lean into surveys and market research to guide your next steps. This will ensure you have the right tools to connect the category to the intended audience. – Mark DeHaan, TenantCloud
4. Analyze Market Gaps
Understanding gaps in the market allows you to carve out a niche that addresses specific customer needs that are not being met. This strategic insight will set you apart from the competition and position your new category as a go-to solution. When you focus on filling these gaps, you’re creating something entirely new and valuable. – Adam Povlitz, Anago Cleaning Systems
5. Identify An Emerging Problem
Being first to market is a lasting differentiator competitors can’t take away. Identifying an emerging risk, like rapidly appearing cyber threats, and then partnering with experts in the space can get new solutions to market quickly. Customers are wowed when they’re surprised and met with a solution that exceeds expectations, especially when it tackles emerging risks characterized by a lot of unknowns. – Matt Cullina, CyberScout, a TransUnion Brand
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6. Define The Problem
Companies need to clearly define the problem they’re solving and educate the market on why it matters. It’s not just about launching a product; it’s about shaping perceptions and setting new standards. By establishing a compelling narrative that connects deeply with customer needs and differentiates an offering from existing options, companies can lead the charge in defining and owning their category. – Francis Hellyer, tickadoo
7. Ensure Demand Exists
Companies need to ensure there’s demand for the new category. Whether they use search behavior tools, interviews, focus groups or aggregated customer surveys, companies must confirm that there are potential buyers who are looking to spend money on a solution in this new category before committing resources to development. – Emily Reynolds Bergh, R Public Relations Firm
8. Focus On Groups Driving Economic Momentum
When developing a new category, it’s essential to focus on the groups driving economic momentum. Take Latinos, for example, who contribute over $3.6 trillion annually to the U.S. economy. By building your strategy around these high-impact segments, looking beyond stereotypes and using real data to get to know them, you set the stage for long-term success. – Ana Valdez, Latino Donor Collaborative
9. Research Your Target Audience
To successfully carve out a new market category, research your target audience thoroughly to understand their needs and pain points. Develop a data-driven marketing plan to reach them effectively, creating momentum through targeted messaging. Align your product or service with these insights to build a strong, relevant brand presence and drive adoption. – Mark Protus, Protus Consulting
10. Develop A Marketing Strategy To Generate Demand
Innovative companies creating new categories often solve pain points customers don’t realize they have. To succeed, they need to generate demand with a marketing strategy that focuses on educating their audience about this unmet need, the benefits of the solution and the importance of acting quickly. – Jason Barnard, Kalicube
11. Invest In Customer Education
To successfully carve out a new market category, a company must invest heavily in customer education. Many new market leaders attribute their success to effectively educating consumers on the problem and their innovative solution. This strategy builds demand, fosters trust and positions the company as the definitive leader in the new category. – Sergey Buchin, Irbisio Cleantech Infrastructure Fund
12. Highlight Unique Product Or Service Attributes
Besides providing educational resources to build trust, an essential step a company must take to create a new category is to differentiate itself by highlighting its unique features, benefits and the added value it offers to users over existing solutions. This differentiation helps the company stand out and attract attention, making it easier to establish a new category in the market. – Eugene Zabolotsky, Health Helper
13. Create A Network Of Partners
One essential step in carving out a new category is to create a strategic ecosystem of partners who can amplify your innovation. This not only accelerates adoption but also embeds your company at the center of a new market network, making you indispensable to its growth. – Sarah Saadoun, Exit Advisor – Business Broker
14. Engage Key Influencers
To successfully launch a new category, it is essential to engage key influencers in the media and analyst community. This is often done by demonstrating how your concept aligns with their interests and expertise. – R. Paul Singh, The Modern Data Company
15. Prepare For Pushback
Prepare yourself for some pushback. Be patient, as it may take longer than expected for your users to get used to the new categories. Talk to your early adopters for both their own feedback and the feedback they got when they pitched it to their friends, which early adopters often do. Keep your focus on the long-term goal. It’s not going to be an easy ride, but there are rewards for those who are disciplined. – Vikram Joshi, pulsd
16. Use Doubt As Motivation
Pioneering a new category takes guts. You’ll face doubters and skeptics, just like Elon Musk did with SpaceX. Use that resistance to fuel your fire. Refine your pitch, sharpen your value proposition and stay committed to your vision. Every groundbreaking idea seems crazy—until it doesn’t. That’s when you know you’ve truly carved out your category. – Samuel Darwin, Sparkle
17. Be Customer-Obsessed
In short, be customer obsessed. Having the solution to a genuine, live problem will be the first step to success in all markets. Thinking and making a judgment call on the longevity of that idea is the next challenge. – Agni Ghosh, Stott & May
18. Build A Robust Information Strategy
A company should build a robust information strategy to create a new market category. This can be done by creating content to inform potential customers about the new product’s benefits and applications. The company can grab consumer attention by educating the market and addressing potential concerns. This approach facilitates market adoption, drives demand and fosters trust in the new category. – Beth Worthy, GMR Transcription Services, Inc.
19. Embrace Ambiguity
Embrace ambiguity rather than strictly defining the category from the outset. Don’t perfectly explain the new category to the market. Instead, allow it to remain somewhat fluid and open to interpretation. Early adopters and industry influencers can then co-create the category’s definition, and they’ll feel more invested in its success. It also creates space for organic growth and adaptability. – Rytis Lauris, Omnisend
20. Expect Growing Pains
To successfully carve out a new category in the marketplace, a company must be unafraid of growing pains. Forging a new path or niche comes with unexpected and unprecedented change, which can sometimes result in having to take a step back and revisit the drawing board. Embracing this adversity head-on will help make it easier to push through and find success on the other end. – Nikolaus Kimla, Pipeliner CRM
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