Industry

Creating a Category: Howard Davner on Selling What People Don't Know They Need

There is a big difference between competing in a category and creating one. Competing means fighting for share of a shelf people already understand. Creating means teaching people that a shelf should exist at all. I've done both, and I can tell you the second is far harder — and, when it works, far more valuable. As Howard Davner, co-founder of a functional "think drink," I've spent years learning what category creation actually demands.

The curse of a genuinely new idea

When your product fits a known category, the consumer already has a mental slot for it: they know roughly what it is, what it should cost, and when they'd use it. A genuinely new product has no slot. That sounds like freedom, but it's mostly friction. Every customer has to be educated before they can even decide whether they want you. You are not just selling a drink; you are selling a new reason to reach for one.

Anchor the new thing to something familiar

The trick I've relied on is to explain the unfamiliar in terms of the familiar. People don't adopt a concept from zero; they adopt it as a variation on something they already do. A focus drink isn't asking someone to change their life — it's offering a better answer to a moment they already have, the mid-afternoon wall or the hour before a hard task. Category creation gets easier the moment you attach it to an existing habit instead of demanding a new one.

Education is a cost — budget for it

Most founders creating a category underestimate how much money and time the teaching costs. In an established category, marketing persuades; in a new one, marketing has to first inform, then persuade. That's two jobs for the price of one, and it shows up in your customer acquisition math. If you don't budget honestly for the education tax, you'll mistake a category-creation problem for a product problem and start changing things that were never broken.

Your first believers do the selling you can't

You cannot educate an entire market by yourself. The economics only work when early customers become your explainers — when the people who "get it" describe it to the people who don't, in their own words. That's why, in a new category, the intensity of a small group's loyalty matters more than the size of your reach. A thousand people who can explain why they love it will build a category faster than a million who vaguely recognize the name.

Patience is the strategy

Categories are not created in a quarter. They're created when a new behavior slowly becomes normal, and normal takes time. The companies that win are usually not the ones with the loudest launch, but the ones still teaching, still consistent, still there when the market finally catches up. I've written before about patience as a competitive edge — nowhere is it more true than in category creation. You're not running a sprint; you're moving a habit.

Building something the world doesn't yet know it wants is the hardest work in consumer products. It's also, in my experience, the only kind that builds a brand no one can easily copy.

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