Grow the Category, Not Just Your Share
Expand total demand by collaborating around the category experience
- Difficulty
- Advanced
- Time to result
- ~ongoing to results
- Steps
- 6
- Confidence
- 91%
This strategy begins by distinguishing brand competition from the larger constraint of category size. In a small hobbyist market, winning customers from another specialist may produce less durable growth than introducing entirely new consumers to the experience. Companies therefore collaborate on shared education, demonstrations, standards, or events that reduce category-level barriers. The immediate demonstration can feature any credible brand because the first objective is to help the customer understand why the category matters. Once interest exists, each company competes through its own design, positioning, service, and performance. The approach changes the key metric from share captured inside a fixed pool to qualified consumers added to the pool. It works when competitors recognize that expanding participation can create more value for everyone than repeatedly reallocating an undersized market.
Origin
Extracted from Masters in Business, where Jeff Poggi reflected on what decades in the specialist audio industry taught him about collaboration and growth.
Core principles
- 01A small category can constrain every competitor
- 02Shared customer education can grow total demand
- 03Category experiences matter more than which brand introduces them
- 04Competitors can collaborate without abandoning differentiation
- 05A larger consumer base creates value across the ecosystem
How to run it
- 1
Diagnose the Real Constraint
Determine whether growth is limited primarily by weak brand execution or by a category that too few people understand. Compare competitor switching with the flow of first-time buyers.
Pro tip Interview non-buyers to learn whether they reject your brand or simply lack category awareness.
Watch out Do not use category size as an excuse for an undifferentiated brand.
- 2
Find Shared Barriers
Identify obstacles affecting all credible participants, such as low awareness, intimidating jargon, weak demonstrations, or limited access. Prioritize barriers no single company can efficiently remove alone.
Pro tip Focus collaboration on pre-purchase education rather than proprietary product decisions.
Watch out Avoid sharing competitively sensitive pricing, customer, or roadmap information.
- 3
Create a Neutral Entry Experience
Design events, content, or demonstrations that reveal the category's value before emphasizing brand preference. Make the first encounter approachable and compelling.
Pro tip Let newcomers compare several credible approaches once they understand the core experience.
Watch out A brand-dominated initiative may be viewed as disguised advertising and repel partners.
- 4
Coordinate the Ecosystem
Recruit manufacturers, dealers, media, creators, and communities that benefit from a larger audience. Define narrow collaboration rules and ownership clearly.
Pro tip Start with one measurable campaign before building a permanent coalition.
Watch out Unclear responsibilities can turn shared initiatives into unfunded aspirations.
- 5
Compete After Interest Forms
Once customers enter the category, differentiate through brand identity, product performance, service, and fit. Collaboration should enlarge the arena, not erase choice.
Pro tip Map a clear path from neutral education to brand-specific evaluation.
Watch out Category messaging alone will not convert buyers if individual offerings remain confusing.
- 6
Measure Category Expansion
Track first-time participants, dealer visits, demonstrations, and new buyers across the category. Distinguish newly created demand from customers merely moving between brands.
Pro tip Use partner-reported aggregate metrics where company-level data cannot be shared.
Watch out Market-share gains can conceal a stagnant or shrinking total category.
In the wild
Audio manufacturers and dealers collaborate on events that let newcomers hear a properly configured high-quality system, regardless of which brand provides the first demonstration. Once visitors understand the category's emotional value, they can evaluate competing products according to budget, taste, and features.
→ More consumers enter the specialist market, increasing the potential customer base for every credible participant.
Independent roasters jointly support public tasting events that teach consumers how origin and preparation affect flavor. Each roaster still competes through sourcing and brand, but all benefit when instant-coffee buyers become specialty-coffee customers.
→ Collaborative education expands demand while preserving company-level competition.
Common mistakes
Treating Every Peer as an Enemy
In an undersized category, constant share stealing can leave the total opportunity unchanged while raising acquisition costs.
Collaborating Without Boundaries
Category initiatives need a narrow scope so participants do not expose proprietary information or weaken differentiation.
Measuring Only Brand Share
A company can gain share while the underlying category stagnates. First-time category participation is the more important signal.
Is it for you?
Best for
Small or specialist industries where many prospective customers have never experienced or understood the category's value.
Not ideal for
Mature markets with near-universal awareness where demand creation offers little additional upside.
From the transcript
“our business is less about competing with other audio file firms or other audio firms, and it's more about growing the entire industry.”
“if we do a better job getting those butts and seats, getting more consumers to come two dealers and listen to the gear, regardless of…”
“building of a collaboration amongst companies together to build the industry UM is something that's really important to me today”
From the episode
Jeff Poggi on the Art and Science of High-End Audio
Jeff Poggi