Category Creation Framework

A systematic approach to deciding when and how to create a new product category

Barbra Gago
Category creation and brand building | Barbra Gago (Pando, Miro, Greenhouse, Culture Amp)

Category Creation Framework

"When you're building a category, you need to make sure that there is a category that's validated by analysts and directory sites and things like that. But also, you want to have a lot of traction in terms of thought leadership like why is this the category?" - Barbra Gago

What It Is

Category creation is the strategic process of defining and establishing a new product category rather than competing within an existing one. It's about packaging your product's unique capabilities into a coherent category that buyers can understand, budget for, and eventually seek out.

The framework recognizes that categories aren't just marketing labels—they're validated market segments with analyst recognition, budget allocations, and common terminology. Creating a category means building all of these elements from scratch, which requires significant investment but can result in dominant market position.

Barbra Gago developed this approach through experiences at Miro (creating "visual collaboration"), Greenhouse (attempting and abandoning "recruiting optimization platform"), and CultureAmp (evolving from "people analytics" to "employee experience").

How It Works

Category creation success depends on evaluating three key factors:

1. Budget Existence

  • Do companies have existing budget for your category?
  • If yes, you can sell into existing budgets while building the new category
  • If no, you must educate buyers to create new budget line items

2. Language Alignment

  • How do customers describe their pain points?
  • What words do they use when talking about your solution?
  • The category name must resonate with how customers naturally speak

3. Competitive Landscape

  • A category isn't a category until there's competition
  • New entrants validate that the category exists
  • Being alone isn't always a benefit—it might mean the category isn't real

How to Apply It

Step 1: Validate the Need

  1. Assess whether existing categories are too small for your ambition
  2. Determine if current category associations carry negative baggage
  3. Identify if your product genuinely does something new

Step 2: Build Foundation

  1. Talk to customers extensively—listen to their language
  2. Work with analysts (Gartner, Forrester) to get category recognition
  3. Engage directory sites (G2 Crowd, Software Advice) to create new category listings

Step 3: Generate Momentum

  1. Invest heavily in thought leadership content
  2. Explain why this category exists and what problems it solves
  3. Educate buyers on why they should allocate budget

Step 4: Execute Dual Strategy

  1. Continue selling into existing categories where budget exists
  2. Build the new category in parallel through content and PR
  3. Gradually shift positioning as the new category gains traction

When to Use It

Pursue category creation when:

  • Your product is truly disruptive and doesn't fit existing categories
  • Existing categories are too small for your growth ambitions
  • Existing categories carry negative associations
  • Customers describe your product in inconsistent ways

Avoid category creation when:

  • You're already established and it's too late to change perception
  • You fit squarely into an existing category
  • Customers and budgets already exist for what you do
  • You lack resources for sustained thought leadership investment

Source

  • Guest: Barbra Gago
  • Episode: "Category creation and brand building | Barbra Gago (Pando, Miro, Greenhouse, Culture Amp)"
  • Key Discussion: (00:00-09:53) - Full discussion of category creation principles and the Miro/Greenhouse examples
  • YouTube: Watch on YouTube

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