When you shop directly or online how to you choose the products? How do you know where to look for a particular product? Well, this is the basic premise on which the concept of Product Categorization is built! However, there are a lot of other factors too.
The right categorization defines your competitive environment for a certain product and creates an edge. It can be used as a stand-alone research or combined with future market research for branding, positioning and segmentation, and category management purposes.
Additionally, new off-category oriented products entering market blurs the earlier categories and may result in overlapping of categories or giving birth to new categories.
Using clear categorization, you can create successively smaller, more tightly defined groups. You can create categories and sub categories. Generally, 80 percent of products get placed within 20 percent of categories. Incorrect product classification can lead to confusion and customers may brand us as unprofessional. Therefore, it is important to figure out the correct product type. Then placing it in the right category should be a cake walk!
At MAVI, categorization takes into account various level of attributes. We use study of segmentation of products and markets, and combine it with the market structure. We then examine your product’s close and broad competitors and map the category by defining the main players in a category as well as subcategories, important category attributes, benefits, usages etc. We also use Machine Learning (ML) and Artificial Intelligence (AI) techniques as necessary.
This approach is useful where category structure is not clearly defined or understood. For example:Launching a new product in a category | Emergence of new categories | Entering new markets | Repositioning existing products
Through this approach, MAVI helps clients decoding market structures and provides crucial insight for successful strategic marketing planning