• Ad Age, Wednesday, October 10, 2007 12:30 PM

Nobody is thinking category. Everybody is thinking brand. But the category is the iceberg, and the brand is only its tip. If the iceberg melts, the brand will, too, says marketing guru Al Ries. Big companies are busy burnishing their brands, while entrepreneurs are looking for ways to dominate new categories.

The Kodak name was the tip of the film-photography iceberg. But so far, no brand--including Kodak--has managed to climb to the top of the digital-photography iceberg. Just eight years ago, Interbrand ranked Kodak as the 16th-most-valuable brand in the world, worth $14.8 billion. This year, Kodak was No. 82, worth just $3.9 billion.

There are two types of icebergs. The first type is narrow and deep. The second type is broad and shallow. While the second type might offer greater sales potential, the first type offers greater profit potential and greater brand stability. Think Rolex in expensive watches, Hellmann's in mayonnaise, and Visa in credit cards.

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