The 2nd law in Al Ries and Jack Trout's infamous book, The 22 Immutable Laws of Marketing, is the Law of the Category. The law says, "If you can't be first in a category, set up a new category you can be first in." Who would have thought ham would provide a great real-world example of this law in action?
To set the stage for this example, it's important to understand that Spaniards love ham. Manual Maldonado is capitalizing on that popularity by creating a new, luxury ham product, which will be priced and positioned as the best-of-the-best, top-of-the-line ham available on the Spanish market.
Mr. Maldonado has been working on this concept for awhile and is waiting to release his elite ham until it meets his exacting standards (expected roll-out date is late in 2008). He treats his pigs like the goldmine he hopes they'll ultimately become by letting them live a luxurious lifestyle.
The ham will be called 2006 Alba Quercus Reserve and will be offered for the hefty price of $160 per pound. However, the ham won't be offered in parts, so if you want one of these hams, you'll have to cough up the full $2,100 per leg.
But that's not all. Mr. Maldonado has one more clever marketing trick up his sleeve. His gourmet hams will only be available in a limited edition (at least that's what he's saying) with only 80-100 hams scheduled to be produced.
Will the ham sell? Initial response from food critics in Spain sounds positive. Looks like Mr. Maldonado's strategy to create his own category through unique positioning and pricing just might work.
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