Help setting up the Subdomain feature

I managed to install subdomain successfully. But I am not able to implement this feature on my site. I have few content categories which I want to behave as subdomain.

For example for the category "business" which is currently located at http://example.com/category/categories/business, it should get redirected to business.example.com. Things to be noted are: category is the path that I put myself in the pathauto module and categories is the vocabulary that I created. Business is the entity in the categories vocabulary.

To create the subdomain this style I did the following:

(1) Installed the subdomain module for my site which is on linux dedicated server and ensure everything is working required by it. In URL aliases --> subdomain settings I can see all the five requirements working correctly.
(2) On the same page I selected Create subdomains for "taxonomy vocabulary and associated content" and also ensured that With the selected vocabulary terms "Categories" as this is the vocabulary that I want to target to.
(3) Saved the settings and moved on to URL Alias --> Automated Alias settings and put the [subdomain] for the Pattern for all Categories Paths under Taxonomy path settings such as [subdomain]/category/[vocab-raw]/[catpath-raw]. Saved the settings and tried to access the category as sub domain but could not succeed.

Another thing to mention is that I did not create a sub domain "business.example.com" through cpanel yet as I thought it might work without it. Please help regarding all this.