03: Creating Your Product
Start with a Customer Problem
Building a successful food or beverage product means solving a real problem for your customers. The best products don’t just make life a little better—they fix something that’s broken.
Painkiller vs. Vitamin Theory
The Painkiller vs. Vitamin theory, popularized by Clayton Christensen, provides a framework for assessing your product’s impact. Painkillers solve urgent problems, delivering immediate and obvious value. Vitamins, while beneficial, are not essential and often provide more incremental improvements.
- Painkillers: These products address significant pain points, offering clear, immediate value. Customers seek them out because they solve pressing issues. Think of products that fix something crucial and are often seen as indispensable. For instance, coffee is a necessary ritual for many people everyday they can’t live without.
- Vitamins: These are nice-to-haves. They offer enhancements and make life a bit better, but customers can live without them. While they contribute to overall well-being, they are not prioritized when funds or attention are limited. A premium gourmet chocolate might be a vitamin, adding a touch of luxury rather than solving a pressing need.
Understanding this distinction is key to developing products that meet critical needs and drive strong customer demand. Here’s the thing, most CPG food items are vitamins, they’re nice to have, but not a necessity in people’s lives. That’s what’s so tough about this industry. If you sell a vitamin you end up selling a low volume to a high number of people.
Identifying Customer Pain Points
Market Research: The first step in solving customer problems is understanding what those problems are. Conduct thorough market research to uncover the pain points your target audience faces. Use surveys, focus groups, and direct customer interviews to gather insights.
- Customer Feedback: Pay attention to what your customers are saying. Reviews, social media interactions, and direct feedback are gold mines of information about what frustrates them and what they need. For example, you might discover that consumers are frustrated by the lack of healthy, convenient breakfast options.
- Competitive Analysis: Look at your competitors. Identify gaps in their offerings and think about how you can address those unmet needs. What problems are their customers complaining about? If other brands’ energy drinks are criticized for their artificial ingredients, this could be an opportunity for a more natural alternative.
Problem Identification: Once you’ve gathered data, categorize the issues based on their severity and frequency. Prioritize the problems that are both common and cause significant inconvenience or discomfort to your customers.
Developing Painkiller Products
Value Proposition: Clearly articulate how your product alleviates a specific pain point. Ensure this value is communicated effectively in all your marketing materials.
- Product Benefits: Design benefits that directly address the identified pain points. For instance, people struggling with gluten intolerance are looking for gluten-free crackers that actually taste good.
- Ease of Use: The best painkillers are not only effective but also easy to use. Simplify the user experience to enhance customer satisfaction and adoption. For example, pre-measured spice packets for quick meals can save time and reduce hassle for busy families.
Customer Validation: Before going all-in on a product launch, test your solution with a small group of customers who experience the pain point you aim to solve. Gather feedback, refine your product, and ensure it truly meets their needs. A small bakery might test a new gluten-free bread recipe with a group of celiac customers to ensure it meets their standards for taste and texture.
Example 1: RXBAR identified a major pain point for health-conscious consumers: the lack of transparent, Whole-30 protein bars. By clearly listing all ingredients on the front of the packaging and avoiding additives, RXBAR created a product that quickly became a favorite among fitness enthusiasts and health-conscious consumers.
Example 2: Chobani disrupted the yogurt market by addressing the pain point of bland, sugar-laden options. By offering Greek yogurt with a higher protein content and natural ingredients, they appealed to consumers looking for a healthier alternative.
The Role of Vitamins in Product Development
While painkillers are essential for immediate success, vitamins have their place. They can enhance the overall value of your product, foster customer loyalty, and differentiate your brand over time.
- Enhancing Core Products: Once you’ve established a strong painkiller, consider adding vitamin-like features. These can improve customer satisfaction and encourage repeat business. For example, after launching a successful line of energy bars, you might introduce flavors with added antioxidants.
- Brand Building: Vitamins help build a brand that resonates deeply with customers, creating emotional connections and fostering loyalty. A premium chocolate brand might add exotic flavors to its lineup, appealing to gourmet food lovers.
Starting with a customer problem ensures that your product has a solid foundation and addresses real needs. By focusing on developing painkillers—products that solve significant pain points—you can create offerings that customers find indispensable. Remember to use vitamins strategically to enhance and differentiate your product further. Understanding and implementing the Painkiller vs. Vitamin theory can guide your product development and marketing efforts, ultimately leading to greater success in the competitive CPG market.
By addressing customer pain points directly and effectively, you ensure that your product stands out as a must-have solution, driving both customer satisfaction and business growth.