We shop for dozens, if not hundreds of CPG products every month, and there are dozens of decisions consumers are making everytime we pick a product off the shelf. In launching a new CPG product it’s critical to understand the components that make up a product so you can be as thoughtful as possible.
Brand Name: This is the fastest way for consumers to identify products they’re looking for, either an established favorite or a new company they just saw on Tiktok. Have a brand name that’s easily recognizable.
Product Category: Grocery stores have conditioned us to shop for products by category, ie. Dairy, Snacks, RTD Beverage. Fitting your product within a clearly established category will make it easier for grocery stores to place your products and consumers to find them.
When “Once Upon a Farm” launched their refrigerated baby food they had to build a completely new category. While this created an opportunity to stand out to consumers, it also required a lot of education to both grocery buyers consumers, which cost time and money.
Product Descriptor: This is simply what your product is and the most basic way a consumer will describe your product, ie. a cracker, protein bar, non-dairy milk.
De La Calle originally launched a beverage called “tepache”, which is a traditional mexican drink made from fermented pineapple. They used tepache as their product descriptor, and that became a barrier because they couldn’t be in every store to explain what tepache is. After talking with consumers, they realized people described it as a “modern mexican soda,” and rebranded their cans to clearly say that.
Consumers should easily understand what your product is in 3 seconds. If you have to educate them, you’ve already lost them.
Packaging: How your product is packaged says a lot about what it is and how to use it. Think about materiality, serving size, sustainability.
Temperature State: Is your product shelf-stable, refrigerated, or frozen? Each one has completely different considerations.
Flavor: Be clear with your flavor names. They should evoke the taste experience and appeal to the senses, like “Dark Chocolate Sea Salt” or “Lemon Ginger.”
Ingredients: Consumers are more focused than ever on what products are made of, so carefully consider every ingredient and make sure you stand behind what’s important to you. More people are picking up and reading every line on your ingredient statement.
Claims and Nutrition Facts Panel: Is your goal to be “high protein” or “low sugar”? These are claims that are regulated by the FDA and your nutrition facts panel to to accurately support any claims made.
Story: Share why you started the brand, the challenges you’ve overcome, and what drives your passion. For instance, Patagonia shares its commitment to environmental sustainability, which resonates deeply with its audience.
Your story should be relatable and authentic. It’s not just about selling a product, but about sharing a part of your journey and values with your customers.
Putting It All Together
A well-rounded CPG product includes a memorable brand name, a clearly defined product category, a compelling product description, diverse flavors, transparent ingredients, substantiated claims, clear nutrition facts, and a relatable story. Each element works together to create a product that not only meets consumer needs but also builds a loyal customer base.
Hero Product
Almost every new brand starts off with a single hero product you will build your company around.
For example, let’s say you want to create a new low-sugar chocolate chip cookie. That’s your hero product. Launching with a cookie, chip, and yogurt at the same time would overcomplicate your business. Instead, focus on the cookie as the hero, and you may have three flavors: chocolate chip, peanut butter, and oatmeal raisin.
The key to creating a successful hero product is finding something people love and getting them to buy it repeatedly.
In addition to being delicious and unique, every hero needs to have the following characteristics:
- Sells quickly: The hero must sell itself. It doesn’t require an explanation from you or the customers.
- Creates an emotional connection: An excellent hero product will make customers feel something – whether it’s happiness or nostalgia, or excitement – and that feeling will make them crave more of it.
- It’s adaptable: You can’t just put out one flavor of ice cream and expect people to devour it; they’ll get bored quickly if there aren’t enough options available to keep their interest piqued. So if you’re selling ice cream, offer a variety of flavors, so people don’t get tired of eating it all the time!
- Have a unique selling point: The Food and Beverage Industry is a highly competitive market. Your product needs a unique selling point (USP) to differentiate it from other products on the market. You can do this by offering a healthier or more sustainable alternative or adding value through packaging.
