Getting physical and digital shelf space
Consumer packaged goods is a crowded market no matter what product you launch. We live in a world of too many choices. Overwhelmed shoppers often stick to the familiar rather than branch out and try something new. Because of the clutter, it's hard to stand out, and new CPG brands find it difficult to get in-store and online shelf space. Small brands need time to grow, but also must show promise. The right placement and viewablity can make or break a startup (if you;re lucky enough to get on the shelf at all).
One entrepreneur that was able to successfully crack his way into the CPG world and find success is Gordon Gould, co-founder and CEO of Smartypants Vitamins. He speaks with iMedia at NewCo 2014 about his vitamin brand startup and key lessons he learned from its unique launch.
Attracting investors to pour money into a product that may face fierce competition is a difficult proposition. Money is obviously vital for startups, and making a convincing pitch for ROI can be challenging, especially for consumable goods. In a crowded market -- coupled with the high cost of manufacturing -- distribution, and staffing, as well as receiving investments for a new CPG product can be quite an unpleasant ordeal.
Gordon Gould continues our conversation by elaborating on the biggest challenges that new consumer goods companies face in this difficult market.
Creating a quality product from the beginning
Nothing kills a new product faster than a lousy launch (just ask the folks behind the Obamacare rollout). For consumables, this can be especially traumatic because a flawed eatable product with a bad reputation dies quickly. Your product must have a good start and be quality right from the get-go. There's less room for testing and building a loyal customer base these days.
Gordon Gould ends our conversation by explaining the unique ways his company is marketing itself to squash people's fears and establish a fresh brand voice in the CPG space.
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Videos edited by associate media producer Brian Waters.
"Dietary supplement: Gummy with calcium and vitamins" image via Shutterstock.