So, you’ve decided to take on the challenge of establishing a new retail brand and want to bring your product to the masses. Joining the fight for shelf space or creating demand for DTC goods is not for the weak or faint of heart.
You will need to be confident, decisive, and reactive to be successful. Knowing your product is superior to your competitors isn’t enough. You will also need a strong business plan that includes a reliable supply chain, a broad marketing strategy, in-depth research, and a well-thought-out product development plan.
Let’s look more closely at the steps you will take in the coming months to establish your brand.
Table of Contents
1. Make Decision About Product Development
To get a product on the shelves of major retailers it needs to have a stunning design, high quality ingredients and accurate labeling. To gain market share, you need to have a unique offering that addresses a gap in the current marketplace.
Whether it be creating an entirely new product category or improving upon the existing options, your creativity will come into play as you begin to prioritize innovation. You will need to rapidly test your product to ensure your goods meet current demands.
Make firm decisions as you develop your product. Consumers today are looking for organic brands that use sustainable ingredients in reusable or recyclable packaging. They want to know that choosing your brand means reducing their carbon footprint and voting with their paycheck for foods that will make them healthier.
Once you have a prototype for your product, begin testing with feedback from potential customers. Listen as they tell you how they feel about the taste, flavoring options, mouth feel, and price point.
After developing a winning combination, it’s time to start thinking about the supply chain you will need in place to begin manufacturing on a large scale.
2. Establish a Supply Chain
When looking at options for your supply chain, think about reliability and efficiency. Identify the suppliers who can meet the demand for your product from your beginning days with low sales figures all the way through to your final phases of growth.
You will need to negotiate with suppliers which will become easier as you begin to place large orders. The more you produce, the lower your cost of production.
In addition, you will also need a strategy for quality control. As you ramp up to higher volumes, your processes may need to change to ensure each batch remains consistent.
Developing a system for managing your inventory and fulfilling orders is also paramount. If you don’t want your product sitting in a warehouse for extended periods of time, you will need to communicate effectively with your suppliers to ensure that your demand is met without excess being created.
3. Develop Your Business Plan
Now that you have a supply chain in mind and a fully developed product that appeals to consumers, you need a business plan to guide your growth and attract new investors or lenders.
The first step is to survey the landscape of the market you are entering. That means performing analysis of your competitors and designing a look-a-like target audience. You need to make sure that your product will stand out on crowded market shelves.
This is also the time for you to reach out to manufacturers to get bids for your production costs. As mentioned before, the larger your run, the lower your cost per unit. Be sure that the manufacturer you choose is capable of producing small batches for your beginning stages as well as high-quality large batches once demand increases.
Once you have some quotes, you will need to find funding for your initial run. Securing capital may require you to be creative. You may tap into your own savings, attempt a crowdfunding campaign, get a loan from the bank, apply for grants, or look for outside investors.
For many of these options, you will need to present your solidified business plan. They will want to know the accurate numbers for cost of production. Be sure to track all of your expenses, demonstrate your plan for managing cash flow, and prepare your financial statements for review.
4. Invest in Marketing
To stand out in the CPG market, you will need to appeal to your target audience with a sound marketing strategy. This starts with a high-quality website and engaging social media content.
Consider sending your product to influencers to gain audience attention. You may also want to use other channels like Google Ads or social media advertisements.
Another route you could take would be going to trade shows and events to show off your new product. The more you get out there and in front of real world consumers, the more likely they will be to purchase your product.
5. Scale Up as Demand Increases
Now that you have made a few sales and established the foundation of your business, it’s time to look to the future towards expansion. If you took advantage of our earlier tip about finding a manufacturer who can scale with you, this part of the process will be much easier.
You may choose to expand your product range to include new flavors, packaging options like single-serve, or increase your distribution network to new markets. For these choices to be profitable, you need to make sure that you are listening to the feedback from your customers.
To gain insight into what forms of expansion will work best for your brand, analyze the market trends affecting your products. What are consumer’s preferences? How can you stay ahead of your competition? Do they have a ranch flavored offering that is flying off the shelves? Then maybe you should consider expanding to produce ranch as well.
This is also the time for you to strengthen the relationships you have build with stakeholders in your business. Reach out to your suppliers, retailers, and distributors and let them know about your goals. Listen to the strategies they suggest as they have in-depth experience to rely upon.
In the time of expansion, you will also want to take another look at your supply chain and operational processes to curb waste and improve your efficiency leading to reduced cost. The lower the price point for your production, the more you can pass those savings on to your consumers in the form of coupons and sales.
How to Find a Manufacturer for Your CPG Product
Finding a manufacturer for a new CPG brand doesn’t have to take months of negotiations and visits to facilities.
Working through Keychain’s platform, you can discover vetted manufacturers who can meet your needs overnight. Keychain is an AI-powered platform that matches food and beverage brands with CPG manufacturers.
With a strong network of providers, their software will introduce you to opportunities that you didn’t even know were on the map allowing you to make informed decisions for production so that you can dedicate your focus to marketing and expansion.
