What pops into your mind right away when you think about Consumer Package Goods (CPG)? It’s probably a big brand – you can look around your house right now and spot at least ten examples of CPG brands. That can of Coca Cola sitting by your side, the Heinz ketchup in the fridge, the Crest toothpaste in your bathroom… it can go on and on.
But while those big brands are all certainly powerful CPG players, being a CPG company is about more than just being a brand.
Today, most consumer goods companies focus on fast-moving goods like food, drinks, personal care items, and cleaning products. The industry became powerful in the early part of the 20th century when safety and quality were big concerns for shoppers. Brands could differentiate themselves from bulk-bins items by promoting their high quality and safety standards.
CPG Companies Today
But these days, we have much stronger safety and quality guidelines for almost any product out there. United States CPG companies now compete with a huge variety of similar companies and brands in almost every single industry. Trends change with ever-increasing speed. It’s much harder for a CPG company to have a competitive advantage and break through the marketing noise right now with a single product.
So What is an Emerging CPG Company to Do?
It’s time to focus on the six major business processes that drive CPG companies. If you get these right, you can scale your business and build a successful company – not just a single brand.
- Research and development: the part where you create a product that consumers love. You’ve probably already accomplished this part. Well done!
- Production: here’s where you figure out how to manufacture this terrific product at scale. Not so easy if you’re new to the CPG game.
- Supply chain: making sure you have enough raw commodities to make your product at the scale you need. Tricky also, but vital to ensuring your success is scalable.
- Transportation: how you get your product to retailers. For some industries, this is simple – for others, like perishable foods, it’s complex.
- Sales: making sure your product gets prime placement so customers can see it, buy it, and love it. This is a negotiation with retailers, not just luck.
- Marketing: the art and science of creating customer awareness and demand by advertising. Is your budget big enough to make this part work?
Which part of the process are you stuck on right now? You’re not alone – most emerging CPG companies get slowed down at some point. Each of these steps is vital to building a sustainable company that delights your customers.
Don’t make the common mistake of starting with step 6 – your plan needs more than just a brand to thrive. How are you building your company as a whole? If you need an expert guide, let’s connect today to see how Momentum CPG can help you reach your full growth potential sustainably and successfully.