Your products must appeal to consumer needs and trends that are always changing. In order to stay ahead, you have to offer the right product at just the right time, as well as exceed customer expectations so they stay loyal. Innovation in CPG is therefore critical and will contribute in many ways to the ongoing success of your brand.
Why Should You Innovate in the CPG Market?
Two main reasons stand out.
1 Innovation boosts brand performance and accelerates company growth.
Bringing in new ideas to one or all aspects of how you operate, your business model, and your product range will likely improve your performance. However, you must also utilize technology tools to measure the effects of any innovation. You obviously can’t afford to sacrifice your revenue growth on the altar of innovation!
2 Innovation can enhance customer experience and build brand loyalty.
As a manufacturer and supplier to retailers, you can create a better experience for both retailers and consumers by improving
- shelf visibility,
- cost, or
- any other consideration that suddenly rears its head and will make your product stand out.
Driving Innovation in CPG
What drives the need to innovate? Probably the list we just mentioned! With current levels of inflation, CPG and FMCG will lead the way in making life tolerable as well as meeting business goals. The onus is therefore on you to drive innovation in a way that benefits all parties.
We’ll discuss three types of interventions you can leverage.
1 Innovative CPG Packaging
Consumers are currently more attracted to compelling packaging that proves its sustainability credentials and is both easy to open and recycle, and not over-elaborate.
You should therefore find innovative, cheaper, greener, and more sustainable ways to package your product and make sure customers see its all-round value. (Think about annoying toothbrushes sealed in thick, hard plastic that’s impossible to remove!)
2 Consumer-Driven Innovation
In a consumer-centric marketplace, CPG companies must listen to customers. If you involve them in each stage of research towards that innovative product you’re dreaming up – and encourage them to participate in improving your idea – you’ll reap rewards.
Use customer forums and other interactive programs to develop ideas, disrupt current trends for the better, and solve issues relevant to your brand categories.
This can seem a time-consuming approach but it’s actually more agile. Changes can be made along the way with less risk of a full-rollout disaster that could have been foreseen by “real” consumer involvement.
3 Innovation Throughout CPG Product Development
This one is linked with the above idea when offering customers a product that’s repetitively used up and bought again. You need to consider the total development of the product when bringing in innovations. As you know, investors in that ubiquitous Dragon’s Den TV series often immediately ask:
- What’s this made of?
- Where did you source the components?
- How well did you test this? Look – I just tugged it apart. It’s not durable!
Likewise, these days, what appeals to customers goes beyond the function of that product (think toilet paper – no one “just” buys the first on the shelf!). Companies have to meet a multitude of customer trends post-Covid for safety, sustainability, and simplicity. Your product innovation process needs to consider not only new ingredient ideas, but also specific consumer groups, and the trends that matter today.
We Can Help You
Innovation is important for CPG sales. Don’t settle for standing still! Call us for a consultation today to help you gain ground in product innovation and increased sales.