Launching a new product into the food and drink category

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I’ve had a number of requests recently for a list of all the key points to consider when launching a new product into the food and drink category so here they are:

  1. GETTING READY

  • Research your idea thoroughly.
  • Be clear about what need your product meets.
  • Understand and identify your proposition and positioning – particularly in relation to price.
  • Identify your audience and get to know them forensically – the same applies to your competitors.
  • Undertake store visits and produce comprehensive market maps. Pay careful attention to sub-category pricing and
    competitor intensity.
  • Tick ‘all the right boxes’ to optimise your idea by completing all the above – don’t compromise.

  1. PRODUCT

  • Make your product as good as it can be – and then go again – make it better still.
  • Taste, appearance, texture, aroma is everything – repeat purchasing relies on the product ‘hitting the spot’.
  • Don’t accept mediocre because your customers won’t.
  • Ensure you have a ‘minimum viable product’ before you go any further.
  • Consider your manufacturing opportunities – kitchen at home, rental kitchen, small scale outsource, large scale outsource.
  • Identify your structural packaging solution and MOQ’s before moving on to the next stage.

    Close up of line of drink fridges in retail store.

  1. BRAND & PACKAGING

  • Seek expert help to create your brand strategy and to guide you through the technical and legal aspects of taking a product to market.
  • Work hard on creating compelling and succinct on-pack messaging – every single word counts. Be clear about your USP’s and how best to communicate them. Less is more.
  • Invest in excellent brand and packaging design undertaken by companies with a proven track record in food and drink packaging.
  • Prepare trial products and packaging for sampling and research.

  1. FINANCIALS

  • Know your costs and margins. The pennies really do count.
  • Build a robust financial model (minimum two years projections, ideally five) with a realistic assessment of the funds required to take your product to market, provide marketing support and to provide all important working capital. Identify your working capital needs.

  1. ROUTES TO MARKET

  • Retailers do not have infinite shelf space.
  • Understand what your target retailers are looking for and understand why they may stock you – which products will you replace and why?
  • Know their expected margins and brand support expectations.
  • Prepare a detailed marketing plan including price promotion activity.
  • If relying on web-based sales, you still need a marketing plan to create awareness and drive sales.

  1. LAUNCHING YOUR NEW PRODUCT

  • Be able to demonstrate proof of consumer demand to potential stockists through local sales/online and early marketing activity.
  • Build your social media following.
  • Attract as many ‘vocal and visible’, brand ambassadors as you can during this early phase.
  • Create an intense local, distribution hot spot to achieve high visibility and maximise repeat purchase opportunities – resist scattergun listings.
  • Out-think rather than out-spend your competitors – smarter marketing.

  1. BUILD

  • Grow your points of distribution and rate of sale.
  • Increase your brand noise and visibility.
  • Push hard early on with marketing activity or you may stall.
  • Re-invest early revenue gains to ‘bridge the chasm’ and grow your audience into the mainstream.

Last Updated on 17/03/2023 by Eddie Stableford

Published by Eddie Stableford

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