Stop launching new products (please)
Creating new products is the ultimate in fun when it comes to business, especially in the early stages.
There's creating recipes, choosing ingredients, taste-testing (ALWAYS a perk in food business), picking YOUR favourite, designing packaging and then launching your new creation to the world.
And then. Hoping. Waiting. Praying.
🤞 That your retailers will accept it as a new line.
🤞 That you'll get 100% incremental sales.
🤞 That there will be zero cannibalisation from your existing products
🤞 That you'll suddenly hit all your growth targets
🤞 That you'll get spontaneous rave reviews online
🤞 That somehow manage you'll juggle the new products on top of the ones you already sell, through operations, logistics and sales...
The time, effort and literal bucket-loads of money invested in everything from design, initial orders, creating more warehouse space, cash tied up in extra stock and extra effort to literally 'launch' it as new - can often result in stress and pressure that breaks too many startups.
While its tempting to keep creating and adding on, the reality is that MOST of your volume and profit will ALWAYS come from your top sellers. The most successful companies are generally laser focused on their products, launch evolutions most of the time (and revolutions only after extensive work).
Consider Apple has been selling the Iphone since 2007 and simply upgrades specs & colours each year. The ipad was launched in 2010, Apple watch 2015 and Airpods in 2016. They are a $400bn business and still keep a tight focus on backing their winners and maximising sales of their most successful lines.
SO WHAT SHOULD YOU BE FOCUSING ON INSTEAD?
👍 Maximise sales with your EXISTING retailers - talk to them about ways to drive sales in their stores. Its a win:win for both of you if you can increase rate of sales & velocity.
👍Plus you'll improve operational efficiencies which falls straight to the bottom line
👍 Look for new retailers in your current region (country/ geography) and saturate the market with your product. The majority of shoppers in FMCG are VERY light buyers so you need maximum reach to capture as many as possible.
👍 Talk with your distributors about new sales channels outside traditional retail/ supermarkets - think about hospitality, cafe, foodservice, events, on-premise / off-premise, catering etc etc.
👍 Maximise your advertising of your best-sellers. It takes a lot, lot, lot longer for your consumers to get to know you and love your products than you think.
👍 Talk to as many current and potential consumers as possible
By focusing on driving sales of your current core range, you can learn what really works (and what to STOP doing) so you can refine your pitch, your pricing and your product BEFORE you expand even further.
After 20+ years launching too many NPD to count, I've seen the upside and down and want to make sure others avoid the mistakes...
Drop us a line on hello@pitchfork.co.nz if you want to talk more about making sure your product range is firing on all cylinders.
