I was recently approached by a start-up food business who had a very exciting product that they were in the process of developing. They had no experience in creating a food brand or working in the food industry. So, whilst they had a great vision for their brand and product, they really wanted help and guidance before they invested a lot of money in their dream. They wanted to understand whether there was a real opportunity for their product. What was its commercial viability?
There are a handful of fundamental questions to get to grips with when thinking about product-market fit. If you answer ‘no’ any of these questions, you probably need to revisit your product and its commercial viability. It doesn’t mean it can’t work, but it probably doesn’t make sense to invest too much money until you have a sound base to work from.
- Would retailers be interested in your product?
- Would consumers understand it?
- What would they be prepared to pay?
- Do your costings allow for you – and retailers – to make a profit?
- Is there room for this product in the category?
- Does it match current consumer and market trends?
These things all have a fundamental impact on how you go to market and, indeed, whether you should go to market. Before my client progressed with their business any further, they asked me to carry out a Product Opportunity and Brand Positioning report.
Comprehensive research
This entailed comprehensive research starting with looking at the trends in the market in their specific category. We looked at how people were eating, what occasions, what ingredients and flavours were being used, what the current health trends were in the category, packaging trends etc
We then delved into a detailed look at the competitor set – both direct and indirect. What were they doing? Who were they targeting. Who was doing what well. Pricing, packaging, range….
Is there a gap for your product?
This is a really important piece of research as you can start to see where your brand might sit and where there is a natural gap. Which leads us onto the opportunity for your brand – the positioning, the offering, the usps and the ultimate reason to believe in your brand.
We finished the report with recommendations of the viability of the product and/or any tweaks amends that might need to be made for it to have the best chance of success.
They were delighted with the report and we have subsequently worked with them on their Sales and Marketing Strategies and Plans as well as creating a stand out brand for them.
If you’re also at that stage with a great idea but you’re unsure about checking commercial viability, watch the Relish webinar or get in touch.