4 Questions to Ask Before You Launch an Organic Product
One of the biggest fallacies in popular folklore is:
“Make a better mousetrap and the world will beat a path to your door.”
In reality, over 90% of businesses fail within the first five years, even the ones with really great ideas. Good execution beats originality any day. And good execution requires good solid market information.
With organic products so hot many a natural product manufacturer or organic food processor has found initial success came easy. As the field matures however, competitors enter the market and bigger retailers show interest in the product. Both require a fledgling company to be prepared with data and selling points.
Four Questions to Ask Yourself About Your Organic Product
1. How much interest is there for organic products in my category? A recent Mambo Sprouts Marketing survey found that:
When it comes to grocery spending in particular, natural category consumers indicated they were most likely to choose organic options for produce (60%), dairy products (54%) and child/baby food products (50%). Only one in four or fewer felt it was very important to buy organic in the categories of beer and wine (10%), pet food (23%) and desserts and snacks (23%)
2. What is the dollar size of the total market?
Data is available on the roughly $25 billion market for organic and natural products in ever increasing detail. As more players enter the market, more surveys are done and natural foods companies can, with a little research get an idea of the real value of the marketplace.
3. Who is the competition and what share does each player currently have?
Keeping an eye on the competition is key for success in any business. At this point in the organic and natural foods lifecycle, as more and more bigger players enter the natural food marketplace, they, fortunately tend to increase the size of the whole market rather than steal share from smaller players. As the market becomes more saturated, this will not always be the case. So find out and broadcast…
4. What makes my product different and better than competing product?
A key marketing tool used by major manufacturers is defining and promoting the unique selling proposition. By establishing what makes your product different….from other organic and natural products…you create your own niche in the marketplace. The time is past when simply being “natural” or “organic” is enough. Now it’s time to dig deep to determine what makes your product different.
Asking and answering these questions is the first step in competing in today’s organic and natural products market. Once the sole purview of small entrepreneurs, as bigger and bigger players enter the market, more sophisticated analysis is required to remain competitive.