Start your own consumer packaging goods (CPG) business by having a passion for what you do, understanding your customers and their changing needs, and continuously monitoring business performance. Technology has never made it easier for entrepreneurs with a great idea to get out and succeed. Take these growth strategies to heart when you’re launching and running your CPG manufacturing business.
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Have Passion for Your Idea
The CPG industry holds lots of opportunity. You want to believe in your idea and your company from the get-go in order to stick with it through the challenging times. Prepare from the beginning for some bumps in the road, and keep your vision at the forefront of your efforts. Create a mission statement, and return to it when the going gets tough.
Get Close To Your Customers
Social media channels give companies a direct path to potential and existing customers. Join relevant industry conversations to help develop your CPG company and products. Once you’re up and running, stay tuned so you can understand your customers’ reactions, problems, needs, and feedback. Active listening is a great way to keep your finger on the pulse of your target audience.
Establish Valuable Partnerships
There’s no better way to launch and grow your CPG business than to piggyback on the shoulders of bigger players. Find other companies, influencers, contractors, or suppliers who can help you get the word out. If they believe in your product and it can help them do their jobs or sell their product more effectively, it can be a win-win arrangement for both of you.
Collect Data From the Beginning
As you start manufacturing your product, you’ll want to track costs of production, packaging, distribution, and shipping. Consider tracking the cost of things like inventory management so you have a clear picture of costs. If profitability escapes you after an initial launch, you’ll have some data to help you understand why.
Use All Channels
Consumers make buying decisions based on ongoing exposure through various marketing channels every day. Be sure you’re visible in as many as possible. Conduct some research to better understand your target audience and where they are most likely to shop. Take advantage of getting your products not only into physical stores but also on major online retail sites. Don’t forget to sell off your own website as well.
Many tools are available today to better understand the competition and shopper behavior. As you grow your CPG business, be sure to take advantage of as many as you can afford. Gather data that can help you predict how to move forward based on competitor activity and promotion effectiveness.
Don’t Forget Maintenance
As you streamline production of your CPG product and acquire assets to support your manufacturing, don’t neglect maintenance of your investments. Consider investing in a computerized maintenance management system (CMMS) to manage your physical space like the upkeep of your HVAC system, as well as any equipment you run.
Remember to Innovate
One reason that there’s such a big opportunity for new CPG businesses is that the millennial generation demands customized, personalized products. The big box CPG companies failed to prioritize innovation in their product development. According to market research firm IRI, the smallest CPG companies are the fastest growing segment while the largest players find sales lagging.
Even if your CPG company experiences a successful launch, remember to keep listening to your customers’ feedback. Tweak, change, and improve your product, packaging, and distribution on an ongoing basis. Well-thought-out innovation based on solid data from your customer base will be rewarded with greater profitability and customer loyalty.