8 Essentials for Building a Successful CPG Business

Consumer packaged goods (CPG) are a big seller and a large part of the economy. Companies that can produce products that people use daily will never have a short supply of people buying from them if they do the right things. There are a lot of ways to build a successful CPG business, but there are also a lot of pitfalls to avoid. To ensure you’re on the right track with your brand and its future growth, consider these eight essentials:

1. Know Your Unique Product Value

Think beyond the features of your products and to the value the product provides people. Are they makeup products that help people build their confidence? Are they food products that offer a quick pick-me-up in between meals? Knowing not just the mechanics of your product, but how they connect to people’s wants and needs can help you build a successful CPG business.

2. Set Goals Before You Start

When setting goals for yourself or your business, make sure that they’re specific and measurable so that there’s no confusion about whether you reached them. In the CPG industry, this is especially important because setting goals can help you find the right retailers to distribute through, it can help you decide on the types of marketing that will be the most effective, and it can help you innovate more effectively. Goal setting is a critical part of business success, especially in the CPG industry.

3. Understand Your Customers

In order to build a successful brand, you need to know who your customers are and what they want.

Take time to research the habits of your target audience. What do they already buy? Who do they buy it from? How do they make decisions? How would your product help them differently than what they already use? Understanding this information will help you develop messaging and marketing strategies that resonate with them.

4. Create a Solid Sales Strategy

Once you’ve defined your product, you understand your customers, and you can connect your product to a need they already have, you need a solid sales strategy. This involves determining the who, what, when, and where for getting your product into the hands of customers. Whether you sell online and need to use Google ads and social media ads or you sell in the stores and need to create displays that highlight your products or you leverage a multilevel marketing sales strategy, decide early on what route you want to take. Some of this will be determined by who your customers are and where they like to shop.

5. Build a Team of Experts

Building a team of experts is an important part of building your business. You need people who are passionate about your product, who have expertise in their field, and who can work together as a team. People with this type of mentality, plus their expertise make them a critical part of your CPG business as you grow and build.

6. Create a Compelling Brand Story

A brand story is a narrative behind your company and its products. It’s the reason why people should buy from you, not someone else. Start by asking yourself why you started the business. What problems do your products solve for customers? Use these to build a story. Folgers was a coffee brand that had a commercial that talked about the best part of waking up. It was all about the feeling of waking up to the pleasing aroma of hot coffee ready to go to help customers start their day.

7. Engage in a Variety of Marketing Channels

The most successful CPG companies have engaged in a variety of marketing channels, including social media and email marketing. Understanding how each of these channels works and what types of content to use can help you create marketing plans that are truly effective. You might leverage a Facebook ad to drive people to an email list, but your Google ads might go directly to your product page or a page that tells people where to buy your brand locally.

8. Measure Success and Tweak to Improve Performance Over Time

As you build your company, it’s important to understand how you’re doing. You need data on what’s working and what isn’t so that you can make adjustments as needed.

 Looking at sales volume, revenue growth, market penetration, and more can help indicate where you need to make changes.

Partner With RIVIR

When you are truly ready to grow your CPG business, RIVIR offers comprehensive tools designed specifically for you. The RIVIR platform allows CPG businesses to connect with suppliers and manufacturers in a seamless manner.