We scan new podcasts and send you the top 5 insights daily.
Retailers prioritize products that bring new customers into a category, not just ones that steal share from competitors. JonnyPops succeeded by appealing to families who weren't regular popsicle buyers, thus generating net new revenue for stores and securing prime freezer placement.
Whole Foods didn't know where to place KIND bars because they didn't fit the traditional "nutritional bar" category. This "problem" became a huge opportunity when stores placed KIND in high-visibility displays at checkout counters, driving massive impulse buys away from competitors.
A product designed for one demographic (e.g., protein sprinkles for kids) may find unexpected traction with entirely different groups (e.g., bodybuilders, GLP-1 users). Actively identifying and marketing to these surprise communities can unlock significant, unforeseen avenues for growth and brand adoption.
When launching an innovative product, approach major retailers by framing it as the anchor of a completely new category you can help them build. This elevates your company from a mere supplier to a strategic partner and category leader.
Despite beverages being a category people rarely buy online, Breeze generated tens of millions in DTC sales. This built a huge base of customers who preferred to buy in-store, creating a powerful demand flywheel. When Breeze launched in retail, it sold four months of inventory in two weeks.
Shoppers often approach indulgent categories with "healthy goggles," initially seeking better-for-you items. By leading with low-fat or healthy options at the front of an aisle, retailers can increase engagement and foot traffic. Once in the aisle, a significant number of these shoppers then "trade up" to the full-fat versions they originally planned to avoid.
To get into a major retailer, don't just prove your product sells. Show buyers data that you bring new customers to their category, growing the entire market rather than just cannibalizing sales from existing brands on the shelf.
For CPG brands, a physical retail presence, even with lower margins, should be viewed as a customer acquisition strategy. It provides crucial visibility and trial, driving customers to your higher-margin direct-to-consumer website for subsequent purchases and retention.
YETI's high-priced coolers offered significant profit margins that low-cost competitors couldn't. This gave small sporting goods stores a product they could sell profitably, creating a new sales category for them and sidestepping competition with mass-market retailers like Walmart.
To land major retailers like Target, Waterboy focused on incrementality. They showed how their strong social presence and differentiated product would attract a new, younger Gen Z demographic to the store, increasing the retailer's overall category sales, not just replacing an existing product.
The founders identified a mismatch between the modern, Gen Z pickle consumer on TikTok and the outdated, homogenous branding on store shelves. By targeting a neglected category with bold design and unique flavors, they faced less competition and stood out to both consumers and retail buyers.