Karen Anderson on identifying, capitalizing on whitespace innovation

“When I think about innovation and the whitespace, it really goes back to what problem can you solve for and is there a critical mass of an audience that will like that product ... because of that problem you are solving for,” Anderson elaborated.

​[Editor’s note: The Founders' Fundamentals podcast is FoodNavigator-USA’s monthly podcast series, dedicated to the art of building and growing CPG food and beverage brands. To listen to last month’s episode on the “head and the heart” of brand strategy, click here.]

‘Can you find any flaws in what is already out there?’

CPG founders and startups seeking to disrupt a category should first explore what is in the market and identify ways to do it better, Anderson explained. Allergen-friendly, clean-label, organic and regenerative agriculture trends continue to grow and might be areas where a startup can find inspiration, she added.

“There is always an opportunity to improve. So, can you find any flaws in what is already out there? And how can you make it different? Maybe it is the quality of ingredients, maybe the item that is already out there is not organic and maybe you want to come up with an organic solution. There are also different tiers of pricing. There can be a super-premium item. There can be a mid-tier or a low-price leader. There are different ways to differentiate your item,” Anderson elaborated.

Additionally, CPG startups should “not go crazy in terms of flavors” and focus on growing a couple of SKUs before they start expanding their portfolio, Anderson explained. Having just several flavors to start out with helps from a marketing and advertising perspective while making it easier for a consumer to learn and like a brand, she noted.

“I say to clients all the time, ‘There is Coke and there is Diet Coke.’ So, when you are looking to build out your portfolio, you really do not need a large number of flavors or products — go as deep as possible in your distribution of one to three SKUs before you start [releasing] more flavors,” she elaborated.

‘Less is more’ when it comes to packaging design

CPG startups also should carefully consider the front-of-pack claims and messaging that resonates with consumer, while also using the packaging itself to distinguish itself from the competition, Anderson said.

“You want to be careful about how many of those certifications you are putting on front of pack — less is more. You do not want it to look too busy, but you also want to make sure that if a consumer is looking for certain certifications or certain allergens, etc., you want those to be clearly called out. But you also do not want to muddy up the entire packaging front of pack because then consumers just do not even know where to look,” Anderson said.

Additionally, CPG startups should envision where the product will be sold on store shelves, which can help brands secure retail placement, she explained.

“I have told either brands I am working with or mentoring to take a picture of your product on the shelf [of a prospective retailer], and then use that as part of your pitch. When you go to meet the buyer say, ‘Hey, I can picture this product in this space, on this shelf, in this placement,’ and it helps the buyer to visualize your product on the shelf as well,” she suggested.