Consumer packaged goods (CPG) are industry terms for items that customers frequently use and replace. Food, beverages, medicines, cosmetics, and cleaning products are examples of consumer packaged goods. Typically, manufacturers distribute these commodities through intermediaries to retailers who sell these products in brick-and-mortar stores. During the last two years of the pandemic, there has been a rise in the purchase of such products through online stores and e-commerce websites.
If you’re planning to start your own food or beverage brand, or manufacture other CPG products, here’s a comprehensive guide to planning your business before investing:
Conduct Market Research to Choose the Right Product
The first and the most important step is choosing which product or line of products you choose to manufacture. Whether you go by your gut feeling, personal interests, and strengths, or choose the most in-demand product, conducting a prior survey is always necessary. You can conduct online research using automated tools, social media surveys, or general product searches on e-commerce platforms. It’s always recommended to choose a product with high demand and low supply.
Try Competitor Products
Find your competitor products in retail stores and do some research about their sales volume. Purchase your competitor’s products and use them to check their quality. This will give you a better idea of the minimum quality you need to achieve and also help you analyze how you can make your product better.
Consider Your Suppliers
Evaluating and choosing suppliers is critical to your business’s success. The raw materials and other supplies you need should be both cost-effective and easily accessible. A late supply disturbs the whole supply chain and results in the whopping effect of product delivery delays and costs.
Define Your Business Structure and Layout Business Operations
Once you have chosen your product and its suppliers, the next phase is defining your business structure and day-to-day operations.
Outline Your Marketing, Sales, and Distribution Plan
Sales and marketing arethe backbones of any business. You can outsource emerge’s CPG sales and management services to help you with sales and marketing processes. Our sales expert will design sales plans and create efficient distribution networks.
Financial Feasibility and Forecasting
Creating a five-year financial forecast helps you project your sales and business growth. You need to hire a financial advisor to help you with company registration and financial forecast, and project feasibility plan.
Plan Integration with Supply Chain Partners
Implementing information technology to increase communication with all parties involved in your supply chain will help you keep track of your goals and ensure a smooth supply and delivery of products. Rapid information sharing among all stakeholders helps you increase the agility of your supply chain and improve performance.
Seek Help from CPG Consulting Agency
A new business needs the experience of competent professionals to survive the initial few years of entrepreneurship. Outsourcing sales and management services to emerge will not only assist you in having a strong grip over your business, but it also presents an opportunity to optimize your supply-demand cycle right from the outset. We are one of the best CPG consulting companies that provide natural food sales and marketing outsourcing and consulting services.
Contact us for further information.