NewWays for Environmental and Social Change

Watching the news and reading the popular press you’d think that the interest in organic products is so high that simply making your idea for a new product a reality ensures success. Not so fast.

One of the biggest fallacies in popular folklore is:

“Make a better mousetrap and the world will beat a path to your door.”

In reality, over 90% of businesses fail within the first five years,
even the ones with really great ideas. Good execution beats originality
any day. And good execution requires good solid market information.

With organic products so hot many a natural product manufacturer or
organic food processor has found initial success came easy. As the
field matures however, competitors enter the market and bigger
retailers show interest in the product. Both require a fledgling
company to be prepared with data and selling points.

Four Questions to Ask Yourself About Your Organic Product

1. How much interest is there for organic products in my category? A recent Mambo Sprouts Marketing survey found that:

When it comes to grocery spending in particular, natural
category consumers indicated they were most likely to choose organic
options for produce (60%), dairy products (54%) and child/baby food
products (50%). Only one in four or fewer felt it was very important to
buy organic in the categories of beer and wine (10%), pet food (23%)
and desserts and snacks (23%)

2. What is the dollar size of the total market?

Data is available on the roughly $25 billion market for
organic and natural products in ever increasing detail. As more players
enter the market, more surveys are done and natural foods companies
can, with a little research get an idea of the real value of the
marketplace.

3. Who is the competition and what share does each player currently have?

Keeping an eye on the competition is key for success in
any business. At this point in the organic and natural foods lifecycle,
as more and more bigger players enter the natural food marketplace,
they, fortunately tend to increase the size of the whole market rather
than steal share from smaller players. As the market becomes more
saturated, this will not always be the case. So find out and broadcast…

4. What makes my product different and better than competing product?

A key marketing tool used by major manufacturers is
defining and promoting the unique selling proposition. By establishing
what makes your product different….from other organic and natural
products…you create your own niche in the marketplace. The time is past
when simply being “natural” or “organic” is enough. Now it’s time to
dig deep to determine what makes your product different.

Asking and answering these questions is the first step in competing
in today’s organic and natural products market. Once the sole purview
of small entrepreneurs, as bigger and bigger players enter the market,
more sophisticated analysis is required to remain competitive.