Innovation: Avoiding the fad frenzy
The abundance of products on the grocery store shelves means it’s critical for food processors to find a way to make their products stand out. At the same time, you need to ensure your product has longevity in the market and isn’t simply a fad.
One of the most effective strategies you can use to escape the fad frenzy is to shift your focus to the consumer and their needs. This helps ensure that the innovations you invest in respond to your consumers' needs and wants.
“It’s about clearly defining the consumer problem you're solving, not the product you want to sell,” says Jo-Ann McArthur, President of Nourish Food Marketing.
Think big
She stresses the importance of thinking big to identify the product's purpose when evaluating potential innovations. It’s an important part of the newly released FCC Innovation Guide: Success Through Innovation.
“What job is my product being hired to do?” says McArthur.
Engaging in this thinking process helps ground innovation in reality by understanding how a product can improve an existing situation in a consumer’s life.
Craig Klemmer, Manager of Thought Leadership at FCC, says it comes down to market research.
Successful innovations require entrepreneurs to be curious and actively seek knowledge about their consumers.
“That’s going to look different for every operation,” he says. “Sometimes that’s making sure that you’re at the trade shows and talking to your customers, sometimes you’re dealing with peers in the industry and asking those questions.”
Successful innovations require entrepreneurs to be curious and actively seek knowledge about their consumers and their behaviours. Look at market research from sources like FCC and test it against your business plan to see if this is right for you now and into the future.
The benefit of solution-centric innovations
Focusing on the problem the product is solving, and which product is being hired as the solution, is one of the first steps to determine which innovations could have impact. Once the problem is identified, the next step is to determine whether the challenge the consumer faces is a fad or signs of a bigger, more persistent problem.
Trending on social media is not enough; instead, entrepreneurs should look for cultural changes, including adoption of the trend, and for how long. For example, the growth in mocktails and nonalcoholic beverages illustrates how a product has responded to cultural shifts. Several cultural indicators showed the growth as a trend with some longevity, including an interest in sober-curious books, a decline in alcohol consumption on campus, and even a decrease in mentions of alcohol in songs.
“Food is part of culture,” McArthur says, “So if there are a number of cultural signals, put them together and you can identify the trend that is coming.”
The path forward
Centering innovation on either solving that persistent problem or responding to cultural changes is what has the staying power. Here are two key tips:
1. Look at the big picture
Once entrepreneurs determine the role of a product in the consumer's life, they can extend their critical thinking to focus on the entire system. This helps small and mid-sized food processors expand their ideas from a single product to the entire supply chain.
“For instance, if you are an apple grower, zooming out can also unlock opportunities for innovation,” McArthur says. “Is there something that right now is a waste stream that you can upcycle? Do you have imperfect fruit you can market in a different way?”
Think beyond the next flavour and look at the whole cycle.
2. Be intentionally curious
“At the end of the day, it's really about being curious,” Klemmer says. “More importantly, it's about having a strong business plan, sticking to it and demonstrating that you're not always chasing the shiny objects, but instead are being deliberate about the strategies that you're going to be doing.” This intentional approach to innovation helps ensure that the shift you’re making is more likely to succeed.
Stay agile
Small and mid-size food processors are close to their consumers, and smaller operations make it easier to react and respond to market signals.
“You are really able to respond to consumer needs and adjust your product accordingly,” Klemmer says.
This places processors in the optimal position for innovation, including testing product changes in the market and then adjusting when needed.
From new products to process improvements, innovation can take many forms. Get practical ideas and resources in our guide for small and mid-size food & beverage businesses.
Article by: Anne-Marie Hardie
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