We're heading into a period of economic instability and high inflation, with a likely recession on the horizon in the next 12 to 18 months. All this poses big challenges for CPG companies and their potential to achieve fast growth.
But that isn’t to say that growth is impossible. Especially if an up-and-coming CPG brand is willing to learn from other success stories and use the challenging current state of the market to their advantage.
But how does that work in practice? Let’s take a look at the key steps you’ll need to take to build a fast-growing CPG brand. 
Conduct User Research
Consumers prefer to buy from CPG companies that listen to what they need and provide the products they want. But to give customers what they want, brands need effective ways of finding this information out.
Rather than using small samples or relying on guesswork, this means conducting extensive user research. Some powerful research tools include online surveys, customer advisory boards, brand equity studies, eye-tracking technology, and focus groups.
These different methods allow companies to investigate brand awareness and associations. They can also help brands find out how certain demographics perceive specific products and concepts. Brands can then use this high-quality data to create products that answer consumer needs.
Such in-depth research is why Chobani made the decision to move toward paper packaging for its yogurts. This move came after the brand noticed an increasing demand for sustainability among its customers. But, user research can often be even more valuable for newer CPG brands looking to grow in a crowded marketplace.
Use High-Precision Targeting
Targeting a well-chosen audience ensures that those who are more likely to respond to your products will see them. This is why high-precision targeting goes hand-in-hand with user research. Getting to know what your customers want will also help you find out who they are.
Once a CPG brand has this information, it can target those consumers by developing a product that meets the demands of that group. It can also start marketing toward that group through relevant networks, apps, websites, and the like. All this then helps drive in-store purchases and increase CPG eCommerce sales.
Keyword targeting and location targeting both work well for many companies. But the most precise option is audience targeting. This allows brands to target likely customers based on demographics such as age, gender, and nationality through information gained via social media and search engines.
The trick here is to ensure that your parameters include those you’re targeting without casting your net too wide. Finding that elusive sweet spot will involve some trial and error but watching your metrics and making adjustments when necessary will soon pay off.
As revolutionary beauty company Glossier has shown, targeting the right audience ensures that your brand and the conversations surrounding it speak to the customers you’re seeking. 
Devise an Appropriate Pricing Strategy
Your pricing strategy says a lot about the products you’re selling. Prices that customers perceive as low can imply low quality. But prices that are too high will likely make your customers hesitate or head elsewhere.
What’s more, a pricing strategy that isn’t appropriate for your product can put off your target audience. And, while the price might be right for other buyers, if your product isn’t what they’re looking for then your brand won’t be on their radar.
Some pricing strategy options for CPG brands to consider include:
- Price skimming — setting prices as high as the market will tolerate and then lowering them over time
- Competitive pricing — basing prices on what your competitors are charging
- Economy pricing — pricing products a little lower than the competition with a view to making a profit through more sales
- Penetration pricing — offering prices much lower than the competition before increasing them over time
- Cost-plus pricing — basing prices on the production cost plus a certain percentage
All these strategies can work well with the right products. But you’ll need to consider the disadvantages of each before making a final decision.
For example, competitive pricing is a good option if you’re launching a new CPG brand but it doesn’t leave much room for growth. Penetration pricing can mean a lot of sales and keen customers at the start. But this strategy relies on high levels of customer loyalty for continued success when prices increase.
And, while cost-plus pricing is often the simplest and safest option, you’ll still need to consider how this price relates to the competition for it to be viable within the entire marketplace.
Find Smart Distribution
All the research, marketing, and pricing strategies in the world are worth nothing if you can’t deliver on your promises to provide your customers with what they want. This is why distribution is a vital yet often overlooked ingredient for the success of many CPG brands.
A seamless CPG distribution system will ensure that you avoid delays, stock shortages, and stock surpluses. But a smart distribution partner like Buffalo Market offers you so much more, by complementing your research through an analysis of the CPGs that are doing well, which pricing strategies are working, and so on.
All this is possible thanks to Buffalo Market’s tech-forward approach to food and beverage distribution. We use AI to gather and analyze data about who your customers are and what they’re buying. This means that we can always ensure your customers get the products they need whenever and wherever they need them most. 
Your Guide to Building a Fast-Growing CPG Brand
Building a fast-growing CPG brand means doing your research, targeting your true customers, and selling at the right price.
But to make sure that all your hard work pays off, you’ll need a distribution partner that can help you get your products to your customers on time, every time.
Looking to expand your CPG brand? Feel free to reach out to one of our distribution experts to learn more about how Buffalo Market can help you grow!
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