Coach Mike Krzyzewski, head men’s basketball coach, Duke University: Don’t focus on winning. Focus on creating a culture of success. This will lead to consistent winning.

What is a culture of success?  I think it will be different for everyone, but worth thinking about for your company.

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

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1. Competitive environment. Do you have a defensible competitive advantage, like a patent? Or, another way to look at it is can your product/service be easily and quickly copied? If so, then you might need to race forward in growth to prevent competitors from copying, catching and passing you up.
2. Market state. Are you riding a consumer trend? If so, then you might need to grow quickly to take advantage of that trend.
3. Financial pressures. How quickly do you need to achieve profitability? Do you have funding to get you to profitability without fast growth?
4. COGS. I have yet to meet a startup or early-stage company in consumer products who does not have a COGS problem. That is, their COGS is very high because they don’t have the economies of scale that comes with size and/or they don’t yet have the expertise (usually gained through experience or hiring the right people) to source materials. Quick growth can mean economies of scale to help lower COGS.
5. Personal goals. Do you thrive on fast-paced, fluid and changing environments? Do you want to attempt to sell your company within a 10 year time frame? If so, then you might want to grow fast.

When is growth too fast?

In my experience, growth is too fast when:

1. You lose budegtary control and expenses start to spin our of control and you can’t stop them.
2. You make lots of stupid mistakes.
3. Your marketing/sales spend is not efficiently retaining customers. That is, you might do a great job at trial or one-time buys, but not at retention, thus your marketing/sales is constantly working to replace the customers you are losing. If this is the case, then you may very well be building a house of cards in your business that will fall apart when you run out of first-time customers.

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

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I think the biggest mistake is not grabbing consumer’s attention. There are so many products on shelf that it’s easy to get lost and not get any attention. This is especially the case if there is limited or no out-of-store marketing to create brand awareness. Consider the following:

• A study done by Proctor and Gamble 25 years ago indicated that consumers pushing a shopping cart down the aisle of a supermarket look at packaging for 1/6th of a second before they decide to stop and look.
• According to the Food Marketing Institute, if a customer picks up a package, even if they are not familiar with the product, there is a 71% chance they will put it in the shopping cart.
• A study conducted by Goldman Sachs in the 1990s indicated that for shoppers who shop with a shopping list, >60% of the content of the shopping cart were impulse purchases, thus the importance of packaging to appeal to that impulse.

Based on this, its important to get it right with your packaging. First, start with some background research:

1. Have a thorough understanding of your brand – who you are, what you do and how that benefits your target market. Take the time to figure this out as early as possible in the life of your company, and certainly before you are ready to scale.
2. Know the value your products provide and how they are differentiated from your competitors.
3. Know the market, customer dynamics and trends of your category(s) where you sell.
4. Know the purchase drivers that your customers use to make purchase decisions in the category(s) you occupy.
5. What is your suggested retail price (SRP) and why? A higher price may mean that your brand and packaging should reflect that higher price – i.e, be more upscale.
6. Know your competitors packaging well. Consider setting up a shelf in your office that is the same height and depth as that found in retail so you can place all your competitor’s product on it to compare and contrast.
7. Besides knowing your competitors and their packaging, take the time to go through the whole store to see what other kinds of packaging are being used and what might fit with your brand. What grabs your attention and why? This will help give you ideas.

From your research and analysis above, consider the following to create great packaging:

1. Use the data from the above questions to help figure out how to appeal to your target market and what holes you fill in your category. Consider using two-axis competitor maps to help you arrive at this (example here: http://sdrv.ms/10ei0D5)
2. Develop words and statements that differentiate you and appeal to your customer’s purchase drivers.
3. Develop the form factor, size, graphics, and colors, along with your words and statements, that will allow you to be distinctive, differentiated, clear, concise and hard-hitting. How can you use design elements and text to grab attention in 1/6 of a second against the sea of competitors already on shelf? Try to be different, but not so different that customers will get confused about what your product is and what it does.
4. Be careful about putting too much information on the front of your packaging. Keep it simple. Put the most pertinent info that will differentiate, hits at purchase drivers and gets consumers to pick up the packaging.
5. Use graphics people who are experienced in packaging design. Use appropriate legal and regulatory experts to review packaging and any claims you use. Proof carefully with many eyes, and do it again, and again.
6. Get consumer feedback.
7. Take your time. Don’t rush this. When creating new products, allow plenty of time in your project plan to get the packaging done right and give you time to think about it and get appropriate feedback
8. Finally, try to do all this before you scale, if you are an early-stage company. That’s not suggesting you never touch your packaging again. On the contrary, you want to keep it fresh and relevant, which requires periodic updating. But if you are a small company with limited resources (cash and time), its best to get it right early on so that you can run for a while without having to touch it again.

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

The post What are the biggest mistakes in CPG package design? How do you avoid them? appeared first on Ed Soehnel.

• Book review:  Inquiries into the Nature of Slow Moneyg

Links

Christ

• True statement:  the more we align ourselves with #God’s commands and His plan, the more we lead a focused, disciplined, and purposeful life.
• #christ. #biblestudy I will try a few of these.ow.ly/jj3PG Top Bible Apps for Android Phones

Food

• 9 #allergen-free #foods from #ExpoWest2013ow.ly/jkjM4 Looks like some great products here.
• 10 innovative foodie favorites from#ExpoWest2013. Think I will try the Epic #paleobars from this list ow.ly/jkkgf
• Obama signs #monsanto protection billow.ly/jtaPl I’d expect this from a Republican…but a Democrat?. #gmo #food
• More #bees dying ow.ly/jzAVt These little buggers are critical for growing a lot of our #food #gmo#pesticides
• I just backed #Aquaponics Systems & Plan Sets = Food Independence on @kickstarterkck.st/Yog6PO
• This is interesting and innovative ow.ly/jzmwE#Walmart may get customers to deliver packages to online buyers
• #WFM really stepping up on #GMO restrictions. Awesome! ow.ly/jijHT

Other

• Good stuff on #millennials. #marketingow.ly/ja45V
• 5 New Platforms for Social-Savvy Brands ow.ly/ja84Q More #socialnetworks makes it tough for #marketing to keep up.
• Nice list. #bloggingtools ow.ly/jj3xL
• ow.ly/jpFP4 Great short video summary on#Cyrus debt meltdown
• #Mobile Trends for 2013 and Beyond ow.ly/jI4nBGrt report.
• RT @donaldmiller: Love somebody without trying to change them and they’ll change. It’s a tough little trick to pull off, but it works.
• I was not aware of anti-NDAA efforts by states (Federal legislation that claims it can indefinitely detain American citizens without due process simply on the mere accusation of association with terrorists) .  Good to hear.  Here’s a rundown. #ndaa  http://www.thesleuthjournal.com/texas-arizona-anti-ndaa-bill-heads-to-house-floor/
• Good read. Humanizes our former president in a way that the media does not. I actually never disliked GW….voted for him twice and feel he is a decent man and really respect that he is a strong believer in #Jesus. Certainly can’t agree with all his decisions.  Reading this article made me think about #Obama I have never voted for him, but I don’t dislike him, either. I think he is a decent guy and trying to do what he thinks is best, even though I disagree with him most of the time. He’d be a great guy to chat with or play some hoop. I pray for him; he needs it. http://storylineblog.com/2013/04/04/why-i-now-like-george-w-bush/
• If you don’t feel free to be yourself, you can’t connect. Find people who accept your quirks. They’ll heal your soul. http://twitter.com/donaldmiller/status/319858159705542656

This delicate icicle formed on the stairs of our front deck from melting snow after a recent spring storm

The post Weekly wrapup: my posts and links for weeks of March 18 through April 2, 2013 appeared first on Ed Soehnel.

I found the author’s writing style difficult to follow because I was never quite sure where he was going. However, the author is an excellent writer with a great sense for use of the right words to make his point. And, no doubt he is very well-read, owing to the many references to various other materials that he cites.

I was hoping to read more about specific and concrete ways where we can re-deploy investment dollars that make sense for investors. As a serial entrepreneur in the food space and a strong believer in natural, organic and unprocessed foods, that is of great interest to me. He seemed to gloss over that towards the end with some general brainstorming that I think anyone can do in an afternoon. But maybe that was not the point of the book. Maybe the point was to convince us of his argument, mentioned above, so that we can collectively work on ways to make it happen.

I like the book and rate it three out of five stars and would recommend it. For those interested in the author’s (and other’s) efforts to implement what is talked about in the book, take a look at Slow Money

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

The post Book review: Inquiries into the Nature of Slow Money appeared first on Ed Soehnel.

• Developing a marketing strategy
• Great examples for using a strategy to attack from below
  
• What is the easiest way to take pre-orders at tradeshows?
  
• Marketing channels master list
  
• Where is your marketing weak?
  

Links

Food

• Whole Foods plans #GMO disclosure labels by 2018 ow.ly/iKoI0 Great news #food
• Scientists Officially Link Processed Foods To#Autoimmune Disease ow.ly/ixGyv
• Luv this concept. Easy way to get into the farming business, although at 60K per unit, not cheap#farm #hydroponics ow.ly/iKWyS
• ow.ly/ii8Nf #vending machines. A way to expand#retail?
• Squeezable food: ow.ly/ii7OE #food trend
• RT @unhealthytruth World’s Top 10 Most Innovative Food Companies: @SodaStreamUSA@Stonyfield &more bit.ly/WdTK5x
• The year the Valley embraced sustainable food innovation – great article by @kfehrenbacherbit.ly/12XAJd9 #foodtech

Other

• Your #marketing includes way too much about you, not your customer ow.ly/j0WXQ This is so true.
• #kickstarter company I mentored. #sports,#technology #opensource #smartphonecontrolled portable #scoreboard. ow.ly/iO6pG
• @Fab stops sending you #emails you don’t read, even when you don’t ask them to ow.ly/iKUZnGreat idea. via @TheNextWeb
• ow.ly/isgNp Luv it. #Google getting into#samedaydelivery
• Are Brands Connecting Emotionally With Consumers? ow.ly/i2S2E Good comments following the article. #marketing #branding
• #Marketing Masterworks ow.ly/hXrfU Highly recommended read. Excellent lesson takeaways to apply in your business.
• Understanding Google’s #AuthorRank & How to Use it in Content Marketing via @ContentVerveow.ly/hU9Mr Good stuff for bloggers
• ow.ly/hTkEx Info #flashsales category and #e-commerce in general
• How to Hire a VP of #Sales ow.ly/hTitN Good article
• One way for #retail to take on #amazon.ow.ly/hT8Jj

Cool Pic

photo credit: caddymob via photopin cc

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

The post Weekly wrapup: my posts and links for weeks of February 18 to March 11, 2013 appeared first on Ed Soehnel.

When you think about it, communication can encompass quite a bit in the context of what a company does.  We normally think of marketing as the messaging a company blasts out to build brand awareness and induce purchases.  But what about the way a company communicates through the quality of products it builds, or how helpful its customer service is at solving customer problems, or how it treats its employees or its respect for the environment. If marketing is communication, then everything the company does, both internally and externally, is communicating in some way with a stakeholder to the company. This means that marketing in any company is a big job.

So, how can a company make this big job of marketing manageable, especially if it’s a startup or small growing company with limited resources?  My answer is a 3-step process that I developed based on past learnings in growing companies.  While this 3-step plan won’t guarantee success, it will help companies understand what they need to do to create their marketing and where they need to focus their limited resources.

Here’s my process for developing and executing on effective marketing:

1.  Start from the ground and work up by developing the company brand pillars on which to build the entire marketing foundation. Click here to learn about brand pillars and access tools for developing them.

2. Once brand pillars are set, focus on building strong marketing from the core of the company (its product or service), out.  Click here to access this tool for building strong marketing.

3.  Once strong marketing is built, it needs to be communicated through available channels.  Click here to access my guide that helps me in  selecting the appropriate marketing channels to use for growing a company.

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

The post Developing a marketing strategy appeared first on Ed Soehnel.

The point is that when an established company weighs the cost of new technology or talent against what it already has, it usually sticks with what’s familiar. Why? Because the marginal costs of using what you have are almost always lower than the full costs of investing in something new. But that’s a trap–and one that companies that are young and hungry don’t get caught in, because they don’t think in terms of marginal costs. Rather than basing such selection on costs, start-ups tend to pick what’s best for the job. It’s a key reason newbies displace the old guard: They have better tools. Clayton M. Christensen in Inc Magazine, October 2012

These are great statements of strategy that I thought of recently after meeting with a company.  I know the founders and have worked with them before in another venture.  Their new company is a D2C (direct-to-consumer) fulfillment warehouse that is using cheap, off-the-shelf technology plus the founder’s own experience in this space to create a much more cost-effective solution for D2C product companies.  I have used D2C companies and have always found them to be inefficient, expensive and bloated with old systems and processes. About time this space get’s attacked from below.

And, check out this recent article from a company using the same strategy in the yoga apparel market.  A combination of technology and vertical integration to deliver the same quality products at almost half the cost.

How can you attack from below in your startup? Or vice-versa, how can you protect against someone else attacking you from below?

Disclosure: I have not received any compensation for writing this post. I have no material connection to brands, products or services that I have mentioned. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255.

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