This post was created in partnership with Ibotta
Entering the competitive CPG industry can be an uphill battle—even more so for a challenger brand. But with enough grit and determination, nothing is impossible. During an ADWEEK House Possible panel co-hosted by Ibotta, industry leaders discussed what it takes to start as a niche product in a crowded space and rise to the top.
Sticking to the brand’s identity
Chris Riedy, chief revenue officer at Ibotta, set the stage by discussing consumer research from Ibotta’s State of the Spend report. Their research found that two things are front and center in the American consumer’s mind. The first was value. Regardless of economic background, every consumer is looking for value, Riedy said. The second was health.
“American consumers care about what they’re putting in their bodies today in a way that they haven’t in the past,” Riedy said.
This shift has presented opportunities for CPG brands in the “better-for-you” category, especially for those that have stayed true to their brand’s original mission.
Stacey Hartnett, SVP of marketing at Chomps, explained how the meat snacks company has grown organically by maintaining a firm grasp on its brand’s identity and following the customer’s lead.
“Consumer growth has allowed us to become even more dedicated to the mission, the values, the product quality, and integrity that we’ve always had from the beginning,” Hartnett said. “And it’s really been the consumer that started to shift and allowed us to maintain that consistency.”
Doug Radi, president of specialty baked goods company Sweet Loren’s, has kept the brand’s “challenger” identity throughout its growth. He explained that refrigerated dough was invented 50 years ago, and the opportunity is in the challenge of modernizing it.
“We’ve looked at going from challenger—early challenger—to more mainstream challenger. It doesn’t really change the mission,” he said. “You’re still a challenger. You’re still revolutionizing something.”
The importance of innovation
For a challenger brand, innovation across all facets of business is the key to staying relevant.
Chomps recently released a “chicken portfolio” to capitalize on consumers’ desire for this meat. Americans eat about 100 pounds of chicken per year, but chicken is only 1% of the meat snack market, Hartnett shared. “So, that is a pretty clear white space.”
“We’re trying to combat this legacy perception of the ‘ick’ of a meat stick, and with chicken being so approachable, we think we’ll just continue to bring in a new customer,” Hartnett stated.
