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I created 5 key differentiators with TeaSquares and it almost killed the company
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When we launched TeaSquares, our idea was to create as much differentiation as possible to protect the product from competitors.
We promoted TeaSquares as: “Tea Infused Energy Snacks”
- Highlighting edible “Tea” as an energy source.
- Bite-sized squares instead of bars.
- Creating flavors like Citrus Green Tea Matcha, Vanilla Chai, and Acai Blueberry.
- Packing in a multi-serve pouch instead of a bar.
- Promoting our social mission of providing jobs to underserved young adults from Englewood.
IT WAS WAYYYYY TOO MUCH.
First off, no one has ever gone into a store looking for a “tea-infused energy snack”, not even me.
When a customer saw the product on the shelf, they had no idea what it was (especially since it was merchandised by the “Raw Foods”).
THE PROBLEM:
Being too different confuses the customer, and most people wouldn’t spend more than 3 seconds trying to figure out what it was before moving on.
I realized that people don’t buy for uniqueness, and changing someone’s behavior is INCREDIBLY difficult and expensive.
THE SOLUTION:
Associate your product with existing customer behavior, and have 1 or 2 valuable points of differentiation.
If you’re going up against protein bars, make sure that you have solid Macros around high protein, low carb, and low sugar. Then add your differentiation on top of that.
Of course, there are exceptions, and those exceptions typically have at least one of these attributes from my experience:
1) Substantial funding – as new products require education and education takes a lot of money.
2) Strong niche demand – companies tap into a dedicated consumer within a niche market. What’s unclear is how substantial that market is. $10 million? $50 million?
3) Entertaining – Founders and companies who are AMAZING at creating content and building a community because of their personality can achieve education for a low out-of-pocket cost.
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