As the buzz around Startups and specifically Unicorns heat up the business world and the arguments that these wont last also arise, its imperative to analyze if businesses get built on Insights. My observations in such startups has been that businesses redefining categories seem to have a longer trajectory of survival and may well become the businesses of the future. These also align to long standing requirements of customers which have been sub served due to constraints in the physical world and of course inefficiencies in execution. One Insight which may well stand the test of time is that your customers would be willing to Pay More for Less of your product. This could lead to explosion of revenues in that Product Category and serve to expand the Product Line itself.
This is amply substantiated in the latest HBR article: Excerpts below:
The Billion-Dollar Opportunity in Single-Serve Food.
As consumers, we want what we want, when we want it and how we want it — fueling the demand for personalization and customization. To our credit, we’re willing to pay a premium for it. The single-serve experience is a powerful intersection of great business (higher margins, incremental sales) and increased consumer benefits (more choice, more customization). Technology enables unbundling that creates the single-serve revolution.
For businesses, this is a huge opportunity for growth.
Total food and beverage spending in the US is $450 billion dollars within grocery. Single-serve coffee, which didn’t exist a few years ago, now accounts for about 30% of the total amount of coffee sold in grocery stores. It’s quite possible there is another $100 billion in single-serve business opportunities within just food alone. And likely there are several more $100 billion opportunities beyond food and beverage. As you plot your own innovation strategy, take close look at single-serve solutions.
Read for full details: https://hbr.org/2015/10/the-billion-dollar-opportunity-in-single-serve-food