Functional CPG Ecosystem Strategies have Disruptive Potential

Today’s consumers are increasingly wanting more than simple products. The value they are looking for comes from experiencing the use of a product that is tailored to their specific needs and preferences. Delivering such experiences often requires complex and integrated systems that can no longer satisfied by functional CPG brands only offering “off the rack” products without additional value creating ecosystems. That being said, is it time for your functional CPG brand to deploy an ecosystem strategy? Any functional CPG brand undertaking this level of strategic shift must remember that discovering new customer value through ecosystems is a process (not a project). Most successful ecosystems started with a broad idea of where the potential for new value might lie, and only after learning through customer feedback loops and embracing an iterative innovation mindset does a winning combination emerge. Ecosystems that are successful in the long run need to be adaptable and be ready to modify their designs in anticipation of shifts in markets, technologies, regulations, and public sentiment. Designing an ecosystem is a major undertaking, but one that’s well-designed has the potential to create entire new industries or substantially shape and transform existing industries. To help explain ecosystem strategies better, I'll utilize three diverse case studies from functional CPG brands already deploying them in the market; Proper Sleep, Nestle, and Revive MD.