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PRODUCT STRATEGY

Positioning before formulation: why a technically good product can still be difficult to sell

Many OEM projects begin with the question, “What should the formula contain?” A more important question comes first: who is the product for, when will they use it, and why should they choose it? Without clear positioning, even a strong ingredient list can lack a compelling commercial reason to exist.

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Discussing positioning, target market and the product-development brief

Positioning is a set of choices, not a slogan

Useful positioning clarifies the priority consumer, the usage occasion or need, the primary benefit, the expected price range and the intended sales channel. These choices directly influence formulation, pack size and packaging. When one changes, the others often need to be reconsidered.

Start with the real job the product needs to do

A plant-based powder for a convenient breakfast is a different proposition from a product designed for post-exercise use or for older consumers. Serving size, sweetness, flavor, preparation, packaging and communication should reflect the actual context of use.

Treat target price as an input, not a late-stage calculation

If the expected selling price is considered only after the formula is complete, the project may have to revisit ingredients, pack size or packaging structure. Bringing the commercial target into the brief early allows R&D to balance experience, perceived value and economic viability.

Use reference products intelligently

Reference products are useful for aligning expectations on taste, texture, format, price and presentation. The goal is not to copy them, but to identify what the market already understands and where the new product needs to be meaningfully different.

A clear brief reduces unnecessary development loops

Before requesting samples, define the core consumer, market and channel, target price, preferred format, priority benefits, reference products and non-negotiables. A concise brief gives every development decision a commercial context.

Turn positioning into an executable development brief

Positioning becomes useful only when the product-development team can convert it into concrete criteria. A workable brief should identify the primary buyer and user, the need the product is expected to address, the intended usage occasion, which benefits are essential versus optional, the expected retail-price range, priority sales channels, preferred format, reference products and any constraints that should be avoided. For export projects, the brief should also define the destination market, label language, importer/distributor model and regulatory points that still require verification.

The key is to separate preferences from non-negotiables. If every desirable feature is treated as mandatory, the formulation can quickly become expensive, complex and difficult to manufacture. When three to five core criteria are clearly fixed, the development team has room to optimize the remaining variables while still protecting the commercial positioning.

Pressure-test positioning with three commercial questions

Before investing in multiple sample rounds, a business can test its positioning with three questions. First: if the logo and brand name were removed, would a buyer still understand what situation the product is designed for? Second: is the reason to choose it meaningfully different from existing alternatives on shelf or online? Third: does the intended price feel proportionate to the value the customer is expected to perceive?

These questions do not replace market research, but they expose overly broad briefs such as “for everyone”, “high in nutrition” or “tasty and healthy”. Statements like these do not give formulation, packaging or communication teams enough direction. Strong positioning usually accepts that the product will not be for everybody, so it can be much clearer for the customers who matter most.

Know when positioning itself needs to be revised

Positioning is not an immutable document. Three signals often justify revisiting it during development: the formula repeatedly exceeds the target cost envelope; samples meet technical objectives but receive weak sensory feedback; or the packaging requires too much explanation before people understand the product. In those situations, the problem may sit in the original commercial assumptions rather than in formulation work alone.

Revising positioning early is usually less costly than forcing a brief that no longer makes sense. Any change should still be assessed for its effect on formulation, pack format, claims, artwork, documentation and timeline. This is why Zenut prefers to stabilize the product logic before downstream work goes too far.

What to prepare before the first OEM/ODM discussion

A company does not need a perfect dossier. One page is enough if it covers the target market, priority consumer, usage occasion, intended price range, sales channels, tentative pack format, the three most important benefits, two or three reference products, expected first-run volume and desired timing. If any point is uncertain, mark it clearly as an assumption that still needs to be validated.

A brief like this shifts the first conversation from “What can you manufacture?” to “Which development route best fits this business problem?” That makes feasibility assessment more useful, helps define the likely scope of product development and reduces the volume of irrelevant proposals.

Conclusion

Zenut recommends clarifying positioning before going deep into formulation. It is a relatively small step that can improve consistency across R&D, packaging, manufacturing and go-to-market decisions.

INSIGHT → EVIDENCE → PROJECT

From development principles to real project evidence.

The article explains the decision logic. Case studies show how those principles become products, while the OEM/ODM page explains the process for starting a new project.

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