The Exact System for finding $1M+ CPG gaps (using Ahrefs, Particl & Manus AI)

Key Concepts

• CPG (Consumer Packaged Goods) Business: Creating physical products that are frequently consumed and require replenishment.
• SEO (Search Engine Optimization): Optimizing online content to rank higher in search engine results.
• Ahrefs: A tool used for SEO and market research, providing data on keyword search volume and ranking difficulty.
• Particle: A tool that provides sales data and insights for e-commerce brands, including best-selling products.
• Taste: A subjective preference or aesthetic sense that influences product design and marketing.
• Distribution: The process of making a product or service available to the consumer.
• Unfair Advantage: A unique capability or resource that gives a business a competitive edge.

Ahrefs Analysis for Category Demand and Trends

• Functionality: Ahrefs is used to evaluate category demand and trends by analyzing keyword search volume and difficulty.
• Electrolytes Example: The search volume for "electrolytes" shows a seasonal trend with peaks in June and July. The keyword difficulty is high (88), indicating strong competition.
• Global Search Volume: Analysis of global search volume reveals that "electrolytes" are most popular in English-speaking Western countries (US, UK, Canada, Australia), suggesting opportunities in other regions like Germany, India, and the Philippines.
• Solitaire Case Study: A buddy used Ahrefs to identify the undervalued web properties with high search volume (8.5 million monthly searches for "solitaire"). He built a solitaire site from scratch and outranked competitors through SEO, generating significant revenue.
• Application to App Ideas: Ahrefs can be used to validate app ideas by checking search volume and competition in the relevant category (e.g., "accounting software for vets").
• Acting Like an Analyst: It's crucial to interpret the data and ask "why" behind the trends, rather than just looking at the numbers.
• CBD and Delta 9 Example: CBD search volume peaked in 2019 due to the 2018 Farm Bill but has declined since. Delta 9 (legal THC) has grown in popularity, potentially replacing CBD.

Particle for E-commerce Sales Data and Insights

• Functionality: Particle allows users to analyze e-commerce brands, view their sales over time, and identify their best-selling products.
• Vital Proteins Example: Particle can show Vital Proteins' sales over the past four weeks, the categories they sell in, and their best-selling SKUs.
• Product Decision-Making: Particle helps de-risk product decisions by identifying popular flavors and product types. For example, if multiple supplement brands sell chocolate and vanilla flavors, it's a safe bet to offer those flavors.
• Trend Explorer: Particle has a Trend Explorer to identify trending products and categories.
• Tik Tok Shop Integration: While Particle doesn't directly integrate with Tik Tok Shop, browsing Tik Tok Shop can reveal sales figures and popular products.
• Magnesium Example: Observing the sales of magnesium supplements on Tik Tok Shop can indicate the competitiveness of the space.

The Case for Physical Product Businesses

• Difficulty: Building a physical product business is challenging due to the complexities of supply chain, finances, and marketing.
• Marketing Expertise: It's a phenomenal way to get good at marketing because it is so hard to get people's attention to get a single person each time to part with dollars to buy something.
• Cash Conversion Cycle: Requires a deep understanding of cash conversion cycles, margins, and inventory forecasting.

Standing Out in a Crowded Market (Magnesium Example)

• Amazon Analysis: Analyzing magnesium glycinate products on Amazon reveals that many brands have generic, medical-looking packaging.
• Moon Juice Example: Moon Juice differentiates itself with amber jars and a distinct brand aesthetic.
• Lemi and Seed Examples: Lemi differentiates through custom bottling, positioning towards women, and fun, accessible branding. Seed differentiates through its messaging, branding, and target audience.
• Niche Positioning: In the early stages, it's crucial to focus on a specific niche and tailor messaging to that audience.
• Opportunity for Non-Women Products: There's an opportunity to create well-designed, well-branded products for demographics other than young women, such as older adults.

Branding for Older Adults

• Millennial Blanding: The trend of "Millennial Blanding" has led to many consumer products looking the same.
• Gen Z Branding: A similar trend is happening with Gen Z, with brands adopting bright, vibrant, and saturated designs.
• Starface Example: Starface, a pimple patch brand, targets younger consumers. There's an opportunity to apply the same concept to older adults.
• Disposable Income: Older adults often have more disposable income and consume information from different channels, making them a valuable target market.

Bootstrapping Product Development

• Design Importance: Design matters more in some categories (e.g., wine) than others.
• Problem-Solution Products: For problem-solution-oriented products (e.g., pimple patches), it's possible to bootstrap the design process.
• Freelance Designers: Hire independent freelance designers from platforms like Fiverr and Upwork for simple packaging and landing page design.
• Facebook Ads: Run Facebook ads to gauge demand and generate leads.
• AI Tools: AI tools like v0 and Manis can assist with design and research.

Leveraging AI for CPG Product Development

• V0 for CPG: There's a significant opportunity to create a v0-like tool specifically for CPG product design.
• Midjourney and Fiverr: Combine AI tools like Midjourney with freelance designers from Fiverr to create initial designs and refine them.
• Clarifying Vision: Doing the hard work of creating mood boards, defining positioning, and developing a strong point of view is crucial before engaging an agency.

Research and Point of View Development

• Relentless Research: Whether building software or physical products, be a relentless researcher of the category and competition.
• Non-Alcoholic Wine Example: The agency researched the non-alcoholic wine category by reading everything, analyzing competitor brands, and visiting stores to talk to owners.
• Store Owner Insights: Talking to store owners provides valuable insights into what's selling, what's not, and what customers are looking for.
• Software Example: For software, analyze existing software reviews, contact potential customers, and gather feedback.
• Avoiding Hunches: Avoid building products based solely on hunches; instead, gather data and develop a robust point of view.

Manis Demonstration

• Prompting Manis: Prompting Manis to design a CPG product (a starface competitor for older adults) demonstrates its research capabilities.
• Competitor Analysis: Manis researches competitors in the pimple patch market, analyzes product details, and researches skincare needs specific to older adults.
• Research Sources: Manis uses various research sources, including Credence Research and articles on skincare for older adults.
• Unfair Advantage: Using tools like Manis can provide an unfair advantage in product development.

Conclusion

• Distribution First: Start by working backwards from distribution and thinking about the channels for acquiring customers.
• Product vs. Distribution: First-time founders focus on product, while second-time founders focus on distribution.
• Operational Excellence: Subpar products can succeed with incredible distribution and operational excellence.