How to Validate CPG Packaging Strategy Before Launch: The Store Audit Method
Why CPG Founders Should Conduct Store Audits
Most CPG founders spend between $30,000-$75,000 on focus groups and consumer research before launching packaging designs. But the most valuable intelligence about what actually sells already exists on retail shelves at 5 a.m.
Store clerks who restock shelves nightly observe consumer behavior patterns that traditional market research struggles to capture. They witness which packages get picked up most frequently, which SKUs consistently move, and which formats drive repeat purchases.
At Gel, we've guided CPG brands toward category leadership for 30+ years by starting with real retail observation, not conference room assumptions.
The Glass vs. Plastic Packaging Trend: What Data Shows
Consumer preference is shifting dramatically toward glass packaging, particularly among millennial and Gen Z parents. Research from PMMI (The Association for Packaging and Processing Technologies) reveals that the beverage industry shows a "noticeable shift toward using glass and aluminum instead of plastic," driven primarily by customer demand for more sustainable and recyclable packaging options.
The plastic-to-glass transition accelerates annually because consumers perceive glass as:
- More premium and higher quality
- Transparent (allowing product visibility = trust)
- Environmentally friendlier with simpler recyclability
- Associated with fresher, healthier products
What shelf observations confirm: Stock clerks restocking infant care sections report handling glass jars differently than plastic. Parents study glass packaging longer, pick it up more carefully, and show clear purchasing preference despite higher price points.
The infant food category demonstrates this clearly. While Gerber maintains 70-80% market share with packaging designed for "mom-friendly" ease of understanding, emerging brands gaining traction almost exclusively use glass formats.
SKU Rationalization: Why Fewer Products Drive Higher Sales
CPG industry data contradicts founder instincts about product variety. Companies that reduce SKU counts see 65-90 basis point increases in gross margins, according to L.E.K. Consulting studies on SKU rationalization.
Major brands confirm this through action:
- Procter & Gamble eliminated approximately 100 brands to focus on 80-90 top performers. The shed brands contributed only 6% of total profit.
- Unilever found that 20% of UK/Ireland SKUs accounted for just 5% of sales.
- Mondelēz discontinued 25% of SKUs that contributed less than 2% of company sales in 2020.
- Coca-Cola removed multiple Fanta flavors, then achieved expected revenue growth by focusing on fewer brands and SKUs.
The 80/20 principle holds true: Typically, 20% of SKUs generate 80% of revenue and profit.
What retail audits reveal: A brand offering 8-9 flavors in the infant food category often sees only 1-2 flavors consistently move. The remaining SKUs create supply chain complexity, increase manufacturing costs, and dilute shelf presence without contributing meaningful revenue.
Why Excessive SKUs Hurt Profitability
- Manufacturing complexity: More changeovers, increased downtime, higher production costs
- Inventory management: Warehousing costs for slow-moving items, obsolescence risk
- Supply chain inefficiency: Transportation costs, cash tied up in motionless products
- Retail disadvantages: Confuses consumers, dilutes shelf impact, complicates restocking
Strategic recommendation for CPG launches: Start with 2-4 core SKUs that represent distinct consumer needs, not minor flavor variations. Test, validate, then expand based on actual velocity data.
Refrigerated Placement in Shelf-Stable Aisles: The Once Upon a Farm Case Study
Once Upon a Farm disrupted the $2.4 billion baby food category by introducing refrigerated displays directly within traditional shelf-stable baby food aisles. This placement strategy solved a critical discovery problem: parents shopping for baby food don't naturally navigate to dairy aisles.
The innovation: Installing branded coolers in the baby aisle where purchase decisions happen, rather than expecting consumers to find refrigerated products in separate store sections.
Performance results: Once Upon a Farm's refrigerated assortment turns 2-3 times faster than shelf-stable products in the same category. Stock clerks report refilling these refrigerated units nightly, despite premium pricing ($2.49-$2.99 per pouch vs. $1.00-$1.50 for shelf-stable competitors).
Why refrigeration placement works:
- Meets consumers where they shop: Parents with young children want convenience, not multi-aisle treasure hunts
- Signals freshness and premium quality: Refrigeration creates immediate perception differentiation
- Reduces purchase friction: Eliminates the cognitive burden of remembering to visit another section
- Creates category disruption: Forces competitors to reconsider format and placement assumptions
Cost considerations: Installing refrigerated displays in shelf-stable aisles requires significant capital investment. CPG brands often bear these costs initially, though major retailers invest when building out multi-brand fresh food sets.
Broader application: This strategy extends beyond baby food. Any CPG category where "fresh" positioning provides competitive advantage should examine refrigeration placement near traditional shelf-stable sections.
How to Conduct Your Own Store Audit
Timing: Arrive at stores between 5:00-7:00 a.m. when night shift restocking is finishing. This is when you'll find the people who actually observe daily product movement patterns.
Who to talk to: Stock clerks who work the same sections repeatedly. They notice:
- Which products consistently require restocking
- Which new launches gain immediate traction vs. those that sit
- How consumers physically interact with packaging
- Which formats, sizes, and price points move fastest
- Seasonal and promotional patterns that affect velocity
What to observe:
- Shelf positioning: Which brands get eye-level placement? Which are relegated to bottom shelves?
- Format preferences: Glass vs. plastic, pouch vs. jar, single-serve vs. family size
- Empty shelf space: The ultimate truth—what actually sold
- Packaging that works: Which designs help products get discovered and selected?
- SKU reality: How many variations does each brand offer? Which appear neglected?
- Refrigeration strategies: Are any brands using coolers in unexpected locations?
Questions to ask restocking staff:
- "Which products do you restock most frequently?"
- "Have you noticed any packaging changes that seem to be working or not working?"
- "Which new launches seem to be gaining traction?"
- "Do you notice patterns in how shoppers interact with different packaging formats?"
- "Are there products that never seem to move?"
Cost: Free, except for your time and perhaps coffee for helpful store employees.
Value: Insights that would cost $30,000-$75,000 to gather through traditional focus groups and market research, delivered through observations from people who watch your category daily.
What CPG Founders Learn from Store Audits
Store audits answer critical questions that determine launch success or failure:
Packaging Design Validation
- Does your package design stand out at shelf level in actual retail lighting?
- Can consumers understand your product benefit within 3 seconds?
- Does your packaging format match category expectations or successfully disrupt them?
SKU Strategy Confirmation
- How many variations do successful competitors maintain?
- Which flavor profiles, sizes, or formats consistently move?
- Where do market leaders consolidate vs. proliferate?
Format and Material Decisions
- Is your category shifting toward glass, plastic, or alternative materials?
- Do consumers prefer pouches, jars, bottles, or other formats?
- Are there emerging format trends (like refrigeration) worth early adoption?
Positioning and Messaging Clarity
- How do competitors communicate benefits on-pack?
- What claims resonate enough to drive purchase?
- Where does "cleaner" packaging design outperform busy, information-dense approaches?
Price Positioning Reality
- What price points dominate shelf space?
- Where do premium products successfully command higher prices?
- How does price relate to package size, format, and materials?
The Competitive Advantage of Retail Intelligence
CPG founders who conduct systematic store audits before launch gain advantages that compound throughout their growth trajectory:
Better initial positioning: Launch with packaging that already reflects category realities
Smarter SKU decisions: Avoid the profitability trap of excessive variety from day one
Faster category understanding: Compress months of market learning into weeks of observation
Lower research costs: Redirect $50,000+ in market research budget toward product development and launch marketing
Real-world validation: Test assumptions against actual consumer behavior, not survey responses
The intelligence CPG brands need is being collected every night by people restocking your category shelves. It becomes freely available for a friendly conversation at 5 a.m.
Need strategic guidance on CPG packaging design and brand strategy for category leadership? Gel has helped consumer packaged goods brands achieve market-leading positions for 30+ years through packaging design informed by real retail intelligence and consumer behavior understanding.
Book a 60-minute readiness assessment: https://calendly.com/pato-1/60min
Email: pato@gelcomm.com
Related Resources
- How Does Brand Strategy Inform Category Leadership?
- Strategic Packaging Design for CPG Brands
- Category Leadership Development Through Retail Intelligence
About the Author
Pato is the founder of Gel, a Los Angeles-based CPG packaging design and brand strategy agency specializing in helping consumer packaged goods brands achieve category leadership through strategic packaging and retail intelligence.
