These
days, a lot of people are interested in eating healthy. And, one
staple of the healthy diet seems to be the salad.
Let me
ask you a question. How much time do you spend thinking about salad?
Hopefully, not too much. But, it is a great lesson in
entrepreneurship.
As I
have been trying to prove, the great idea is largely a myth. This has
been the premise of my last few blog posts. If you have not read them
yet, go here and here and here.
You see,
a lot of companies have an Inside-Out perspective. That is to say,
they ask themselves what can they produce and how can they sell it.
This is
essentially the chotsky phenomenon. A lot of companies create
products that do not have viable markets. Essentially, they are
creating junk, or, solutions for which there exists no real problems.
A much
better approach is an Outside-In perspective. Meaning, we need to be
market and customer focused. Drucker would call it, "Looking out the window." We need to search for real problems to
solve. And, sometimes, the solution is mind-numbingly obvious.
Let's
talk about Fresh Express.
While it
is true that a lot of people want to eat healthy, it is also true
that most people want convenience. And, eating healthy can
often be at odds with convenience. Meaning, healthy eating usually
requires more effort.
Enter
the bagged salad.
A little
company, in Salinas California, called Fresh Express, was able to see
what the big boys could not. The big produce companies, as big companies often do, kept their attention squarely inside their own windows.
What I mean is, while the big boys were focused on their commodities, things like lettuce, carrots, and radishes, Fresh Express was focused on the customers' problems. This allowed Fresh Express to pick up on what might be called the "elusive obvious." The company did not have some bright idea. They simply saw what other people could not see.
What I mean is, while the big boys were focused on their commodities, things like lettuce, carrots, and radishes, Fresh Express was focused on the customers' problems. This allowed Fresh Express to pick up on what might be called the "elusive obvious." The company did not have some bright idea. They simply saw what other people could not see.
The people, at Fresh Express, asked themselves, “If people want to be healthy, but they also want
convenience, why don't we give it to them?” The solution? They
created pre-made, single-serving salads and put them in a convenient,
airtight bag.
People
want to eat salads, but they do not want to go to all the trouble of
making a salad. Fresh Express fixed the problem.
Was it a
big problem? Well, in 2005 the company got acquired, by Chiquita
Brands, for $855 million. Not too shabby for a bunch of lettuce! Next
time you are at the grocery store, see if you notice them in the
produce section.
To take
single-serving salads, and put them in a plastic bag, is ridiculously
simple. It is the very antithesis of a great, or bright, idea. And, it
is the essence of entrepreneurship.
The fact
of the matter is, most successful innovations are amazingly simple.
So, if you wish to succeed as an innovator, do not get all
sophisticated. Remember to keep it simple.