Monday, February 15, 2016

Healthy Eating


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.

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.