Greg Kitzmiller11.01.02
Principles For Success
Following simple business practices may provide a solid foundation from which to grow and prosper.
By Greg Kitzmiller
Nutraceutical businesses are like all businesses and basic principles apply. A recent review of dietary supplements in a retail environment made me wonder if executives and managers think about some of those basics. There are five principles that may guide firms to success. These include practice honesty and integrity, tell the truth well, provide consumers with one single and simple message, sell real benefits and innovate while offering uniqueness. Reading some of the labels on products led me to wonder if firms practice these principles because even I walked away from the store shelf not making a purchase.
Honesty & Integrity
Reliable sources reported that a physician was recently fined for making claims in advertising about a supplement product for weight loss. Another report stated that a Canadian judge fined four vitamin manufacturers for price fixing. The bad news is, reports of unethical activity abound. Even while writing this I received “spam” e-mail making what I believe to be outlandish promises for supplement products. Is it no wonder consumers feel betrayed with nutraceutical products if many messages are highly suspect. While it may be difficult for some firms to retreat from a web they have woven of dishonest and unethical behavior, this industry would be far better offif it was fully self-regulated or perhaps regulated with strong government enforcement. While reading about Enron, Anderson and WorldCom it seems now is the time for consumers to want to do business with someone they can actually trust. Yet if industry allows poor integrity then the entire industry suffers.
Tell the Truth Well
A number of years ago I used the New York-based advertising agency McCann-Erickson for product assignments. Its saying was and still is “truth well told.” If honesty is the first business principle then truthful communications that are clear and creative easily follows as the second. Few firms are building strong brand images in the supplement business. The same principles apply to all nutraceutical products. We don’t need to steal McCann-Erickson’s slogan but instead applaud it for its saying and reminding us that truthful, clear and creative communications belong as principle number two.
Send a Simple, Single Message
The third principle should be send one single message. Too many brands and products treat communication as if consumers were reading all of a newspaper. They try to communicate too much. Providing consumers with one strong message through packaging, promotion and advertising has a much better chance of building an image. It is okay to support this one message with various support statements yet the message must be clear and singular. Consumers react to a powerful message that is continually stated in all communications. In fact, this is why Sergio Zyman, the former chief marketing officer of Coca-Cola, said mega-brands are a bad idea. Placing a brand name on dozens of items diffuses the simplicity of a message.
Market the Benefits
Principle number four is don’t market products, market benefits. The problem with many products is that they try to sell based on technical benefits. We don’t buy a car, we buy excitement, style and comfort along with transportation. I was not looking for supplements recently, I was looking for an aid to my health. Understanding the benefit consumers are looking for and communicating that benefit is the key to marketing. On top of ethical behavior, telling the truth well and communicating a single message, we must be certain that the message communicated is about benefits, not product features. If we are not careful there may be conflict with the Dietary Supplement Health and Education Act (DSHEA) and that conflict must be addressed in the benefit statement. The law for supplements requires that products not communicate about disease but may discuss the structure and function of the body. Consumers may not understand building cartilage but they will likely understand reducing joint pain. Understanding exactly how consumers see benefits and communicating those benefits within the law is key. To not communicate benefits can kill a good product.
Innovate While Offering Uniqueness
The last principle is to innovate and offer uniqueness. One of the problems with many nutraceutical products is that there are dozens of “me too” items. Brands that stand out as unique and different in some aspect are likely to be marketplace winners. A product does not have to be totally unique. The product must offer some unique characteristics in benefits or in branding. What is particularly important is the consumers’ view of the product. Companies spend money to make their product technically unique and fail to brand the product in a unique way. The consumer must understand the difference in the product offered by your company as opposed to the product offered by a competing company. Too many companies use similar images and names and try to explain the difference. Explanation may not lead to perception. A few years ago Pepsi switched from a red, white and blue can to a blue can. This allows them to be more easily distinguished from Coke. Similarly your product must be distinct in every way. It amazes me that supplement companies will name supplements according to an ingredient. It is too easy for a consumer to confuse “Saw Palmex” with “Saw Palmo” or “Prostacepps” with “Prostamax.” Ford is distinct from Honda and Swiffer is distinct from Clorox.
Another word about innovation. Often true innovation comes from small companies rather than from big firms. If a large firm cannot innovate they often acquire once the innovation is successful—this has been true with PowerBar. A firm’s organization and structure is often different, which allows true differentiated innovation as opposed to “new and improved.” Innovate or die is often the mantra. Firms must innovate and find uniqueness or they are likely to have middle tier brands.NW