by Suzanne Shelton
Everyone has had their head turned by snappy branding—a clever name, a cool logo, slick ads, solid public relations (PR) or an appealing promotion. It works because people are attracted to “shiny.” In a lot of product categories, that’s more than enough to create a successful product. Ads run, PR campaigns launch, products hit shelves, everybody buys the product, agencies win awards and then the consumer is on to the next thing. Marketing plays an important role in creating a successful product; yet, in the nutraceutical ingredients industry, it is not enough. More should be required, and in recent years, has become essential.
One experience a few years ago illustrates the gap in thinking by some manufacturers. A company called in asking about PR services; as I always do, I asked about the science behind its products. After a pause he said, “What does science have to do with marketing?” (It was a very short conversation.) Admittedly, some companies sell products that aren’t supported with their own science; but these days, if a company isn’t a category pioneer, the size of its slice is restricted and its credibility is limited. Every supplier is going to have to step up to have a viable business long term, or be relegated to commodities and compete largely on price.
Around 15 years ago, an ingredients company borrowed science and launched a “me too” product that copied one pioneered by a company that was more involved in clinical studies than in hyping their merchandise. Me Too Inc. launched a media tour hosted by Dr. Something Or Other, garnering TV interviews all over the country. It turned out the Ph.D. in question had his doctorate in history, but he was great with a script. Can you imagine what the media would do with that now? Fortunately, that doesn’t fly anymore with today’s savvy ingredient purchasers.
Looking at the ingredients and finished products that are growing significantly in sales—omega-3s, probiotics, vitamin D and curcumin—there is a common factor. All those products have had serious media coverage on positive studies indicating health benefits as the body of science tilts firmly into the “this stuff is good for you” realm. The rising tide is floating all the boats.
But wouldn’t it be more fun to have a unique product in a well-publicized study with its own powerful benefits, and to have the patent rights behind it? Patents are cool. They show credibility, and ostensibly no one else can sell that product without licensing it from the company holding the patent. In the real world, some companies will try, which often leads to litigation. Some recent court decisions in favor of companies’ intellectual property (IP) should make companies think twice about IP infringement, some regarding patent protection and some targeting trademarks.
A final component beyond the substantiated safety and efficacy, the IP and the dazzling marketing is sustainability. Sustainability is important for several reasons: consumers really like it when companies share their values, and manufacturers really like it when they can get supply from their ingredient vendors. In this context, two different kinds of sustainability work best when they meld. As an example, one company I work with contracts with farmers to cultivate raw materials for them, arranges financing for them to get started and educates them on how to grow the highest quality herbs. This helps protect them from product shortages and also improves the quality of life for the farmers and their families. The company has also expanded to initiate farmer relationships in different regions of the world with similar climates to minimize their vulnerability to the unpredictability of Mother Nature.
To sustain success in the nutraceuticals space, a product needs substance, and that includes science, quality, IP and sustainable supply to drive sales beyond the fleeting impact of the smart marketing campaign alone. Companies with enduring success in this industry have either been following these practices all along, or began doing it as the ingredients end of the industry evolved and the bar was raised.
Suzanne Shelton, CEO of The Shelton Group PR , Chicago, has provided public relations services to both international and domestic dietary supplement and natural products manufacturers, suppliers and associations since 1988. Her services go far beyond traditional tactics by covering regulatory concerns, market sensibilities, and industry issues and practices, as well as facilitating industry introductions among her extensive network of contacts.
