Continuing in the series of 10 things ingredient suppliers do to sabotage sales of their high value ingredients, we’ll talk about #3 today. (Go HERE for #1 and 2 of the 10 sabotaging methods we discussed already).
During a recent visit to Costco I visited the supplement section and noticed that Pfizer initiated marketing a new innovation. Pfizer’s dietary supplements aren’t known for being the epitome of innovation. Like many Food Drug Mass brands Pfizer probably enjoys good sales and decent margins on fairly low cost ingredients, and this is probably most true in their Centrum product line.
So what was the innovation staring me in the face? A Non-GMO “Verified” claim on the box of the product, however I couldn’t find the same claim on the actual bottle itself. While most people in the supplement industry don’t see Non-GMO as innovative, the truth is the consumers consider it a vital innovation to a product line. And this innovation impacts the marketplace to the tune of over $10 Billion per year of finished products being consumed in the marketplace.
Innovation means many things to different audiences and I’m a big believer that innovation needs to be narrowed when discussing ingredients. Too often suppliers believe their ingredients help everything and that’s not really true and the broadness confuses brand team members trying to launch a product. Having said that, all of the possible 21 innovations your ingredient solution provides the brand when they look at your ingredient must be communicated fully & completely.
3rd way ingredient suppliers sabotage sales of high value ingredients:
Defining high value ingredient innovation based solely on their investment
Here’s a perfect example of getting locked in to only the ingredient innovation you, as a supplier, have invested: One supplier I know in the industry delayed making an additional investment for their ingredient and missed out on a known $2 million in ingredient sales every year not to mention the opportunities that were beyond the visible sales. The possibility of succeeding in getting this innovation was higher than 90% and the cost of this innovation was about 2% of the potential sales opportunities. Investing in every possible innovation will absolutely destroy your business, BUT expanding your vision for your ingredient beyond your current investment can transform your business to a new level.
We’ll cover more about high value ingredient sales at an exclusive exhibitor workshop at SupplySide West entitled: Essentials to Getting High Value Ingredients Launched with the Right Finished Product Brands (only $25 to attend). Go ahead and register so you can be prepared to overcome all of the methods of sabotage we’re covering in this series of posts!
The design of this workshop provides a powerful process for taking an ingredient from development to sales in the most efficient way possible. While customers may not be looking for your ingredient solution, and many will NOT want it, the “right” finished product brands that will launch your ingredient solution most effectively actually dream about your solution and have been waiting for you to show up…in the right way for them to be able to move forward with a decision. Stop struggling selling your high value ingredients and get to the workshop at SupplySide West!
And stay tuned we still have 7 more ways ingredient suppliers sabotage high value ingredient sales that will be posting soon.
Finally, remember we have a special offer to join ISU before SupplySide West at $100/month discount! Once you enroll, you can access the bonus tool: “Innovation Guide detailing the 5 categories and 21 Types of innovations” that ingredients can possibly possess!