Monday, May 21, 2018
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Reigniting Marketing

Marketing integrates knowledge, intelligence and interpretation. It is essential to develop knowledge of your target customers, use the intelligence you have developed over time to process that knowledge and then implement the interpretation in strategy, innovation, communication and delivery of the brand experience.

In order to transform the existing marketing, following four steps can direct marketing principles:

Four steps to Marketing Transformation:

 

(Source: Hunter Hastings & Jeff Saperstein (2008) Four principles supporting the new marketing capabilities, Improve your marketing to grow your business, p. 18.)

In order to Reorient, Re-engineer, Rethink and Redesign, marketing would look at this the following way:

Reorient – so that the customers are the drivers of marketing, not the target. It is the most critical point of view – the one that really matters it is the customer’s; the customer has the power.

Reengineer – your marketing processes. A marketing process is designed to deliver value to the customer; extraneous activity is eliminated.

Rethink – your marketing organization. Replace functional specialization with cross-company collaborative customer value creation.

Redesign – your marketing technology. Marketing is an enterprise system rather than a series of point solutions.

Marketing does not approach the jobs in as structured a way as product developers, because they need to be trained in the scientific method. It is not part of their professional rigor, as it is for scientists. Marketers usually does not focus on what will be the next big discontinuity; how do I create a network?  I think the ‘Connect and Develop’ idea probably will have more impact over time in the marketing area than it has had even in the product development area: there are just so many more assets to leverage in marketing.

It’s a critical part of marketing, but it’s not the entirety of marketing. The commercialization and go-to-market stages are the other parts of marketing. For innovation to work effectively, every link in the chain must be equally strong.

Nutraceutical Dimension:

Born of consumer demand for better and healthy life the Nutraceutical Industry today continues to use consumers for inspiration. With the worldwide nutraceuticals market continuing to exponentially grow due to growing consumers’ awareness, increasing in disposable income and the desire to lead a healthy life and avoid dependence on synthetic drugs.

As here marketer needs to focus himself on product development too!!

As a result, it is now required for marketing to develop communities of customers and probe into getting insights from them to play an effective role of “Product Developer”!

Some of the examples mentioned by Mr. Sheldon Baker, (who is involved in developing brands and marketing programs in the dietary supplement industry for 20 years) in his article “Nutraceuticals Are Booming in the U.S., Part II” are suggestive of the same. The examples are mentioned below:

An increased consumer interest in functional foods has seen a boom in the demand for both grocery stocked and online functional foods, which has in turn led to many new products hitting the market.

Forty-three percent of all online nutraceuticals purchases are intended to increase beauty or slow aging. It would be reasonable to think that the aging baby boomer population is driving the demand for beauty-centric nutraceuticals. But the demand for beauty-related nutraceuticals is not confined to a single age group. While baby boomers have long been considered the primary market for beauty nutraceuticals or “cosmeceuticals,” younger generations are purchasing equal amounts of nutraceutical beauty products.

With increasing sophistication among nutraceuticals, consumer demand for products with specific health benefits has also been on the rise.

This rise in consumer demands is driving the market for continuous Innovation and Supply of products.

To effectively meet these demands the process of Product Development and Implementation (PDI) is crucial for the companies/manufacturers.
Creation of new leads of Product Development by Science

“Life in the old fossil yet” article throws light on how the remnants of dinosaur tissue have survived for millions of years. Research on this topic reveals the presence of Proteins in dinosaur fossils. So now for scientists it is hard to argue that soft tissue material in the fossil has come from bacterial contamination!

Similarly, in case of organic materials like Iron; paleontologists studied the organic material from dinosaur bones and found the organic materials were laced with iron nano-particles. As iron is most commonly found in blood, researchers wondered if the iron had come from blood cells!!

To test the idea of could the presence of iron have taken part in preservation of tissues, the researchers carried out an experiment using freshly slaughtered ostriches. This experiment yielded that samples treated with haemoglobin and then placed in saline solution remained intact even now after 2 years, with no signs of bacterial growth!!!

Some scientists believe that highly reactive ions known as free radicals produced by iron interact with organic tissues causing abnormal bonds. These bonds effectively tie up proteins in knots much like preservative chemical formaldehyde does. This they have theorized is how the soft tissues manage to survive for millions of years without rotting.

Step wise approach of Product Development for creating a Business Value of Science:

 

The Product Development / Conversion of Science to Business process starts with identifying an opportunity in the market and ends with a successful launch of the corresponding product or service with an effective marketing strategy for a potential brand.

Business Strategy Development – On the basis of demographies and target audiences and insights from communities of consumers. Product improvement, line extension, innovation etc.

Concept Development – Idea generation and screening (customers, competitors, consultants, literature).

Concept Feasibility/Validation by marketing – Cost, Regulatory constraints etc,

Offerings’ Prototyping – Safety evaluation, Functionality, Efficacy evaluation etc.

Offering Testing / Test Marketing – by creating a pilot for marketing (Mini market test)

Assessment of techno-chemical issues – Semi production runs, Distribution, Preliminary data evaluation etc.

Reigniting core Marketing Strategy for a potential brand – Post Launch analysis – Sales volume, Repeat purchase levels, Shelf location etc.

Barriers: Science to Business Way

Usually science needs to be aware of following 4 barriers as they can disrupt the process of Science to Business.

Barriers to ‘Demand Management’ in Marketing:

 

Overestimating and misreading the target market: As marketer plays his role as a product developer, he can avoid this barrier through insights from committees of customers.

Launching of poorly designed product, or a product that doesn’t meet the needs of the target customers

Incorrect pricing and value  of the products

Exposing your business to risks and threats from unexpected competition.

As a strategy, reengineered marketing while looking at Demand Management converts Science to Business.

Effect; Science to Business Development

Looking at the various aspects of the Science to Business Conversion process, it is understood that this process drives growth, which in turn adds value to the company. By investing in this process the companies are directly investing in themselves – and the returns are high.

Having a strong conversion process makes sure the final products/offerings manufactured are safe for all the people involved from users, to manufacturers, service personnel, and so on.

A robust process can help ensure this and the right systems will generate the necessary regulatory documentation to demonstrate compliance. The companies also have to be able to react quickly when something goes wrong whether it’s in the factory or on the field, to assess the problem and deal with it.

References:

The Economist-Volume 409, Number 8864, Life in the old fossil yet

http://www.makhfi.com/Managing_NPDI_Processes.htm

Industry Experts’ Perspectives -Nutraceuticals Are Booming in the U.S., Part II

SAP White Paper: mySAP PLM – New Product Development and Introduction (NPDI)