U.S. Organic and Spa Market. August 16, 2016
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1 U.S. Organic and Spa Market August 16, 2016
2 About GRIP IDEAS Formed in October 2003 Provide marketing and business development services Focus in wellness & nutrition industry Results-orientation mindset
3 GRIP IDEAS produces WINNERS 2014 Nutritional Outlook DianaPlantSciences Best of Ingredient Supplier 2013 NBJ Innovation Award DianaPlantSciences 2013 Functional Ingredients, Best Botanical Ingredient KSM-66 Editor s Choice 2011 Best New Ingredient Finalist Meriva NutrAward 2010 Best New Product, European Outsourcing Awards Meriva 2010 Best New Finished Product VitaPQQ NutrAward
4 GRIP IDEAS Brand Experience Nutrition Industry
5 GRIP IDEA Philosophy: A Framework for the Future
6 GRIP IDEAS Services Business Development Business and marketing plan development International market expansion Marketing Execution Internet/Social Media Advertising Public Relations
7 U.S. Spa Market Size International Spa Association (ISPA) estimates the U.S. spa market at $16.3 billion Revenue up 5.0% from 2015 Spa visits up 2.1% to 179 million visits 21,020 estimated spas in the U.S. Average revenue per visit is $91 Projected growth to $24.73 billion by % growth annually Source: International Spa Association, August 2016, Technavio Spa Market in the U.S
8 U.S. & Spa Trends Healthy & mindful living More Americans are adopting healthier lifestyles Better for you foods, better skincare, personal retreats
9 U.S. Spas by Type Primary types are Day Spas (24% of spas) and Day Spa and Salon (23% of spas) Source: American Spa Industry Insider Survey, August 2016
10 U.S. Spa Types 87% of U.S. spas are a single location Owner-operated Small business 9% of U.S. spas have 2 to 5 locations 4% of U.S. spas would be spa chains Source: American Spa Industry Insider Survey, August 2016
11 U.S. Spa Types 87% of U.S. spas are a single location Owner-operated Small business 9% of U.S. spas have 2 to 5 locations 4% of U.S. spas would be spa chains Source: American Spa Industry Insider Survey, August 2016
12 U.S. Spa Location Size 56% of U.S. spas are less than 2,000 sq. ft. 66% of U.S. spas have 1-4 treatment rooms Source: American Spa Industry Insider Survey, August 2016
13 Top Spa Services #1 Facial/Skincare Services #2 Massage Services #3 Retail Sales Source: American Spa Industry Insider Survey, August 2016
14 Spa Revenues 48% of spas have revenues of $100,000 or less 37% of spas have revenues of $1,000,000 or less 15% of spas have revenues over $1,000,000 1% of this has revenues over $10,000,000 Source: American Spa Industry Insider Survey, August 2016
15 Factors Affecting Revenues Source: American Spa Industry Insider Survey, August 2016
16 U.S. Spa Clients 80% female 39% between the ages of % Caucasian Source: American Spa Industry Insider Survey, August 2016
17 U.S. Spa Products Selection Source: American Spa Industry Insider Survey, August 2016
18 Use of Technology Spas rank having a web site as the #1 technology for increasing profitability Social media sites rank #5 The top ranking social media sites are: Facebook Instagram Twitter Source: American Spa Industry Insider Survey, August 2016
19 Top Spa Trends Healthy Hotels Wired Wellness Source: Spafinder Wellness 365 Trends Report
20 Top Spa Trends Suspending Gravity Ferocious Fitness Source: Spafinder Wellness 365 Trends Report
21 Top Spa Trends Natural Beauty Meets Social Media Aromatherapy Scent with Intent Source: Spafinder Wellness 365 Trends Report
22 Top Spa Trends Wellness Retreats Spas & Life Transitions Source: Spafinder Wellness 365 Trends Report
23 Spa Associations & Trade Shows International Spa Association (ISPA) Trade Shows ISPA Conference and Expo, Las Vegas, NV Sep The International Congress of Esthetics and Spa Long Beach, Sep Miami, Nov. 6-7 New York City, Mar Dallas, Apr. 2-3 Philadelphia, May 21-22
24
25 Best Practices August 16, 2016
26 Best Practice: Get to Know the Market
27 Market Research Resources Nutrition Business Journal Provides quantitative market data for the U.S. nutrition industry SPINS Offers U.S. retail scan sales data for natural health food stores and mass market retail Euromonitor International Supplies market size information for the nutrition industry covering a number of country markets MarketResearch.com Research reports on a variety of subjects
28 Best Practice: Organizing Your Business Strategy & Structure
29 Developing a Plan A plan should include: Situation Analysis Organization description, target market overview, purpose of effort, international marketing objectives Product Overview Product description, key features and benefits, competitive advantages and required adaptation for exporting Market Entry Strategy Target market, competitor overview, distribution & channel strategy, promotional strategies and terms of sale
30 Developing a Plan Regulatory/Legal Requirements Regulatory approvals, import restrictions, duties and tariffs, intellectual property protection, insurance and trade documentation Identification of Risk Factors Country market risks, credit and currency risks and political risks Tactical Plan Overview of key activities along with measurement and evaluation Financial Plan Funding, operating budget, conservative revenue projections
31 Getting in the Market 1 Establish own presence GLOBAL FOOD COMPANIES (Nestlé, Coca-Cola, Cadbury, Kellogg s) MULTI-LEVEL MARKETING COMPANIES (Amway, Nu Skin, Shaklee, Herbalife) GLOBAL FOOD INGREDIENT COMPANIES (DSM, BASF, Indena, Lonza) 2 Find a local partner (Distribution/License)
32 Process for Finding a Partner Identify Partner Candidates - Size of partner - Appropriate channel Partner Interviews Partner Meetings Follow Up Partner Agreement
33 Important Criteria for Selecting a Partner Industry Experience - What is the background of the company? - What companies do they currently represent? - What experience do they have with nutritional products? - How successful have they been in growing sales? Regulatory Experience/Support - What regulatory staff is in place? - What experience do you have in registering currently products? - What ongoing regulatory support do you provide?
34 Important Criteria for Selecting a Partner Marketing/Sales Support - What sales/marketing staff is in place? - How is your sales organization structured? - How do you support the marketing of a new product? - How would you keep us informed? Importation Procedures - What importation procedures need followed? - What staff is in place to handle importation? References
35 Organizing for Success INNOVATION Product development Intellectual property Invest in science Quick response Sales Team Technical Support Successful Brands Segment-specific marketing Brand consistency Take time to plan CUSTOMER SERVICE BRAND DEVELOPMENT
36 Reasons International Businesses Don t Work Lack of organizational clarity International business has not been a priority Lack of planning Have responded to needs of current business and plan has not been developed to build new business Barriers to entry Regulatory barriers have halted efforts Lack of resources Resources have not been identified and allocated to grow business No patience
37 Best Practice: Developing a Brand
38 Relevant What makes a product successful? Differentiated Believable
39 What is a Brand? Brand A perception or emotion maintained by the consumer, describing the experience related to doing business with an organization offering a product or service.
40 Branding Fundamental In order to have a BIG brand, you must have a BIG category In order to grow the category, you must promote the category. If you assume leadership of the category, people will follow your leadership and buy your brands. Assume B to B category leadership.
41 What is a Category? A category is a group of products that perform the same essential function The Law of Category It is better to be first, than it is to be better. Category descriptors allow your target audience To quickly grasp what the product is and does Relate your product to competitive offerings and the functional role each product will play
42 Growing a Category Categories grow out of the intersection of discovery, entrepreneurship and human need To build a category Developing and communicating a core category vocabulary Developing and communicating a core benefit that responds to a need inadequately served by existing products or services Providing a product that distinctively serves the language of the new category
43 Elements of Branding Brand Identity Name, logo Messaging Brand Architecture Brands within an organization and their relationship among each other Brand Development
44 Brand Development Develop a set of rules and stick with it.
45 What do Brands do? Encapsulate actual, experienced value Own a particular behavior Based on consumer preferences Respond to real needs
46 What s Important for Brands? Consistency Cohesiveness Continuity Communicating the same message throughout everything you do over time.
47 Great Brands Have Consistency The one way to make your brand stand for anything is to be consistent with message, image and even trademark. - Al Ries
48 Why is Consistency Important? Consistency is key to brand equity Without consistency of message, graphic look and style, trust may be broken
49 Great Brands Get Known for A Singular Focus Nike is about athletic performance FedEx is about overnight delivery, an unrelenting commitment to deliver Microsoft is about the digital future Marlboro is about the macho cowboy
50 Brand Identity
51 Developing A Brand Brand A perception or emotion maintained by the consumer, describing the experience related to doing business with an organization offering a product or service.
52 Wellness Brands
53 Brand Positioning Seeks to develop ownership of a concept in the mind of your target audience Develops a focus on what the product is about and does Differentiates your product from the competition Establishes why your target audience should believe you
54 Brand Positioning Model For target audience, brand name is the frame of reference that provides differentiating benefit because of reasons to believe. Frame of Reference: The association between your brand and the target audience that makes your product relevant. Establishes the "category". Differentiating Benefit: The differentiating benefit and value proposition must be unique to your product. Reasons to Believe: Proof that your value proposition is true. For example, scientific studies, patents, trademarks, etc.
55 Brand Development
56 Brand Development Meaningful brands accomplish Push to the industry Pull from the consumer Become self aware Measure and adjust Built in years, not in months
57 Great Brand Development Is Disciplined Deliberate Determined Die Hard
58 You don t merely want to be considered the best of the best. You want to be considered the only ones who do what you do. Jerry Garcia
59 Best Practice: Packaging & Labeling
60 Packaging & Labeling First impressions are important Regulatory compliance Less is more - Clean label trend - Fewer ingredients - More white space
61 Clean Label: White Space
62 Best Practice: Get In Market Support
63 Get In Market Support Find a distributor that matches your company culture, mission, vision & values Hire the right consultants Regulatory Marketing, public relations Industry expertise Manage & Support
64 Best Practice: Exhibiting & Trade Shows
65 Exhibiting & Trade Shows Select the right shows Determine level of involvement Attendance Exhibiting Exhibiting & Sponsorship Develop clear goals & objectives
66 Exhibiting & Trade Shows Develop talking points for your sales pitch 3-5 compelling reasons to do business with your company Booth design & development Less is more Focus on what you do & what makes you unique Simple, elegant design draws more attention Sales follow up
67 THOUGHT INTO ACTION
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