The supplement industry is a very competitive market and without taking the necessary steps, a supplement brand could fail very quickly.
A lot of people have been coming out with fantastic ideas that could be huge. Their biggest issue is they haven't done the proper research and planning before launching.
In order to have a successful business, you need to have a high-quality product, a researched target market, proper marketing methods, consistent distribution, cover all legal bases, and all finances under control. Bringing all of these departments together and organized is not easy, especially to keep it cost effective and make a profit!
Follow these 10 Steps below to have a successful supplement brand.
Fill a Gap in the Market/Identify an In-Demand Product!
To have a successful product, you need to solve a problem or fill a gap in the market. What is hot? What are people looking for? Whether it be the Ketogenic diet, Autogaphy, or any other popular diet, you need to make sure the demand is high and there is hype built around the product.
Not all supplement segments are very lucrative but picking a very niche segment is what will set you apart. Other big current markets are Nootropics, Probiotics, Sports Nutrition, and Longevity.
Identify and Define Your Target Market!
After you figured out what is hot and what you want to sell, you need to identify and define your target market.
Who are your key customers?
What do they have in common with each other?
Where does my target market buy their products?
What social media does my target market use?
Will my product help my target market?
Will my target market be excited about my product?
Are their obstacles to reach my target market?
How can i overcome these obstacles?
Failure to identify these key questions could lead to the failure of your business. Find out who cares and why.
Check Out the Competition!
In order to have success in the supplement industry, you need to know what your competition is doing. Along with knowing your competition, you should be aware of their pricing, marketing strategies, and content strategies.
What are their prices?
How are your competitors setting their prices? Are you going to be a higher quality? Are you going to be a middle priced product?
What kind of value they are bringing their customers?
Value can mean a few different things, but you should be taking a look at any kind of value your competitors are bringing to their customers. This value could be as simple as listing the benefits of their product, having a monthly subscription so it is easy for customers to always have enough product and never run out, a blog with details on the industry and educating them on best practices, etc... There are so many ways to give value and if you recognize what your competitors are doing, it will be easier to be up to par, or even better than your competition.
Who is your competition targeting?
Look at your competitor's marketing and notice how they are bringing in customers. It could be simple social media marketing, TV ads, and notice who they are targeting. You can tell by listed benefits, people in the ads, and from questions listed in the ads.
What tools are your competitors using to better their business?
Tools can be as simple as google analytics, a website server likeShopify, and more. Check other blogs for great insights on tools and how to use them!
Develop a Customer Acquisition Plan
Now its time to figure out how you are going to convert sales. Companies use hundreds of different channels to convert sales. This could be social media, blogging, amazon, pay-per-click marketing, in person marketing, and more.
Whichever you choose, just know you are not wrong. There is no right or wrong way. When you do pick your customer acquisition plan, just keep your target market in mind. What is going to reach them and what is cost effective?
If I were to recommend any time of marketing, it would be influencer marketing. Influencer marketing is when you partner up with a public figure known as an influencer that has a large following on multiple different platforms and use their audience as your target market to complete sales. The reason I recommend this type of marketing is because the public figure builds trust with his/her audience over time. With strong trust and a large audience, advertisements will convert into sales.
Should you only do one type of marking? NO
Social media is the new wave of advertisement and has proven to triple investments when you do it right. Make sure you work with someone that knows what they are doing when it comes to digital marketing or become a master at it.
Establish Your Business!
It's time to get legal! Establish your business as an LLC, Partnership, or any other formation with an Attorney or you can use LegalZoom.
For your own protection, please consult with an experienced business attorney to make sure you cover all of your basis.
Time to Formulate!
Now it is time to create your formula. Let me just emphasize that YOU SHOULD NOT FORMULATE ANY SUPPLEMENTS UNLESS THE PROPER RESEARCH HAS BEEN DONE. Trust me... I am saving you loads of money and time. You must understand how you will market your products, who you will market them to, and have a customer acquisition plan.
When it comes to formulating your product, without proper training/education/experience, this task could be very difficult. I highly suggest working with a team of experts that know what they are doing and have worked in this industry for several years.
JUSTNUTRA has a team of experts that will work with you every step of the way. We ask the right questions to make sure we deliver the perfect formula for your target market.
Start Working with a Contract Manufacturer
Now that you have an idea for your formula, it is time to start working with a contract manufacturer. If your contract manufacturer formulated your formula product, the time between Step 6 and Step 7 will be very minimal.
When working with a contract manufacturer, they will guide you on the next steps to getting your product to the market. It is important to make sure that whichever contract manufacturer you choose to use, that they are reputable, they have the proper certifications and are okay with saying no to unrealistic tasks. An ethical contract manufacturer will give you realistic terms when it comes to price, and time to manufacture.
A realistic time to expect first time manufacturing is 8-10 weeks. This will show that your manufacturer cares about your product and making sure that your product is at its highest quality.
One thing you want to keep in mind is price. With current regulations on the supplement industry, many contract manufacturers do not have to be ethical in staying true with what ingredients they may be putting in your product. The nutrition label may not be accurate to what is in your supplement. These contract manufacturers will quote you any price to get the business. BE AWARE!
Once you have found a contract manufacturer you have built a relationship with and trust, you can start with your first order!
JUSTNUTRA is a reputable contract manufacturer that is cGMP Certified, USDA Organic Certified, Kosher Certified, NON GMO Verified, and a FDA Registered Facility.
Next Step is finding how you are going to store your product, and how you are going to distribute to your customers. Some manufacturers will be able to help you with fulfillment.
Explore all of your resources to find what may be most cost effective for your business. I know a popular option is to use Amazon fulfillment, even with your own personal website.
Another option is you can take advantage of our 23,750 sq. ft, temperature controlled fulfillment warehouse. Here we use state of the art systems that integrate directly with your website. All orders are processed and shipped the day they are received. This freedom allows you as a business owner to continue to work on your business and not in your business.
Now its time to pull all the pieces together to create some sales! Stay true to your marketing, love your target market and build a strong relationship with your contract manufacturer.
Now you can go public with your website, and allow those orders to fly in! Marketing pre-orders is a popular way to jump start any supplement business.
The supplement business is a challenging one, but when you follow the right steps, you can find yourself great success!