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January/February 2009
Welcome to the latest issue of Nutraceutical News from IFS. As 2009 gets underway, the economic forecast suggests that much of this year will be challenging for businesses and consumers alike. We hope this issue provides you with a little good news and some suggestions that will help your business succeed, in spite of the economic downturn. The Industry Update takes a look at the anticipated hot Nutraceutical trends for 2009. The Marketing Column offers advice on getting the most from your marketing dollar in this sluggish economy. In the Customer Service Corner, we discuss what you can do to make shopping an enjoyable experience for your customers and our Fulfillment Tip updates you on anticipated postal increases.
For more information about the content found here or about any of our products and services, you can always visit our website, www.ifssolutions.com. To share your feedback about this newsletter, please click here. To unsubscribe, please use the link at the end of this issue.
IN THIS ISSUE:
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Industry Update
Keep an Eye on the Trends for 2009
With 2008 becoming a dot in the rearview mirror, there is a focus on
what trends are expected to take a starring role in the functional food
and supplements category this year. An article in NutraIngredients
forecasts that probiotics, Omega-3s, superfruits and weight management
products will remain strong in 2009.
Following are the top trends to watch:
Digestive Health
The probiotics and prebiotics market has seen tremendous growth in the
United States over the past five years, as Dannon's spoonable and
drinkable probiotic yogurts have risen dramatically in popularity.
According to Julian Mellentin, author, consultant and editor of the monthly trade
journal New Nutrition Business, digestive health is the "Key Trend for
2009," due to its efficacy and overlap into the area of immunity. He
notes that fiber, fruit and fruit juice will play key roles in the
digestive health area this year.
Omega-3
Product launches of Omega 3 foods and beverages are
flooding the market in many regions and companies are refining their
marketing to match increasing consumer knowledge.
Weight Management
Whether it's the result of reality shows, increased awareness of soaring
obesity rates or a continuation of the trend of the non-obese towards
healthier bodies, weight management products are expected to hold the
attention of many in the business in the year ahead.
Fruit
Superfruits, like cranberry, pomegranate, goji and acai are doing well in many
western markets, often at significant prices. No longer considered
novelty foods, superfruits seem to be here to stay.
"Ten years
from now, if science can substantiate the many benefits now emerging,
the term 'superfruit' may become redundant - and fruit, like dairy, may
be a vehicle for delivering a wide array of health benefits to
consumers," Mellentin wrote. Additional items to make the Top Trends
for '09 include energy foods, kids' nutrition, snacking and natural
health.
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Marketing Tip
Marketing Your Business in a Sluggish Economy
If like most businesses you are focused on lowering expenses to protect
yourself from the economic forecasts for 2009, use caution if you're
thinking about taking the axe to your marketing budget. While many
businesses focus on the expense side of marketing, if it's done
correctly marketing is a wise investment that will continue to pay over
the long term. Besides, if you don't market your product or service,
how will customers know where to find you?
Instead of doing away with marketing, learn how to market more wisely.
You will be way ahead of your competitors who throw their marketing
budget out the window. Once the economy turns around, they will be
burdened with making up for lost time and customer contact. By
sharpening your focus and making the best of your resources, it is
possible to maintain visibility in the marketplace and save money.
Know your customers
If you're serious about reducing your marketing budget, sharpen your focus
on existing customers and leads, instead of undertaking mass marketing
campaigns. Ask yourself the following questions about your 10 best
customers:
- Who are they?
- What publications do they read?
- What industry trade shows/conventions do they attend?
- Do they belong to business/community groups?
- What form of communication do they respond to?
- How did they first hear about your business/product?
- Why do they buy from you?
- What are their problems?
If you don't have the answers, find out. Send a customer satisfaction questionnaire and make sure these questions are included.
Once you have the answers to these questions, put the research to work -
read what your customers read, check out the shows they attend, learn
about or join the groups they support, make sure you are communicating
with them regularly through the proper channels and focus your message
to convince them you have the product or service to fill their need(s).
If they consider your product as something that is important to them or
makes their life easier, they will be less likely to see it as an
"extra expense" that they can do without.
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Customer Service Corner
Is it a Pleasure for Your Customers to do Business with You?
You've done your homework - you have a great product, you have
researched your target audience and you have a solid marketing program
in place that clearly positions your brand as filling a need in the
marketplace.
Don't forget the all-important step of making sure your
customers have a pleasant and successful experience of doing business
with your company.
Although consumers are cutting their spending in 2009, they will continue to
shop with businesses that take care of their needs and make them feel
like valued customers. Be sure to create a customer service environment
that positions your company favorably against all of the forces
competing for consumer dollars.
- Make
sure that your customers get answers to their questions or concerns.
What questions are frequently asked of your live customer service
representatives (CSRs)? Periodically add those questions and appropriate
answers to the Q/A section of your website.
- Make sure you
always give customers a way to reach a live CSR. No level of technology
can substitute for a real person on the other side of the line who has
product knowledge and the ability to solve a problem
- Give your
CSRs authority to resolve problems. If you teach your CSRs how to fix
a customer's problems, they will gain confidence and loyalty to the
products and the company.
- Make sure there is on-going
communication between your sales force and customer service department.
Create a corporate culture in which accountability is shared. In the
end, everyone will reap the benefits of satisfied, repeat customers.
Follow-up customer purchases with a "how did we do" survey and ask them if there
is anything else they need. If they tell you that you've made a
mistake, fix it, and then provide a perk for the customer - something
that says, "I'm sorry," and, "I care."
Remember, fewer than 10 percent of dissatisfied customers actually complain to a company, but they do
complain to each other. They'll tell other people what you did wrong,
even if they never tell you. Give these people every opportunity to
tell you how you're doing.
What you don't know can certainly
hurt your company. Call your customers. Send them an e-mail. Write them
a letter. Ask them if they're happy and what they need from you. The
result of these efforts will be worth the time you take.
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Fulfillment Tip
Postage Increases Coming in Second Quarter
On February 10, 2009, the United States Postal Service (USPS) announced rate increases that will take effect on May 11.
The price increases for standard mail flats, the category that includes
most catalogs, would average 2.3 percent.
This increase is higher than
last year's average of one percent, but significantly less than in
2007, when rates rose between 20 and 40 percent.
The price for delivery of standard rate parcels (packages weighing less
than one pound) will increase an average of 16 percent. While parcel
rates are rising faster than other rates, shipping consultants believe
that some merchants will actually see a reduction in their shipping
costs, depending on the size, weight and shape of the packages they
ship, along with what contracts they have with the USPS. The upcoming
increase does not affect the rates for Express Mail, Priority and
Parcel Post which were increased in January.
The USPS says the
rate increases are necessary to offset rising operational costs and a
reduction in mail volume, resulting from the continuing shift to online
shopping and communications.
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IFS is a world class, full service fulfillment operation with a track record of success. A woman-owned business, we proudly serve some of the country's most respected corporations. With a special expertise in the fulfillment of nutraceuticals, we can help you run your nutraceuticals business more efficiently and more cost effectively.
Innovative Fulfillment Solutions
4346 Belgium Blvd
Kansas City, MO 64150
www.ifssolutions.com
Toll Free: 1-888-275-3000
Local: 816-587-5880
Fax: 816-587-5881
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