With the ever-rising health concern among the people to be physically fit and the need to keep certain ailments at bay, the nutraceutical market is becoming big day by day. Every now and then we hear of a new startup or a new brand in the field. But as a business, it is challenging for the startups to survive as the market already has tough competition. So, as a new business what should you do to survive in the market and how to maintain your spot, let’s talk about it.
Research and Development - As a nutraceutical company, especially a start-up, it gets difficult to keep consumers' trust in the products. As people want effective research-based products, they feel hesitant in trying a new brand. For that, a startup needs to work a lot more on research and development.
As consumers look towards the products as a way to prevent a certain ailment, it becomes important to carry out proper research for the ingredients and their efficacy. Also, medical accreditation and scientifically driven proof of the product help the consumer to build their trust. So, R&D forms the foundation for any brand's sustainability in the market.
Taste and Quality - The next success criteria are nothing but taste and quality. These two factors are said to be the key factors for a brand's success. This is because consumers are often picky about the taste of supplements they are consuming. So, for their comfort, a brand needs to stay focused on this factor.
Price - Now comes the obstacle, often in the long run, even if the consumers are convinced with the product’s efficacy and health claims, they feel unwilling to pay the said price for the product. This happens because consumers tend to compare functional categories with normal food categories. So, the producer who is investing money on all the ingredients needs to stick to the finest quality of the ingredients they are putting in the products.
Branding and Product Lines - The next thing is that most consumers of nutraceutical supplements consume the products without being aware of the dosage and limit of consumption per day. This leads to an overdose of some nutrients and a lack of others. For this, the brands need to focus on customer needs and target concerns. They can produce products based on specific needs for a specific market. To achieve this, the brand must work on branding and product lines. This can be a safe way, as the brand might be asked to take a bit of responsibility for this.
Unique Ingredients and Products - Also, for a brand, it is important to focus on its unique ingredients and products. This is possible if the brand is incorporating some innovative and natural ingredients, which keep up with the good taste, in their products. These innovative ingredients help in attracting consumers as these ingredients have special health benefits which are not found in others in abundance. They are willing to try something new and different and hence are up to pay the premium price for such products. But, from the producer’s point of view, these products should have a low-cost method of production and should be easy to process.
Distribution Strategy - Next but one of the most important strategies is the distribution strategy. The brand must be consistently focused on its target market and the medium to which they are selling its products. Considering the current situation or the past few years, the focus, in terms of distribution channels, has shifted to e-commerce pretty rapidly. Now, all the nutraceutical brands are selling not just through their own online selling website but also third-party online platforms. This helps them reach the right section of consumers and cater to the right category in the most convenient way possible.
So, we can say that price, taste, and convenience are the three most faced barriers for any nutraceutical startup. The startups need to be more vigilant towards these barriers and work on the strategies that can help in overcoming them. To consumers, the nutraceuticals products are the same as any other food and drink brand. So, to put some light on the difference it is essential to have the best possible strategies to position the brand and guide their future growth as well.