Naturade Inc. Drives Expanded Business Base Via e-Commerce and Canadian Marketing Initiatives
IRVINE, Calif.--(BW HealthWire)--Nov. 30, 1999--Seeking to capitalize on expected positive publicity from the recent U.S. Food & Drug Administration (FDA) "heart disease" claim for soy protein, Naturade Inc. (OTCBB:NRDC) launched three marketing initiatives in support of Naturade Total Soy(TM) directed at e-retailers, Canadian expansion and opinion-leader health food shoppers.
"The Internet is a strategic venue for Naturade," said CEO Bill Stewart. "You don't need a Fortune 100 company ad budget to be on an equal footing with the big guys in e-commerce.
"Today, we're selling Naturade Total Soy on the front pages of three of the biggest health-oriented e-retailers in the U.S. -- MotherNature.com, Vitamins.com and PlanetRx.com. We knew the FDA announcement was coming and we simply got there first with soy protein," he added. Stewart believes that sales over the Internet will contribute three to five percent of 2000 net sales.
The impact of the FDA claim extends beyond U.S. borders. Stewart reported that the Company recently launched Naturade Total Soy in a multi-lingual Canadian package and that the reception has been very positive. "In the next six months, we expect to be available coast-to-coast in Canada, adding more than 500 major outlets," explained Stewart. "It's a great example of our entrepreneurial responsiveness and our ability to add to the distribution base without major investment.
"Our targeted advertising and promotion campaign in the U.S. also anticipated the FDA ruling," stated Stewart. "We launched our new 'heart health' logo in ads that broke just prior to the FDA announcement to introduce health food store shoppers to the concept of a 'meal replacement.' These ads put 1.6 million coupons for Naturade Total Soy into the hands of opinion leader health food shoppers just as they heard the news." The company anticipates the new Naturade Total Soy brand will leap to over 20 percent of corporate net sales in 2000.
Stewart explained, "Our strategy is to expand our distribution domestically and internationally without adding substantially to our brand base or overhead. Naturade Total Soy can be the door opener for extra distribution on other Naturade brands. We anticipate that focusing our resources on the soy protein opportunity will yield improved company financial performance in 2000." |
