Demographic Profile Neutraceuticals User
While nutraceutical consumers who are millennials turn to clean, convenient, and nutrient dense functional foods to increase energy, feel good, and help them manage weight, those who are baby boomers seek nutraceuticals for natural alternatives to pharmaceuticals and to aid healthy aging. In order to successfully market nutraceuticals, brands are advised to fully know their target audience and develop personas for them, leverage digital marketing, and use eye-grabbing labeling and packaging.
PSYCHOGRAPHIC PROFILE OF MALE MILLENNIAL NUTRACEUTICAL CONSUMERS
- Male millennial nutraceutical consumers are tech savvy and spend a lot of time on the internet.
- Their health and wellness interests go beyond functional or nutraceutical products. These individuals ensure that they eat healthy as well.
- Most of these individuals tend to be athletes or very physically active, which explains why the nutraceutical products they consume the most are sports drinks.
- They want to know and understand the ingredient list in whatever they consume and are most influenced by real ingredients.
- Nutraceutical consumers who are millennials care about their health and most of them consider clean eating important.
- These individuals also care about the environment and are willing to spend more on sustainable brands or brands with innovative CSR strategies. Climate change and biodiversity are causes they prioritize.
- They have progressive views and more than half of them believe ethnic diversity is good for the society.
- They are optimistic about life and believe work ethic and intelligence have the biggest impact on their success.
- Nutraceutical consumers who are millennials are willing to spend more on comforts and experiences as over 65% of them will pay more to eat at a trendy restaurant.
- More than 50% of them spend money on taxis and Ubers.
- They value experiences and will spend more on their hobbies, dining out, travel, and concerts. Over 70% of these individuals will rather spend money on experiences than consumer goods.
- They are big spenders at coffee shops. This explains why alternative coffee products like mushroom coffee are becoming popular among them.
- Millennial nutraceutical consumers are the leaders in online purchases, primarily due to the fact that this is the most convenient form of shopping for them. They make 54% of their purchases online.
- They prefer brands that offer a unique experience, great customer service, and value for their money.
- These consumers reportedly "cite an importance in giving back to the community and expect the brands they follow to do the same." Almost 85% prefer brands that publicly commit to charitable causes.
- Authenticity and trust are qualities they seek in a brand. They prefer quality over quantity when it comes to brands/products.
- Up to 74% of these consumers will switch to a different brand if they had a poor customer service experience.
- The main way these individuals discover new products is through Facebook, while YouTube helps them make purchase decisions.
PSYCHOGRAPHIC PROFILE OF FEMALE BABY BOOMER NUTRACEUTICAL CONSUMERS
- Female baby boomers seek nutraceutical foods to help mitigate age-related diseases or conditions.
- These individuals want to look youthful and feel energetic. As a result, they value adventurous experiences like traveling.
- They also have a slower metabolism and lower energy requirements, which is why they seek out foods enriched with nutrients.
- These individuals read food labels before making purchase decisions. Almost 80% of them read labels on food and beverage products to know if it is healthy.
- Based on one study, this cohort wants to be "surprised and delighted" by brands.
- They seek out and appreciate one-on-one interactions in physical stores, online, or via phone.
- These individuals are making more online purchases and are visiting traditional stores less frequently.
- They are prioritize brands or products that offer the adequate value for their money and have high quality. These products need to be reliable and fairly priced.
- Despite their age, these consumers are still in the workforce as they are retiring a bit later than expected.
- In their free time, they enjoy watching traditional TV and videos on YouTube. About 70% of them use YouTube.
- They also enjoy telling their story. Social media platforms like Facebook have made this possible. This explains why over 65% of them cite Facebook as their preferred social media platform.
- Other activities they enjoy include listening to music, dining out, reading books, gardening, games, going to the beach, and cooking.
- These individuals spend more of their grocery budget on health and wellness products than other generations.
- They are reportedly the wealthiest adult generation in the US and spend a lot of money on their wants and needs.
- Baby boomers spend most of their money on housing, transportation, food, healthcare, and personal insurance or pensions.
- These individuals spend a significant portion of their disposable income on entertainment, and reading & education.
BEST PRACTICES FOR MARKETING NUTRACEUTICALS
Understand Target Market
- The most important factor to be considered while marketing nutraceuticals is knowing one's target market. The marketing strategy for a nutraceutical product(s) should target a specific demographic.
- This demographic needs to be analyzed, qualitatively and quantitatively, as this helps determine the best ingredients, labeling, and distribution streams that will appeal to them.
- For example, a sports drink or pre-workout supplement might attract male millennials the most, while meal replacement shakes or vitamin water with low sugar may attract women the most.
- It is important for nutraceutical brands to model their target audience by developing personas and fictional characters with specific attributes.
- Ideally, the personas created within the brand's target market should be specific, from their name to how they behave, and their shopping attitudes.
- Knowing what motivates the target audience to buy nutraceutical products is important as well. Some consumers turn to nutraceutical products like supplements because of diseases they have with dietary restrictions.
- Being armed with adequate knowledge about these buyers and their preferences can help nutraceutical brands target consumers who are poorly served or dissatisfied with traditional healthcare methods.
- Tools such as Hubspot's Make My Persona, Xtensio's Persona Generator, and WebFX Automatic Marketing Persona Generator are helpful tools that nutraceutical brands can use to create personas.
- Koios Drinks is a well-known nutraceutical brand that fully knows its target audience and focuses its ads on them. The brain health beverage brand knows that it is popular among active female consumers between ages 25 to 45 in the US. As a result, it recently repackaged its products to be "feminine."
Labeling & Packaging: Educate Customers
- The labeling and packaging of a nutraceutical product should depict what the product is and what it does.
- One study showed that 70% of people who have bought nutraceuticals like dietary supplements were heavily influenced by the label information, specifically claims of being free from toxic or unhealthy ingredients.
- Over 50% of consumers "associated quality of the supplement with the product information and label."
- Roughly 40% claimed that the ingredients written on the label influenced their purchasing decision.
- The packaging and label used for nutraceutical products not only need to comply with FDA regulations, they should, to the eye-catching and informative.
- Although US consumers are more informed than ever and tend to research a brand before buying it, they still need to be educated on the ingredients nutraceutical brands use on the label and packaging.
- Four Sigmatic is one nutraceutical brand that is nailing this. The plant-based coffee brand boldly highlights the key ingredients in each of its products. Its mushroom coffee mix for example, is said to be made with Lion's Mane and helps with thinking and focusing.
Leverage Digital Marketing
- When nutraceutical brands leverage digital marketing, they are exposed to a wide range of electronic tactics.
- US nutraceutical brands are seeing double digit online growth by utilizing digital strategies, and this impressive growth rate is not likely to slow down.
- In order to fully utilize digital marketing, nutraceutical brands need a website and should ensure that valuable services such as live chat are integrated into this website. Companies like GNC are incorporating wellness tools that offer more value for customers. The brands have an interactive vitamin guide that assists users identify the supplements that best address their needs.
- Simply having a website is not enough to get sales, an effective online presence needs to be discoverable by consumers in the first place. This is why search engine optimization (SEO) is critical.
- SEO enables brands to convert web visitors into customers. Almost 60% of brands say SEO generates more leads. SEO is a multi-layered tactic that involves the right content, keywords, and links.
- Social media is a critical part of digital marketing as at least 80% of Americans have more than one social media account, while over 75% have bought a product from a brand's social media post.
- Social media presents a great opportunity for nutraceutical brands to reach consumers who might not know about the brand or its specific offering.
- The most used social media platform among both millennials and baby boomers is Facebook. Millennials - the cohort that accounts for the majority of nutraceutical consumers - also use Instagram, YouTube, and Pinterest.
- MUD\WTR, a mushroom beverage and coffee alternative is an example of a nutraceutical brand with a strong online presence. The brand leverages Google pay-per-click ads and sponsored ads on Facebook and Instagram.