Declining children's supplement market pushes Hero to grow up
up with Integrated Marketing Group (IMG) in an attempt to shed a
little of its Yummi Bear image and move further into the world of
adult supplements. Jim Studer, vice president of sales and
marketing, explained the rationale behind this decision.
Hero Nutritionals is probably best known for its nutritional supplements for children and "tweens" - children aged between eight and 13 -, including its Yummi Bears vitamin line. But earlier this month the company indicated it was attempting a slight change of image with the launch of Healthy Indulgence.
This delight was a line of calcium chocolate bites made with real chocolate, designed to encourage women to up their intake of calcium by encouraging them to indulge their chocolate cravings.
According to Jim Studer this launch marked the start of Hero's long-term strategy "to become the premier provider of unique delivery systems and science-backed products".
In other words, children's supplements - a market which has been declining in terms of the number of products launched since 2001 according to Productscan Online - are not sufficient if Hero is to position itself as a leading vitamin and supplement producer.
"Hero's decision to expand beyond children's supplements is due in part to the environment of the supplement category as a whole," said Studer. "The children's segment is growing at a much slower rate than the overall supplement category and Hero aspires to grow both financially and in products offering in the next 5 years."
In keeping with this goal, Hero will be launching 10 new products at Expo East, which will define the company's direction in 2005.
Studer refused to elaborate further on the nature of these products, but he added that: "Healthy Indulgence is the first of many products targeted at women's health and needs - we will be pursuing the women's market with several new products in the near future."
In terms of geographical expansion, although Hero's eyes are firmly fixed on the US market for the time being, Studer noted that: "we have several opportunities outside of the US". In addition to the US, he said they would focus their efforts in the future primarily on Mexico and Canada.
However, he was unwilling to rule out anything, wanting to keep the company's options open.
"We know that the market changes and we are positioning ourselves to be an opportunistic marketing company that is first to market with innovative products," said Studer.
IMG will develop an integrated marketing campaign that includes brand positioning, trade and consumer advertising, packaging design, collateral development and public relations.
Expo East will be held in the Washington Convention Center between 14-17 October, 2004.
