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ON-LINE RETAILINGSPORTS & PERFORMANCE
NUTRITION
TABLE OFCONTENTS
Who Am I 3
Category, Channel & Customer Overview 4 - 9
Leading EU Sports Nutrition Web-stores 10 - 11
Reasons/Benefits for Launching a Web-store 12 - 13
Obstacles to a Successful Web-store 14
Keys to Success 15 - 23
Any Questions? 24
Sports Nutrition Development Manager
Executive Director of Marketing, Sports Nutrition & Diet Brands
Vice President of Sales & Marketing, Sports Nutrition Brands
Founder & CEO
• Largest Finnish based sports nutrition web-store
• Own-label Mass Nutrition voted Best Brand in 2013
• Company sold to “The Hut Group” January 2014
Director
WHO AM I ?I have worked in the sports nutrition industry for 20 years in Senior Management positions for:
CATEGORY, CHANNEL& CUSTOMER
OVERVIEW
CATEGORYOVERVIEW
CHANNELOVERVIEW
Europe’s online retail sales €128 billion in 2013.
Expected to reach €191 billion in 2017 (10.5 % CAGR).
CHANNELOVERVIEW
64 % of internet users in Western Europe purchased products online in 2013.
Expected to reach 68.2 % in 2017.
CUSTOMEROVERVIEW
Sports nutrition consumer base is becoming broader and more segmented
SPORTS NUTRITION WEB-STORECUSTOMER OVERVIEW Predominantly Male 18 - 45
Core user who “knows what they want”
Making regular high value bulk-sized purchases (Order value averaging 75 - 85 €)
Purchases largely based on price/quality ratio
As the overall sports nutrition consumer base broadens, so will the web-store consumer
base, providing additional growth opportunities
Source: Customer demographics in major Finnish Sports Nutrition Web-store.
LEADING EU
WEB-STORES
LEADING EU SPORTS NUTRITION WEB-STORES
3 of the leading European sports nutrition web-stores:
What they have in common:
Leading players (brands) in sports
nutrition in their respective countries
High % (up to 100%) of sales from
own-label products
Above industry-standard growth
in the past 2 - 5 years
Pan-European operations
Web-store growth driven by:
Entry into international markets.
Focus on online marketing
Treating each market individually
New product development
Wide product selection (1,000 - 10,000+
SKUs)
These companies have changed the traditional web-store model
from re-sellers to brand owners & category drivers!
REASONS / BENEFITS FORLAUNCHING A
WEB-STORE
WHY SHOULD A SPORTSNUTRITION BRAND LAUNCHTHEIR OWN WEB-STORE?
Increase sales and profitability
of the group with higher
margins when selling B2C
Leverage the strength of their
brands
Assist in globalising their brands
Provide the consumer with
increased availability and
awareness of their brands
Increase brand loyalty and
recognition
Open the doors to new markets
(Scandinavia, Europe, Russia)
Complement current sales channels
Control of product/customer
lifecycle from manufacture to
purchase
New/additional revenue stream
with very little cannibalising of
current business
Targeted low cost marketing (PPC,
Affiliates, Social Media, e-mails etc.)
Growth channel
Good for cash-flow
“If I Could Turn Back Time” - Cher:
OBSTACLES TO A SUCCESSFUL SPORTS NUTRITION BRAND PAN-EUROPEAN WEB-STORE?
Negative response from current
retail/wholesale customers
Customer trust
Payment methods
Language & localisation issues
Shipping issues
Regulatory issues
Tax issues (VAT, “Candy Tax”)
Pricing issues
It’s not a “Fair Playing Field” in the EU!
KEYS TO
SUCCESS
KEYS TOSUCCESS
A site that has engaging content
and is easy to navigate
Relevant to customer base,
“More than just a store!”
Responsive to all devices
Right products and pricing
Strong brands
Targeted marketing
Excellent customer service
Customer retention
Fast, reliable, cost-efficient
shipping
Multiple/flexible payment options
Support your bricks & mortar
retailers
Information section (athletes, diets,
training programs)
Latest social media section
Blog and customer testimonials section
Live chat and product advisor
Next shipment countdown clock
Easy-to-use navigation with filters
Brand quality and customer support
call-outs
Offer and information banners
Rotating featured products section
New, Hot and Sale products section
Multi-functional information footer
MORE THANJUST A STORE
PRODUCTS& PRICINGFULLY RESPONSIVETO ALL DEVICES
PRODUCTS& PRICING
Web-specific products that do not compete with your wholesale/retail customers
Large range of products, sizes and flavours (1000+ SKUs)
Larger bulk sizes selling best
Aggressive pricing, especially on commodities such as Whey Protein
Core consumer feels like a “kid in a candy store”, new consumers may feel overwhelmed
Source: Product Sales Mix in major Finnish Sports Nutrition Web-store.
ON-LINE MARKETING
Whereas brands traditionally focus on offline marketing
(magazines, poster sites, radio etc.) web-stores should focus on
targeted online marketing:
PPC sales (Google AdWords, Google Banner Ads etc.)
Affiliate network (incentivise/benefit the brand’s sponsored athletes)
Social media (Facebook, Instagram, Twitter)
E-mail promotions
Blogs and forums
These forms of online marketing allow a brand to really connect
with their customers and make it possible to cost-effectively
tailor targeted campaigns to specific customer groups.
Example FAST Product Advisor
CUSTOMERSERVICE
Excellent customer service along with fast
and accurate shipping are essential to a
successful web-store.
Five main customer contact points are:
Phone
Live Chat + Product Advisor
FAST PRODUCT ADVISOR
CUSTOMERRETENTION
Based on previous experience, return customers spend on average
3.6 times more per year than single-purchase customers. Ensuring
customer retention will provide an immediate increase in revenue and
can also lower % marketing costs as the cost to retain a current
customer is lower than the cost to gain a new customer.
Tactics geared towards retaining current customers:
Targeted e-mail promotions
Loyalty points scheme
Members only offers/exclusive flavours etc.
Remarketing e-mails (dropped cart etc.)
Order history/quick order feature
Wish-list feature
Sponsored athlete Q&As, Live Chats, Webinars
WHOLESALE/RETAILERPORTAL
Allow wholesale/retail customers to:
Login and view full product selection and account-specific pricing
Buy 24/7 from live stock quantities
Receive automated invoices with payment details/terms
Chat live with customer service team
Provide specific offers/discounts that also drive customers to
your retail partners.
THANK YOUFOR LISTENING
ANY QUESTIONS?
Presented by:
Robert Walker
Func Food Group
+358 45 137 4329
