Natrol CetylPure $2.5 Mil. Ad Campaign, Broad Distribution Underway
This article was originally published in The Tan Sheet
Executive Summary
Natrol will support its patented CetylPure joint health supplement with at least $2.5 mil. in advertising support this year, the company said.
|
Natrol will support its patented CetylPure joint health supplement with at least $2.5 mil. in advertising support this year, the company said. In addition to $1.1 mil. in national radio ads running from June through November, excluding August, Natrol plans a print campaign to trade for August or September and a TV campaign to begin between October and early 2001. Consumer print ads will appear in magazines such as Prevention and Self. Unexpectedly high demand from drug retailers, including CVS, Walgreens and Rite Aid, has prompted Natrol to commence consumer advertising earlier than initially planned, the Chatsworth, Calif.-based marketer noted. CetylPure with 1,100 mg cetyl myristoleate, a "naturally occurring fatty acid," shipped in April to food, drug, mass, health store and Internet outlets; catalog distribution will follow. The stand-alone cetyl myristoleate product is being marketed along with CMG, a combination of cetyl myristoleate 500 mg, MSM (methyl sulfonyl methane) 500 mg, glucosamine sulfate 500 mg and sea cucumber 25 mg. Both products carry the claim "For the relief of joint discomfort associated with aging and exercise." Users are directed to take two CetylPure capsules twice daily with food for one month. After the 30-day regimen, consumers are instructed to switch to CMG as a "maintenance program." One CMG capsule should be taken twice daily with food. The suggested retail price for a 120-count bottle of CetylPure is $40-$45; a 60-count bottle of CMG is priced at $30-$35, Natrol said. CMG will be included free with the purchase of CetylPure for at least three months, Natrol said. Other promotional plans include consumer brochures, $1-off coupons, a dedicated Web site and retail floor displays. In addition, U.S. Olympian Yueling Chen, who won a gold medal in 1992 in the 10 km walk race, will provide testimonial support for the product. Chen retired following the Barcelona games because of joint pain but credits cetyl myristoleate with her return to competition. The CetylPure launch demonstrates Natrol's renewed focus on the joint supplements market, which it recently pointed to as a growth area. The product was licensed in January from Imagenetix (1 ). The firm already markets glucosamine, chondroitin, MSM and SAM-e products. In other categories, Natrol Calcium Chewable shipped in late January backed by a print campaign featuring ads in Prevention, Women's Day and a number of trade magazines. Ads featuring the tagline "Strengthen them bones!" will run through October. Calcium Chewable, with 250 mg of calcium and 100 IU of vitamin D, is available in Cool Peppermint and Raspberry Cocoa Mint flavors. Sixty-count bottles carry a suggested retail price of $5.99. Natrol's Colostrum "super-immune support" supplement launched in February and is being supported by a small-scale consumer ad effort and retailer-centered promotions. A 60-count bottle of 500 mg tablets retails for about $10.99. Natrol net sales jumped 27% to $22.7 mil. for the first quarter, with Prolab Nutrition sales accounting for $5.9 mil. of total revenue, the company reported May 1. Prolab improved 23% over the fourth quarter of 1999, its first full period under Natrol ownership. Without Prolab, sales declined $1 mil., or 5.6%. Poor sales of gingko biloba, St. John's wort and kava kava products, along with an increase in sales and marketing expenses to $6.5 mil. from $4.2 mil. in the year-ago period, drove net income down 64% to $736,000, Natrol stated. Operating expenses rose from $6.3 mil. to $9.4 mil. in the first quarter of 2000. The company plans to seek expanded distribution for its vitamin lines and other products to offset the soft herbals market. Potential new distribution channels include doctor's offices, multi-level marketing, greater Internet exposure, direct sales and catalogs, the company said. Natrol also wants to widen its penetration of food, mass and club stores. To that end, the company is developing a sales network of healthcare professionals to market a line of high-end "professional" supplement products, Natrol announced May 3. The first supplements will carry claims for stress, pain and sleep deprivation. The line, which will not be available for at least six months, will feature premium products too expensive for retail sale, the marketer said. |