Piping Rock CEO discusses staying competitive in VMS
Drug Store News spoke to Piping Rock Health Products CEO Scott Rudolph about how he views the category, what retailers can do to succeed in the VMS space and how the Bohemia, N.Y.-based company is tackling pill fatigue with its new products.
Drug Store News: Tell us about the state of the vitamin/mineral/supplement category at mass retail. What is driving the category these days?
Scott Rudolph: Consumer trends continue to change with the emergence of more educated shoppers who have a ‘self-care’ approach to wellness. Now, more than ever, consumers are walking into stores knowing the exact ingredients they are looking for. Whether they are doing research on their home computer, mobile device, or have heard about an ingredient from friends, consumers are looking for specific products to fit their specific needs. This has led to a rapid expansion of the category, and perhaps a shift in focus from a benefit-based approach to ingredient-based.
Retailers with assortment in their wellness aisles are seeing large gains in sales and share growth. By providing variation on the shelf and including such niche and trending products as activated charcoal, apple cider vinegar, hemp seed and beet root, retailers are better able to meet the increased demands of today’s consumer and drive more foot traffic into brick-and-mortar rather than online.
DSN: What do retailers need to do to boost sales and profits from the category in terms of merchandising and marketing to consumers?
SR: Too often, I see a lot of duplication of product on shelf. As an example, rather than having 20 to 30 different SKUs of fish oil or calcium on shelf, retailers can optimize their shelf space by increasing their assortment with product differentiation. According to Nielsen data, both fish oil and calcium are categories that have seen a consistent decline in sales. Replacing these items with more popular, trending products allow retailers the opportunity to increase sales and optimize shelf space.
Retailers that don’t place an importance on product differentiation risk consumers going elsewhere. If a consumer doesn’t find the product they are looking for on shelf, they are more likely to turn to online markets where price plays a much larger role in their decision.
DSN: What about the importance of placement of product in-store?
SR: Basically, shelf placement should mimic trends. As trends change, so should the shelf to ensure the section stays fresh and aligns with consumers’ needs.
Retailers can create strategic sections that highlight top wellness concerns, while educating and influencing consumers to purchase in trending sections. Aromatherapy, women’s health and beauty, sleep, and digestion are just some of these top wellness categories. Additionally, some segments may warrant dual location in-store to attract a broader range of consumers. For example, the consumer who goes into the pain/sleep aisle may be seeking an herbal supplement and will never go into the traditional vitamin aisle. I see identifying these key segment opportunities and blurring the category lines as a continued opportunity to increase sales and shop ability.
DSN: Tell us about your new products.
SR: At Nature’s Truth, we are committed to thinking outside of the pill bottle and creating innovative delivery forms of popular ingredients. Recently, we’ve launched our line of farm fresh powders to combat pill fatigue. These powders are made with organic ingredients and feature trending items such as turmeric, beet root, green/red fruits and vegetables to provide consumers with alternative delivery systems for key-trending nutrients. With pill fatigue becoming more common, and consumers searching elsewhere for their nutritional needs, powders could very well be the new gummies.
Some of the other new products we’ve recently launched, such as our Tea-Tree Roll-On, Eucalyptus Mist and Soothing Rub, have been successful additions to our No. 1 aromatherapy line. Each of these new items feature an essential oil that consumers are looking for in an easy-to-use, on-the-go form. We have over a dozen new items launching this fall that I expect will delight both consumers and retailers. As a company, we are dedicated to launching new and unique products to meet consumers’ ever-changing needs.
Drug Store News: Tell us about the state of the vitamin/mineral/supplement category at mass retail. What is driving the category these days?
Scott Rudolph: Consumer trends continue to change with the emergence of more educated shoppers who have a ‘self-care’ approach to wellness. Now, more than ever, consumers are walking into stores knowing the exact ingredients they are looking for. Whether they are doing research on their home computer, mobile device, or have heard about an ingredient from friends, consumers are looking for specific products to fit their specific needs. This has led to a rapid expansion of the category, and perhaps a shift in focus from a benefit-based approach to ingredient-based.
Retailers with assortment in their wellness aisles are seeing large gains in sales and share growth. By providing variation on the shelf and including such niche and trending products as activated charcoal, apple cider vinegar, hemp seed and beet root, retailers are better able to meet the increased demands of today’s consumer and drive more foot traffic into brick-and-mortar rather than online.
DSN: What do retailers need to do to boost sales and profits from the category in terms of merchandising and marketing to consumers?
SR: Too often, I see a lot of duplication of product on shelf. As an example, rather than having 20 to 30 different SKUs of fish oil or calcium on shelf, retailers can optimize their shelf space by increasing their assortment with product differentiation. According to Nielsen data, both fish oil and calcium are categories that have seen a consistent decline in sales. Replacing these items with more popular, trending products allow retailers the opportunity to increase sales and optimize shelf space.Retailers that don’t place an importance on product differentiation risk consumers going elsewhere. If a consumer doesn’t find the product they are looking for on shelf, they are more likely to turn to online markets where price plays a much larger role in their decision.
DSN: What about the importance of placement of product in-store?
SR: Basically, shelf placement should mimic trends. As trends change, so should the shelf to ensure the section stays fresh and aligns with consumers’ needs.
Retailers can create strategic sections that highlight top wellness concerns, while educating and influencing consumers to purchase in trending sections. Aromatherapy, women’s health and beauty, sleep, and digestion are just some of these top wellness categories. Additionally, some segments may warrant dual location in-store to attract a broader range of consumers. For example, the consumer who goes into the pain/sleep aisle may be seeking an herbal supplement and will never go into the traditional vitamin aisle. I see identifying these key segment opportunities and blurring the category lines as a continued opportunity to increase sales and shop ability.
DSN: Tell us about your new products.
SR: At Nature’s Truth, we are committed to thinking outside of the pill bottle and creating innovative delivery forms of popular ingredients. Recently, we’ve launched our line of farm fresh powders to combat pill fatigue. These powders are made with organic ingredients and feature trending items such as turmeric, beet root, green/red fruits and vegetables to provide consumers with alternative delivery systems for key-trending nutrients. With pill fatigue becoming more common, and consumers searching elsewhere for their nutritional needs, powders could very well be the new gummies.
Some of the other new products we’ve recently launched, such as our Tea-Tree Roll-On, Eucalyptus Mist and Soothing Rub, have been successful additions to our No. 1 aromatherapy line. Each of these new items feature an essential oil that consumers are looking for in an easy-to-use, on-the-go form. We have over a dozen new items launching this fall that I expect will delight both consumers and retailers. As a company, we are dedicated to launching new and unique products to meet consumers’ ever-changing needs.