Robert_Walker_B2F_Presentation_Final_4.6.2015

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

E-mail

Live Chat + Product Advisor

Facebook

Twitter

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

[email protected]

+358 45 137 4329