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This question has been answered, and points have been awarded.
New Skin Care Product Quandry
Posted by Anonymous on
11/11/2004 at 12:06 PM ET
My company makes high quality skin care products which we sell in bulk mostly to three or four large clients who use their own branding and marketing. Our visibility to the retail client and to our non-clients in the inductry is very low.
We have recently had a burst of creativity and obtained a couple of use patents on a produts that we believe are revolutionary. We are investing a relatively large amount of money to buy the scientific equipment to obtain the data to demonstrate that the product works and is better than anything on the market right now.
The problem is that we have no marketing strategy other than just selling the product to our exisitng clients. In the way that we have always done so. It is a very risk averse strategy.
Since our manufacturing capacity is not larget the long term goal is to either licence or sell the product patent to a large cosmetics firm so that we can all retire to Bali, what is the best way to achieve this?
FYI we have a small client that owns a very high end boutique, I have been thinking about how a partnership with them may anable us to obtain the word of mouth effect that we need. How would this be best approached?
11/11/2004 at 5:46 PM
If you're looking at licensing then your scientific research will be very handy. The key here though is to make sure it is a University tested research because it will have more credibility as a marketing piece for the client that takes up your licensing offer.
Question for your company - how much do you want to earn from the licensing deal? Over what period of time?
Would you take a flat sum or prefer % of sales?
If you take a flat sum you have to be ready to accept the possibility that the thing could go beserk and you underpriced yourselves.
If you take a %, you are in the hands of the agent to generate sales and might get less than you want.
As for your client with a high end botique - if your strategy is to license this product then forget about this client - they'll likely be too small to have any influence for a company wanting to take the products national or international.
If you want to sell lots of product then you need to make it appeal to the masses. Word of mouth with a small botique agency won't help. HOWEVER, if you want to sell onyl a small amount but at a MASSIVE premium, then maybe they could be an option.
Peter (henna gaijin)
11/11/2004 at 5:48 PM
Just to put a name to your past strategy, you are private labeling your products.
It sounds like you already have a feel for what the best strategies would be - license or sell patent.
I am challenged with trying to give any more advice than this, as we don't have much in the way of details. Perhaps starting some business with you current manufacturing to demonstrate that the product is better with real products.
11/12/2004 at 11:18 AM
I think our size is such that we would take any large offer for the patent whether it be a lump sum or a % of sales agreement.
Would there be any benefit to hiring a professional publicist at an early time or would it be best to wait until a relationship with a current client is under way? Our publicity budget is very small.
It seems that the hard part of this is going to be the brand development/ name recognition factor. Would a nutrasweet type of deal were any product licenced to contain our ingredient would be marked with an icon be a way to go on this?
11/16/2004 at 12:41 PM
I may have a distribution channel for you here in the U.S. send me an email if interested. Also I can probably get your white paper and University testing done at UCLA. send me an email if interested firstname.lastname@example.org
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