How to Get into Brick-and-Mortar Retail Today! Introducing PharmaVision!
On this episode of CPG Insiders, Mark and Justin introduce the company that is revolutionizing the new product entry process into brick-and-mortar retailers, PharmaVision!
If you have a health-enhancing product with limited distribution or looking to gain your first major retailer, this is the must-listen-to episode for you!
For new listeners of the show, Mark and Justin provide a brief overview of the long and laborious process of how products gain brick-and-mortar distribution today.
They then discuss how with PharmaVision, brands can simplify that process, gain the ability to be on shelf in just a few months, and have the opportunity to make a profit doing it!
Visit PharmaVision below to get started.
Justin Girouard, Mark Young
Mark Young 00:18
Welcome, everyone to this edition of CPG insiders. I'm your host, Mark young co host Justin Girouard. Justin, this is exciting because this is the first time we're on video.
Justin Girouard 00:31
You can actually see what we look like and everything.
Mark Young 00:34
So not only can you now get CPG insiders wherever you get your podcasts, but you will now be able to watch CB CPG insiders on YouTube. Yes, sir. Which is kind of cool, because now we'll be able to show things to Yes. And we are going to show some things today. We are we are I want to I want to tell you folks, this is I am I've been waiting to do this show. Waiting, you've been bugging to do this show, this is going to be an exciting show, because we are going to tell you about something that is a pathway to brick and mortar that has never existed. That so changes the landscape in the area of supplements, nutrition over the counter drug health enhancing products, yes, this is going to change everything about brick and mortar.
Justin Girouard 01:30
It is it is I will tell you, it is completely changing, it will completely change the dynamic of that pathway to retail. It's going to completely revolutionize it.
Mark Young 01:40
Absolutely. Especially, especially for products that have limited distribution right now. Yes, or are just trying to gain distribution right now. Or have new SKU use that they haven't been able to get into retail. Yes, this is going to be the key. So first off, let's do a little recap for everybody just in case they're new. Yeah, let's do a little recap on the path to brick and mortar.
Justin Girouard 02:06
Absolutely. So for again, for any any new listeners to the show. To truly understand the value of what we're going to be talking about, you got to understand the problem that's being solved. Right? So when we're talking about the traditional path into retail, right, how does that go? What do you have to do? Well, first off, you've got to start by going to present to a retailer, right? And by the way, we're coming from the position that you are not bear p&g Of course, you are Unilever, you are an upcoming brand. Exactly. You're an upcoming new brand trying to get into the marketplace. Maybe you're selling in Amazon, you're selling on your website, and I really want to get into retail. That's what I want to try to do. Right? Well, so first off, you got to figure out what's the good retailer, I got to find a retailer that will even take my call, because you got to talk to a buyer, right? There's abuyer that Datastore says, I have to take you on to somebody, you got to get a meeting with them.
Mark Young 03:05
Which is really tough to do. Yes. And I'm gonna give you a kind of an analogy I used earlier today with another client and that is getting a meeting with a buyers like getting a meeting with a movie producer. And about as difficult. Yeah. So let's say you're an actor, or a screenwriter, and you want to get in front of a producer, unless you have an agent. And unless you have an agent that is well known. An agent who represents other great talent. No one is going to take you seriously. No. And the same thing happens in retail. Yes, unless you're tied, right? Or PNG. You need to be represented by an agent. Only we call them brokers. Yep. Who has credibility at that retailer? Who that particular retailer makes money with you? And who that retailer knows, okay, broker X won't bring me junk, because broker X works on commission. So broker x isn't a guy, he's not a guy I know to waste his time, he's going to bring me something that he thinks is viable for my store. Therefore, Yep, I'll meet with him in a couple of weeks and see what he's got to say.
Justin Girouard 04:16
Right. So let's say you are able to get that broker. And let's say you're able to get that meeting with the buyer. That meeting only happens one time a year. Yes. Right. So you have one shot, you have 20 minutes, 15-20 minutes to get a yes, from that retailer, a year.
Mark Young 04:36
Then you have to wait until that plan sets, right, which could be anywhere from a month to a year from now. Easily. So, in fact, some plans are going 24 months now.
Justin Girouard 04:44
Well, yeah, I mean, that's changed since COVID. Right? I mean, it's really changed the landscape. So this is your only shot. This is your pathway and if you get a no you've got to wait another year to try to get to that meeting again. And hopefully get a yes.
Mark Young 04:58
Now here's another issue you go to see that buyer, and the buyer wants to know, well, how well are you selling? Right? So the buyer is going to look at Nielsen, or IRI, and say, well, let's see how you're doing. But what if your product isn't in anybody shows now you've not you haven't gotten that, yes, you don't have any IRI numbers, or let's say you're in one store, and the IRI numbers aren't looking great. So I want to really go there, right. So that becomes a problem. This is one of the reasons why we always tell people for most products, this isn't. And again, none of these rules are 100%, for everything. But as a rule, in today's world, we need to get a product on Amazon, we need to get it selling on the website, we need to prove that there are customers at large, who will actually give you money for this item.
Justin Girouard 05:52
Yeah, there's pent up demand for this.
Mark Young 05:53
We have to show the retailer's there's somebody out there, insufficient volume, who will go to Amazon or go to my website and buy this. Now, just to remind everybody, in most of these categories, when we're talking over the counter drug, and all these things, most of these categories, brick and mortar still amounts to 80% of all the dollars. So keep in mind, if your goal is I'm only going to sell on my website, I'm only going to sell on Amazon. Understand that you're best chances to be 10% of what you could be
Justin Girouard 06:29
you are creating a ceiling. You are
Mark Young 06:31
Yes. So could you be a million dollar brand on Amazon? You can? Absolutely. Yeah, well, I'm gonna tell you, I'm going to divert just for a second here. And I'm starting to see a real trend with Amazon vendors. And what the trend I'm seeing is they come up with a good item they get on Amazon, they're doing 100 grand a month, 200,000 a month. And they can hold on to that for about nine months, or a year. And the bottom falls out. And the reason the bottom falls out is because in the world of Amazon unless you have some type of really highly protected IP. Companies just comb over Amazon looking for stuff to knock off.
Justin Girouard 07:19
Oh, absolutely. Yeah.
Mark Young 07:21
So you come up with your great kitchen appliance. And you're doing $5,000 a day and his little kitchen appliance and life is good. And then all of a sudden somebody jumps on Alibaba and find somebody in China to make it cheaper. Or the company in China that's making it for you decides they're going to go on Amazon and sell against you. And all of a sudden the bottom falls out of your business. We've seen this happen to a lot of brands time and time again. Yeah. And these are companies who bet their life on Amazon. I'm building an Amazon business. And now geez, what do I do? I can't compete on Amazon. And in many cases their suppliers are not competing with them. Yes. So this is something I want people to keep in mind. That isn't the thing in brick and mortar. Of course not. Because in Amazon, Amazon doesn't care if there's 1000 competitors in a category. brick and mortar is limited. Yes, it's limited by these things called atoms.
Justin Girouard 08:23
There is only so much space.
Mark Young 08:25
And you can only fit so many atoms on the shelf. And so many atoms in the store. So the store does not have the infinite ability to carry 1000 brands. Give you an example, if you go to the music or books section at Walmart. They carry no more than 600 titles.
Justin Girouard 08:49
Mark Young 08:50
Now go to Amazon and tell me how big the book section right now go to iTunes and tell me how big the song selection is. It has infinite longtail availability. Brick and mortar. Very limited availability, right? So when you can get in brick and mortar, it's harder to get in, but it's a safer place long term to live.
Justin Girouard 09:13
The volumes are huge.
Mark Young 09:17
And because of that, and it's you have less competition.
Justin Girouard 09:20
Mark Young 09:21
So this is the same with any business folks, I don't care what business you're in. The higher the complexity or the cost of entry. Yep. The fewer competitors you have, yep. The cost of entry or the complexity to Amazon is nothing. No. The cost and complexity to becoming a major a major retail product is difficult is very, very low. And therefore once you rise to that level, you're in a completely different world than you are as an Amazon seller
Justin Girouard 09:53
And that's the value of retail and also the reason why it is so difficult to get there. because there is that limited space to which these buyers have to make as much money as possible because guess what, the retailer will start shrinking their set if they are not making enough money or more money than the guy next to them who's making money. That's what it's all about.
Mark Young 10:17
Just remember if it was easy, everybody would be doing.
Justin Girouard 10:20
Mark Young 10:23
So another thing that we have to think about in brick and mortar, every inch of every shelf is accounted for. Yes. So if your bottle of aspirin is going to go on the shelf in at a drugstore, somebody's bottle of aspirin has to come off the shelf. So you have to convince the buyer that I'm going to sell more of my bottle of aspirin than these three bottle of aspirin that you currently have. Which is a really uphill battle if you don't have a track record.
Justin Girouard 10:53
Exactly. It's easy to say, well look at my CVS numbers, Walgreens. This is easy. Those guys don't even sell as much as I do in your store. I'm selling this much bring me in, right. It's not a hard sell.
Mark Young 11:06
Alright, so what else will people know before we tell them about this exciting new breakthrough?
Justin Girouard 11:10
Let's talk about it. What else? What else? What else? What else? What else? Um anything? No, I think the rest of the details are probably too much. Right? I don't think we need to go into Pam scan and all those different let's not, let's not go there.
Mark Young 11:25
So let's get into let's get into the world premiere the world premiere here on CPG Insiders, folks, we're wanting to introduce you to a new company called pharmavision. Now pharmavision is a sister company. Yep. To Jekyll and Hyde. Yes, what pharmavision does. And let's show it on the screen right now.
Justin Girouard 11:49
Yeah, we'll bring up the set
Mark Young 11:51
Pharmavision as created a three sided and cap. Now as you can look at the picture, you see there's product on the shelves in the front. There's product on each end cap. Yep. And then there is a 30 some inch television in the center. On that 30 inch television. So on that product is usually for brands three to four brands. That's it. This shelving unit that you see, sits right at the pharmacy counter. And currently it sits right at the pharmacy in every Kroger store over store. Yep, with more coming. Yeah. But right now it sits at all 2036 Kroger pharmacies, on that television plays the 32nd TV commercials for the products on that shelf. So you're at the pharmacy, your product is sitting there, you have a television commercial running on the screen, with your product directly under it. And you're playing it to the customers standing in line waiting for their pharmaceuticals or waiting to crash out where they have nothing else to do but watch the TV write. Some stats that we know is that when you compare a video to a sign at retail, the video gets 800% more engagement.
Justin Girouard 13:24
Mark Young 13:25
We also know that end caps in general sell seven times more than what a product sells when it's in line in the planogram. And we also have a program that which I'll tell you about in a minute, which will allow the pharmacist and the pharmacy techs to know about the program. So essentially, your product is sitting at the pharmacy with a TV commercial plane right in front of the customers. Now most people didn't know this Kroger is the busiest pharmacy in America.
Justin Girouard 13:57
Mark Young 13:58
Yes. It is America's busiest pharmacy didn't know and the average Kroger store is is filling 800 prescriptions a day. That's huge, isn't it?
Justin Girouard 14:12
Yeah. So that doesn't that and that, that just as the prescription that doesn't account for the traffic that goes through because that's where all of their OTC stuff is.
Mark Young 14:20
You're looking at it. You're looking at an average of 9 million people per week, or is it per day going through Kroger? Wow, it's huge. It's it's an enormous number. Wow. And about 20 to 25% of those people visit the pharmacy section. So you're roughly looking at about 1.6 million people walking through the pharmacy 800 prescriptions being filled. Very busy area. Great opportunity, a lot of traffic. Now here's the here's the keys to it. First off, the only products that qualify to be on here are products that are not currently in line at Kroger step one. Yep. Products that improve the health of the consumer
Justin Girouard 15:00
Humans have to be health based.
Mark Young 15:01
Yep. So one of the things folks I want you to know is the Kroger, people are great, and they are very serious about improving the health of America. This is a real deal. They're they want to reduce people's dependency on pharmaceuticals. They want to get people to make better choices in a way of nutrition, food, supplements, over the counter products, and reduce their dependency on pharmaceuticals. When we think about pharmaceuticals, when pharmaceutical Sturt first entered the marketplace, we thought of them as an adjunct to enhancing our life. Right? We have now fallen into this trap where we now think of pharmaceuticals as the source. Yes, of our health. Pharmaceuticals should never be the source of our health. Our dependency is is outrageous. They should be an adjunct to her health. Yes. No one in the world has a Prozac deficiency, right? No one has an oxycontin deficiency.
Justin Girouard 16:03
Mark Young 16:04
These are foreign molecules going into your body. And sometimes these four molecules are vital, and they in their life saving. But we're overusing them.
Justin Girouard 16:12
Yes, we're, we're abusing them.
Mark Young 16:14
And we can see. And we can see in charts that the more pharmaceuticals the average American is on the worse their health health is, yep. There's a direct correlation in health decline and increase in pharmaceuticals. And it's not Americans becoming sick. So they need more drugs. Now it's America's using too many drugs, yes. And not treating the root causes of illness, right. So your product has to be something that is going to enhance the life and the health of that Kroger consumer. So step one, it's not in there. Now. Step two, it's going to enhance people's lives. Yep. Step three. It needs to it needs to be unique. It needs to it needs to be some some innovation that people are going to look at and say, Wow, that's this is different. I haven't tried this. So it's not a place for a me too product. Right, right. Now, here's the advantage to this some of the advantages. It does cost to get in the program, of course, because you're paying for the TV space, but it's really cheap TV space. By the way, when you compare it to like buying television commercials, our cost per 1000 Viewer is under $2 Cost Per viewer. Right? And that's only based on people buying the prescriptions, right. That's not even based on the tire traffic, right? So it's crazy cheap. Yeah. For what you get. The beauty of this is if you have a new SKU that qualifies for this. All of a sudden, you go in for two Kroger periods, Kroger has 13 periods. These periods are 28 days each. So you're going for a 56 day two period set. have two months of IRI data of your product on essentially an end cap with a television set. Yep. Except IRI doesn't know this was an end cap with a TV set. IRI notes while Kroger is killing it with this new product.
Justin Girouard 18:12
Mark Young 18:32
and you meet minimum sales requirements, which is pretty hard to not do
Justin Girouard 18:37
On an end cap?
Mark Young 18:38
right on an end cap with a television. And you can keep those numbers up.
Justin Girouard 18:42
Yeah, what happens next?
Mark Young 18:43
So you're 56 days on our set, if the numbers are good, we move you to a PDQ display, we put you on shelf at the pharmacy counter. So now you're in a PDQ tray, right by the pharmacy window.
Justin Girouard 18:57
So let me get this straight one, this program, you get two months
Mark Young 19:03
Right and it's every two months. So it doesn't matter when the plan resets, right.
Justin Girouard 19:08
So you get two months. You can be in Kroger in the pharmacy on an endcap with a commercial for two months or two months.
Mark Young 19:21
And you can do it quickly.
Justin Girouard 19:22
If you do it quickly. That goes well. It's not that great. You're out. And this is great. And depending on when your meeting is for your buyer, we might talk to you, you actually get moved onto a shelf. So you stay in the store.
Mark Young 19:35
Yes, as long as as long as your numbers are good.
Justin Girouard 19:37
Mark Young 19:38
We move you to a PDQ tray. You go onto a countertop by the cash register, and your product stays on the PDQ tray. Now, you still need to keep your numbers up, of course so you're probably going to want to have some advertising to support that once you're at monitor the plant farm of return rates need to continue but you want to keep that turn rate up. Yep Now, if they don't put in set than pharmacy can just keep you on the counter and you keep selling, you're still in a major retailer, you're still in the major retail. So there's no lose lose as long as your product is selling. Its innovative and you keep supporting it. Right now you're in 2036. Kroger stores across America. You're now in the biggest pharmacy in America. You prove yourself there, you can now go to CVS and Walmart and Walgreens and Publix, Publix, Meijer, HEB, Walmart, they really care what Kroger is doing, of course, and because it's the Kroger, pharmacy, Walgreens cares, CVS cares, Rite Aid cares. So this is this is the first ever Fast Track path that's ever been made to help retail products. Crack retail. Yeah. It's it's an amazing program. Yeah.
Justin Girouard 21:23
The barriers for this would be, well, whatever the costs are, right, you have to have the capital for that, and the product and those things, right. But as long as you meet these requirements, which mean you're not already in Kroger, you're not, you have a product that has health benefits with innovative tech, then you can get into one of the largest retailers in the country.
Mark Young 21:45
Yes. And some of the products that have already been on have been home testing, and topical analgesic, and you're waiting to get waited. Right? You have no place else to put your eyes, I think stare at the pharmacy tech or you can watch the TV, right? We know the TV is going to attract your attention. And here I'm seeing a 32nd spot for this new topical analgesic. And it's sitting right there under the TV. Right. So think about being at home watching a TV commercial and deciding I think I'll buy that. In this case, I'm standing there watching TV commercial, when I say I think I'll buy that. I only have to reach down and pick it up. Right.
Justin Girouard 22:56
So how often would your commercial come up?
Mark Young 22:59
Great question. We only run seven commercials.
Justin Girouard 23:03
Mark Young 23:04
So everybody runs, everybody's commercial comes up about four minutes.
Justin Girouard 23:08
So then, so if someone's waiting, you're almost guaranteed to be in front of
Mark Young 23:13
you're guaranteed they're gonna see your commercial.
Justin Girouard 23:15
So you're gonna get some frequency on that? Yes,
Mark Young 23:17
Yes, they'll see your spot a couple of times. Wow. So it's amazing program. Folks, I want to tell you that so many people have contexts to get in this. But what we're here to talk about today, is the entrepreneur and the small company, because that's where my passion is, yes. And it's all good that the big drug companies are participating. And that's very exciting. But I get more excited with the small company that's that's really come up with something innovative. That's that's really looking to put that stake in the ground of what's that account? Where's that account that I can grab right now?
Justin Girouard 24:13
Well, as you said, this is the opportunity to completely change and entrepreneurs life and business. Because as you stated, if, if you understand this well enough, you have you get in touch with a good broker, right? And you're saying Great, we really want to crack CVS. Great. Do this program. You do it a couple months right before that CVS meeting, and you roll in there saying oh, by the way, look at my IRA numbers over the last few months. You've got a shot of getting on that shelf. Now.
Mark Young 24:44
I want you to know there's a product on pharmavision right now. That will tell you the name of it, but That Kroger's already asking for more SKU use this week. Wow. They've asked for additional SKU use from that vendor And this brand, because of this Kroger experience will be in every retailer within the next 12 months. Right? This company will literally on this SKU, they will have gone from zero to probably 25 million in sales in 12 months from from the PharmaVision Program.
Justin Girouard 25:26
Mark Young 25:27
I know. It's amazing, isn't it? It is so cool. Yeah. To be a part of it to see it. So if you're interested in PharmaVision, let me give you some ways.
Justin Girouard 25:37
Yeah. How do we get in touch?
Mark Young 25:39
The website for pharmavision is pharmavisiontv.com. And you can go there, we'll have the link. If you look in the show notes for this show will always have connection for me connection for Justin, you can reach out to either one of us. We will not be your contact for pharmavision we might sit in on the meetings. But we have a vice president of new business at pharmavision, name's Al Remmick, will introduce you to Alan Yep. He's a former Big Pharma guy knows what he's doing. And he can walk you through the program and tell you how the program works. And tell you if the product you have qualifies to be on here? Yes, because not everything qualifies to be on here, we've had to turn down a lot of products, but we turned them down because they're not innovative, or they're not really creating any health. Right. So I'll give you an example of what gets turned down i i have a sugar free cookie, or I have a gluten free muffin or I've got you know, low sodium something. Right? That's, that's not innovative. That's now that's not changing anybody's life.
Justin Girouard 26:49
Not to say it's a bad product. This isn't the set
Mark Young 26:52
Not what goes here, right? This is about making the consumers health journey better and easier. Yes, that's what we're after here. So if you have a product like that, reach out to us go to pharmavisiontv.com. You can always go to CPGinsiders.com. And you can go directly to our website, which is JekyllHydelabs.com. Yep. So there's lots of ways to get in touch with there's no shortage of ways you can get in touch with us.
Justin Girouard 27:23
This is your fault. Okay.
Mark Young 27:24
Yeah, you've got an issue. Anyways, I'm looking forward to this being on YouTube. I'm excited to see how this goes there. I mean, we have we have so many viewers or so many listeners. Yeah. On CPG insiders on the podcast, I'm excited to see what YouTube adds to the adds to the table here. Absolutely. Because I love getting this information out. Folks, we love hearing from you. I get emails from people all the time talking about how helpful this is and how they listen. And we're so grateful that you do listen whether you ever spend any money with us at all. We're grateful that you're listening. We're passionate about this category. We want new companies and new products to succeed. So if at any time you think that either one of us can help you,
Justin Girouard 28:06
please reach out,
Mark Young 28:07
reach out to us, and we're happy to answer emails or even do calls if it's appropriate. Other than that, that's it and we'll see you on the next episode of CPG insiders. If you're looking to greatly increase sales on your CPG product, don't hesitate to contact us at Jekyll and Hyde advertising and marketing. By the way, the only advertising agency with a guaranteed result just go to Jekyll Hyde agency.com Or feel free to give us a call at 800-500-4210