How to Get into Brick-and-Mortar Retail Today! Introducing PharmaVision!

Foreign.

Welcome, everyone, to this edition of CPG Insiders. I'm your host, Mark Young. Co host, Justin Gerard. Justin, this is exciting because this is the first time we're on video.

You can actually see what we look like and everything.

So not only can you now get CPG Insiders wherever you get your podcasts, but you will now be able to watch CPG Insiders on YouTube. Yes, sir. Which is kind of cool because now we'll be able to show things too.

Yes.

And we are going to show some things today.

We are. We are.

So 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.

I will tell you. It is completely changing. It will completely change the dynamic of the pathway to retail. It's going to completely revolutionize it.

Absolutely. Especially, especially for products that have limited distribution right now or are just trying to gain distribution right now or have new SKUs that they haven't been able to get into retail yet. 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.

Absolutely. So again, for 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 or P and G. Of course, you are Unilever.

You are an upcoming brand. Exactly. You're an upcoming new brand to trying to get into the marketplace. Maybe you're selling an Amazon. You're selling on your website now. You're like, I really want to get into retail. That's what I want to try to do. Right. Well, so first off, you've got to figure out what's a 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 a buyer that's at a store that says I have to take you on. So somehow you got to get a.

Meeting with them, which is really tough to do.

Yes.

And I'm going to give you kind of an analogy I used earlier today with another client, and that is getting a meeting with a buyer is 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.

Yep.

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 tide.

Right.

Or P and G. 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.

Yep.

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.

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. You have 20 minutes. 15. 20 minutes to get a yes from that retailer a year.

And then you have to wait until that plan sets.

Right.

Which could be anywhere from a month to a year from now, easily. In fact, some plans are going 24 months now.

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.

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's shelf?

Now, you haven't gotten that. Yes.

You don't have any IRI numbers. Or let's say you're in one store and your IRI numbers aren't looking that Great. So it's like, I don't 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.

Yeah, there's pent up demand for this.

We have to show the retailers 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 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 your best chance is to be 10% of what you could be.

You are creating a ceiling. You are.

Yes. So could you be a million dollar brand on Amazon? You can, absolutely.

Yeah.

But I'm going to 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, 200,000amonth, and they can hold onto 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.

Oh, absolutely, yeah.

So you come up with your great kitchen appliance and you're doing $5,000 a day on this little kitchen appliance and life is good. And then all of a sudden somebody jumps on Alibaba and finds 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 now competing with them.

Yes.

So this is Something I want people to keep in mind, that isn't a thing in brick and mortar.

Of course not.

Because in Amazon, Amazon doesn't care if there's a thousand competitors in a category.

Yeah.

Brick and mortar is limited.

Yes.

It's limited by these things called atoms.

There is only so much space 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 a thousand brands. Give you an example, if you go to the music or book section at Walmart, they carry no more than 600 titles.

Yeah.

Now go to Amazon and tell me how big the book section is. Now go to itunes and tell me how big the song selection is. It has infinite long tail 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.

The volumes are huge because of that and it's.

You have less competition, of course. 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, the fewer competitors you have. The cost of entry or the complexity to Amazon is nothing. The cost and complexity to become a major retail product is difficult.

It is very, very difficult.

And therefore, once you rise to that level, you're in a completely different world than you are as an Amazon seller.

And that's the value of retail and also the reason why it is so difficult to get there. It's 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.

Just remember, if it was easy, everybody would be doing it.

Yes.

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 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 bottles of aspirin that you currently have, which is a really uphill battle if you don't have a track record.

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.

All right, so what else do we want people to know before we tell them about this exciting new breakthrough?

Let's talk about it. What else, what else, what else, what else, what else? Is there anything? No, I think the rest of the details are probably too much. Right. I don't think we need to go into pan scan and all those different. Let's not, let's not go there. Let's not go there.

So let's get into the world premiere. The world premiere here on CPG Insiders. Folks, we want to introduce you to a new company called Pharma Vision. Now Pharma Vision is a sister company.

Yep.

To Jekyll and Hyde.

Yes.

What Pharma Vision does. And let's show it on the screen right now.

Yeah. We'll bring up the set.

Pharma Vision has created a three sided end cap. Now, as you can look in 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 four 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.

Kroger store. Yep.

With more coming.

Yeah.

But right now it sits at all 20, 36 Kroger pharmacies. On that television plays the 30 second 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 doing directly under it. And you're playing it to the customers standing in line waiting for their pharmaceuticals or waiting to cash out where they have nothing else to do but watch the tv.

Right.

Some stats that we know is that when you compare a video to a sign at retail, the video gets 800% more engagement.

Makes sense.

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 playing right in front of the customers. Now, most people didn't know this Kroger is the busiest Pharmacy in America.

Really?

Yes. It is America's busiest pharmacy.

Didn't know.

And the average Kroger store is filling 800 prescriptions a day.

Wow.

Yeah. It's huge, isn't it?

Yeah. So that doesn't. That and that. That just is. The prescriptions. That doesn't matter. Account for the traffic that goes through because that's where all of their OTC stuff is.

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 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. Yeah. Great opportunity.

A lot of traffic.

Now, 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 have to be health based. Yeah.

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 there. They want to reduce people's dependency on pharmaceuticals. They want to get people to make better choices in the way of nutrition, food supplements, over the counter products and reduce their dependency on pharmaceuticals. When we think about pharmaceuticals, when pharmaceuticals first entered the marketplace, we thought of them as. And 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.

No. Our dependency is outrageous.

They should be an adjunct to our health.

Yes.

No one in the world has a Prozac deficiency. No one has an oxycontin deficiency.

Yep.

These are foreign molecules going into your body. And sometimes these foreign molecules are vital and they in their life saving. But we're overusing them.

Yes. We're abusing them.

And we can see, and we can see in charts that the more pharmaceuticals the average American is on, the worse their health is.

Yep.

There's a direct correlation in health decline and increase in pharmaceuticals. And it's not America's becoming sick so they need more drugs. 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. Step three, 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, 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 thousand 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 people.

Walking around the store, entire traffic. Right.

So it's crazy cheap 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 go in for a 56 day, day two period set. You now have two months of IRI data of your product on essentially an end cap with a television set. Except IRI doesn't know this was an end cap with a TV set, IRI notes, while Kroger's killing it with this new product.

Yeah.

Now what does that do for you when you go call on Walgreens, Walmart and CVS and Rite Aid, because all of a sudden they look and say, man, you're killing it at Kroger's Right. Now the other beauty of this is if you come into this program and you meet minimum sales requirements, which is pretty hard to not do on an end cap. Right. On an end cap with a television. And you can keep those numbers up.

Yeah. What happens next?

So you, you're 56 days on our set. If the numbers are good, we move you to a PDQ display and we put you on shelf at the pharmacy counter. So now you're in a PDQ tray right by the pharmacy window.

So let me get this straight. One, this program, you get two months.

Right. And it's every two months, so it doesn't matter when the plan resets.

Right. So you get two months. Instead of waiting that year to even just have the meeting, you can be in Kroger in the pharmacy on an end cap with a commercial for two months? For two months.

And you can do it quickly.

You can 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.

Yes. As long as your numbers were good, 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 off the plant. The pharmavision.

Yeah. Your turn rates need to continue, but.

You want to keep that turn rate up.

Yep.

Now when hbc, when the, when the regular HPC is getting to reset, all the people in HPC now have access to all the numbers you're doing at the pharmacy.

Right.

And they have the right to drag you over and put you in set. Now if they don't put you in set, then 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, it's 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, H e B Walmart. They really care what Kroger's doing. Of course. And because it's the Kroger pharmacy, Walgreens Cares, CVS Cares, Rite Aid Cares. So this is the first ever fast track path that's ever been made to help retail products crack. Retail.

Yeah.

It's an amazing program.

Yeah. I mean at this point it seems that again, correct me if I'm wrong, 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 earning 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.

Yes. And some of the products that have already been on have been home testing and topical analgesics and diabetic products. And these are the different kind of things that are, that are making it, that are getting on there. We just met today with a company that makes another great diabetic product. So the stuff that people standing at the pharmacy can look at and say, hey, I've never seen that.

Right.

And think of the beauty of this. You're standing at the pharmacy, you're waiting to get waited on.

Right.

You have no place else to put your eyes other than 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 30 second 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. So how often would your commercial come up?

Great question. We only run seven commercials.

Oh, wow.

So everybody runs, everybody's commercial comes up about four minutes.

So then, so if someone's waiting, you're almost guaranteed to be in front of.

A couple of viewings. You're guaranteed they're going to see your commercial a couple of times.

So you're going to get some frequency on that.

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 contacts to get in this. I'm not even going to tell you the massive list of major multinational companies that have already contacted us to get in this.

Oh yeah.

So some of the biggest companies in the healthcare industry have already signed on. 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 really come up with something innovative, 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?

Well, like you said, this is the opportunity to completely change an entrepreneur's life and business. Because as you stated, if you understand this well enough, you get in touch with a good broker. Right. And you're saying, great, we really want to crack cvs. Great. You 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 I'm going to tell you now, there's a product on Pharma Vision right now. I won't tell you the name of it, but that product is doing so well that Kroger's already asking for more SKUs this week.

Wow.

They've asked for additional SKUs from that vendor. Literally said, what else do you have?

Wow.

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 Pharma Vision program.

That's insane.

I know. It's amazing, isn't it? It is so cool. Yeah. To be a part of and to see it. So if you're interested in Pharma Vision, let me give you some ways to get in touch.

How do they get in touch?

The website for Pharma vision is pharmavisiontv.com.

Okay.

And you can go there.

Yep. We'll have the link.

If you look in the show notes for this show, we'll always have connection for me, connection for Justin. You can reach out to either one of us. We will not be your contact for farmavision. We might sit in on the meetings, but we have a vice president of new business at Pharmavision names Al Remick. We'll introduce you to Alan. He's a former big pharma guy, really 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. So I'll give you an example of what gets turned down. I have a sugar free cookie or I have a gluten free muffin or I've got low sodium. Something that's not innovative, that's not changing anybody's life.

Not to say it's a bad product. It doesn't fit this set.

Not what goes here. This is about making the consumer's health journey better and easier. 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 cpg insiders.com and you can go directly to our website, which is jekyllhyde labs.com.

Yep.

And so there's lots of ways to get in touch with us. There's no shortage of ways to get in.

You can't get in touch with us. This is your fault. Okay.

Yeah. You've got an issue if you can't find us. Anyways, I'm looking forward to this. Being on YouTube. I'm excited to see how this goes there. I mean, we have so many viewers or so many listeners on CPG Insiders on the podcast. I'm excited to see what YouTube 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, please reach out.

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 jekyllheidagency.com or feel free to give us a call at 800-542 10.