bio-elixia spotted in stores in singapore, page-36

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We have a shared understanding and agreement on a number of points that you have raised regarding Elixia.

Firstly, it is understood that Phosphagenics’ pharmaceutical division, and specifically its lead pipeline project TPM/Oxycodone patch, are and should be the company’s key focus.

Secondly, it is acknowledged that the intended company strategy is to use its personal care arm, which includes Elixia cosmetics, as the “revenue generating division”. (Life Science Conference Presentation 26/5/11)

Thirdly, we agree that overseas markets offer substantially more opportunity for growth; hence promotion in these markets should be the company’s priority.

Finally, we agree that allocating high levels of funding to the promotion of Elixia, causing the division to be revenue-neutral or operate at a loss, would be at odds with its stated objective as a “revenue generator”.

However spending huge amounts of money on Elixia promotion is something that I have never advocated. I neither expect nor suggest that we try to match the expensive promotion of the huge global cosmetic brands. And I certainly haven’t got “carried away by the glamour” as Dougal134 dismissively puts it.

I simply believe that Elixia can and must do better with their brand promotion in Australia and this belief is based on the following:

1) The simple principle, to which I subscribe, that “If something’s worth doing, it’s worth doing properly”.

2) The perception that there is a damaging disconnect between the stated market positioning of Elixia and its in-store presentation. According to the 2009 Company Newsletter, the Elixia customer has a “desire for a more sophisticated product. (She) is quick to pick up on contradictions.” I am an Elixia customer and I fit their customer profile as well. I see dodgy in-store displays as a contradiction to sophisticated branding and pricing. And I believe that other potential Elixia customers will too.

3) The perception that there is a damaging disconnect between the identified target market (32-67 year old demanding and discriminating women) and the dominant reliance upon social media and TV shopping for promotion. As the previously quoted Mintel survey showed, 91% of over 35s say that they aren’t influenced to buy a product because of positive comments or “like its” on social networks. My reservations about TV shopping are based simply on gut feeling and personal experience. I perceive the TV shopping market to be impulsive rather than discerning. Furthermore, of the considerable number of women I know who do fit the Elixia customer profile, none watches TV shopping. I am not suggesting that there isn’t any market when there clearly is, especially for BodyShaper. It’s just that I doubt that’s where the “Elixia customer” can be found.

4) I believe that the recent tactic of using blog member product triallers to review BodyShaper has largely backfired. Multiple highly negative comments about texture and smell, yet alone efficacy and price, don’t bode well when the Elixia customer has been described as “prepared to pay a little more for a prestige product that works, and has a quality feel.” Surely negative feedback on issues such as texture and smell would have been better gathered in-house through focus groups before launch, rather than nine months after. In the current climate, I’m convinced that the majority of potential “splurge” customers want prior evidence of quality and efficacy. And although they may be cynical of the positive endorsement of others, as evidenced by the Mintel survey, I suspect that criticism is more readily noticed and acted upon.

So how do you successfully market to that elusive “Elixia customer”? Well, that’s what Saunders and Co. are paid to know. Personally I don’t believe that it has to involve throwing massive funding at the problem. But it certainly requires smarter thinking.

I do support the company’s decision to diversify into cosmetics and personal care in order to generate revenue. THAT is smart thinking, in my opinion. I also support the actual Elixia products – I find them effective and I really like them. Hell, I even think playez said he likes them. I suspect that if you can please both playez AND me, then you’ve got a potentially winner on your hands. But it has to be smartly promoted. And at the moment, in my humble opinion, it’s not.