Introducing SLIM to the US market - perspectives and considerations.

by Lars Øvlisen, 2012

Obesity and the western implications

The creation of SLIM (Sucrose limitation and inulin metabolization) has opened a wide variety of possible uses. Sequelae of Obesity now hold the position of being one of the most urgently growing health and financial problems of western civilization. The growing problem is especially visible in North America where more than two thirds of the population is overweight and one third is obese*. The negative impacts of obesity include health-related diseases such as coronary heart disease, hypertension and diabetes. In conjunction with these health issues, general psychological wellbeing, as well as actual psychological diseases, is also of important focus when looking at the impacts of obesity. The increasing financial burden related to sequelae of obesity includes medical costs spawned by the direct implications of health-related diseases, but equally important is it to recognize second stage costs in form of absenteeism, presenteeism, disability and premature mortality.

The goal of SLIM and ideas for implementation

The goal of SLIM is to be able to function as an accelerate of weight loss and could therefore be considered a great candidate as a supplement for currently active weight loss programs. Conversion of sucrose to inulin is the primary product of SLIM, but the effect of use also exhibits a positive byproduct in the form of sustaining a higher quantity of fibers in the stomach and intestines than normal.

The possible implementations for SLIM are many, but the nature of the product guides it towards the market for consumer foods. Food products involved in common western mealtimes could be ideal entry points for the implementation of the SLIM product. This includes, but is not limited to yogurt, white bread, pancakes, dairy products, cereal, cake/biscuit products and food ingredient products. Implementing SLIM in daily consumed and well recognized food products could give the producing companies an easily created additional value for their existing product repertoire or create a basis for a whole new line of SLIM incorporated products. In either way the producing company would have the freedom of exploiting SLIM induced possibilities in their company’s products by introducing the possibility of a healthier choice and thereby obtaining a very important strategic competitive advantage compared to their respective market competitors.

Utilizing the capabilities of SLIM, the soda industry could have its whole playing field changed. Modern diet soda drinks have frequently been subject to discussions concerning the possible ill effects of ingesting artificial sweeteners that have been implemented to substitute the processed sugar otherwise used to sweeten the diet drinks. By using SLIM in soda products, the manufacturers would be able to reduce the amount of regular processed sugar that would otherwise be obtained by the body. This implementation of SLIM could make way for great competitive strategic advantages in the industry and has the theoretical possibility of taking over a part of the massive diet soda market by being adopted as a new diet soda alternative or standard.

SLIM could be licensed for use to different consumer food manufactures and incorporated into their food products in close cooperation with the SLIM development team. Focusing on licensing, as the preferred way of marketing, could enable the SLIM entity to be streamlined in a manner benefiting the client manufacturers in their whole product life cycle.

Referring to the value chain above, the most important primary activities for the SLIM entity would involve contact and negotiation of the SLIM sales and marketing force and securing total supply chain awareness to and from clients through inbound/outbound logistic activities. Concerning support activities technology and development and human resource management would be crucial aspects of focus. Technology development including research and development is of importance because the SLIM entity would be forced to differentiate its product to different customer needs. This fact derives the importance of human resource management, so that hiring the best employees, not only those excelling in their technical field but also the ones able to conquer the challenge of ever changing product specifications, would be of paramount importance.
Instead of developing a consumer product in-house, licensing SLIM and thereby staying in the B2B arena, would enable the SLIM entity in providing a greater flexibility when cooperating with manufacturers who are interested in implementing SLIM in their products. Staying in this area of business the SLIM entity would have the ideal opportunity to engage in collaborative relationships and move away from those characterized by a more transactional nature.

In conjunction with the main primary and secondary activities, because of the nature of the SLIM product and market-for-implementation, the most natural strategy to pursue would be one focusing on differentiation. This choice of strategy is justified by the SLIM entity’s need of tailoring its SLIM product to different industries. A differentiation strategy should utilize the already unique competencies of the SLIM entity and product, while securing a broad market scope through the search and development of future possible customers and markets.
Recognizing the need for a differentiation strategy and focusing on the aforementioned primary and secondary activities could develop the advantages necessary for a positive blue-ocean scenario accompanied by a first-mover effect.

Possible markets and the communicative challenge

Several different food producers are of interest when considering clients who could be potential buyers. Companies such as Kraft Foods Inc., Kellogg Company and Coca-Cola Company are to be considered as prospect buyers because of their operating industry, consumer and industrial foods and their total market share. Working from this perspective of potential buyers, a greater analysis of the respective companies would be required in order to align the internal strategy of SLIM with that of the customers.

When determining a possible introductory market for the SLIM product, one important factor has to be considered. Any food product with SLIM incorporated will be considered genetically modified and is therefore subject to general GMO controversy. Rules and regulations of GMO in the US are fundamentally different from those created in the EU. The US has been working progressively with the development of GMO foods including corn, potatoes, tomatoes, soybeans and squash. Especially important was the production of golden rice in 2000, because it was the first product that had its nutrition values dramatically improved by the use of genetic modifications.

The communicative challenge imbedded in the release of a SLIM implemented product, has to be handled with great care when released to the public as consumer foods. The quest of maintaining a positive public reception of any given SLIM incorporated product is of paramount importance, not only for the corporation selling the product but also for the SLIM entity. The SLIM entity is completely dependent of the amount of sales generated by its clients and thereby also completely dependent on the end-user reception of the individual products. This end-user reliance stresses the importance of the SLIM entity to have its collaborative relationships tightly knit, especially in the area of sales and marketing.