Introducing SLIM to the US market - perspectives and considerations.

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 urgent 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 direct 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 affected by obesity. The financial problem related to sequelae of obesity includes medical costs spawned by the direct implications of health-related diseases, but equally important is it to recognize the 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. The primary product of SLIM is the conversion of sucrose to inulin, but the product also exhibits a positive byproduct in the form of sustaining a high amount of fibers in the stomach and intestines.

The possible implementations for SLIM are many, but the nature of the product directs it towards the market for consumer food. 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 been subject to discussions concerning the possible ill effects of ingesting the artificial sweeteners that have been implemented to substitute the processed sugar otherwise used to sweeten the soda 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.

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. By focusing on patent licensing as the preferred way of marketing the whole SLIM entity could 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 clients through inbound/outbound logistics. Concerning support activities technology development and human resource management would be crucial aspects of focus.
Instead of developing a consumer product in-house, licensing SLIM and thereby staying in the B2B area would enable the SLIM entity in providing a greater flexibility when cooperating with manufacturers who are interested in implementing SLIM into 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 transactional nature.

In conjunction with the main primary and secondary activities and because of the nature of the SLIM product and market-for-implementation the most natural strategy to pursue would be a strategy focusing on differentiation. This choice of strategy is justified by the SLIM entity’s need of tailoring it’s SLIM product to different industries.
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.

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 to align the internal strategy of SLIM with that of the companies.

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 by the EU. The US has been working progressively with the development of GMO including corn, potatoes, tomatoes, soybeans, squash and cotton. 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.