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Lecture 15

While Health Marketing has managed to survive for 30 years, and appears to be going strong, there are a number of problems associated with it. Among them are the following:

1. Public confusion. In spite of consumer's best intentions, they are still ill informed about health, fitness, and medical issues. While nearly everyone has heard the messages from the media, most people do not know how to act on them. For example, many people, upon hearing that fat is bad, have eliminated fat nearly completely from their diets. This is just as bad as eating too much fat.

 

 

In fact, it is the anti-fat movement which produced The Zone diet, which seeks to put some fat back in people's diets (using the 40/30/30 plan). Consequently, many people have blindly followed this advice.

Other problems stem from people's impatience with weight loss, as well as intolerance for exercise. It must be recalled that excess weight was not added in a few days; it occurred over many years. It takes time to lose weight, and the best lost weight is done slowly.

Furthermore, people do not understand how slowly exercise burns calories. The best exercise bar none is cross-country skiing, which can roast 800 or more calories per hour. Still, it would take over four hours of intense exercise to burn just one pound of fat. For me to get the same caloric burn on the bike, I would need to ride at 170 (heart) beats per minute (bpm) constantly, which is on the verge of breathlessness (also known as the anaerobic threshold). For less athletically inclined folks, a simple walk around the neighborhood had better be several miles long, every day, or else the weight loss will be minimal.

2. Unproven claims. The literature is still pretty clear on alternative medicine. It simply has not been proven, nor has it been replicated. For all the naturopaths and homeopaths in private practice, theirs is an unproven field. In spite of a rise in popularity, this centuries-old field has still not been clinically proven to work. Anecdotal evidence notwithstanding, we really do not know if echinacea wards off a cold, or if zinc lozenges can make a cold go away. The fact that most homeopathic "remedies" have been dilluted (they call it succussion) to the point of being less than 1/1000th strength should give pause to anyone contemplating their veracity.
3. Contradictory Claims. One of the biggest problems facing this field is contradictory claims, which only add to the confusion. For example, is cholesterol really bad for people? Can they eat eggs every morning for breakfast and have no ill effects? Good questions, because the results are mixed, and no one seems to really know for sure.
4. Shady Marketers. While they are a disgrace to the profession, it has not stopped many companies from picking the pockets of unsuspecting consumers. In essence, what many of these firms are selling is H-O-P-E, packaged in a little diet pill, ridiculous exercise machine, corsets, or whatever might give you a fleeting chance of looking thinner or living longer.
5. Slow Government. Except in the case of fen-phen, the government is notoriously slow in analyzing the efficacy of medicines and other products. This time lag does little to help the industry or consumers.

 

 

But while the government is slow to analyze these products, it has intervened and required manufacturers and retailers alike to be extremely cautious in making product claims. For example, retailers like Whole Foods (and any other seller of vitamins and supplements) cannot vouch for the efficacy of products, the ability to lose wieght, prevent the common cold, etc. Manufacturers and retailers can only say that their products may help under certain circumstances, but must stop short of making actual product claims. The response of many retailers, like Whole Foods, has been to steer employees away from these products so they do not inadvertently mis-advise customers.

6. The Bandwagon Effect. There is a huge incidence of copycat behavior amongst consumers, as they jump quickly to emulate the activities of others, or adopt the latest health fad. People jump from sport to sport, and from supplement to supplement. Creatine may be hot one week, and DHEA the next. Extreme sports are hot today (probably because they blend adventure with expensive high-tech equipment), but it, too, may slip into obscurity one day.
7. The Gullibility Factor. Consumers are prone to falling for the latest fad as if it were medical gospel. If a grapefruit diet will shed pounds, then we'll eat grapefruit all day. If using the Abdominizer will firm up those flabby tummies, then we'll shell out our hard-earned money for it. And if a video tape of workout routines ("Buns of Steel," for example) promises youth and beauty, then we'll buy that, too.
8. The Status Factor. This stems in large part from the immense wealth of the Baby Boomer market, where money is no object, and the more it costs, the better it must be. Thus, we see Nordic Track and Soloflex systems that sell for over $2000; adventure vacations can run into many thousands of dollars; health club memberships can cost over $100 per month; and SUVs can cost up to $60,000.

 

 

Unfortunately, for many people the expensive exercise machines they buy wind up being expensive clothes racks as interest wanes and people resume their slovenly ways.

Consumer confusion must be addressed here, too. In part, it stems from their overall confusion and lack of knowledge on the subject. Also, it highlights the savvy of some Marketers and their ability to sway people quite easily from one health concept to the next. For a long time, aerobics were very popular. Then they were replaced by step aerobics (now there's a low-tech piece of equipment!). Exercycles, popular in the 1970s, were replaced by the Schwinn Air-Dyne in the 1980s, and more recently by some very complicated contraptions that somehow combine cycling, skiing, running, and maybe even rope jumping all into one very strenuous workout (see Nordic Track for their latest equipment).

9. Falling Off The Wagon. The final issue is that, while the health movement has survived and sustained itself, the membership in this movement is often like a revolving door, with devotees "falling off the wagon" quite easily. Truth be known, the road to health and fitness is steep and narrow, and the two essential ingredients, diet and exercise, often leave a bad taste in people's mouths. Thus, it is not surprising that the retention rate for this movement is not particularly high. Sometimes it is seasonal (witness the influx of New Year's resolutionists who jam health clubs for a few weeks early each year, only to lose interest and stamina by the time Valentine's Day candies are served.
The Future of Health Marketing

The future for the Marketing of health-oriented products and services appears to be very bright indeed. The demographic makeup of the USA shows there to be a large and growing group of customers who will be doing everything they can in their power to remain youthful and healthy. Furthermore, lifestyle trends indicate that this health-consciousness has pervaded Generation X, and does not appear to be subsiding.

In other words, the market for health and fitness appears to be strong. It will be another 50-60 years before the last Baby Boomers are gone, and there are no indications that their interest in this area will wane.

Slowly but surely, consumer knowledge of the field will grow, and consumers will be able to make more informed decisions. While this change will come about slowly, it is undeniable that even today's consumers are more informed than those of a generation ago (only 20 years). As medical research yields better understanding of the relationship between health, lifestyle, food, and the environment, this knowledge will trickle down to the general populace.

One things is certain: there will continue to be more and more retailers of health-oriented products, as well as manufacturers. Chains like Whole Foods have done much to dispel the myth of the "health food store" as selling nothing more than pills and powders. The rapid growth of this chain (usually in contemporary communities that are open to change) is testament to the legitimacy of the concept.

Manufacturers, too, will continue to gain prominence, as well as acceptance by mainstream consumers and retailers. For examples, Health Valley is a manufacturer of vegetarian chilis and soups. They are sold in most major supermarkets, including Wal-Mart. Another example is Morningstar Farms, which sells its veggie burgers, "chik nuggets," and other vegetarian fare in Wal-Mart, United, Albertson's, and more. Amy's is another line, offering organic vegetarian fare in large regional and national chains.

But these few firms are only the tip of the iceberg. Whole Foods' website contains the definitive list of links to health-food manufacturers; on it are dozens of companies that have been quietly growing behind the scenes, now poised to start making an impact on the marketplace. Locally, Arrowhead Mills (of Hereford, TX), manufactures and sells a complete line of organic foods, most based on grains. Their products are sold nationwide through major supermarkets, as well as health-food stores.

Another interesting offshoot trend is the concern for our pets' health. There are now firms that sell premium health food for pets. While this concept may seem a bit farfetched, consider that just a few years ago, veggie burgers were virtually unheard of.

Restaurants have not let these trends go unnoticed. Many have adapted their menus to accommodate health-conscious individuals, offering more variety in fish and poultry entrees, as well as meatless meals (even Outback Steakhouse has a vegetarian meal). Notables such as Chili's, Macaroni Grill, On The Border, Applebee's, Ruby Tuesday, and more have made significant changes in their menus in recent years to reflect the national interest in healthier eating.

Finally, manufacturers of health- and exercise-related equipment will continue to proliferate as well-heeled Baby Boomers continue to enjoy working out in their pursuit of this modern American dream. The time has never been better to be a part of this market.

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