Rapid changes in the health and wellness marketplace are being driven by evolving consumer needs, new product innovation, and competition from new entrants in this market. New, effective strategies are needed and can often mean the difference between survival and success.
L.E.K. is an expert advisor in the health and wellness arena, supporting companies that promote healthy living. Within health and wellness, we have a long track record in the specialty nutrition/nutritional supplement, healthy/functional food and beverage, and consumer health segments. Our clients include many leading brands, manufacturers, ingredient suppliers, etailers and service providers in these categories.
Our practice is complemented with insights and expertise from our adjacent verticals in food and beverage and pharmaceuticals. We apply our deep industry expertise and worldwide resources with services that include growth strategy formulation, consumer segmentation, new product and service offer development, channel and pricing strategies, M&A support, international expansion, and more.
Key questions and challenges
Our experienced professionals have a thorough understanding of the challenges facing companies in the health and wellness marketplace. We encourage our clients to ask themselves a few key questions:
- How do we best respond to evolving consumer needs in a segment characterized by high levels of consumer confusion and rapid innovation? How do we evolve our offer to account for the different preferences of the next generations of consumers (millennials and Gen Z)?
- What is our strategy to win in a marketplace that is evolving rapidly as outside entrants from other segments (e.g., food, pharma) and/or other regions move aggressively to stake their claims?
- How do we optimize our pricing and promotional strategies to maximize value and create win-win solutions for brands and retailers?
- How do we best position ourselves for growth given the ongoing rise of Amazon/ecommerce in the specialty nutrition category? How do we develop direct-to-consumer channels?
- How can we organizationally position ourselves to drive innovation in the health and wellness category (such as by delivering personalized nutrition solutions)?
- Where do interesting M&A opportunities exist, and what real assets can we acquire? How do we separate “substance” from “fad”?
- How and where do we take our model overseas where consumer, competitive, channel and regulatory landscapes differ?
Examples of our work
To learn more about how we help clients create value in the health and wellness sector, please refer to these insights and case examples:
- A private equity firm, seeking to build a platform in the specialty nutrition space, asked L.E.K. to support its commercial due diligence across a range of assets. We partnered with the firm and its operating executives to evaluate a number of brands and contract manufacturers along with their strength of market and their consumer, customer and competitor positioning, providing the firm with the confidence in its investment thesis to make several successful acquisitions for its growing platform.
- A weight management company wanted to improve the labor utilization of its many physical retail locations. L.E.K. worked closely with the company to analyze traffic patterns, staffing models and current pain points. We developed a recommended staffing strategy that enabled the company to immediately realize significant cost savings across its store fleet.
- A leading nutraceutical company was looking to drive growth from its ecommerce business in Asia. L.E.K. conducted a strategic review of the vitamins, minerals and supplements (VMS) ecommerce landscape in several key Asian markets and identified market-specific growth opportunities for the client to pursue.
- A multilevel marketer of dietary supplements was evaluating the opportunity to invest in a direct marketer of dietary supplements. The client asked L.E.K. to assess the commercial stability and growth potential of the target. Based on detailed primary consumer research and analysis of the target’s operating metrics, we identified several red flags. This knowledge helped the client remain disciplined with its bidding and ultimately avoid overpaying for the asset.