Creating A New Brand Identity Through Innovation
Situation:
The Herbalife Nutrition brand had lost its way and was starting to become irrelevant in the minds of consumers, being seen as just a weight loss supplement company operating in a wellness market that was moving away from faddy diets to a more holistic approach to wellbeing.
The brand was receiving negative reviews from opinion leaders in the industry and struggling in a very fragmented market with lots of entrepreneurial start-ups offering credible competitive products.
But there was an opportunity in the market for Herbalife nutrition to become No.1 in protein shakes and healthy weight management.
Task:
Spearhead a global customer segmentation study gaining valuable insights into the goals, wants, needs and pain points of consumers and then reposition the brand as a complete solution to health & wellbeing goals.
Action:
Reflect the new positioning in highly strategic new product innovation launches. Introduce best in class category game changers as halo products to address the negative perceptions of the brand:
Step 1
Renovate the Formula 1 Healthy weight shake (No.1 product in portfolio with 28% contribution to Revenue) clean up the ingredients and enhance the flavour and texture across 9 flavour variants.
Step 2
Evolve the portfolio into wellbeing with the launch of 3 revolutionary halo products that would redefine and reshape the brand in the consumers’ mind.
TRI Blend Select Wellness Shake
100% natural, Organic & Vegan
High Protein Iced Coffee
100% Robusta Coffee beans and grass fed whey protein.
High Protein Iced Coffee – 100% Arabica Coffee beans and grass fed whey protein.
Collagen Skin Booster
High Grade Verisol Collagen Peptides
Results:
After 12 months of launch:
Formula 1 become the No.1 brand in the world in Meal Replacements.
(Source: Euromonitor % RSP Share 2021)
TRI Blend Select Wellness Shake, High Protein Iced Coffee and Collagen Skin Booster exceeded budgeted forecasts breaking company revenue records for the NPD launches; both exceeding 2% of TO – winning ‘Product Of The Year’ Awards in largest consumer markets (Spain, Italy & UK)
- Increased LTV:CAC ratio from 2:1 to 5:1
- Increased Brand Advocacy from 36% to 53%
Putting the Herbalife brand back in ‘GOOD HEALTH’ across Awareness, Purchase intent & Net Promoter Score (NPS) metrics over 3 year tracking period.