As competition intensifies, brands like AG1 are choosing to invest heavily in scientific research, deviating from traditional advertising methods. AG1, a nutritional supplement company, launched AG1 NextGen after extensive clinical trials last year. In September, the company announced a commitment of $20 million over three years dedicated to research and studies in gut health and nutrient gaps.
Kat Cole, CEO of AG1, sees this not just as a marketing expense, but as a brand anchor that helps consumers make informed decisions amidst debates on nutrition and product effectiveness. “This commitment aids in customer conversion over time and helps address misinformation,” she remarked, highlighting the strategy’s dual role in driving sales and creating consumer trust.
The Rise of Research in Brand Strategy
AG1 is part of a broader trend where companies fund their own research rather than relying solely on external labs. This effort, also embraced by brands like Ritual, involves identifying and addressing gaps in existing research, with resulting studies published in reputable academic journals. This approach supports product innovation and provides data-driven differentiation, crucial in a market where around 85% of consumers are influenced by scientific claims, according to a Citruslabs survey expected in 2024.
Ritual, under the leadership of CEO Katerina Schneider, has integrated clinical research into its growth strategy from the inception of the company. With an investment of at least $5 million into studies and a dedicated research team, the brand focuses on rigorous trials, such as double-blind, placebo-controlled studies, to substantiate unique product claims. Schneider noted, “Validating distinct claims enhances advertising and sales performance.”
Research as a Tool for Developing New Products
AG1 leverages research findings to innovate its product line. Insights from AG1 NextGen’s development contributed to the creation of AG1 Essentials Gummies, launched this summer, designed to meet nutrient needs in a new format. Cole emphasised the company’s focus on substantiated marketing claims, contrasting with competitors’ reliance on third-party affirmations. “Quality claims are easily made but should be backed by solid evidence,” she explained.
Although no definitive Federal Trade Commission guideline defines “clinical” research, health claims must be supported by reliable scientific evidence conducted by impartial experts, as per FTC criteria. Schneider of Ritual stresses the necessity for distinct claims through such rigorous studies, which also underpins the brand’s advocacy for stricter supplement regulations.
Expanding Influence Through Published Studies
Ritual has completed five clinical studies, with three peer-reviewed publications, including one in Frontiers in Nutrition examining folate in prenatal vitamins. Another study scrutinises the effectiveness of their melatonin delivery system. A forthcoming study assesses a postnatal vitamin’s impact on breast milk quality in a trial involving 64 breastfeeding women, highlighting the lack of postpartum nutrition research. “We sought to fill a void in existing knowledge,” Schneider said.
Beyond supplements, companies in different sectors pursue research for distinction. Blueland, an eco-friendly cleaning brand nearing $500 million in lifetime sales, uses in-house chemical experts and holds numerous patents. A study commissioned by Blueland illustrates the environmental impact of plastic-wrapped pods, elevating its profile through third-party validation and media exposure.
The Impact of Science-Driven Products on Retail Success
Research-backed products significantly influence brand growth in retail settings. Blueland’s research and certifications help differentiate it in the crowded eco-friendly cleaning market, with sales in major retailers like Target and Costco. The company’s certifications assure buyers of product efficacy and safety, facilitating shelf placement. “Buyers seek verified and unique claims,” co-founder Sarah Paiji Yoo stated, emphasising the importance of independent validation.
Ritual, initially direct-to-consumer, expanded into more than 6,000 retail locations, including major chains like Costco and Whole Foods, supported by clinical research as part of its branding. Schneider noted the impact of specific product research in retail. “In wholesale, clarity of message is crucial, and conducting your own studies enables distinctive claims essential for standing out on the shelf,” she explained.
Reporting based on coverage first published by modernretail.co.