How to Fly off the Shelf: Tips & Tricks from GNGR Labs

Main insights from the Naturally New York webinar, “How to Fly off the Shelf: Tips & Tricks from GNGR Labs.”

Quick story on how GNGR Labs started

The idea for the product originated from a mother’s recipe—a ginger lemon honey paste—that Namik uses as a natural remedy against cold and flu. In the summer of 2019, Namik began crafting ginger shots at home and sharing them with friends. During one morning run, Namik shared the shot with Ivan, and both entrepreneurs saw it as a viable alternative to traditional medication. For instance, when feeling under the weather, people can take a shot to boost energy and immunity. In 2020, they successfully launched the product and bootstrapped the entire company despite the challenging and risky COVID-19 period. Initially, without a distributor, they decided to self-distribute across New York City, visiting various stores, bodegas, coffee shops, and supermarkets. Within six months, GNGR Labs was available in approximately 300 locations. Subsequently, GNGR Labs partnered with a larger distributor, Dora Naturals. Presently, the product is sold in 1200 stores and on Amazon Fresh Direct.

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During the webinar, Namik and Ivan covered the following topics:

1. How to convince retailers to sell your product
2. Marketing hacks to spend less than $100
3. How to stand out on the shelf
4. The power of merchandising

For more detailed information, check out the video of the webinar available on Naturally New York’s official YouTube channel.

How to convince retailers to sell your product

The significant distinction between the New York market and the rest of the country is the prevalence of independent stores, including bodegas, supermarkets, and coffee shops. In contrast, other regions primarily consist of chain stores, necessitating dealings with corporate buyers.

Starting in NYC presents both advantages and challenges. While managing a thousand stores entails interacting with numerous individuals, the advantage lies in the autonomy to initiate business without prolonged review periods of distribution companies.

Approaching a new store poses challenges in convincing the buyer due to the novelty of the product and the associated risk. To persuade buyers, offering attractive deals, such as “buy a case, get a case free,” is essential to establish a presence. Additionally, proactive merchandising is crucial to ensure product visibility on shelves, a topic further discussed in this post.

Establishing relationships with retailers in NYC may take several months, requiring consistent follow-ups to secure shelf space, a coveted asset for brands seeking visibility.

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Marketing hacks to spend less than $100

At the inception of GNGR Labs, with no marketing budget, the founders relied on growth hacking and innovative strategies.

One approach involved ordering stickers with a catchy tagline, “A shot a day keeps a doctor away,” and strategically placing them around New York City, particularly near major stores’ entrances. This tactic familiarized consumers with the brand and piqued their curiosity.

Similarly, utilizing shelf marketing materials like wobblers and shelf strips enhances shelf visibility, especially for new products.

Another cost-effective marketing strategy is distributing product samples, leveraging guerilla marketing tactics. Sponsoring events or shows to increase brand visibility to a broader audience.

Leveraging personal branding, such as the CEO’s LinkedIn profile or Instagram personal brand, can further enhance the brand’s visibility and credibility among investors and partners and establish a future D2C channel.

Over the past four years, GNGR Labs has relied on point-of-sale materials and organic marketing for growth, and only after closing an investment round they started to use digital ads at Meta and Google.

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How to stand out on the shelf

• Diverse Range of Flavors: Offering a variety of flavors is crucial for catching the eye of shoppers. This variety not only appeals to different tastes but also enhances brand recognition as consumers associate different flavors with your brand.
• Packaging: The way your product is packaged is your first chance to make an impression. Eye-catching designs, unique shapes, and vibrant colors can help your product stand out amidst a sea of competitors.
• Clear Messaging: In a fast-paced shopping environment, consumers don’t have time to decipher complicated labels. Clear and concise messaging that communicates the benefits of your product at a glance is key to drawing them in.
• Branding: Consistent branding across all aspects of your product, from packaging to messaging, helps to establish brand recognition and loyalty among consumers.

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The power of merchandising

• Shelf Positioning: Where your product is placed on the shelf can have a significant impact on its visibility and sales. Having a dedicated team of merchandisers who ensure your products are always positioned prominently can help maximize exposure.
• Point-of-sale Materials: Utilizing eye-catching materials like wobblers and shelf strips can draw attention to your product and entice shoppers to make a purchase.
• Field Operations Management: Tools like the SimplyDepo app provide real-time visibility into field operations, allowing you to monitor the performance of your merchandising team and address any issues promptly.
• Streamlining Operations: Modern tools streamline operations and provide insights that traditional methods like Quickbooks or Excel cannot match. By optimizing your sales processes, you can maximize efficiency and drive growth in your business.

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The key takeaways

Convincing Retailers: In NYC’s diverse market, dealing with independent stores offers autonomy but requires building relationships with individual buyers. Offering attractive deals and proactive merchandising are essential to secure shelf space.

Cost-Effective Marketing: GNGR Labs utilized creative marketing tactics with minimal budgets, including distributing stickers with a catchy tagline, leveraging shelf marketing materials, and sampling initiatives. Personal branding and organic marketing were also key components of their strategy.

Standing Out on Shelves: Diversifying flavors and designing impactful packaging is critical for brand recognition and shelf presence. Clear messaging communicates product benefits effectively to consumers.

Power of Merchandising: To maintain shelf visibility and prevent displacement by competitors, having a dedicated team of merchandisers and utilizing tools like the SimplyDepo app is essential. These tools provide insights into field operations and streamline business processes, replacing traditional methods.