2013 Apr 15 Annual Report 2012 - Phosphagenics

ELIXIA ® and BIOELIXIA ®
16
The year started with great expectation with the
international expansion culminating in a launch
in Europe through Boots as part of the Latest
Finds category.
Retail globally has been subdued and this,
together with widespread discounting in cosmetics,
created a challenging environment. The areas
where sales were maintained at a satisfactory
level were on line and TVSN. This reflects, in part,
that where sales people have the opportunity to
promote the science behind the product we have
the best response from consumers.
Phosphagenics undertook an extensive review
of the Elixia ® and BioElixia ® business and
made some personnel changes including the
appointment of the well credentialed and highly
regarded Greg Moses.
His background and experience covers all aspects
of the business from selling through retail outlets
and the growing areas of on-line and TV shopping.
We are in the process of increasing our on-line
capability which we are utilising in our launch
into the US. The key is to translate the anecdotal
evidence of a high level of customer satisfaction.
With a focused and dynamic strategy in
place we are looking at more targeted
and effective promotional activity
with our existing retailers and
rapid expansion into the
broader Australian retail
pharmacy channel.
Additional refinement and consistencies across
packaging, logistics and supplier relationships
for improved cost of goods and efficiencies will
underpin the strategy.
Driving on-line retail sales is a major focus and
the launch of a US e-commerce site in the first
half will additionally support sales expansion
and brand communication globally.
The introduction of a stretch mark diminishing
product in 2013 will further support the targeted
body solutions that Bio Elixia ® offers. We also
continue to strengthen our expertise with
contract manufacturing and will deliver products
under license to customers in the US like GNC
(Global Nutrition Company) throughout 2013.
In the last few months since Greg’s appointment
the sales have been more satisfactory, at a
level reflecting a good improvement over the
corresponding months in the previous year.
As the strategy unfolds and repositions the
brands we are expecting that the next six months
will see us consolidate at this higher level before
further progress in the second half.
PHOSPHAGENICS ANNUAL REPORT 2012