Update on Product Marketing Strategy and Adoption of Direct Store Delivery Program

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Nutritional High Provides Update on Product Marketing Strategy and Adoption of Direct Store Delivery Program

TORONTO, ONTARIO–(Marketwired – May 30, 2017) – Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT)(CSE:EAT.CN)(CNSX:EAT)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to announce innovations of Palo Verde’s marketing strategy in Colorado.

Jim Frazier, CEO of Nutritional High commented: “As we continue to learn new aspects of the cannabis industry, we seek to apply the business practices which have been proven to disrupt other industries in the past. We believe that professionalism and customer-centric approach to all aspects of operations is essential to ensure a solid market foothold in the long term. We’re excited to work with the Palo Verde team in helping them to develop new product distribution tactics that they can in turn apply to meet the demands of their customers.”

Nutritional High has been observing the market dynamics and consumer preferences in Colorado and other states, noting that the distribution and sales models remain fairly standard and lack innovation. There are many attractive sales models that have been successfully applied in non-cannabis industries, disrupted the market and allowed the companies to become leaders in their niches. Nutritional High has been collaborating the Palo Verde team to analyze the feedback Palo Verde salesforce has received from purchasers of the FLI branded vape pen cartridges and developed a new model that Palo Verde will utilize in continuing to penetrate the Colorado market.

The model that Palo Verde intends to deploy will be a direct store delivery program (“DSD Program“), which could potentially solve some of the supply chain challenges that the licensed retailers in Colorado have been experiencing. DSD Program is a business process that manufacturers use to both sell and distribute goods directly to retailers, rather than to third-party brokers and internal buyers at centralized distribution facilities (such as storage warehouses) who would then distribute the products to individual retailers. The attributes that Palo Verde is adopting includes: product line display cases, regular visits to dispensaries and providing dispensary support services.

One of the key strategic issues that some retailers are facing is inventory management and ability to respond to consumer preferences in a timely manner. Furthermore, high levels of staff turnover make it difficult to cultivate relationships with individual stores without an internally dedicated salesforce.

Nutritional High and Palo Verde have designed a DSD Program to address these challenges, which Palo Verde will utilize to augment its market presence and aggressively accelerate sales. The key features of the program will be to focus on cultivating relationships with dispensary chains, individual dispensaries, and drilling down on their customer bases in order to ensure that every consumer that wants a FLI product is able to purchase one. Another key to success of this sales program will be for Palo Verde to internalize its salesforce as much as possible, so that it is able to respond to the demands of individual storeowners. In turn, Nutritional High will assist with providing the leading market intelligence and other resources that might be needed so that Palo Verde continually advance its sales.