The entrepreneur: Kathryn Goetzke White, 34, founder of
Innovative
Analysis Inc. in Annapolis, Maryland
Product description: Mood-lites, dubbed "light bulbs
for your lifestyle," are colored light bulbs that were created
according to research on how colors affect moods. Available in
seven colors, from Happy (yellow) to Serenity (turquoise), the
25-watt Mood-lites produce a soft glow similar to a candle. With a
suggested retail price of $4.95 to $5.95, Mood-lites are sold in
Linens 'n Things and specialty outlets such as spas,
natural-food stores and college bookstores nationwide. They're
also sold in some Ace Hardware and Bed Bath & Beyond
stores.
Startup: Goetzke White financed the business with
personal savings, credit cards and loans from family and friends.
She spent $25,000 for research, consultant fees, trademarks and
preliminary work, as well as $50,000 for inventory.
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Sales: More than $1 million projected for 2005
The challenge: Overcoming retailer resistance when
introducing a new product category
When Kathryn Goetzke White developed her Mood-lites, she knew
interior home lighting was a big market and believed consumers
would love her colorful light bulbs. But she also knew that getting
her products in stores nationwide would prove quite a challenge, as
retailers typically resist new product categories for fear of
ending up with unsold merchandise. Then Goetzke White had a bright
idea for breaking through the resistance: persuade retailers that
her colorful Mood-lites were part of a larger consumer trend.
Thanks to sales help from her 35-year-old husband, John, Goetzke
White developed an action plan that created quick acceptance of the
Mood-lites product line.
Steps to Success
1. Find a trend that fits. Goetzke White had her product
idea for several years, but didn't pursue it until she saw a
Home Depot ad that talked about color therapy and how to paint a
room a certain color to create a mood. At that point, she felt her
product could sell because the color therapy concept was being
accepted by major retailers. "My undergraduate degree was in
psychology, and I was intrigued by moods and different influencers
of moods," she says. "I knew that certain colors created
different moods--for example, blue is associated with the ocean and
water, images that bring a sense of tranquility. I was tired of
basic white lighting and decided to combine color therapy with the
upsurge in candle sales for soft mood lighting. Adding an oil-based
coating gave that glow that makes Mood-lites different from other
products on the market."
2. Develop a marketing story. While Goetzke White was
sure people understood the concept of colors and their impact on
mood, she wanted to complete the story to inspire consumers to make
a purchase. Today, she's obtaining trademarks for each of the
colors: Serenity for turquoise, Tranquility for sapphire, Passion
for crimson, Happiness for yellow, Energy for orange, Creativity
for purple and Renewal for green.
3. Create interest with PR. In fall 2004, Goetzke White
started an extensive PR campaign to get articles about Mood-lites
in magazines. "The goal was not only to sell Mood-lites, which
were available on our website, but really to help sell
retailers," she says. "I felt the positive energy created
by the PR would show the market was interested in Mood-lites. We
hired a PR firm, and articles were published in many newspapers as
well as Home, Residential Lighting, For Me Magazine and New York
Magazine's Metro, among others. Those articles were a big
help when I approached retailers to carry Mood-lites."
4. Package the product to create exposure. A new product
needs to be noticed on a shelf. "One of the best moves I made
was to produce the package so it could fit on clip strips [plastic
strips with six to 12 clips to hold individual packages],"
says Goetzke White. "Retailers love these strips, as they
allow them to move the product into the store, save on shelf space
and entice customers with new products. We've produced a header
[a small card with sales copy] for the clip strips showcasing the
bulbs in use, and we also have a display box for stores [that]
carry Mood-lites on the shelf."
5. Find markets that enhance the product's image.
Some of Goetzke White's earliest customers were doctors and
massage therapists, who used Mood-lites to create a relaxing
environment for patients. "We're expanding distribution to
include spas and gyms with massage therapists, yoga practitioners
and spinning rooms," she says. "The intent is to get
exposure for the brand. Clients of these customers will see the
effectiveness of [Mood-lites] and want to try them at
home."
Lessons Learned
1. Retailers support new trends. Products tied to new trends
typically sell well and sell at high margins--just the types of
products retailers want. Consumers are curious about new trends,
and that curiosity produces sales and store traffic. Because
published articles show the product is part of a trend, they
effectively generate retailer interest.
2. Go with the flow, not against it. Inventors often come
up with ideas to change how things are done. Their product
introduction strategy calls for persuading people that there is a
better way to do something. That strategy almost never works;
inventors just don't have the money to change a market. They
should instead find a way to show how their product is an extension
of products people already use. Goetzke White's tactic of
adding an oil-based finish to light bulbs to create a soft glow was
expensive and time-consuming, but it allowed Mood-lites to go with
the flow of candle therapy.
3. Keep products front and center. People usually shop
with a purchase in mind. Rarely do people notice other products
unless they are displayed prominently enough to catch their
attention. Using clip strips, which can be provided by the inventor
or the retailer, is a low-cost tactic that often produces impulse
sales, and most inventors can afford it.
4. Get expert advice. Inventors without marketing
experience often don't know how to best position a product in
the market. If you need help from a marketing expert, contact your
local Small
Business Development Center.
Meet Your Match
Due to cutbacks at R&D departments nationwide, major companies
are now seeking certain products from outside sources. NineSigma allows
inventors to register for a biweekly Innovation Newsletter
that lists some of the products, solutions and technologies that
big companies are looking for. If you've got a great product
idea, this site can also connect you with someone to help
co-develop your product.