InnovaDerma coverage!10 Jul 2017 19:17
http://www.proactiveinvestors.co.uk/companies/amp/news/180610
Skinny Tan firm InnovaDerma isn’t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed
2017-07-10
In the nine months since the stock listed last September, InnovaDerma’s shares have surged by over 300p, or 400%, on the back of the success of its ridiculously popular Skinny Tan range
Tanning
However, this isn’t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed using social media
There is an old stock market adage that says it’s better to travel than arrive – and I couldn’t help recalling this when I saw the share price of InnovaDerma PLC (LON:IDP).
It certainly looks over-bought (that’s where expectations get way ahead of reality).
In the nine months since the stock listed last September, InnovaDerma’s shares have surged by over 300p, or 400%, on the back of the success of its ridiculously popular Skinny Tan range, one of the biggest stories ever to emerge from the BBC’s “Dragon’s Den.
But 20 minutes into the conversation with the company’s founder and chairman, Haris Chaudhry, it becomes clear I may have the wrong end of the stick.
This isn’t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed using social media.
Okay, Skinny Tan is available in Superdrug, and InnovaDerma has products in Boots, GNC, Woolworths, Target and Chemist Warehouse.
Gaining shelf space in these outlets provides third party validation, and appeases the City that wants to see the firm’s goods stocked in bricks and mortar establishments.
Real magic has been woven online
But the real magic has been woven online with its direct-to-consumer approach. It has become a marketing machine.
In the past if you had the money (it required a big budget) you could dominate Google Adwords and buy web banners and skyscrapers on high traffic sites.
Chaudhry and his 24-strong team of innovators have eschewed the traditional approach by creating an international brand using Facebook and its subsidiary Instagram – and they have done so without breaking the bank. “It is about engagement,” says the InnovaDerma executive chairman.
“You don’t have to be a L’Oreal, Coty or Rimmel to have a really good product.
“You can have a really good product and articulate the message, find a core audience, have them as the lead adopters and then build on those campaigns.”
That sounds like classic marketing speak, and Chaudhry does sometimes lapse into the jargon talking about filling the leads ‘funnel’, conversions and KPIs.
But most of the time he is articulate and deeply passionate about the breakthrough he and his team have made on Facebook. They have turned it from an art-form into an exact science.
This required creating campaigns that engaged an
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