Shares of PhytoLabs Inc. (OTCBB: PYTL), a life science company focused on global expansion of its patented and over-the-counter health products, came to life today, soaring 35 cents, or 58 percent, to 95 cents on volume of 714,647 after the announcement of a marketing partnership with Rhino Marketing Inc. and the launch of a unique competition that will allow consumers to create the name and brand for its new product. Did I mention the winner gets at least $15,000?The company chose Rhino Marketing to manage its worldwide marketing of PhytoLab products. Per the agreement, Rhino will work with PhytoLabs and its subsidiary Phytolab Solutions Inc. to develop an initial branding and visual identity for the company, branding for its new natural source immune health product, and takeover marketing tasks.
“We’re pleased to announce our ongoing relationship with Rhino Marketing,” said David Wood, COO of Phyto, in the press release. “They have unique and innovative ideas on how to market in the immune health industry, and we are confident that we will gain market share quickly. We’re looking forward to working with the Rhino Marketing team.”
PhytoLab Solutions (subsidiary of PhytoLabs Inc.) will be working with Rhino and directly with consumers as well. Monday the company launched an online challenge (www.immunitychallenge.com), offering an aggregate of $20,000 in prizes for the consumer with hidden marketing talent.
“The competition asks consumers, rather than the marketing wizards, to submit their ideas for a brand name and tagline for the new patented immuno-stimulatory product set to hit the shelves later this fall throughout North America,” Chief Rhino (real title) Doug Morneau told Market News First.
The product getting the attention involves a natural immune-stimulatory ingredient that helps to build a normal, balanced immune system to promote overall health and well-being. According to the company, “Product I” (as named, for now) is “the most powerful, natural immune-stimulatory dietary supplement discovered to date.”
So you’ve just hired a new marketing company, why on earth would you ask consumers to do the work? The company isn’t even allowing professionals to participate.
“As far as we know, this is the first time a marketing company has taken the approach to give the power back to the consumer instead of sitting in a board room with a bunch of white shirts,” said Morneau.
He said the companies want to take the branding process to the consumers, joking that consumers are smarter than “us marketing guys.”
The unique marketing strategy was created to market a product Morneau claims is as equally unique.
“Health and wellness is a growing consumer market, and PhytoLabs is set to become a leader in this area. We believe that their innovative new immune product, combined with our equally innovative customer and digital marketing expertise, make a great combination,” said Morneau.
Parent company PhytoLabs was originally founded to deliver health and wellness products and has recently placed focus on more scientifically based products. PhytoLabs formed Phytolab Solutions as a wholly-owned subsidiary – PhytoLab’s established relationship with a Denmark company has given it the worldwide marketing rights to the product it is preparing to launch in the United States.
Back to the cash. The winner of the challenge will be chosen at the end of July by a special panel board comprised of Rhino and PhytoLab management. Morneau said so far the company has seen some good names and taglines, with people participating across the country. For now, the company’s ideas have no place in the contest.
“We’ve got some ideas of what we like, but at this point that’s not coming in to play at all, it really depends on the feedback that we’re getting,” he added.
“We’re a young, focused and innovative company. Leading research scientists at the University of Mississippi have developed the world’s most powerful immune stimulant (with respect to macrophage activation) but the innovation doesn’t stop at creating products like “Product I”, we want to do the same in marketing,” the company states on the challenge’s Web site.