Navigating a saturated market can be challenging because you’re not only having to figure out a way to differentiate from your competitors, but you also need to cut through all the noise (24/7 news cycle, social media and the list goes on).
Needless to say, finding your niche in a crowded market can seem like a mammoth challenge (but that doesn’t mean you can’t identify and capitalise on market gaps).
At Tonik, we entered the supplement industry just over 9 years ago, and even back then, there were plenty of strong competitors (many of them being big players backed by pharmacy conglomerates). As the years have passed, even more supplement brands have entered the industry (small boutique brands and more, large giants), signalling extra competition, or if you want to look at it with a glass half full – more demand from consumers. From the get-go, we had to figure out a way to stand out in this busy crowd. That meant digging deeper, truly understanding customer pain points and uncovering opportunities that weren’t immediately apparent. For us, success didn’t necessarily mean creating something entirely new, but instead, finding new ways to solve existing problems and meet unmet needs.
At first glance it seemed like every possible product had already been invented in the supplement industry. Yet we discovered that many consumers (particularly millennials and Gen Z) were frustrated with the complexity of traditional supplement regimens and searching for a cleaner option. Many of the brands available on the market were – and still are – packed with filler and synthetic ingredients (meaning the actual benefit of the product is minimal). This insight led us to develop our innovative, single ingredient supplement solutions free of all the nasties. Our first product was our Apple Cider Vinegar Capsules which also solved many other issues consumers were facing (we launched a world-first capsule option to give an alternative for those who were previously drinking apple cider vinegar out of the bottle).
For our first product (Apple Cider Vinegar Capsules) I was already a potential customer so that felt like one step ahead. I religiously drank apple cider vinegar and after spilling a bottle through my suitcase on my travels, I knew there had to be a better way. But even so, I still recognised that it’s important to conduct in-depth market research (particularly early in the product development phase). Don’t just rely on assumptions or do a simple Google search. Talk to your potential customers, run surveys, conduct focus groups, and immerse yourself in the user experience.
Even in crowded markets, there are often demographic groups whose needs aren’t being fully met. Ensure that you analyse your industry’s current customer segments and ask yourself “are there groups of people whose needs aren’t being met?” Consider how you can tailor your offering to suit them or cut through completely with a new product that appeals to that audience. For Tonik, we identified that young professionals were an underserved market in the supplement industry. Most products were either targeting older adults or fitness enthusiasts (leaving a gap for busy professionals seeking convenient, effective health solutions). By tailoring our product design, marketing, and brand voice to this particular demographic, we were able to capture a significant market share relatively quickly.
There are also ways that you can disrupt industries by looking at trends and identifying industries that may be behind when it comes to products that suit those trends. For example, we know that in this day and age there is an increasing demand for transparency. We recognised this trend early on and endeavoured to make it a core part of our business model. From using see through packaging, ‘transparent’ capsules, to being loud and proud about our ingredients, transparency is the foundation of every aspect of our business. This not only resonates with our target market but also gives us a unique selling proposition in a crowded field. We know that consumers are increasingly sceptical, particularly in this industry, so transparency has become one of our most powerful marketing tools.
It’s also important to embrace – and lean into – your skillset and strengths. When I first entered the wellness space, I had no background in supplements or nutrition. This naivety, which many might view as a disadvantage, became our secret weapon. We approached the industry with fresh eyes, questioning everything from ingredient sourcing through to delivery methods. Thankfully, my father Glenn (Tonik’s Co-founder has a pharmacy and nutrition background so we weren’t completely in the dark). But our lack of experience in this industry meant that we weren’t afraid to challenge industry norms (sometimes, being an outsider allows you to see opportunities that industry veterans might overlook). For example, we noticed that most supplements came in pill form, which many people find difficult to swallow. This led us to develop our signature liquid capsule formulations, which many people find easier to consume. We also recently launched our Transdermal Patches, which are essential ‘Vitamin Stickers’ that gives people an alternative to regular vitamins and supplements.
As a startup, we faced numerous constraints – limited budget, small team, no established industry connections. Instead of viewing these as setbacks, we used them as catalysts for innovation. Our lack of a big advertising budgets pushed us to get creative with our marketing. We leveraged social media not just for promotion, but as a platform for education and community building. This approach not only saved costs but also helped us build a loyal customer base that felt genuinely connected to our brand.
I believe the key to Tonik’s success wasn’t just finding a gap in the market – it was creating an entirely new category. We didn’t want to be just another supplement company; we set out to redefine what a wellness company could be. By combining unique products with technology, sustainability, and radical transparency, we created a unique value proposition that didn’t exist before. This approach allowed us to attract customers who weren’t satisfied with the current options available to them, and even bring in entirely new consumers into the supplement market. By staying true to our vision and continuously pushing the boundaries, we’ve not only found our niche, but we are actively shaping the future of the wellness industry in Australia (well, that’s what we like to think)!
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