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Reintegrating Value Chain Ingredients Way Upstream

Read What Others Are Saying. Add Your Comments Too!

So you thought the Internet economy was making manufacturers and producers irrelevant as new business models seize profit potential by integrating and deintegrating other points further down the value chain?

www.Ingredients.com wants you to think again.

Their business model is an Internet-only--for now--line of personal care products that they develop and manufacture in-house.

These products include body creams, body lotions, soaps, bath gels, candles, fragrances, foot balms, face masks and many more items,categorized according to their main ingredients, from arnica and chamomile to St. John's Wort and seaweed.


They sent a couple of samples to iBizMagazine, and this story is being written under the influence of their green-tea body lotion and peppermint foot balm.

"We don't think of our target market as a demographic," said co-founder and co-CEO Katherine Legatos in an exclusive interview with iBizMagazine last week.

"Today it makes more sense to talk in terms of psychographics," life-style groupings that may span different generations and genders.

"Our psychographic is 18-49 year-olds, men and women, who turn to the Internet for convenient, simple solutions," she explained.

Legatos leads all branding, marketing and business initiatives at Ingredients.com, as well as product development.

She formerly served as director of development and PR for iVillage.com, where she was responsible for creating corporate programs and expanding iVillage's visibility as a consumer brand.

Prior to working with iVillage, Legatos was manager of public relations at 1-800-FLOWERS and 1-800-FLOWERS.com, overseeing trade and consumer communications.

She started her career in cosmetics in 1987 as a sales assistant for Biothern (by Cosmair) and later managed sales and marketing for the product line at Macy's before joining Macy's and then Estee Lauder.


Together with co-founder and co-CEO Amy Ryberg--who oversees all technology, production and operations at Ingredients.com (and formerly served as head of production at iVillage, launching their flagship brand, Parent Soup)-- Legatos developed the Ingredients.com concept and site between December, 1998, and January, 1999.

"Our goal was to create original products based on ingredients that were in high demand in the market," said Legatos in her iBizMagazine interview.

Distribution is handled exclusively online, according to Legatos.

"Our inventory management model is unique to our company," she said, "because we purchase the raw materials and handle production and planning ourselves."

To position themselves for ongoing scalability, Ingredients.com has secured its procurement channels by establishing longstanding relationships and partnerships with suppliers, explained Legatos.

"Our main focus right now is establishing a credible, trusted national brand," she told iBizMagazine. "First and foremost you must have a high quality product and service to establish your brand in the long run," Legatos suggests to any business owner, small or large. "You need consistency, point-of-differentiation ... keeping your message consistent no matter what channel."

Where will Ingredients.com be a year from now? "A year from now we will have a new set of goals," predicted Legatos. "As you grow, every stage of growth brings a new set of challenges."

But certain important things will never change, she said. "We will have the best people, we will exceed customer expectations," Legatos said, "to become a well-established and trusted brand that offers people products that make them feel better."

I think they're on to something at www.Ingredients.com. My feet feel pretty good right now. And that green tea smell is fairly pleasant. :)

Robb Scott
Copyright, iBizResources.com, 2000


Originally Published in 2000 as part of the journalism internship teaching process. Our interns were involved in research and decision making process and were consulted as the story itself was created and published. For more information about our internship program visit http://www.iBizResources.com/interns/index.html.


Reader's Comments:


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