About Face: Cosmetics P-O-P Report

Perhaps there's money to make off the "metrosexual" buzz -- the popular term describing urban males conscious of good grooming, skin care and Giorgio Armani. While total sales for the cosmetics, personal care and fragrance industries across all distribution channels reached $45 billion in 2002, sales remained flat from the year before, according to Marlene Eskin, president of Austin, Texas-based Market View and developer of www.cosmeticindustry.com. This lull has consumer product companies searching for market growth and concentrating on some of the defined consumer segments such as teens and men."To differing degrees, teens, males and ethnic consumers have each been in the spotlight for many of the major personal care manufacturers throughout 2002 and will continue to be so through 2003," according to a state of the industry report in the Dec. 2002 issue of GCI (Global Cosmetic Industry) magazine. "Such segmentation of target consumers is not only evident in marketing and advertising placements, but also in new product development and innovation."Unilever's AXE Deodorant Bodyspray, a combination of a distinctive masculine fragrance and long-lasting deodorant protection, came onto the scene in August 2002, and in less than a year, it posted $26 million in sales, according to a recent article in Brandweek magazine."As the metrosexual trend gains momentum at a dizzying pace, we recently launched the newest AXE fragrance called Essence," says Maureen Collins, AXE marketing director. "The theme of Essence is that there's a combination of good and bad in all guys that women find irresistible in the dating game. As guys display their metrosexuality, they're also showcasing their Essence." She says plans are under way for a new merchandising program for the entire AXE line that will be in stores soon. The tween and teen demographic, with its incredible spending power, continues to be a target for marketers. Manufacturers and retailers are promoting natural products, marketing to ethnic consumers and offering more specific products for specific needs."The ethnic skin care market now has evolved to such an extent that grouping all non-mainstream consumer products into an ethnic category is no longer sufficient," says the report in GCI magazine. "Products serving all shades, types and textures of both skin and hair have begun to emerge en masse in the United States."As these and other products proliferate in the marketplace, marketers and retailers are relying on presentation and in-store merchandising to get their messages across. "Merchandising is certainly becoming more critical as the market becomes increasingly cluttered," says Carrie Bonner, project manager, consumer products for Little Falls, N.J.-based Kline & Co., a marketing consulting company. "Anything that marketers can do to get their brands noticed is always a plus, and merchandising can play a big role." She says frequent floor changes and a fresh approach to merchandising are the keys to success in a retail environment.The Metrosexual MaleAs the first complete line of skin care for men offered in mass market accounts, Beiersdorf's Nivea for Men was on the front end of the metrosexual trend back in 2001. "We were a pioneer in this movement because we were the first brand in the mass market that answered to this emerging category of men with bigger needs," says Catherine Lair, director of marketing for the Norwalk, Conn.-based company. "We didn't use the term 'metrosexual,' but we were going after the target group of men who think that it's OK to take care of their skin and follow a regimen."In June, the company added an after-shave balm to its lineup that is said to cool and refresh the skin. Also hitting shelves in September was the brand's revitalizing lotion with Q10 and SPF 15. "This product is completely new for men in the U.S. market because it's going to revitalize the skin with the skin's own ingredient, Q10. The idea is that men work hard and play hard, and this lotion is going to revitalize their stressed, tired skin."Lair says as the line expands, the company will create new displays that are similar to the floorstands and sidekicks that currently house Nivea for Men products in secondary locations. She stresses that although space is more limited as brands such as Neutrogena enter the men's category, the company doesn't feel compelled to create off-shelf merchandising for every new product. "Retailers generally won't have to pull another SKU off the shelf when we introduce a new one because the line is performing extremely well," says Lair. "It was a very sleepy category until 2001, and there are still a lot of products that are sleeping ducks. The products that are not performing are the less-sophisticated ones because they don't address the metrosexual needs, and they are the ones that will be taken out."L'Oreal USA's Armani Mania for men, which was introduced last fall, also speaks to the metrosexual male in its advertising. "That ad image would be very much what you would call the metrosexual," says Doug Huffmyer, vice president and creative director for Designer Fragrances, a division of Luxury Products. "It's an image of a young guy with a little bit of face hair -- an extremely classic Armani image with a white shirt, navy suit jacket and casual elegance."Huffmyer says continuing to attract this growing target market will involve some conscious choices, and some natural ones, as the New York-based company creates future in-store programs. "Our imagery represents Giorgio Armani so well, and it just happens to be the popular trend of where the American male consumer is headed or what he is looking for. We got lucky because the trend is where we naturally are as a brand."Marketing to Tweens and TeensWith products that offer fun, candy and what it means to be a tween, Steph Fogelson believes his company, New York-based Lotta Luv, can compete with long-time lip gloss giant Bonne Bell. Fogelson is president of Lotta Luv, which offers a large assortment of lip balms and lip glosses, all mimicking -- with scent and flavor --popular candies such as Bubble Yum, Tootsie Roll, Jelly Belly and Nestle. "If you look at the category for girls ages 6 to 16, it's all about lip balm and lip gloss," he says.Fogelson says the company's vision was "to create a collection and presentation that emulates what a candy store would look like." It signed on as many national brands as it could, including its most recent, Cinnabon. Its Candy Corner can be found in Claire's boutiques and other locations in shopping malls as well as in Wal-Mart, Kmart and Target.The products are featured on a grid display in Claire's. A sign over the display "shouts" the brand names out to consumers. "It's a three-dimensional look that shows all the different candies in their true form," Fogelson says. "It takes the consumer right to the concept."In the mass merchant accounts, corrugated shippers feature a header that says "Candy Corner" or "Bake Shop." Fogelson says the company is not inline as of yet in these accounts, so it will continue to supply new shippers on an ongoing basis."Girls love to put great-tasting stuff on their lips," he says. "Bonne Bell has a huge presence in all the stores. We think our concept is one step better because of the branding and the relationship between the brands and the flavors -- we get instant acceptance." The company's new bath products launched in Claire's boutiques in October.Rockford, Ill.-based Colorlab Cosmetics is giving teens a new way of buying -- and creating -- cosmetics. The company sells its bulk products to chain stores, private boutiques, salons and spas. There, the consumer can make her own body lotion, body gel, lip gloss or "pretty much any product under the sun that is geared toward the tween and teen market," says Justine Markese, who handles image relations and sales for the company. "We provide the concept, the recipes, the glitters, the frosts, the componentry and the packaging -- everything except the retail environment."These "blending bars" began appearing two years ago, but Markese says the custom-blend cosmetic concept is now taking off. In more than 2,000 salons and spas nationwide, certified makeup artists create cosmetics for their adult clients; however, the blending bars for tweens is more of an interactive setup where the customer moves through different stations to create a product for herself. Markese says the company gives direction to the boutiques by explaining what merchandising strategies have worked in the past; it doesn't fixture the stores. "We are involved in all the graphics and messaging," she says. "Everything is all-natural, and we communicate that, but our main message is that consumers can finally get what they want, when they want. It's all about the customization and the process they're going through. They're unique, and their product should be unique."Redken products, typically popular with older women, are getting a new look that's targeted to include tweens. "We've updated our packaging and are trying to go after a younger customer now," says Christina Pak, marketing manager, hair care. "It's about updating the whole image and being more trendy."Through easel signs and other graphics in salons, the New York-based company is hoping to communicate to a younger audience the benefits of using a complete regimen. Models play a big part in the company's efforts. "We always have models associated with new launches," says Pak. "We're trying to associate a beauty image with the product -- something that highlights the packaging because that's a big part of our marketing plan."Even though space is tight in salons, Pak says the company tries to get merchandising placed with new products. jane Cosmetics, Baltimore, is also making some changes. The Estee Lauder company found itself targeting the younger tweens with its glitter, scented products, glosses and fun cosmetics. According to Janine Lis, marketing manager, that fun will still be there, but the company is now targeting women ages 16 to 24 and up. "I don't think we'll alienate the younger girls because they are always aspiring higher, but the bigger concern was that we had capped ourselves off because we had gone so young," she says. "When you market the young, bubblegum kind of stuff, at some point the girls don't aspire to that anymore." She says the value brand has always had a loyal following of all ages, "but our advertising, packaging and products sure weren't talking to them anymore." Revamped cards for the packaging are part of the subtle changes the company is making to be more in line with its target consumers. The products in the lip, face and eye categories are three different colors, so the packaging is cleaner and neater and makes shopping a lot easier for the consumer, Lis says.jane's advertising message also has changed. "It's more sophisticated compared to where we were before," says Lis. One of the taglines says, "Smile, everyone will wonder what you're up to." Another says, "Some girls have all the fun." The taglines tie into the company's integrated campaign. The Natural WayTom's of Maine all-natural products can be found in virtually every natural foods outlet in the country. Those stores stock upwards of 50 items, according to Laura Batcha, group leader of grassroots territory development, national retail force for the Kennebunk, Maine-based company. Additionally, the products are sold in a more limited selection in chain drugstores, supermarkets and mass merchants across the country.The company is currently working on an initiative with independent natural foods retailers. "We're looking to improve our merchandising presence within the independent stores that don't get the national programs," says Batcha. Customized programs are being put into stores by the company's rep force. "They are working with recommended planograms and merchandising systems to bring order and category management to the way the independents are setting our products in their stores," Batcha says.Off-shelf displays and displays for cross-merchandising opportunities also are priorities for the company. "A lot of people will shop the natural foods stores for the deli and the produce, but they don't get the same level of traffic through the HBC departments, so we're trying to get these off-shelf displays out into other departments of the store," Batcha says.Research conducted by the company points to P-O-P as an important part of the marketing mix. "At least in natural products, in-store merchandising is a greater driver of trial and initial purchase than advertising is," says Batcha. "In our industry, a lot of the companies aren't large enough to do significant consumer advertising, so in-store merchandising becomes even more important."Although the merchandising is different in the mass channel, the company's message stays the same. "The key thing that we want to communicate is natural efficacy," says Batcha. "We use natural ingredients that actually deliver the benefits that you're expecting from the products." The other area the company focuses on is its commitment to the environment and giving back to communities, she says.These common-good partnerships, explains Kathleen Taggersell, team leader of communications and public relations, are a way for the company to connect with retailers that carry its products, and consumers, on a "shared-values basis." For example, the company recently partnered with the River Network, the Nature Conservancy and the National Park Service for the National Rivers Awareness program. In-store displays in all channels provide information for consumers to get involved in river stewardship and preservation projects.Another natural products company, Europe-based Barefoot Botanicals Ltd., just launched its products into the U.S. market in March. The North American group is headquartered in San Francisco. Its main line, Rosa Fina, is a skin care line made from all-natural plant products, with no synthetic preservatives. Dave Karlak, vice president of sales and marketing, says standard testers, product literature and in-store demos are helping consumers understand the products and the benefits they offer.The company's main channels of distribution are natural foods stores and spas. In order to penetrate other channels with its bath and body products, lotions, cremes and hair care, Karlak says the company is developing some new displays. "Most of the natural foods stores don't have the space, but we are mindful of the effectiveness of displays, especially for major, mainstream retailing, so that is something we are definitely looking at." The company is also trying to communicate the anti-aging, therapeutic properties of its products. "These products are chock-full of botanical ingredients and more modern, plant-derived ingredients that are used in quite a few prestige brands of cosmetics and skin care products. We've taken these popular, modern strategies and married them with botanical, traditional strategies in order to accomplish the best of both worlds," Karlak says. "Our feeling is that P-O-P will become even more essential as we're trying to get into other major channels because it will convey our message to the potential consumer." Reaching all EthnicitiesComing this January to more than 3,000 supermarkets, drugstores and mass merchants is a complete relaunch of Black Radiance, a full line of color cosmetics for the African-American woman. Shawn Haynes, vice president of sales and marketing for Markwins Beauty Products, City of Industry, Calif., says the new unit will have an in-line look with trays, shelf strips, copy and graphics. The plastic trays will be attached to a side panel that will also include a graphic, a mirror and a header. All of the graphics and the graphic strip will be interchangeable, he says."It's a much more upscale, sophisticated look. Our demographic insight on the brand is that it's purchased by African-American women between the ages of 18 and 34 who are educated and professional," Haynes says. As a value-priced brand, Haynes says Black Radiance delivers what its customers need. "Our point of difference is the amount of products we carry for the face. The biggest challenge for any woman is to find the right color foundation for her skin tone." The company offers a wide assortment of foundation types and different shades within each."The world is becoming a far more diverse place, and as this happens, there is more diversity within all channels of retail," Haynes says. "Our retail partners are recognizing the needs of ethnic consumers, and we're responding with Black Radiance for African-American women and Tropez, which is currently positioned as a multi-cultural brand but mainly targeting Latina women."Merchandising units showcasing the Tropez line are being updated in an attempt to appeal even more to the Latin consumer. "We're bringing vibrant colors that are very tropical and vivacious to the merchandising," says Haynes. "The products in the line are very colorful and vibrant and we want to bring those same qualities to the graphics and headers."Englewood Cliffs, N.J.-based Black & Beautiful Inc. added to its line of organic treatment hair products and moisturizing skin products when it introduced its Shea Butter Spray in August. The product, according to Rebecca Brown, director of marketing, can be used for hair and skin. "We were responding -- and maybe leading the way a bit -- to the invigorated interest in shea butter as a great ingredient with a lot of good properties for the skin and hair."A poster was sent to all the drugstores and beauty supply stores that carry the product. Featuring the new item along with the other three shea butter items available from the company, it incorporates the visual from the company's magazine ads. "Some retailers use the posters as a way to keep their store appearance fresh and will take down the old posters for something new," says Brown, "so if we can get in there with our new posters, it's just another opportunity to communicate our brand message to the consumer." Brown says plans for a six-piece shelf organizer are also under way. "When you see products in an organizer, they look better on the shelf and tend to be easier for the store to merchandise. All consumers, whatever their ethnicity, hair type or skin type, look for products that have been created with their specific needs in mind. We have found that we can be more narrow in our language, and that can actually benefit us by attracting more customers."The Power of LicensingWith the launch of its Very Irresistible Givenchy in August, French fragrance house Parfums Givenchy wanted to make the introduction specific to the U.S. market. "This is a new brand for us, and we have put a lot of energy into developing it for the American market," says Gilles Dougoud, general manager for Parfums Givenchy North America. "Parfums Givenchy has been developing fragrances in the tradition of the French and European tastes for many years, and a lot of those brands are now being sold in the United States. But we wanted to go one step further and have designed a fragrance that is specifically meeting the American tastes. For that we decided that not only the fragrance should be designed for the United States, but everything in the mix."Actress Liv Tyler was chosen as the face of the brand. "What we like very much in her is that she embodies the core values of Givenchy, which is the French luxury but also the American spontaneity," says Dougoud. "The fact that she is recognizable really helps us because as consumers walk into the store, they stop, recognize her and then realize who it is. This very moment, when they stop, is helping to pass our message on. As soon as customers stop and smell the fragrance, the advertising and point-of-sale materials have done their job."Dougoud says the company uses two types of point-of-purchase materials for new launches. A poster is designed in cooperation with and then produced by the stores, which he says allows for somewhat different visuals from one store to the other. "We have a department in-house whose job is to communicate with the stores, approve the visuals and then prepare them," he explains. "We send them electronically and they print them out in their facilities." The other category is P-O-P that is produced through Parfums Givenchy. For the Very Irresistible Givenchy launch, the company created what it calls "cereal boxes" -- they are bigger than real ones -- to put in as many locations as possible in the store. There is only one type of box, so Tyler's face, which is the same visual in all of the advertising, is repeated throughout the store.These corrugated boxes are accompanied by triangular-shaped cartons featuring the Givenchy name on a pink background. Dougoud says this signature pink is used on every visual and piece of P-O-P and on the bottle, the box and all other advertising. A countertop display is the company's more permanent unit. The base features a factice and a tester bottle. The header features the visual of Tyler. This unit, Dougoud says, will stay up all season. Larger stores may place two or three units.On the men's side, L'Oreal's Huffmyer says his company hasn't done a lot of celebrity partnerships in the past because the designers are often the celebrity figures. But in the case of its Drakkar Noir brand, the company has a partnership with Dale Earnhardt Jr. in place of the late Guy Laroche. "When we created the partnership and developed the ad using Dale, it was more about capturing the spirit of the brand as the American audience has known and loved it for the past 20 years." Since the partnership began, the company has used what it calls "stackables," or interlocking pieces, in-store. Huffmyer says they can be placed on top or next to each other to make any kind of structure at any height. The stackable is a picture of Dale Jr. with his race car on the track in the background and a shot of the bottle. "These pieces are great in-store because the sport has a huge fan base -- just unimaginable -- and they are extremely loyal supporters of the endorsers of their favorite driver," he says. The stackables are standard poster size for all department stores. The image is mounted on both sides of a piece of foamboard. Cutouts allow them to be inserted into each other and so become three-dimensional. Originally designed as temporary P-O-P, they collapse down to nothing, so many accounts store and reuse them. NASCAR represents so much of what the Drakkar man as an icon represents, says Huffmyer. "It's about power, speed and authority, but it's also about play and fun. Dale Jr.'s personality is right in line with the brand." He says in-store personal appearances in major cities also have proven successful. "In every store we've done one in, it has been their single biggest day ever for a fragrance brand. It works -- thousands of people show up."The Retail OutlookAs the retail environment remains sluggish, marketers continue to find ways to make their dollars go further. "We're finding that we can basically accomplish our same efforts from a launch or visibility standpoint in-store by spending fewer dollars more wisely," says Huffmyer.He points to the recent launch of the women's fragrance, Sensi by Giorgio Armani. Huffmyer says his team created similar types of collateral pieces used in past launches but made them larger and made fewer of them, even though they were launching in the same number of doors. "We got greater impact from an individual piece than we had with multiple pieces in the past. It was a cleaner, stronger statement." The larger pieces cost more, but the team was still able to save money by cutting back on quantities, he says.However, Huffmyer says space isn't a problem in stores. "The store and the manufacturer are becoming much better partners because we both need to work together to create the excitement to get the business. I find the store actually even making new spaces available that in the past we didn't get to use."Teresa Oswald, assistant vice president, display development, for New York-based Maybelline-Garnier, says retailers in the mass channels also are supportive of P-O-P. "Everyone has been very positive. As long as we prove that it's beneficial and increases sales, the retailers are always open." She says that customizing programs for different retailers is an industry-wide challenge and opportunity. "Everyone wants customized P-O-P."That appears to be the case in the department store channel, too. Every time a new brand is launching, Huffmyer says he meets with each retailer. "We present what we have created across the board for all stores, but we'll work with each of those retailers to create special things for their needs."

About Face: Cosmetics P-O-P Report

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