Helen of Troy showcases brand strategy

Chain Drug Review, July 2, 2001

EL PASO, Texas -- Helen of Troy LP, a leading player in designing, manufacturing and marketing personal care products, is continuing to reap success by reestablishing its existing brands and introducing innovative products.

The company distributes such products as Vidal Sassoon brushes and hair accessories (under a licensing agreement with Procter & Gamble Co.); Revlon brushes, combs, mirrors (licensed from Revlon Consumer Products Corp.); Nandi; Karma accessories; and the H.O.T. (Helen of Troy) Things brand. The supplier's hair care accessories and other products are found at leading chain drug retailers, major discount stores and supermarkets.

"We have demonstrated that we can generate significant dollars for our retail partners," comments director of marketing Theresa Winter. "Our Karina accessories can be found at Rite Aid Corp., CVS Corp., Walgreen Co. and Eckerd Corp., all of which are core target audiences for products that fit under our good, better, best strategy."

Linda Mayfield, national sales. manager, notes that all of the company's brands have been performing well, particularly the Karma collection, which she calls a prestige brand.

"Our wall placement has suffered a bit, but Karina has become a popular alternative to trade customers up to higher-quality items," she says. "We also have promotional trendy fashions that offer bolder colors, designs and patterns that normally would not fit into a basic line."

National accounts director Alan Ames notes that the supplier is excited about the proprietary H.O.T. Things line, which is making its debut at the National Association of Chain Drug Stores Marketplace Conference in Las Vegas.

Also drawing attention at the show is Nandi, another proprietary, upscale brand that includes premium rollers and other styling aids. At retail, items in the Nandi line are usually priced between $5 and $9.

"We seethe Marketplace Conference as an ideal opportunity for us to enhance our sales and those of our retail partners in what is a high-margin (55% or more) but admittedly relatively flat category," Winter remarks. "Industry wide the category has not been growing extensively over the last several years, despite abigswing in market share between the two leading players.

"We feel that the exposure that we will achieve at Marketplace is an ideal way for us to showcase our brand strategy and debut new products that will help to drive business for ourselves as well as our customers. For example, Karina customers can trade up to a higher-quality product, bringing the retailer higher average price points, gross margins and profits."

Mayfield points out that the company has expanded its Vidal Sassoon line with such innovative patented items as Twist'n Clip headbands, which are also being featured at Marketplace.

She adds that Helen of Troy has also introduced a unique packaging concept for the Vidal Sassoon brush line.

"We provide the user with information on how to select the proper brush for the type of hair and the look she wants to achieve," explains Winter. "Vidal Sassoon provides the consumer with a state-of-the art styling system.

"Revlon is again in the forefront of today's styles and the latest looks. No one impacts colors like Revlon. Revlon for 2002 continues its extensive color palette that has long been associated with that brand."

Mayfield maintains that the aging of the population is a factor that works. in favor of Helen of Troy.

"The older, more-established consumer is more likely to be brand loyal," she comments.

"And it is this type of consumer who identifies the quality and value in products like our Revlon and Vidal Sassoon brands."

Executives concur that Helen of Troy has made a significant commitment to providing superior service through a number of means, including by responding to customer inquiries within 24 hours after they have been made.

"Providing shorter lead times and excellent customer fulfillment rates have been and will continue tote important priorities for us," asserts Ames.

Besides chain drug stores and other outlets in the mass market, Helen of Troy products can be found in specialty stores, retail beauty supply chains and hybrid salons.

"We have positioned ourselves to provide customers with opportunities to purchase products under brands that are recognized for their superior quality, and we are giving those products exciting, innovative looks that appeal to a wide range of customers who shop in drug stores and other outlets," notes Winter.