Olay, Neutrogena lines on mark

Chain Drug Review, Sept 27, 1999

NEW YORK -- While the increasing clout of teen cosmetics shoppers cannot be underestimated, appealing to more mature women still pays off handsomely for drug chains, as evidenced by the impressive response to the launch of Procter & Gamble Co.'s (P&G's) Oil of Olay and Neutrogena Corp.'s color cosmetics items in 1999.

A number of chain drug retailers are reporting double-digit increases in cosmetics sales this year, and whether this is the result of the new launches, intensified promotional activity from other suppliers in response to the new lines or the booming economy is open to question. But there remains little doubt about the success of the debuts.

"Both the Olay and Neutrogena launches are performing very well," reports Mike Deimling, director of category managers for Longs Drug Stores.

The enthusiasm of such retailers as Deimling is shared by the marketers of the new cosmetics lines.

"We're quite pleased with the results, especially in the lip and face segments," reports Anne Martin, manager of global cosmetics marketing at P&G. "The increased competitive activity is not a surprise to us, and we plan to continue to focus on reaching our target audience -- women who believe that skin care is the key to true beauty -- with the message that Olay cosmetics is the ideal brand to meet their needs."

Neutrogena is also very satisfied with the reaction consumers have had to its new line, saying the products are performing better than anticipated.

"The launch is well ahead of expectations," says Michael McNamara, executive vice president of global marketing and general manager of the company's domestic business.

"We have grown market share nicely, particularly in the area of facial care," he says. "We anticipated that the market was moving toward merging skin care and cosmetics, with consumers looking for true skin care benefits from their cosmetics products, and that trend will only strengthen."

While the predictions earlier this year that one or both of the new lines would falter proved to be as prescient as predictions of a stock market crash the past two years, the question of whether the new players in color cosmetics are indeed lifting the entire category remains valid.

"In truth, what these brands are primarily doing is cannibalizing all the other brands," says Revlon Inc. president Kathy Dwyer.

Revlon is among the established color cosmetics powers using advanced technology to compete with the new entries. The company recently launched ColorStay Liquid Lip, a transfer-resistant lip color billed as providing the color of a lipstick with the feel of "liquid satin."

"Revlon created the transfer-resistant category in 1994 with the launch of ColorStay Lipcolor, which continues to be No. 1 in its category," notes executive vice president Tanya Mandor. "With this revolutionary new liquid colorset technology, we've created yet another segment in the lip category - transfer-resistant liquid lip color."

Not content to rest on its laurels with its market-leading Great Lash mascara brand, Maybelline Inc. is poised to launch Full N' Soft mascara, which the supplier hopes will create an entirely new category of products designed to condition and soften lashes. A substantial television advertising campaign will feature new Maybelline model and actress Sarah Michelle Geller.

In addition, Maybelline's New Improved Volum' Express mascara is now on drug store shelves.

"The new, patented anticlump brush is the key to fuller, thicker lashes," a spokeswoman says. "The trick is in its design. With its unique triangular placement, short bristles coat on volume-building ingredients while long bristles comb through and declump lashes."

This summer, L'Oreal introduced its latest addition to its Feel Naturale family -- Feel Naturale Light softening blush. The oil-free, fragrance-free item includes an oversized mirror and natural bristle brush to help ensure a natural-looking application. It is available in eight shades.

Suppliers are utilizing innovative promotions in an attempt to boost consumer interest. P&G's Max Factor division, in partnership with Miramax/Buena Vista Home Entertainment and Blockbuster Video, is offering a free home video of Shakepeare In Love to consumers who purchase a specially marked Max Factor touchproof mascara, 2000 Calorie, S-T-R-E-T-C-H or new Lash Enhancer this fall and winter.

Del Laboratories Inc.'s Naturistics brand is preparing a number of eye-catching debuts for early next year, including Color Slixx, Lil Slixx, Lip Sparklers and Sweethearts lip glosses. The products will include translucent heart-shape lip gloss pots with attached key chains, a spokeswoman says.

In addition, many cosmetics suppliers are capitalizing on drug stores' reputation as destinations for health-related items.

"We couldn't be in a better position in this regard given Almay's heritage of offering healthy beauty," says Cheryl Vitali, executive vice president for Revlon's Almay brand.

The company, she says, is poised to extend its message of "5 Minutes to a Fresh Face" to retail via point-of-sale and consumer pamphlets.