Daily skin care means daily sun care

Chain Drug Review, Sept 30, 2002

Exposure to the sun is one of the primary causes of environmental damage to skin, so more and more consumers are making the use of sun care products part of their regular skin care regimen. At the same time, a growing number of mainline skin care suppliers are formulating their products with ingredients that provide protection against the harmful rays of the sun.

Sales of suntan lotion and oil and other sun care products through drug stores, supermarkets and discounters (excluding WalMart Stores Inc.) were up 2% to $419.3 million for the 52 weeks ended August 11, according to Information Resources Inc. (IRI). As has been the case in other skin care categories recently, drug chains are outperforming the mean, posting a sales increase of 4.9% to more than $200 million.

"The sun care market has changed over the years. Today's consumers are increasingly aware of the serious risk of sun exposure and are shifting steadily toward products containing higher SPFs [sun protection factors]," says Marisa Krop, director of marketing at Solar Cosmetic Labs Inc. "Despite this, cases of skin cancers of all types continue to increase at an accelerating and alarming rate."

Research indicates that increased consumer awareness is not translating into a rise in the use of protection products at a magnitude high enough to have a significant impact on the occurrence of skin cancer. Studies confirm both low incidence of usage and inadequate amounts of product used per sun occasion as contributing factors.

Solar's strategy for its NO-AD brand is designed to address those issues.

"Only NO-AD is able to offer the most affordable protection," Krop asserts. "Our large 16-ounce bottle encourages liberal use, which translates into increased protection."

The company has redesigned NO-AD's packaging label for 2003 to include various icons, each representing different categories of sun care. Products containing low SPFs, for example, feature a beach chair icon, while products with moderate to high levels of SPF protection sport an umbrella logo.

"The new design is intended to help consumers identify their SPF level of choice quickly and easily," explains Krop. "What's inside the NO-AD bottle is the same exceptional quality consumers have come to expect from the brand. What's outside is a fresh new look to improve our visibility and enhance shelf impact."

The new packaging retains the bright, bold-color bottles that have become the line's hallmark to ensure continuity of image to its established loyal customer base.

Also new for NO-AD in 2003 is an extensive promotional support program, which will include a series of free on-pack offers and high-value special packs. A portion of each sale of NO-AD products is contributed to the NO-Addiction Campaign, a nonprofit drug and alcohol prevention and awareness program in schools nationwide.

More than half the sun care market in drug, food and discount stores is controlled by two vendors, Schering-Plough Corp. and Playtex Products Inc., with shares of 35.2% and 21.2%, respectively, according to IRI. Neutrogena Corp. (13.6%), Tanning Research Labs Inc. (9%) and Solar Cosmetic Labs (2.3%) round out the list of top five vendors. Private label plays a relatively large role in this category, with an 8.7% share of market.

In terms of brand dominance Schering-Plough's Coppertone is No. 1, accounting for 11.8% of category volume. It just edges out Banana Boat from Playtex, which has an 11.7% share. Neutrogena (9.4%), Tanning Research's Hawaiian Tropic (6.6%) and Coppertone Sport (6.5%) hold the third, fourth and fifth spots in the rankings.

"Sun care is a steady if not spectacular performer for us," comments a merchandising executive at one large drug chain. "As might be expected, our stores in tourist destination markets do best in this category. Year-round use of sun care products has increased somewhat over the years, but it is still a highly seasonal item. New product activity has tailed off quite a bit."

Sun care was the scene of frenetic new product activity a few years ago, as suppliers introduced a deluge of targeted-use items to the market. Products formulated for infants and children and participants in sports were particularly successful and have become permanent fixtures in the mass market sun care merchandise mix.

Two relatively new items that have made a splash in 2002 are Playtex' VitaSkin and Neutrogena Healthy Defense. VitaSkin is formulated with avobenzone, vitamins and antioxidants. Meanwhile, Neutrogena Healthy Defense rang up a 47.4% increase in sales for the 52 weeks through August 11, according to IRI, more than twice the rate of increase of the category's next-fastest-growing brand, Coppertone Sport.

Sunscreen/Insect Repellant

Total Sales * : $4.7 mil. (-20.2%)
Drug Stores : $1.57 mil. (-30.8%)
Food Stores : $1.71 mil. (-15.5%)

                           Market     %
Supplier                   Share   Change

Schering-Plough            48.4%   - 15.7%
S. C. Johnson & Son        41.2%   - 20.7%
Safe Solutions              3.0%   - 47.4%
Wisconsin Pharmaceuticals   1.9%    5,461%
W. F. Young                 1.4%   - 59.8%

For the 52 weeks through August 11, 2002.

* Total of drug stores, supermarkets and discount stores excluding
Wal-Mart Stores Inc.

Source: Information Resources Inc.