VO5 does A-OK for Alberto-Culver: sound packaging concepts help the established hair care line anchor a stable, profitable product family

Food & Drug Packaging, August, 2004 by Pan Demetrakakes

The signature bottle shape for Alberto VO5 shampoo is a teardrop. But Alberto-Culver Co. is all smiles.

The marketer of VO5 and many other personal care and food items has racked up record sales and profits over the last 12 years. Sales hit $2.89 billion in 2003, a 9.1% rise over 2002; net earnings reached $162 million, an 18.7% jump.

Based in the Chicago suburb of Melrose Park, Ill., Alberto-Culver has manufacturing facilities from Sweden to Australia. Its product lineup includes three brands that the company claims are No. 1 in the U.S. in their respective categories: TRESemme hairspray TRESemme mousse and St. Ives apricot facial scrub.

Besides VO5, TRESemme and St. Ives, Alberto-Culver boasts an impressive array of ethnic-oriented personal care products, bolstered by the 1999 acquisition of Pro-Line International. Its portfolio also includes food products such as Mrs. Dash and Molly McButter seasonings and Sugar Twin sweetener, and household products such as Static Guard and KleenGuard.

Uniquely among U.S. personal care companies, Alberto-Culver is a hybrid of consumer products and retail outlets. About two-thirds of its sales come from its "specialty distribution" arm: 2,800 stores in the Sally Beauty and Beauty Systems Group chains that sell personal care products to hair care professionals (Sally also sells to the general public). Alberto-Culver makes a few products just for distribution in these stores, but in general, the retail and products divisions keep their distance--partly because the stores sell competitors' products.

It all adds up to a company that's growing faster than a good head of hair. Recent acquisitions include West Coast Beauty Supply, a chain of more than 120 stores in 14 western states, and Pantresse Inc., a line of hair care products with a major presence in Latin America.

VO5 is mainstay

Culver's product mainstay continues to be VO5, the line that got the company started in 1955. VO5 occupies a unique niche among American hair care products. The styling and treatment products are premium products, while the shampoo has aimed for the value end of the price scale, consistently priced lower than rivals like Procter & Gamble and L'Oreal. But Culver backs VO5 with advertising support to a degree almost unprecedented among lower-priced consumer products. The company was among the first to advertise on TV in the 1950s, and it brought innovations to the medium in the years that followed.

If anything, personal care products competition has grown more fierce, says Stephen Carter, Culver's group manager of packaging engineering. "There are always shifts in the industry," Carter says. "Not a lot of growth, but trends and developments. For example, there are more salon brands going retail. Several highly funded new launches hit the shelves this past year. Consumers are constantly experimenting and trying new developments and trends in the higher end category, while also consistently spending in the value category as well. Consumers are looking for a new experiences, new results, things that work for them."

VO5 shampoo, especially in the U.S., is firmly identified as a value brand. That places certain restrictions on what can be done with packaging.

"We'd love to do more in the area of decoration-there are some printing techniques we could use, more fluorescents in the inks or resin, or hot stamping. We're always looking at new ideas to add to [packaging] appeal," Carter says. "But at the same time, we have to cost them out and see if they make sense. And, we don't want the package to convey something inconsistent with the brand."

Pressure-sensitive clear labels are the most common form of decoration for VO5 products. Top-quality printing can be combined with enhancements, such as reverse-printed rear labels that create depth.

"For a value shampoo, with our graphics vs. the competition, we're miles ahead of them," says Robert Novy, group leader for packaging engineering. "We're trying to give [consumers] something they're proud of picking up and putting into their shopping cart."

On a tear

Packaging must also take into account practical considerations. Through the years, VO5 has mostly stayed with its trademark teardrop shape, especially for its shampoo and conditioner bottles. But the packaging team has instituted weight reductions and other changes to decrease material use and increase handling efficiency.

For instance, like many personal care marketers, Culver uses "giveaway" sizes like 20-ounce bottles to be able to advertise "33% more free" on the label. The bigger bottles, however, had a tendency to shingle on conveyor belts before they could be oriented into single file. A redesign led to a bottle with blunter sides that would not be as liable to jam, tip, or shingle when in motion.

Like many companies, Culver handles the competing concerns that go into packaging design by taking a team approach. A task force will discuss the basic image and concept behind the product, and will come up with 20 to 30 initial computer-aided design (CAD) drawings.