A closer look at skin care's top 10 - top selling facial moisturizers and cleansers

Discount Store News, Sept 16, 1996 by Lisa I. Fried

Despite the huge proliferation of SKUs in skin care, the top 10 brands in facial moisturizers, facial cleansers and hand and body lotions still garner a 70 percent or greater share of total category dollars and units in all three classes of trade, according to Information Resources Inc.

Given the impact these brands have, Drug Store News analyzed their performance in each of these segments. This proved somewhat challenging, as manufacturers use both Information Resources and Nielsen to track sales of their products. Since each of the research firms use different methodologies, sample sizes, sample classifications, projection techniques and category definitions, reports from each on dollar sales and unit sale trends for brands and categories can vary.

Therefore, we are focusing our attention on market share changes because market share as a relational number does not very as dramatically as total dollar or unit sales within a category. All charts used here are provided by Information Resources. The text is based on information from vendors who use both IRI and Nielsen, some additional information from IRI and our knowledge of market trends.

Facial moisturizers

In the facial moisturizer segment, anti-aging and alpha hydroxy acid-based products drove much of the growth for the 52 weeks ended June 30. Indeed anti-aging products represent 40 percent of category sales, according to Neutrogena.

While several facial moisturizer brands, such as Plenitude, Neutrogena and Sudden Change, experienced notable dollar market share gains during this period, Oil of Olay and Alpha Hydrox experienced notable dollar market share declines.

Sudden Change, marketed by CCA Industries, was a surprise performer recording double digit dollar sales gains during the period, according to IRI. CCA attributes its success to a bigger investment in advertising, the release of new products and revisions in the packaging for the line.

To increase demand for the five-year-old line, the company doubled its ad budget for television advertising this year. New products driving growth included Under-Eye Gel, Neck and Throat Firming Cream, Alpha Hydroxy Facial Cream, Alpha Hydroxy Facial Lotion, and Instant Eye Brow Shapers, according to CCA. The company also recently created bolder packaging for the line that emphasizes the results a user can expect.

Sales of Neutrogena's facial moisturizers were up in the double digits, according to both IRI and Nielsen for the period. Johnson & Johnson's launch of Neutrogena Healthy Skin drove sales gains for the brand, according to Rosanna McCollough, marketing director for facial care for Neutrogena.

Its success, she said, is based on a positioning that is quite different from a moisturizer. "It's a treatment product that is really good for your skin and treats various skin problems, such as rough and uneven texture, blotchiness and smoothness."

TOP 10 BRANDS OF FACIAL MOISTURIZERS

Brand                $ %    $ Share point    Unit      Unit share
                    Share      change       % share   point change

Oil of Olay         26.8        -2.4         27.8         -1.9
L'Oreal Plenitude   15.6         1.1         11.1          0.4
Pond's              14.9         0.7         15.6          0.8
Neutrogena           6.6         1.5          5.2          1.2
Alpha Hydrox         5.0        -1.1          4.0         -1.0
Visage               4.4         0.0          4.1          0.3
Almay                4.4        -0.3          4.1         -0.8
Sudden Change        2.6         1.0          1.9          0.7
Private Label        2.4         0.3          4.8          0.7
St. Ives             1.5         0.2          3.4          0.4

52 weeks ending June 30, 1996 in all three classes of trade

Source: Information Resources Inc.

Suave made the greatest dollar share gains in the segment, increasing its share by 0.6 points to 5.8 percent. Dollar sales for the brand increased in the double digits, according to IRI.

Mark Thorngren, director of customer development for Helene Curtis, attributes the gains to increased distribution of multiple sizes of Suave, including bonus sizes, 10- and 15-ounce bottles. "Customers who add the second size [15 ounce in most cases] haven't seen a cannibalization of the base brand [size]."

For Neutrogena, the hand and body segment was a mixed bag. While Neutrogena body lotion had a double digit drop in sales, its Norwegian Formula hand cream and emulsion and Neutrogena body oil saw sales gains, according to the company.

The body lotion is a mature product that had been minimally supported. A reformulated version, with sesame oil, ships this month. It, along with all the items in the Rainbath line, has been taken out of the box. The products are now sold in clear bottles with gold caps, in an attempt to position the line as "luxury, upscale and experiential," according to Dawn Black-stone, who was director of body/hair care marketing for Neutrogena until August when she left the company.

Neutrogena said performance on its Norwegian line improved because of stepped up promotion and a radio campaign emphasizing its therapeutic benefits. One ongoing promotion involves offering a free lip moisturizer on-pack.