Branded goods take upper hand in category - Top Brands - Part I: Store Manager Survey - Home Products/Personal Care Appliances

Discount Store News, Oct 7, 1991

Branded Goods Take Upper Hand in Category

A decreased reliance on unbranded, imported small appliances coupled with a general upgrade of the quality of products made by leading domestic suppliers helped to nurture a preference toward branded personal care appliances.

Executives with several of the leading suppliers said the days of risking sales on unbranded imports or branded goods of questionable integrity are gone. The safety risks of hair dryers and other electrics frequently used near water in the bathroom have made consumers - and therefore retailers - rethink buying decisions.

In addition to safety concerns, the "throwaway" mentality is on the decline, leading consumers to invest in frequently higher priced nationally branded appliances instead of lower ticket alternatives with low brand recognition which are more apt to burn out within a shorter span of time.

Most of the suppliers cited as top performing brands in the department said increased involvement with the retailer - including intensified micromarketing efforts - helped to strengthen their position relative to competitors.

DSN's track record with the annual Top Brands Study has revealed most categories have a single top brand that the vast majority of retailers think of as a category leader. In comestics it is Maybelline, and in housewares it is Rubbermaid. In personal care appliances, Conair is that brand.

Conair has topped the list of top performing personal care brands every year since DSN began conducting these surveys. According to Frank Lindsey, vice president, marketing at Conair, attention to "core products" without being distracted by "faddish" appliances is an element to Conair's success.

Gift-with-purchase, instore merchandising tools and other buying incentives tailored to the particular retailer's needs are also a factor. "With our facial sauna, we packaged free Neutrogena soap; with driers and curling irons, we have packaged brushes and toiletries. Where there is a synergy between the products, we will consider it," Lindsey explained.

The Conair programs apparently work well for Kmart where seven out of every 10 store managers named the brand as a top performer, and nearly as many Wal-Mart store managers concurred. Conair's strength was evenly distributed across the country except for a slightly lower response rate from store managers in the North Central states.

The often referred to "partnership" between retailers and vendors was also a key for Norelco which, unlike Conair, had greater strength among upscale discounters than conventional chains.

John Beggs, president of Norelco, said the performance of his brand at retail has snow-balled as a result of increased consumer advertising, new product introductions, and greater involvement with upper management at key accounts.

"We've made a concerted effort over the past 18 months to work with all levels of retail trade to help them understand the extra sales and profits that can be attained with our products. That means speaking more with Bill Fields [executive vice president, merchandise and sales] in the case of Wal-Mart, and Bill Underwood [senior vice president, general merchandise] at Kmart." Beggs was quick to note that informing these executives can help category buyers.

All of this has added up to a dramatic rise in the number of store managers saying "Norelco" when asked about their top personal care appliance brands. In 1990, less than one-fourth of all managers mentioned Norelco, while this year, more than one-third of retailers from each geographic region said Norelco was a top performing brand except for the West, where a little under one-quarter of retailers cited the brand.

Store managers' view of Vidal Sassoon's performance rose at an even more dramatic rate, more than doubling response levels in a year's time. Since 1987, Vidal Sassoon has remained virtually unchanged, with a flat 15% of store managers saying it was a top performer. But 1991 witnessed 32% of all store managers mentioning Vidal Sassoon. Like Conair, Vidal Sassoon has stepped up its gift-with-purchase promotions and interactions with senior management at the chains.

Target was Vidal Sassoon's greatest advocate, with more than half of all Target store managers naming it as a top performer. In fact, no other personal care brand was considered as important to Target stores as Vidal Sassoon.

The strength of a brand at one specific chain can at times be responsible for its overall response rate in the survey, while other brands have more of a broad-based popularity despite low recognition among Kmart, Wal-Mart and Target.

Remington, for example, received one of the highest total mentions in the personal care appliance category due to its strength at the "big three" although at all other conventional chains only one out of 10 store managers mentioned Remington.

Conversely, Windmere, which almost went unmentioned by Kmart and Target, received strong support from Wal-Mart store managers. In addition, Windmere fared better at all other conventional discounters than any other brand with the exception of Conair. Windmere equaled Vidal Sassoon's performance among other conventional discounters with three out of 10 saying each of these two brands were among the top performers at their store.