Alliance building boosts sales in toiletries segment

Drug Store News, July 26, 1993 by Barbara White

Retailers at this year's Marketplace were looking for more than exciting new products. As in past years, buyers searched for new products that offer a true point of difference to consumers.

But retailers want more from manufacturers. They want alliances with suppliers who can help them manage their categories, merchandise their departments and help them generate more sales.

Many suppliers realize that flexibility in merchandising and marketing is just as important as offering terrific new products. They came to the show prepared to be responsive to the individual needs of their customers.

For some suppliers, it meant introducing a new way to merchandise the hair care category. For others, it meant flexible endcaps that can be tailored to the individual needs of the retailer. To some, it meant a point-of-sale display program that can easily adapt to any shelf.

Suppliers are also helping retailers merchandise their departments. Rather than adding new SKUs to their lines and risking the wrath of over-merchandised buyers, many suppliers are phasing out slow-moving products to make room for exciting new introductions.

They are offering shelf organizers to help retailers give departments a cohesive look. They have suggestions for cross merchandising and are becoming more innovative m promotional opportunities.

Forces driving HBA

Certainly, the show was an opportunity for retailers and manufacturers to talk about their programs and how they can improve performance on both ends. It was also an opportunity to see the newest products.

Skin care remained a bright spot for many retailers. They cited new entries in the skin category, which use the latest in technology (liposomes, alpha hydroxy acids) to provide unique benefits to consumers.

Buyers say that while value-priced products continue to perform well, it is the advanced new products which are driving sales and keeping margins respectable.

Among the new skin care introductions, the following products caught plenty of attention:

* Chesebrough-Pond's new Dermasil, a five-SKU therapeutic skin care line, which will be supported by a $10 million ad campaign this fall. Chesebrough-Pond's also recently introduced a new creamy formulation of Vaseline Petroleum Jelly. Therapeutic skin care lines are growing.

* Beiersdorf showed its new Hydra-cleansing Gel, Advanced Vitality Creme and No Oil All Moisture Hydrogel, all upscale products which maintain 35 to 40 percent margins at retail.

Bath care still growing

Suppliers say that bath care shows no signs of slowing; retailers say that sales are still strong, but the category has slow turns so they aren't quick to add too many new lines. Some merchandise they liked:

* LaLoren's Sarah Michaels line of gift sets for the holiday season (at $5 to $13.99 retail) with flexible point-of-sale display signs which retailers can use to create endcap displays.

* Caswell-Massey II Bath & Body Originals' new wooden endcap in two sizes that creates a boutique for the upscale products at value prices.

* Neutrogena's Rainbath display piece which merchandises the brand's products in one area. The push to position the line for the showering public is smart and will increase turns.

* Chesebrough-Pond's Prince Matchabelli division's new Pears Personal Pleasures bath line in three flavors.

Hair care innovations

Hair care buyers say pro hair care is the category they'll expand; margins are reasonable and consumers demand the products. Two new lines that buyers saw at the show caused some excitement:

* Redmond's Intermission five-SKU line of color enhancing shampoos which gradually washes color in and out of hair. The line offers five colors plus a neutral shade that holds color.

* Clairol's new nine-SKU Color Refresher line for colortreated hair. The line will be supported by $20 million in consumer ad spending.

While many of the hot new lines were geared to women, the one notable exception was Gillette's new Series Cool Wave After Shave, which will be introduced this holiday season. The success of the Sensor razor line and the Series mens grooming products should be a predictor of the success of this new product.

Buyers say that the oral care category is exploding. That trend was apparent with many new professional-type products being introduced at the show, such as U.S. Den-Tek's Gingibrush Gum Therapy System. Buyers may wonder whether all of the new SKUs are necessary, but say that many of the products are producing solid turns.

Another product that exciting buyers was Greystoke, Inc.'s Spray-U-Thin, an appetite suppressant that uses a new spray delivery system. The product, which comes in three flavors, doubles as a breath freshener.