Lower intro price may spark Ethocyn sales

Drug Store News, Nov 18, 1996

Chantal Pharmaceuticals is extending the Ethocyn line with lower-priced trial kits and new products in the hopes of broadening its distribution, increasing trial and growing its customer base.

Despite Ethocyn's success at Longs and some other forward-thinking drug chains, many retailers have been skeptical about carrying a kit with a suggested retail price of $120 (for a 60-day supply) and $75 (replacement vials for the 60-day supply). To protect themselves, several retailers ordered only limited quantities of the products and/or locked them up behind the pharmacy, thereby minimizing the sales potential.

To address these concerns, Chantal just started shipping a 30-day introductory kit of Ethocyn with a suggested retail price of $39. The kit contains a coupon for $7.50 off the purchase of the 60-day supply.

The goal is to make Ethocyn more affordable at trial and then encourage women to trade up to the more expensive kits.

The company is also launching a new product, Total Body Ethocyn, an after-shower splash and mist with a suggested retail price of $29.95.

"By lowering our introductory prices we expect to expand our market," and make retailers more comfortable offering the products on shelf rather than locking them up, Reinstein said.

This past year, Chantal was out of stock in many retail stores, Reinstein said, because retailers limited orders. "We were advertising to empty shelves, and that's why we have decided to help retailers by providing what they need."

Other big news for Ethocyn includes Chantal's decision to offer unique kits of Ethocyn for department stores and GNC, and the release of a men's line in January.

In department stores and GNC, Chantal will offer a $100 kit (a three-month supply that includes a gel cleanser) for the holidays and a $150 kit next year.

"These retailers will get different products [than drug chains]," Reinstein said. "We are committed to the drug store channel, but this allows us to reach different customers." Drug chains should not be worried about cannibalization of sales in that channel because Chantal will not offer Ethocyn in department stores with retails lower than $100.

The men's line has been endorsed and will be promoted in ads by "Baywatch" actor David Hasselhoff. It will include an after-shave conditioner, shave gel, after-shave splash, after-shower splash and moisturizing stick.

Chantal is doubling its ad budget for Ethocyn in 1997 to $11 million. The campaign will include both television and print and will promote the new and existing products.

Chantal's ads, which showed two sides of a women's face, one treated with Ethocyn and one untreated, will be enhanced. Going forward, five women's faces will be used in the ads instead of one.