Fragrances

Drug Store News,  May 20, 2002  

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Even though the fragrance category remains flat in many chain d rug stores, those chains with a marketing emphasis on beauty care continue to promote it. Almost always, however, the promotional strategy is to give consumers some form of added value to prompt purchases.

This strategy continues in 2002. Walgreens, for example, featured $5 rebates on selected fragrances in its April 28 circular. The chain also gave away a free mini perfume with each purchase of a White Diamonds, White Shoulders or Oscar de la Renta fragrance.

CVS, in its April 28 circular, featured a $5-coupon offer to consumers who purchased any fragrance priced at $12.99 or more.

As has been the case in traditional PBC merchandising, drug chains continue to feature well-known department store brands in their ads, hoping to attract value-conscious consumers who enjoy the opportunity to purchase designer fragrances at prices lower than they are in department stores.

This year, while there aren't many growth brands to feature among mass market fragrances, Coty has one with Adidas, and chains such as CVS are responding to this growth opportunity by creating value-added incentive promotions to help drive sales. Recently CVS ran an ad for Adidas that offered a free wallet with each purchase of a 1-ounce cologne.

High margin-control brands also continue to do well in fragrances. This spring, CVS gave about a quarter of a page in a recent circular to its own Essence of Beauty Perennials collection.

Top 10 brands in drug

Brand/segment                        $ sales (*)  % change

Elizabeth Taylor's White Diamonds--   $11.1         -0.3%
perfumes and colognes
Old Spice--after shave                  9.5          8.0
Calgon--perfumes and colognes           9.3        -17.7
Coty Healing Garden--                   8.5          5.0
women's gift packs
Coty Stetson--after shave               8.1         13.0
Drakkar Noir--after shave               8.0         -6.5
Gold Bond--perfumes and colognes        7.6          1.2
Body Fantasy--perfumes and colognes     7.1        -18.3
Jean Nate--perfumes and colognes        6.9         -0.6
Davidoff Cool Water--after shave        6.5          5.5

(*)Sales in millions
Top 10 gainers in drug

Brand/segment                          $           %      $ (*)
                                     sales (*)   change  change

Adidas Moves--after shave            $5.6         70.1%   $2.3
Red Door--women's gift packs          1.7       5,075.0    1.6
Body & Earth--women's gift packs      5.2          37.7    1.4
Curve for Men--after shave            4.2          37.7    1.1
Calvin Klein Obsession--after shave   3.4          37.1    0.9
No brand--women's gift packs          1.3         189.3    0.8
Shalimar--perfumes                    5.0          15.4    0.7
Calvin Klein Eternity for Men--
after shave                           3.8          20.8    0.7
Elizabeth Taylor's Passion--
women's gift packs                    1.5          50.9    0.5
Coty Stetson--men's gift packs        2.5          20.6    0.4

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Sales in millions
Fragrances scorecard

                            Total F/D/M (*)            Drug stores
Category/                   $       % chg. vs.       $       % chg. vs.
segment                 sales (**)   yr. ago     sales (**)   yr. ago

Women's perfumes       $387.4          -4.5%    $246.9          -5.6%
and colognes
Men's shaving lotion/   278.0          -1.7      160.8          -3.8
cologne/talc
Women's gift packs      181.2          -3.9       73.5          -0.7
Men's gift packs         57.4          -7.5       26.7          -6.8

                           Drug chains only
Category/                   $       % chg. vs.
segment                 Sales (**)   yr. ago

Women's perfumes       $201.8          -3.8%
and colognes
Men's shaving lotion/   133.6          -1.5
cologne/talc
Women's gift packs       63.3           1.5
Men's gift packs         22.9          -4.8

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Total F/D/M excludes Wal-Mart

(**)Sales in millions

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