Buzzwords, new formulas help deodorant sales glide to success

Drug Store News,  August 24, 1998  

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               Deodorant sales smellinglike roses

               $ sales      $      $   Unit sales  Unit % Unit %

Brand        in millions % chng. share in millions chng.  share

Secret         $233.4     10.4%  15.1%   100.1      12.1% 14.8%

Right Guard     157.3      5.3   10.2     64.7       4.4   9.5

Mennen          135.5     12.4    8.8     67.7      12.1  10.0

Degree          117.2     10.0    7.6     52.3       7.4   7.7

Sure            109.3      9.4    7.1     44.1       9.5   6.5

Arrid            98.4     -4.2    6.4     38.6      -3.9   5.7

Ban              96.0     -0.4    6.2     36.7       2.0   5.4

Old Spice        81.5     13.4    5.3     35.5      10.4   5.2

Lady Mennen      78.9      7.0    5.1     44.5       6.5   6.6

Soft `n' Dri     67.0     -1.0    4.3     28.6      -0.4   4.2

Total D/F/M   1,545.0      4.9    100    678.4       4.2   100

Source: Information Resources Inc., for the 52 weeks ended June

28.

Since the latter part of 1997 and the first half of 1998, new formulas, positionings and buzzwords have hit deodorant shelves-ultimately increasing sales in a traditionally flat category.

Overall, in the food, drug and mass trades, deodorants accounted for $1.55 billion in sales, a 4.9 percent increase for the 52week period ended June 28, according to Chicago-based Information Resources Inc. In the drug channel, deodorant sales jumped 1.4 percent to $327.6 million. Food stores showed a 2.3 percent increase to $619.2 million, while mass sales rocketed 10 percent to $598.2 million.

These are not your parents' deodorants

Numbers aside, manufacturers are showing innovation in a segment that in the past five years has given consumers the opportunity to leave white deodorant blotches on someone else's underarms. Now, clear gels and, more recently, clear sticks, are replacing sprays and solids. And with them has come a new way to position already successful formulas to consumers: stressing antibacterial qualities.

Colgate-Palmolive began actively pursuing the antibacterial niche in September 1997 when it introduced the industry's first AB deodorant within the Speed Stick brand.

"Speed Stick Ultimate was a new formula developed to exceed, in application and efficient performance, our current men's brand," said Michael Sload, Colgate marketing director for underarm protection. The television advertising spots supporting the deodorant shouts to consumers this improved efficacy.

But, competitors, such as Procter & Gamble, point out that antibacterial formulas have always been present in deodorants.

"Most deodorants already have antibacterial qualities; that's what kills the odor and keeps the bacteria from growing" to create more odor, said Elizabeth Moore of Procter & Gamble. Moore, as well as other manufacturers, suggested that the AB craze will lead to new positioning platforms, not different formulas.

But, not in the case of Revlon's Mitchum brand, which improved upon its antibacterial formula this June to enhance its antibacterial efficacy. Revlon also replaced Mitchum's current packaging with one that told consumers about its AB qualities. And why not? One retailer said the new positioning will only create new sales, not take away from customer loyalty.

"The Lady Mitchum line remains one of our best sellers," said Mike Cirilli of Duane Reade.

Greg Heller of May's Drug Stores doesn't see the antibacterial buzzword helping sales of products. He believes sales are driven simply by efficacy, such as with the clear sticks and gels.

"It's just a word right now that might cause people to notice it, but this is just about putting another name on the label," Heller said.

What's new?

Colgate Palmolive's Lady Speed Stick Gel was introduced earlier this year. The special formula provides no-white-residue protection.

According to Colgate-Palmolive, gels are the fastest growing part of the clear segment, which increased 20 percent vs. year-ago results. The gel comes in powder fresh, shower fresh and unscented variants, and is packaged in clear, contemporary packaging that allows consumers to see how much product is left, so they'll know when to buy more.

National promotion includes new advertising by Young & Rubicam, high-value coupons, "try me free" refund offers and targeted sampling. Television spots began running in July.

Gillette, which positions itself as anything but a niche marketer, does not plan to address the AB craze pursued by other manufacturers.

"If you look at the Gillette offerings, we are not a niche marketer. We offer products that just work," said Eric Kraus, director of communications.

For example, Kraus said, Gillette's stick deodorant was a No. 1 seller, but there was room for improvement, since it left a white residue on the skin. Now, the clear stick is available. Kraus said the clear stick will receive a limited amount of print advertising, along with multi-branded FSIs. Kraus also said consumers can look forward to buy-one, get-one-free promotions, price promotions later in the year and some in-store advertising displays with several large chains.