» P&G http://www.thenhuch.com Because beauty industry conversation is more interesting than the news Tue, 24 May 2011 11:40:31 +0000 en hourly 1 Lowering Prices to boost sales http://www.thenhuch.com/2009/06/19/lowering-prices-to-boost-sales/ http://www.thenhuch.com/2009/06/19/lowering-prices-to-boost-sales/#comments Fri, 19 Jun 2009 16:49:26 +0000 Leah http://www.thenhuch.com/?p=541 Lowering Prices to Boost Sales

Insight by Leah

Estee Lauder, P&G and even L’Oreal have all announced intentions to offer consumers lower cost items and smaller sizes of some products in order to drive sales during a down economy.  Although the strategy may provide an initial bump up for these companies, it could be a dangerous decision for two reasons – 1. Consumers who had previously purchased "luxury" line items from these companies may completely abandon the higher priced lines for a similar, lower-priced offering deciding that the lower priced one is "close enough;" 2. Lowering prices on some luxury items (for example, La Mer cream) may cheapen the value of the brand.  It’s a thin and difficult line to walk for these brands.

Read the full article.

 

]]> http://www.thenhuch.com/2009/06/19/lowering-prices-to-boost-sales/feed/ 0 P&G Buys Zirh http://www.thenhuch.com/2009/06/17/pg-buys-zirh/ http://www.thenhuch.com/2009/06/17/pg-buys-zirh/#comments Wed, 17 Jun 2009 18:20:36 +0000 Leah http://www.thenhuch.com/?p=500 P&G Buys Zirh

Insight by Leah

Procter & Gamble announced its second recent acquisition of another men’s grooming company, Zirh, a men’s line of skin care and fragrances sold in specialty and department stores throughout the U.S.  This additional purchase confirms P&G’s intention to "win with men" and emphasizes its aggressive push towards dominance in this category.  P&G already owns Gillette and recently bought The Art of Shaving.  Although Zirh is a smaller, more niche brand, as the Group President for P&G Male Grooming stated Zirh’s "super-premium positioning and product lineup is a perfect complement to our portfolio."  As well, this purchase highlights P&G’s desire to control more of its retail channels, and to focus as it had not done in the past on higher end retail channels where margins are not typically as squeezed (versus sales through big box retailers like Walmart).  It is evident that P&G believes the men’s grooming market is an untapped goldmine.

Read the full article.

]]> http://www.thenhuch.com/2009/06/17/pg-buys-zirh/feed/ 0 Twitterazzis are talking about Max Factor discontinuation in the US. http://www.thenhuch.com/2009/06/04/twitterazzis-are-talking-about-max-factor-discontinuation-in-the-us/ http://www.thenhuch.com/2009/06/04/twitterazzis-are-talking-about-max-factor-discontinuation-in-the-us/#comments Thu, 04 Jun 2009 21:33:26 +0000 Andrea http://www.thenhuch.com/?p=412 Twitterazzis are talking about the P&G announcement to phase out Max Factor!

Insight by Andrea

Interesting that P&G announces the discontinuation of Max Factor around the same time that L’Oreal Paris celebrates its 100th anniversary. The French brand is thriving while the American counterpart, rooted in old Hollywood glamour, will be discontinued by 2010. Twitterazzis showed a variety of sentiments from disappointment to sadness. P&G announced its decision through traditional PR methods and customers used social media means to share it. I believe P&G should have addressed its market in a more personalized way. Also, they could have asked them what products should be reintroduced as part of the Cover Girl line.

See below what is being said about it in the last 2 hours (over 15 tweets).

 

 

 

]]> http://www.thenhuch.com/2009/06/04/twitterazzis-are-talking-about-max-factor-discontinuation-in-the-us/feed/ 1 P&G Expands Men’s Offerings With Acquisition of The Art of Shaving http://www.thenhuch.com/2009/06/03/pg-expands-mens-offerings-with-acquisition-of-the-art-of-shaving/ http://www.thenhuch.com/2009/06/03/pg-expands-mens-offerings-with-acquisition-of-the-art-of-shaving/#comments Wed, 03 Jun 2009 18:45:18 +0000 Leah http://www.thenhuch.com/?p=388 P&G Expands Men’s Offerings With Acquisition of The Art of Shaving

Insight by Leah

In an effort to expand into the premium market for men’s product, P&G completed its acquisition of the The Art of Shaving.  P&G has not been shy about it’s recent strategy to "win with men" and has made an effort to diversify and improve its beauty division sales with the purchase of mass brand Gillette in 2005.  However, the purchase of The Art of Shaving firmly plants P&G in the prestige sector now as well since The Art of Shaving has 36 retail outlets and 600 retail partners, which include Saks Fifth Avenue, Sephora, Bloomingdale’s and Macy’s, where it competes against Molton Brown, Jack Black and Acqua di Parma.  As well, in an interesting sidebar, P&G and The Art of Shaving both noted that neither has fully exploited the Internet yet as an effective sales channel – it currently accounts for only 10% of The Art of Shaving’s sales. 

 

WWD Excerpt:

Procter & Gamble Co., which recently made the phrase “win with men” an incessant company mantra, is now fully armed to target the premium male shopper with its Monday purchase of the prestige grooming firm The Art of Shaving.  Details of the deal were not disclosed; however, industry sources estimate P&G likely paid in the $60 million range for the manufacturer and retailer of shave and skin care items, twice the Miami-based firm’s 2008 annual sales. Read the complete article here.

]]> http://www.thenhuch.com/2009/06/03/pg-expands-mens-offerings-with-acquisition-of-the-art-of-shaving/feed/ 1 Beauty Industry No Longer Immune http://www.thenhuch.com/2009/05/05/beauty-industry-no-longer-immune/ http://www.thenhuch.com/2009/05/05/beauty-industry-no-longer-immune/#comments Tue, 05 May 2009 18:54:22 +0000 Andrea http://www.thenhuch.com/thenhuch/?p=4 Beauty Industry No Longer Immune

Insight by Andrea

What happened to the lipstick index? Is everything just different about this recession?

Sales fall for Revlon, P&G, and Sally Beauty.

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