J&J Skin Care Extensions To Fuel Momentum In 2002
This article was originally published in The Rose Sheet
Executive Summary
Johnson & Johnson is expanding its skin care category with multiple product extensions under all four of its brands - Aveeno, Neutrogena, Clean & Clear and RoC, the company said
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Johnson & Johnson is expanding its skin care category with multiple product extensions under all four of its brands - Aveeno , Neutrogena , Clean & Clear and RoC , the company said. The new product introductions are expected to fuel growth in 2002, especially for Aveeno, which ended the year with a strong 60% sales gain following the introduction of soy-based Aveeno Facial Care, CEO Ralph Larsen said during 1 1 J&J's year-end sales and earnings release. The strength of Aveeno, which was one of the company's "notable developments," in 2001 helped fuel skin care sales, J&J said. The firm's U.S. skin care business generated sales of $785 mil., up 6% over the previous-year period. International skin care sales increased 2% to $778 mil. for the year; globally, skin care grew 4% to $1.56 bil. In the fourth quarter, J&J experienced weak skin care sales in the U.S. due to the softening of the overall retail market, the company said. However, Neutrogena and RoC had an "excellent quarter" outside the U.S. and Aveeno experienced "positive growth in all markets," Larsen added. Fourth quarter U.S. skin care sales dropped 4% to $167 mil. However, a 9% gain in international markets led to a 2% increase in worldwide skin care sales for the quarter, which closed at $365 mil., according to the firm. J&J introduced Aveeno Facial Care in March as the first soy-based product line available in the mass market (2 2 , p. 3). The company backed the introduction with a heavy advertising campaign, spending nearly $43.7 mil. on ads for the brand in the first nine months of the year, according to measured media expenditures tracked by New York City-based CMR. In March, J&J will add two new products to the soy-based line, Positively Radiant Daily Moisturizer and Skin Brightening Daily Scrub. The products are formulated with colloidal oatmeal in addition to J&J's Total Soy complex to relieve dry, itchy, irritated skin, J&J says. Positively Radiant moisturizer, which will be available with or without SPF 15, softens and evens skin to bring out natural radiance, the company claims. Skin Brightening Daily Scrub works to brighten dull-looking skin through exfoliation, J&J adds. The daily moisturizer will retail for $13.99 for a 4 oz. pump, while the daily scrub will cost $6.99 for a 5 oz. tube. Neutrogena also benefited from a "steady stream" of innovative new products in 2001, J&J said, pointing to the introduction of Visibly Firm anti-aging skin care. The line, formulated with copper peptide technology, bowed in May as the firm's biggest launch of the year (3 3 (Also see "Neutrogena Visibly Firm Takes Elemental Approach With Active Copper" - HBW Insight, 26 Feb, 2001.), p. 4). Continuing the momentum, J&J is rolling out Neutrogena's first product line specifically for men. The eight-product Neutrogena Men's line features products in two categories, Razor Defense and Skin Clearing. Razor Defense items include Daily Face Scrub, Face Lotion and Shave Gel, while Skin Clearing products consist of Astringent After Shave, Face Bar, Face Wash, Shave Cream and Targeted Acne Treatment. Items range in price from approximately $2.99 for the face bar to $5.99 for the face scrub, face lotion and acne treatment. Neutrogena also is adding Instant Bronze Sunless Tanner and Bronzer In One products, as well as Healthy Defense SPF 30 Daily Moisturizer and Oil Free Acne Wash Cleansing cloths and Deep Clean Cleansing Cloths in the spring (4 4 , Marketing In Brief). In addition, J&J is introducing four extensions to its Clean & Clear anti-acne line targeted to teens. Daily Pore Cleansing Cloths ($5.99), Backhead Clearing Astringent ($4.99) and Deep Action Cleansing Mask ($4.99) all will debut in March. Oil-Free Moisturizing Mist, a facial spray that moisturizes and softens dry skin without adding oil, will be added to the line in July, the company said. Under the RoC anti-aging skin care line, new introductions for 2002 will include Actif Pur Anti-Wrinkle Cleansing Lotion ($8.99) and Protient Lift Night Firming Cream ($19.99). Both products will debut in March. |