Playtex Suncare Inventory Management Aims To Stem Tide Of Returns
This article was originally published in The Rose Sheet
Executive Summary
Playtex Products will use historical consumption patterns for individual retailers in an attempt to better align Banana Boat suncare product shipments with consumer demand and reduce product returns
|
Playtex Products will use historical consumption patterns for individual retailers in an attempt to better align Banana Boat suncare product shipments with consumer demand and reduce product returns. The company will rely on "models to predict, based on historical patterns, which accounts will need which product at which time, and then encourage them to ship the product back sooner rather than later, so that we can essentially overall have less inventory carried by us, less inventory carried by them and much fewer returns in the system," Playtex CEO Michael Gallagher said during an analysts call July 25. The measures will result in lower "early season" shipments in Q4, with a corresponding increase in the 2003 first quarter, the exec predicted. Describing the approach as a "huge cost-reduction program," Gallagher said the measures will improve the long-term performance and profitability of Banana Boat. Earlier this year, Chattem also announced plans to tackle the high rate of suncare product returns (1 (Also see "Chattem Phisoderm Clear Swabs Launch Will Target “Back-To-School” Crowd" - HBW Insight, 1 Apr, 2002.), p. 7). Sun care net sales for the second quarter were $38.5 mil., down 6.6% from a year ago due to higher than expected returns of $3.3 mil. from 2001, Gallagher noted. Excluding the impact of returns, "shipments for the 2002 season are $92.4 mil. versus $89 mil. last year for the six-month period, up 4%," he said. The brand's market share for the season to date is 22.2%, compared to 21% a year ago, with growth primarily driven by the early 2002 introduction of the VitaSkin sub-brand of sunscreens and moisturizers, and an indoor tanning lotion. New suncare products slated for 2003 launch include a three-SKU line of co-branded baby protection items. The Baby Magic Sun Block by Banana Boat line features SPF 50 lotion in a 4.8 oz. tube and 8 fl. oz. bottle, and an SPF 48 8 fl. oz. spray. Banana Boat Suntanicals will feature SPF 8 and 16 lotions, enriched with lavender and chamomile, in 6 oz. bottles. Other new Banana Boat products will include VitaSkin Sunless Two-Step Exfoliator and Sunless Tanner, as well as Banana Boat Indoor Tanning Lotion Skin Cooling Tan Booster for tanning bed use. |