Experience the Focus Effect

Friday, I discussed the state of the beauty business on Fox Business Live. Below is an overview of my comments and some of addition thoughts.

 

In spite of the economy, the beauty business is holding up quite well. Apparently most people are more concerned about their looks than the food they eat, the clothes they wear or the cars they drive. 

 

What works in the beauty business? The same thing that works in all businesses. Own a word in the mind. 

 

Typically, a beauty brand will start out by owning a word and then get line-extended like crazy. Still the brand might remain powerful because consumers remember the past. It wasn’t the line-extensions that created a powerful brand like Dove, it was the original focus of the brand that did that job.

 

Dove started out as “one-fourth moisturizing lotion” and is still the No.1 bar soap with 24 percent of the market. And lucky for Unilever, that focus helped maintain the brand’s power in spite of its endless extensions.

 

Olay is Procter & Gamble beauty brand, also line-extended to death. By like Dove, Olay still benefits from its history as “Oil of Olay,” apparently a magic wrinkle-remover ingredient. 

 

Aveeno, a Johnson & Johnson brand, became famous for its “active naturals,” a concept trading on the trend towards organics, naturals, etc. 

 

Neutrogena, also a Johnson & Johnson brand, was the first “hypoallergenic” soap. And today it still benefits from its association with the concept. 

 

Clinique, an Estee Lauder brand, became famous by being the first hypoallergenic department-store beauty brand, a concept the company apparently has forgotten about, but most consumers still associate the brand with “hypoallergenic” properties. 

 

Almay, a Revlon brand, was the first drug-store “hypoallergenic” brand and also benefits from its association with the concept. 

 

New brands in the beauty aisle are about as rare as a wrinkle on a super model in spite of the fact that launching a new brand is the real key to growth.

 

Look at the success of Axe, the first body spray for men. The brand has been wildly successful primarily for its sexual implications. Teenage boys will do almost anything to increase their odds with women.  

 

Except for Axe, there have been very few new brand introductions in the beauty business. It’s all line extensions.  Confusion reigns in drugstore aisles.

 

Walk into any drugstore and watch consumers spend an incredible length of time figuring out what to buy.   There are 26 types of Pantene shampoo, 42 types of Crest toothpaste.

 

It’s a pity. Companies believe consumers crave endless choice. Yet nothing could be further from the truth. Consumers want simple, clear brands that stand for something.

 

Sometimes fewer choices are better. Compare shopping in a Walmart supercenter versus shopping in a Costco warehouse store.

 

My favorite beauty brands are Dove and Axe. Both have strong positions in the mind. Dove is one-fourth moisturizing lotion and advertises its “Campaign for Real Beauty.”

 

Dove’s moisturizing focus targets older users who have dryer skin. So the “real beauty” idea has resonated extremely well with them. 

 

Axe is focused on male sex appeal, "The Axe Effect." Unilever has cleverly verbalized the benefit of the brand’s core idea. One recent tagline said “Spray More. Get More.”

 
 

 Both brands have used extensive social media campaigns that have gotten rave reviews. But was it social media that created the brands successes? I think not.

 

Social media is a tool and a tactic. Not a strategy. For any tool to be effective, a brand needs an effective strategy.

 

That is why this sudden craze over social media doesn’t make sense. A company should set its strategy first, then pick the best tools to execute its strategy.

 

Doing it the other way puts the cart before the horse.

To get consumers excited about your brand in their minds, in the store or on the Internet just liberally spray on some Focus. I call it the "Focus Effect."

             

Comments

[sam stern]

Laura - Great post. I especially like your point about social media being a tool, not a strategy. Unfortunately, too many marketer overlook this point.

[CrisisMaven]

Hi Laura & Al, interesting site & blog. Have yet to study in depth. Just a quick note for now: in your "About" (http://www.ries.com/aboutus.php) "spend most of their time of the road" should read "ON the road" ...

[Online Dating]

yes! axe commercials is also one of my top picks. The commercial leaves a strong impression that when you use axe, you will attract more women. "Spray more get more".

I also like how they have incorporated humor in their commercials. It's one way of making their commercials really noticeable. :)

[Jason]

Perfect points, Laura! Your blog is outstanding as well.

[turk bayragi satis]

Congratulations !
Very very nice site
Thank you.. =)

[Term Papers]

It's really an impressive posting. I liked it & think that it will be helpful for others. Keep up the good work. Good luck.

[Cuddles Healing Bear in Atlanta]

Laura,

Do me a favor; we love you to mention some of the newest projects you’re working on.

This will at least give us some insight on how really good you say you are at making predictions, so we can monitor the progress of projects you executed.

You have such amazing insight about brands.

I know a few other brand strategists who have amazing insight. Laura you’re in the top 5 at #4 among them.

You did well presenting the beauty market, but you came up short on exposing Dove body soap for Men and Dove shampoo as line extensions, positioned in the mind of consumers as a feminine body soap or unisex brand. It’s like Pepsi for Men when Pepsi is a unisex brand.

Do me a favor when you’re on Fox Business or any other show, keep smiling more as you’ve been doing, it may help sales.

http://stoneagebrands.blogspot.com/

[Martin Bishop]

So, it's not the number of skus per se because Dove has just as many as Pantene, if not more. Is it that Dove has a strong association with moisturizing that holds its portfolio together whereas Pantene's emphasis on "shine" is not strong enough?

What about Dove's extension into men's care products? (http://dove.us/mencare/) Is that going too far? It undercuts the real beauty direction but the products still have moisturizing properties.

[Richard Whipple]

So true, Laura. Too many carts before the horse. Too much war in the boardroom and not enough focus on the mind of the consumer.