Business Beat
Luxe Pack Invites Attendees to "Meet the Flankers"
From left to right: Karen Young, Xavier Vaisiere, Marc Rosen (standing), Nicholas Ratut, and Cosimo Policastro.
A conference titled “Meet the Flankers” was held on November 3 during the Luxe Pack Monaco trade show. It was organized and moderated by Marc Rosen, president, Marc Rosen Associates. The speakers were Karen Young, president, The Young Group; Xavier Vaisiere, vice president, export and sales, Heinzglas; Cosimo Policastro, executive vice president, fine fragrances, Givaudan; and Nicholas Ratut, executive vice president and COO, Zirh International, an affiliate of Shiseido.
In the business world, a flanker is an extension product added to a line to support sales of the main product. “Flanker fragrances have become part of our lives and are not going away any time soon—let’s admit it,” Rosen said to the audience. He explained that a flanker is usually a new fragrance packaged in a brand’s signature bottle, which has been decorated with a new twist. It is given a new name, or at least a new prefix or suffix. Along with a redesigned bottle and outer package, flankers are usually differentiated from the original master brand by variations on color, designs targeting a new lifestyle or consumer focus, different ingredient notes or a lighter-scented formulation, or a seasonal theme.
“Flanker is not considered a positive marketing catchword, but rather a term that most fragrance companies choose to avoid using completely. It is time to take flankers out of the closet,” said Rosen. He suggested that if flankers were planned early in the product development process, then bottle designers could create an iconic bottle design for the master brand to accommodate decorating areas and color variations for future flanker launches. “Let’s treat flankers as family, not orphans,” Rosen said.
Karen Young described some of the benefits of flankers. “They represent a less costly way to bring newness to the market and can be launched with a shorter lead time. They can also bring in a new customer.” However, Young advised of some of the drawbacks to this trend. “The launch of too many fragrances can be confusing to the customer,” Young said. She pointed out a few things to be careful of: a flanker does not always enhance the master brand; it is not as original as a new fragrance; and it may be a short-term fix. Young suggested companies launch a flanker with a distinctively different scent, reach out to nonusers of the brand, and target a specific demographic.
Xavier Vaisiere spoke about the subject from a supplier’s point of view. “In the early development process, we are now looking at a package as being a single shape for which we submit different decoration techniques. We use many techniques in order to make the same bottle look different. They include acid etching, partial sandblasting, partial spraying of color, and pad printing,” Vaisiere said.
Cosimo Policastro presented Coco by Chanel as the “flanker role model.” The fragrance Coco launched in 1985, and its sales figures from 2001 through 2004 have increased steadily from $11.9 million to $12.4 million. Its flanker, Coco Mademoiselle, launched in 2001. Its sales have also increased steadily from 2001 through 2004, from $21.1 million to $31.7 million. (All figures were provided by NPD Research).
According to Policastro, some of the reasons for Chanel’s success with these two brands are a very clear positioning for both brands; the fact that they are two distinctively different scents; and the fact that Coco Mademoiselle targets a younger, more contemporary market. Policastro also spoke about the following brands: Clinique’s Happy, Happy Heart, and Happy To Be; Estée Lauder’s Beautiful, Beautiful Summer Frost, Beautiful Sheer, and Beautiful Summer in Bloom; and Calvin Klein’s Eternity, Eternity Rose Blush, Eternity Purple Orchid, Eternity Moment, and Eternity Summer 2005.
Nicholas Ratut presented a case history of the Escada brand. It was one of the first brands to take the risk of launching a limited-edition summer fragrance into its product portfolio 13 years ago, according to Ratut. The original Escada fragrance is a heavy floral oriental, packaged in an opulent red and gold bottle. “This was perfect for the gift-giving holiday season, but retailers wanted something lighter for the summer when sales were slow,” says Ratut. “We took 100,000 of the same bottle and had it frosted in light blue.” In just four weeks, the lighter version of Escada, named Chiffon Sorbet, was completely sold out.
Because Chiffon Sorbet was such a success, Escada Beauté continued to launch new limited-edition fragrances for the summer. Now, millions of bottles of its summer fragrances are sold (most recently Rockin’ Rio), and they represent 40% of total Escada sales.
CTFA to Host Annual Meeting
The Cosmetic, Toiletry, and Fragrance Association’s (CTFA) 2006 annual meeting will take place March 1–3, at the Boca Raton Resort & Club in Florida. There will be golf and tennis tournaments and meet-and-greet events with CTFA’s member companies. CTFA’s member companies include Avon Products, Coty, Elizabeth Arden, The Estée Lauder Companies, Revlon, L’Oréal USA, Mary Kay, and Procter & Gamble Cosmetics.
The speakers scheduled for this year are Robert L. Mettler, chairman of Macy’s West, who is a 30-year retail industry veteran known for innovative merchandising; Kip Knight, vice president of marketing for eBay, North America, who was formerly brand manager at Procter & Gamble for 10 years and in charge of various brands, including Ivory Soap; and Lenka Contreras, vice president of Kline & Co., which provides market analysis, business assessment, and strategic planning for a broad range of products relating to the global cosmetics industry.
Ex-Tracts Focuses on the Spa Industry
Xela Aromasticks’ aromatic diffuser won Ex-Tracts’ Packaging Innovation Award.
The 2005 Ex-Tracts: Essentials for Spa, Home, & Travel show was held November 13–15 at the Jacob Javits Center in New York City. It marked the second time that Ex-Tracts organizer George Little Management LLC (GLM) presented a focus on spa products. It was also the first time the show was located alongside the International Hotel/Motel and Restaurant Show, which featured 1200 exhibitors. “The spa category is fast becoming a leader within the hospitality and leisure markets,” says Rita Malek, show manager, GLM.
Having the two shows side by side was beneficial for Ex-Tracts’ 60 exhibitors, including Beauty Bureau Inc., manufacturer of Xela Aromasticks. “Many of our customers are spas located in hotels, so having the two shows at the same time was very convenient,” says Jennifer Self, vice president of marketing and operations, Beauty Bureau Inc.
Xela Aromasticks was the winner of Ex-Tracts’ Packaging Innovation Award. The aromatic diffuser is packaged in an elegant glass bottle with a round wooden cap. It comes with bamboo reeds, which are meant to be placed in the bottle. The bottle has an open top in order to accomodate the long reeds. As the reeds become saturated with the fragrance, the scent is dispersed into the room.
Maryann Mihaloupolos, CEO of Beauty Bureau, created the product. While vacationing in Greece, she realized that reed diffusers had always been used there for centuries. The old-fashioned diffusers were designed to have therapeutic benefits and to invoke certain feelings, instead of just being used to scent a room like the diffusers Mihaloupolos had seen in the United States. She decided to incorporate some of the traditional elements with a modern package and named the product Xela, which means “wooden stick” in Greek. The product first launched three years ago and was relaunched in new packaging six months ago.
“We were the fourth company in the world to produce reed diffusers, and the second in the United States,” says Self. “Besides our high-quality oils, our packaging sets us apart from other reed-diffuser products. We are the only one with a round cap. We also provide the reeds, diffuser, and oils all in one box, rather than selling everything separately, like some other companies do.” The reed diffusing system is gaining popularity in the home fragrance category. According to Self, now there are 27 different reed diffusing products on the market, launched by other companies in the past three years.
Production and distribution for Xela Aromasticks is done by Goodwill Industries in Dallas, TX. “The workforce that produces our product, from filling the bottles to packing and shipping, are mentally or physically challenged individuals,” says Self. Other suppliers include Pennco (Dallas, TX) for the glass bottles; Titan Printers (Dallas, TX) for hot-stamping the bottles; Frank’s Cane Supply (Dallas, TX) for the bamboo reeds; and Brown Wood Product (Chicago, IL) for the wooden cap.
NJPEC Celebrates Package of the Year Awards
Every year, The New Jersey Packaging Executives Club (NJPEC) holds its most glamorous event, the Package of the Year Awards Dinner. This year’s dinner was held November 17 at the Marriot Hotel in East Hanover, NJ.
The Island by Michael Kors fragrance package, designed by Chad Lavigne, took first place as NJPEC’s package of the year.
The fragrance Island by Michael Kors received the package of the year award, as well as the gold award in the fragrance category. It was submitted by Cartondruck USA (Summit, NJ), which supplies its outer carton. Other winners in the fragrance category were Happy to Be by Clinique, submitted by Hirshhorn + Young Graphics (New York City), which won the silver award; and TAG Body Spray for Men by the Gillette Co., which won the bronze award. Honorable mentions were given to Allure Sensuelle eau de parfum by Chanel, and to Soul by Curve by Liz Claiborne Cosmetics.
In the color cosmetics category, Hard Candy’s Punk and Princess makeup kits won the gold award. The kits were submitted and supplied by HCT Packaging (Bridgewater, NJ), and are featured in this issue’s Inside Design story. Sally Hansen’s 5-Minute French Manicure Pen Kit by Del Labs, submitted by Topline Products (Wayne, NJ), won the silver award. Holiday Super Treat by Clinique, submitted by
Urban Decay’s Feisty Kitten compact, developed by HCT Packaging, is designed to hold a credit card.
Hirshhorn + Young Graphics, won the bronze award. An honorable mention was given to Urban Decay’s Feisty Kitten Credit Card Compact, submitted by HCT Packaging.
In the personal care category, Reverse by Rodan & Fields, submitted by Hirschhorn + Young Graphics, won the gold award. Precision Micro Solutions Refining Peel Program by Chanel won the silver award. Dermo Expertise Special Value by L’Oréal won the bronze award. An honorable mention was given to Goodskin by BeautyBank, submitted by Hirschhorn + Young Graphics.
The winner of the packaging innovation award was Quease Ease by Soothing Scents, submitted by HCT Packaging. (This product was also a gold award winner in the pharmaceutical and medical device category.)
A 2005 holiday fragrance gift box for Chanel won the award for best visual impact. Coppertone Sport by Schering-Plough Health Care Products won the award for technical merit. It was submitted by CCL Container. Fructis Shampoo and Conditioner by L’Oréal USA won the award for best marketing impact.
In the promotional category, the gold award winner was the Chance Deluxe sampler by Chanel. It was submitted by Flexpaq Corp. (South Plainfield, NJ). The silver award winner was Clinique’s Prescription Kit, submitted by Hirschhorn + Young Graphics. The gold award winner in the graphics category was the 2005 holiday fragrance gift box for Chanel.
To see a complete list of winners in all categories, visit NJPEC’s Web site at www.njpec.com.
CPC Packaging Gives Web Site a Makeover
CPC Packaging invites readers to visit our newly redesigned Web site, located at www.cpcpkg.com. To make our Web site even more user-friendly, we have added a Google-enabled search function that allows visitors to search the entire Web site by keyword. New features also include a breaking-news section, in which CPC Packaging will post the latest updates in beauty packaging news.
Marketers will want to take note of the new Featured Product section, which highlights new innovations from packaging suppliers. In the coming months, online polls and other features will also be added to the site.
The new Web site also contains features that our readers have come to rely on, including comprehensive archives of past issues of CPC Packaging, a listing of industry events, and our online Beauty Packaging Buyers Guide. This fully searchable tool allows companies to research suppliers of beauty packaging according to the type of packaging components they supply.