Kline study shows consumers opting for competitively priced cosmetics, toiletries
LITTLE FALLS, N.J. Consumers are opting for competitively priced cosmetics and toiletries from the mass market and direct trade, thereby hampering sales of premium products. This has resulted in market growth of only 0.3% in 2008 in the United States — the lowest since 1991, according to a recent study by research and consulting firm Kline & Co.
According to Kline, sales have reached a total of $35.6 billion at the manufacturers’ level, but consumer concerns about the recession may ensure that these levels do not rise higher during 2009-2010.
“The new frugal mindset imposed by the recession has altered spending and product consumption habits, some of which will probably continue into the foreseeable future,” stated Nancy Mills, industry manager, consumer products practice, at Kline. “Many people have traded down on certain products, and as they get accustomed to buying some lower-priced or private-label products, and shop more in the lower-priced channels, they might well continue with those habits after the tough times have subsided. To be successful, companies will likely continue to infuse the mass segment with more sophisticated products to compete with luxury products.”
Three brands to advertise with StoreBoard Media
NEW YORK Three brands have signed on to advertise on StoreBoard Media’s security pedestal media.
Coca-Cola’s Nestea and Cadbury’s Dentyne gum are being featured on StoreBoard’s EyeCurve billboards at the entranceways to chain drug stores nationwide. The campaigns will run through June 14. Meanwhile, Johnson & Johnson’s Aveeno is a returning brand.
Douglas Leeds, StoreBoard’s CEO, said, “Our in-store billboard media opportunity has emerged as an ideal solution for stores looking to become more customer-centric, and for brands that want to reach out-of-home shoppers at the point-of-decision.”
Retailers who join the StoreBoard media network generate a new source of revenue, Leeds said, since StoreBoard shares its revenue with retailers and sells its product as media rather than promotion, enabling retailers to gain access to new marketing dollars from brands.
StoreBoard advertising runs in four-week cycles. The Nestea, Aveeno and Dentyne campaigns comprise the sixth cycle for 2009.
Physicians Formula CFO to retire
AZUSA, Calif. Physicians Formula has announced the resignation of Joseph Jaeger as CFO due to family reasons. Jeff Berry will succeed him as the interim CFO, effective May 29.
“Joe has been a valuable member of the Physicians Formula management team for the last five years and we appreciate his service to the company,” stated Ingrid Jackel, chairwoman and CEO. “We welcome Jeff as the interim CFO given his proven strategic and financial skills. I have worked with Jeff over the last two years in his capacity as a board member, and he will bring a high level of strategic focus and financial acumen to our company as we navigate through these challenging economic times.”
Berry has been a member of the board since October 2007. He is currently a member of the audit committee, and is also the chair of the compensation committee and the corporate governance and Nominating Committee. Berry will resign from the board while acting as the interim CFO.
Berry was the treasurer and head of strategy and business development for Del Monte Foods until June 2008, when he resigned to work as an advisor to private equity firms in the food and personal care industries. Prior to his experience at Del Monte, he was a management consultant with McKinsey and Company and Bain and Company.