BEAUTY CARE

L’Oréal USA names Digitas its digital agency of record

BY Antoinette Alexander

NEW YORK — L’Oréal USA has named Digitas its new digital agency of record, responsible for the digital media planning and buying for all of the company’s brands.

L’Oréal USA has been on an aggressive path in growing its digital business during the last several years as it continues to be an increasing part of its media mix. The 2013 L2 Digital Index was recently released showing L’Oréal USA brands in the top three in beauty in the Genius Category. These included Lancome, Kiehl’s Since 1851 and L’Oreal Paris.

"As the company continues to aggressively grow its presence in the digital media landscape, it is important to partner with an agency that will continue to drive up our ROI for the business," stated Marc Speichert, chief marketing officer of L’Oréal Americas. "We are confident that the selection of Digitas will serve to achieve this as the agency works to increase the company’s leverage with our strategic digital joint ventures and business partners. Digitas will also play an important role as we continue to drive innovation and experimentation in digital, which is critical to L’Oréal’s global goal of gaining one billion new consumers by 2020."  

The move does not affect Labelium who will continue as L’Oréal USA’s search agency of record for SEO and SEM.

 

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Rok Stars to acquire Marula skin care

BY Antoinette Alexander

LOS ANGELES — Rok Stars, which is owned by hair care titan John Paul Dejoria and business partner Jonathan Kendrick, have agreed to acquire the privately held skin care line Marula. Rok Stars will immediately take over all day-to-day financial and production operations.
 
“We are excited to acquire a uniquely positioned skincare brand," stated Kendrick. "Marula fits perfectly within our John Paul Selects business philosophy of fostering eco-conscious, sustainable brands in support of local communities.”

Rok Stars plans to implement a sales strategy to expand the current sales outlets in the United States, Europe and Asia. Currently the line consists of four SKUs: Two sizes of the oil (1 oz. and 1.7 oz.), a cleanser and a moisturizer. Several products are in development including an eye cream and a lip balm, which will be brought to market within the next six months. Marula is currently available at Sephora, Johnpaulselects.com, resorts, spas and other fine retailers.
 
Aptly timed, Dejoria recently appeared on ABC’s “The Shark Tank,” where he was able to highlight the e-commerce site, JohnPaulSelects.com, which he owns and operates with Kendrick.

Women in Africa derive Marula from wild-harvested, hand-selected Marula nuts that are then cold pressed for quality and purity. Marula is a member of the Fair Trade Association and Green America.

 

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Credit Suisse: Front-end could prove challenging for drug channel

BY Michael Johnsen

NEW YORK — According to a Credit Suisse analysis of the drug channel published Wednesday, drug stores are in for a challenging winter across the front-end with an embattled consumer continuing to hold back and the continued proliferation of dollar stores that are attracting value-driven trips to their channel. 

"Drug store front-end sales growth, as reported by Nielsen, decelerated in the 4-week period ended Oct. 26 on flat price/mix and weaker volumes," wrote Ed Kelly, Credit Suisse research analyst. "Industry sales were up 0.7% for the period, down from the [plus] 1.8% seen last month and the prior six-month average of [plus] 1%," he said. 

In addition to a lessening consumer demand, volumes are also being impacted by difficult year-ago comparisons. 

"We remain concerned about the continued lackluster sales trends seen in the channel and expect front-end results to remain challenged by continued consumer weakness, the channel’s generally uncompetitive price position and increasing competition from value players," Kelly noted. 

While promotional levels across the drug channel are up vs. a year ago, they’re down sequentially, Kelly observed. "Products sold on promotion in the drug store channel was 36.6% of sales, down 46 basis points from the 37% seen last month and up 226 basis points year-over-year."

 

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