P&G starts Phase 2 for its Olay makeup with new products

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Procter & Gamble Co.'s cosmetics brands will get a few touch-ups next year, including fresh products for its newest makeup line, Oil of Olay.

Olay will introduce a new All-Day Moisture Stick Foundation in January. It will be followed by Complete Radiance, a line extension featuring moisturizing foundations and tinted moisturizers to arrive in stores in April, along with a new range of spring shades called Visionary Light, in March.

All the new products will be backed by ads from Saatchi & Saatchi, New York, which will evolve the line's original "good for you" positioning and "Lasting color that cares" tagline.

A GOOD START

"It's off to a wonderful start . . . Now we're on to phase two," said Anne Martin, P&G's manager of global cosmetics marketing.

Launch plans for Olay cosmetics included expanding the line and introducing seasonal color promotions to bring news to the consumer regularly, she said, adding that P&G wants to continue growing the consumer base by reaching makeup users who have not heard of the line or tried a sample yet.

Ads for the stick foundation, tagged "A hydration sensation with a twist," will break in January magazines along with sampling and in-store displays, with TV spots to follow. Print ads for Visionary Light break in March publications, along with in-store displays.

Complete Radiance will be backed with TV and print ads tagged "Complete lives require complete radiance," which will break in April, along with in-store displays and sampling.

Olay is one of the few personal-care lines P&G has been successful in repositioning and expanding, said Burt Flickinger, a retail consultant at Reach Marketing. Olay succeeded by spending on marketing and by using print media well, he said.

The Olay advertising has used magazines to reach both mass-market and prestige cosmetics buyers, with a focus on publications that appeal to younger women and fashion-forward consumers, he said.

P&G's Max Factor and Cover Girl brands also will have new products and shades for spring. Even though its movie-based positioning so far has been disappointing, Max Factor will continue that route in March with a color collection linked to the film "Anna & the King," backed by print ads and in-store displays from Leo Burnett USA, Chicago.

Also in the spring, Cover Girl will launch a campaign to back an overhaul of the brand that will include a simplified product line, new packaging and in-store displays. Grey Advertising, New York, will handle the Cover Girl ads breaking in February books.

RETIRING ITEMS

Cover Girl will retire 27 items next spring to make room for 12 additional offerings coming in January, including an expansion of its new CG Smoothers makeup line-with new concealer and lip liner-and Peelers Polish, a new peelable nail color.

Cover Girl will also tout its full product line in a new 24-page direct-to-consumer catalog via its Web site (covergirl.com) and through in-store order forms.

P&G is in the midst of a revamp of its makeup business, including the appointment of Ms. Martin to oversee all three makeup lines (AA, Sept. 20).

Although the year-old repositioning of Max Factor to appeal to "movie enthusiasts" hasn't reversed sales declines and Cover Girl is flat, the Oil of Olay Color Collection has been a success. Max Factor's sales dropped 18% and Cover Girl grew only 2%, according to Information Resources Inc., but the Olay brand quickly took tenth place, with $50 million in sales by July 25.

P&G would not disclose media spending, but it spent $26.7 million on Olay cosmetics during the first half of 1999, $33.3 million on Cover Girl and $6.9 million on Max Factor, according to Competitive Media Reporting.

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