Q&A: Meeting the Nexxus Of Value and Glamour

A lousy economy spells an opportunity for Alberto Culver. At least that’s how global brands president Gina Boswell spun it for Brandweek. Boswell, who joined Alberto Culver from Avon North America last February, is now overseeing such brands as Tresemme, VO5 and Noxzema, which Alberto Culver bought from Procter & Gamble for $81 million in October. While certainly no biggie compared to the likes of P&G and L'Oréal—the company holds just 11 percent of the U.S. haircare market, per Wachovia Capital Markets—AC has given these two haircare giants a run for their money with recent, value-themed pitches for salon-style brands like Nexxus. Why is it working? Boswell argues that consumers are trading down from salons and in the process embracing some of AC’s higher-end brands. In an e-mail interview with Brandweek, Boswell discusses how she intends to build on Nexxus’ growth.Brandweek: Haircare sales have been rather sluggish lately. P&G and L’Oréal have both posted a decline in sales, but Alberto Culver’s organic sales were up 8.4 percent in its fiscal year 2008 earnings. What kind of marketing strategies has the company employed in this recession? Gina Boswell: We believe our brands have been beautifully positioned for this environment and consumers know they can trust them. Because of our deep understanding of our consumers’ needs, we are delivering products that exceed their expectations with the added bonus of a great value. BW: Tresemme was one brand that performed very well in 2008, with worldwide sales of nearly $500 million. What are Alberto Culver’s plans for maintaining this brand’s top-line growth and position in the market?GB: The Tresemme plan is to remain consistent to its positioning throughout the marketing mix, align with brand-elevating fashion properties and continue global expansion and growth. This month we are launching the Tresemme 24 Hour Body line with Volume Control Complex, which is proven to hold body for up to 24 hours. The marketing support will include advertising, promotions, digital and PR. BW: In an earnings call with analysts, Alberto Culver CEO V. James Marino said the ‘highest growth segment in haircare is the superpremium segment.’ That’s interesting, given consumer purchasing habits at the moment. Is this true of the industry overall or just at Alberto Culver? What might explain this shift towards more premium brands, especially in a category as fragmented as haircare? GB: We are closely monitoring consumers’ changing behavior in response to this tough economy. Our recent consumption data suggests the superpremium segment is still holding up well. That doesn’t necessarily mean people are shifting up; they could be trading down from other service-oriented channels. We’re keenly aware that now, more than ever, women are looking for value at every price tier (and across categories) and as such, value is relative. People still have the same needs; they are just meeting them differently. For example, consumers might cancel their landscaping services in favor of purchasing high-end gardening tools to do it themselves. Others may skip their casual dining experiences, opting for a gourmet pizza made at home. So, too, the woman who now may frequent the salon less often is thrilled to find salon-quality products in the retail haircare aisle. BW: And the Nexxus restaging—what does that involve? GB: The Nexxus restage includes a new packaging design to help women better navigate our product offerings and an upgrade in formulas based on consumer learnings. Our goal is to always provide a luxurious experience for sophisticated women, which means updating our products as new technologies become available. Beyond ensuring we are delivering on our promise of superior products, the Nexxus restage should attract new consumers who are shopping in the salon section of the haircare aisle.

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Q&A: Meeting the Nexxus Of Value and Glamour

Elaine Wong

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Elaine Wong