NEW YORK --
Coty is taking another step in its strategy of launching offshoot fragrances from its core brands. The company's Quintessence division is extending the Jovan Musk franchise in April with a new scent called Jovan Ginseng NRG -- the second offshoot launch under a plan installed by Jean Andre Rougeot, Coty's new president and chief executive officer.
As reported last month, Coty plans a spring introduction of Exclamation Noir, a new version of Exclamation. The other franchises Coty will continue to expand are Vanilla Fields, Stetson and Aspen.
"What we're trying to do is leverage the Jovan name," said Barbara Phillips, vice president of marketing for Coty's Quintessence division. "There's a huge group who swears by [Jovan Musk] and loves it, but we wanted to take the power and the name to a new product."
Jovan Musk has been one of Quintessence's biggest men's brands; annual retail sales exceed $25 million, making it the fourth-largest men's mass brand, according to Information Resources Inc.
But executives decided Jovan Musk needed to reach a younger audience. The result was Ginseng NRG, which industry sources expect can add another $12 million in yearly retail volume.
In developing the concept, the company wanted an energetic image --hence the NRG -- and ginseng became involved because of what executives perceived as its cachet among health-conscious consumers.
"When you talk to people about what they want, they want energy, especially men," said Phillips. "More of these men are taking care of themselves and they like natural products. Ginseng strikes a chord with them."
Developed by Takasago, the fragrance has fresh top notes with a fig tree accord, bergamot and green tea. The heart is warm and earthy and includes the ginseng accord. The scent is further developed with jasmine, geranium and amber notes.
Phillips said the packaging is distinctive and designed to catch shoppers' eyes. For instance, Coty has integrated a hologram into the box so the package changes colors as shoppers walk past. "It is energizing looking and creates movement," she added.
Coty is looking to lure customer traffic by offering an opening price of $10 for a 1-oz. cologne spray. "Ten dollars is a magic price point," said Phillips.
Many other men's fragrances have initial pricing of $12 and up -- a price some retailers believe is a barrier at the mass level for some shoppers.
The rest of the Ginseng NRG line includes a 1.7-oz. aftershave for $13, a 1.7-oz. cologne for $15 and a 1.6-oz. cologne spray for $17.
The new fragrance will be supported by a print campaign starting next May. There will also be in-store displays featuring the hologram image.
Although many drugstore chains are creating special health care departments to appeal to shoppers who are looking for holistic products such as ginseng, Coty expects retailers will merchandising Ginseng NRG in the fragrance department.
Retailers who have seen Ginseng NRG credit the company with trying something different.
"The box is very interesting because you can't help but look at it when you walk by it," said one chain drugstore executive. "We also see such a demand for products promising energy and we hope that translates into fragrances."
Gail Hubert, category manager at Drug Emporium in Powell, Ohio, said her chain will stock Ginseng NRG. However, she is still concerned about the overall health of the fragrance business. "I'm not excited about the category in general," she said.
Hubert will order the brand because of Coty's reputation for supporting its fragrances with continual advertising. "And The Healing Garden is doing well, so there could be something to the [ ginseng ] concept," she added, referring to Coty's recent entry into the aromatherapy category. The brand is reportedly selling well early in the holiday season.
Although retailers report a recent upturn in men's fragrance sales as holiday shopping kicks iin, the outlook for the category is still far from cheery.
For the 12 weeks ended Oct. 5, men's fragrance sales dropped almost 6 percent from a lackluster period in 1996. Women's volume declined about 3 percent in that time.
O ld Spice remains the number-one brand with annual retail sales of $50 million. It is followed by two Coty brands, Stetson at $46 million and Preferred Stock at $28.5 million, as tracked by IRI.
- BY : Faye Brokman
- SOURCE : WWD1997.12.12
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