Although some SKUs retail for just 99 cents, nail kits retail for as much as $5.99. Unlike other AM Cosmetics brands, Jonel is not positioned as a budget line. They’ll buy one brand of top coat and a different brand of enamel.” “Women are product loyal but not brand loyal. “Nail care has become very confusing,” insisted Ms. Working with the theme, “Beautiful nails for the real world,” company executives believe Jonel can create a buzz with new products such as Moisturize It and Grow It, names that allow women to easily choose the correct product. “But the brand is vulnerable because it’s not trendy and is recognized more for nail treatment rather than color or beauty,” she insisted. Hayano, Sally Hansen was the only brand to address all four segments of the nail care category. Nail enamel accounts for 38% of that total, followed by abrasives and implements (26.9%), artificial nails (23.5%) and treatment (11.6%). Nielsen data, nail care sales total $1.1 billion. Hayano insisted Jonel should be able to make in-roads in a category where consumers are always willing to try new products.Īccording to A.C. Given her background, it should come as no surprise to learn that AM is making a big push into nail care this year via its Jonel brand. Hayano had been with Del Laboratories, which has a big presence in the nail care category with its Sally Hansen franchise. Hayano noted that this year Lord & Berry will concentrate on expanding its share by introducing new products such as a long-wearing eyeshadow and a 3-in-1 pencil. Hayano, Spectra data revealed that the Tropez brand also appeals to Latin and Asian consumers.Īt the same time, the Sweet Georgia Brown line is targeted at preteens and teenagers, while the Lord & Berry brand is AM’s version of “class in mass.” Ms. “We have all the technology that the prestige brands have.” The company is also a major player in the ethnic cosmetics category with its Tropez and Black Radiance brands. “They’re great products with the latest technology at a great price,” insisted Ms. Capitalizing on another trend, Wet ‘n’ Wild has also introduced a body gel with glitter. This year, the Wet ‘n’ Wild lineup has been bolstered by several new formulas such as a lip-plumping pencil which contains yeast extract to make lips appear fuller. As one might expect, the Artmatic brand does best in dollar stores. In contrast, Artmatic appeals to older women in more rural settings who have household incomes of $20,000.
For example, some stores within a chain are perfect for Wet ‘n’ Wild which appeals to women with household incomes of $40,000 and higher. Relying on gut instinct and backed up by data supplied by Spectra, a Chicago-based market research team, AM Cosmetics executives learned that some brands may appeal in one store location and not in another. While revamping the company’s operations, AM executives began toying with the notion of positioning brands to appeal to a particular lifestyle and consumer attitude. “Now all of our brands are on the same platform in terms of tracking orders and forecasting. Each brand used different computer systems, making tracking and forecasting operations difficult. “We had seven brands, but they were all promoted to retailers as appealing to teens.”īesides confusion in brand positioning, back room operations also suffered. “The brands had great equity despite the upheaval,” recalled Ms. Hayano as executive vice president of global marketing. He restructured agreements with banks and brought in a management team with experience in the cosmetic industry, including Stephanie S. All that began to change, however, when Arnie Zimmerman joined the company in January, 1999.
At one point, in fact, retailers were receiving promotional information just three weeks prior to shipping. According to one executive, sales fell as former management became more interested in financial issues rather than brand support.Īs firms were acquired, key brand teams were eliminated and retailer support waned. Four years ago, annual sales totaled nearly $190 million, but by the middle of last year, sales for the 52-weeks ended May 11 had dropped more than 20%. But when the Westport, CT financial firm devoured such well-known mass market brands as Wet ‘n’ Wild, Sweet Georgia Brown and Black Radiance, it suffered from a bad case of indigestion. It’s been nearly four years since the company was formed after a string of acquisitions by Morning- side Capital. With new management in place, back room operations in order and marketing strategies set, AM Cosmetics is ready to grow again.
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