•The Grayson Report
to cosmetics where new celebrities
• The consumer’s willingness to
shop has diminished according to a
1,500 person internet survey by WSL
Strategic Retail, reported by
Candace Corlett. The “battered”
shopper is avoiding shopping in
stores where they are tempted to
overspend. The list starts with malls
(67%), department stores (56%) and
ends with drug stores (12%).
This ad for Olay Regenerist tells women that the product is the best.
the authority of magazine “awards”
to cite the superiority of Regenerist
products. Olay expectation is that
the reader will be engaged to read
“who said what” about Regenerist
products. Not a story, but powerful,
none the less. Women always look to
an authority to answer the question,
“what’s the best?” There you go.
• Management by objective
works–if you know the objective.
By the way, nowhere in those 366
pages did Drucker write, “At the end
of the day…”
Peter Drucker, who wrote dozens of
books on management and is credited with founding the industry of
management consulting, was, during
his active business career, a consultant to almost every one of the
Fortune 100s. The Daily Drucker 366
Days is a distillation of his most
important thoughts. Every so often
we run across pithy insights that, in
a few words, give us plenty to ponder. Thumbing through The Daily
Drucker 366 Days, there were a few
that we’d like to pass on:
• Strategy is a sense of direction
around which to improvise.
• People who don’t take risks generally make about two big mistakes
• People who do take risks generally make two big mistakes a year.
• What’s measured improves.
Surviving the Recession
Marketing in a Downturn, was the
subject of a smashing seminar under
the auspices of The Fragrance
Foundation. Obviously we can’t cover
it all, and there is a full write-up in
the March issue by Nancy Jeffries, a
great new contributor to HAPPI. We’d
just like to stress a couple of highlights.
• Significant emphasis on touch-points and the need for an emotional
connection. Dr. Robert Passikoff
(Brand Keys) listed 26 potential
points of contact ranging from an
article to yellow pages. Using the
baby boomers ( 44-63 years of age),
he put percentages on the engagement value of each media. The top
three were word of mouth, in-store
promotion and experiential promotions. And he stressed the need for a
mix of media.
• Borrowed equity—a celebrity—
has diminishing returns for fragrances. If Dr. Passikoff is correct,
and he may be, does that also apply
While the WSL survey indicates that
only 26% of the respondents were
“trading down” in cosmetics, we say
the percentage is much higher, that’s
because many prestige consumers
will more likely say they are
“smartening up” rather than “trading
down” when it comes to their cosmetics purchases.
They will also feel very comfortable in drug stores as that’s where
they started their beauty purchases—and they are in those stores for
other reasons, anyway—an extra
bonus in these time-pressed days.
The $64,000 question is, after they
have satisfied their left brain logic,
will they return to prestige outlets
for emotional gratification/psychic
income when conditions “normalize?”
When you have sea changes in distribution, independent of the economy, our answer is: most likely not
enough to support the real estate
• After the bad news, came a few
suggestions on how to fight back
during a recession. These are the
strategies, and while the devil is in
the execution, a common thread runs
through them all: Focus on the consumer. “Feel their pain,” “Share their
values,” “Make them notice,” and
“Keep them in the brand.” Tough to
do, but worth it!
All in all, it was a very worthwhile
event. Can’t wait for the next one,
Riding the Wave of Prosperity.
Whenever it is appropriate.