Category: Health And Beauty Care - Brief Article - Statistical Data Included

Brandweek,  May 7, 2001  

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From cosmetics to deodorants, the health and beauty care category is packed with products that are conducive to sampling. Whether the distribution method is in-store, direct mail, special event or newspaper, sampling is a way for brand marketers to get the word out about a new or improved product. Sampling helps them target the right product to the right consumer. It also assists companies in attracting consumers who may not have considered buying their product. Indeed, many shoppers would like to get a free sample before spending $3, $4 or $5 on an item that may not meet their needs.

To sample effectively in this area, it's important to understand how the category operates. According to ACNielsen, the top 10 HBC categories, based on dollar volume, are headache remedies, nutritional supplements, adult cold remedies, shampoo, toothpaste, women's hair coloring, face cleansers, sanitary napkins, antacids and deodorants. ACNielsen reports that the No. 1 category -- headache remedies -- grew 0.5% to $2.6 billion in food, drug and mass outlets combined for the 52 weeks ending Oct. 7, 2000. All but one category -- antacids -- showed sales growth for the same period. Antacid sales were down 3.0% to $1.2 billion.

The category that showed the most growth in the top 10 was nutritional supplements, whose sales climbed 12.4% to $1.9 billion, according to ACNielsen. Examples of nutritional supplements, which are intended for certain nutritional deficiencies, include ginseng and anti-oxidants. Vitamins and minerals are not included.

When vitamins and minerals are added into the equation, the overall nutritional supplement category is much larger, generating about $14 billion in sales last year, according to SPINS, a San Francisco firm that provides market research and insights on health and wellness trends.

Both figures are indicative of the heightened interest in health and wellness products and services. This is a direct result of shoppers' increasing awareness of the role of diet and nutrition in overall well-being. Many consumers are taking a proactive approach to health maintenance.

Over 34% of dietary supplement purchases take place in the mass market/discount channel, followed by 22% in the grocery/supermarket channel. For organic and natural food products, 62% of purchases are made in the grocery/supermarket channel and 13% move through the mass market/discount channel.

Almost half of U.S. households purchased dietary supplements in 1999, according to SPINS/ACNielsen information sourced from ACNielsen's 55,000-household Homescan consumer panel.

Penetration of these products varies by retail channel, with 42.5% of households buying dietary supplements -- 38.2% purchasing in drugstores, 41.8% in mass merchandisers, and 10.8% in natural products stores.

"Preventive health care, and purchases of dietary supplements to support these efforts, is one way we see consumers embracing health and wellness," says Paddy Spence, chief executive officer of SPINS. "Other health and wellness lifestyle interests include sports and fitness, healthy eating through organic foods, weight loss, social responsibility and environmental activism. It's important to note that these interests cut across a range of demographic segments. Health and wellness is a mainstream trend that is gaining momentum."

Nutritional supplements are a core ingredient in what's known as "whole health," a movement in the retail community that caters to health-oriented consumers. Whole-health retailers also promote nutritious foods, information and complementary products and services.

In response to consumer demand, many retailers have created special whole-health boutiques and stores-within-a-store that feature not only vitamins, minerals and supplements, but also other health-oriented products.

The whole-health movement could be the reason for a sales increase in another top 10 category: facial cleansers and cremes. Sales in this area increased 9.1% to $1.3 billion in food drug and mass for the 52 weeks ending Oct. 7, 2000, according to ACNielsen. Many products in this area now feature skin-firming components.

AT A GLANCE

Results: ACNielsen analysis of the HBC sampling event(s) submitted showed an average 36% lift in sales.

Geography: National

Execution Dates: First half 2000

Coupons: Face values ranged from $1 to $2 off.

Coupon Duration: Three months

COPYRIGHT 2001 BPI Communications, Inc.
COPYRIGHT 2001 Gale Group