L'Oréal

May 19, 2008

Lessons in Branding: How Diesel Fuel For Life Rocketed the Brand to the Top of the Fragrance Market, With Just One Launch

Picture_1So no doubt you've all seen the ads for Diesel's first foray into
the fragrance category, Fuel For Life, right? (If not, check out these trés sexy photos, at right and below, left). Well, what you probably didn't know is that this one fragrance has shot the Diesel name up to the top of the men's cologne business.

According to figures from NPD Group, the fragrance was the No. 3 overall launch (across men's and women's fragrances) for 2007, despite the fact that Diesel had no history in the category. What's more, through February 2008, the fragrance is solidly within the Top 10 Men's Colognes, ranked by sales.

So how'd they do it? With an ad campaign that didn't only win over consumers, but also won awards, picking up the Fragrance Advertising of the Year via the Fragrance Foundation, in both the men's and women's category. So when we're drooling over the eye candy in both of these shots, it's for a reason. This stuff really IS solid gold.

Wanna hear more? Well, you can ready all about it in our article "Filling It Up With Premium." If you're link-a-phobic, here's a taste:

It's no secret that most every fashion brand wants to break into the fragrance business. And with good reason. While the market is fickle, materials can be found on the cheap, the bottles have a long shelf life and their contents are less prone to the more dramatic trend overhauls that characterize luxury apparel. Because customers will actually pay up to $80 for a little bottle of the stuff, the profit margins smell loveliest of all. But Diesel knew it was facing an uphill battle as an unknown in the space, which was presumably behind its decision to partner with L'Oréal, Paris, for its first foray into the category.

Picture_2

It's also why the introductory support broke many of the traditional rules L'Oréal applies to marketing and launching its ever-expanding portfolio of fragrances. First there was the aforementioned antimarketing viral campaign in the weeks leading up to the August 2007 launch. (Some subsequent print ads announced that the fragrance was "finally legalised.")


Next, when it came to traditional brand advertising (chiefly print and TV), the campaign took a more-is-more approach. Rather than one TV spot, the company created six, via agency FFL Paris. Instead of two, static print ads, one for men and one for women, that feature either a celebrity or single model, FFL created four executions, each of them utilizing a new model to express the individuality of the fragrance. The tag read simply: "Are You Alive?"

"For us, this was an ambitious project," said Ulli Lindauer, vp-marketing of L'Oréal European designer fragrances. "There is a moment captured in the photography that is a universal moment of feeling alive. It was about the brand giving each of us the opportunity to be an individual."

February 14, 2008

Research Desk: Prestige Beauty Sales Grew 2% in 2007, Sez NPD

Gio1_2The prestige beauty industry—that's the expensive,
marquee stuff y'all—gussied itself up in 2007, according to a report from NPD Group, Port Washington, N.Y.

The category grew 2% overall to $8.9 billion in sales for 2007. Leading that charge were the makeup and skincare categories, where sales rose 4% to $3.4 billion and $2.5 billion, respectively. Makeup still leads in market share, now at 38% of the total beauty biz, just ahead of fragrance, which controls 33% of sales, and skincare, which gets 28% of the cut at $1.2 billion in sales.

And growth in a prestige market despite The Recession! Though, we can't say we're surprised, because, after all, even in the worst of times we'll plunk down the cash to prevent the world from seeing our wrinkly, blemished, pale faces, or smelling our "natural" scent. And hey, if it's got a designer name on the box, all the better! If we're not paying more than $100 for the goods, we usually chalk it up to a normal indulgence, especially when it lasts for a year (Happy Valentine's Day to our very dresser-top fave Prada Amber Pour Homme!).

Seems NPD's senior beauty analyst, Karen Grant, agrees.

"During challenging economic times in 2007, the prestige beauty industry managed to rise above the negatives," said Grant in the report. "Women and men are still willing to spend money on products that make them look and feel better."

However what did surprise us were the rankings of the top fragrances, for both male and female shoppers (keep in mind that females actually buy a greater percentage of men's fragrance than men do):

1. Acqua Di Gio (Giorgio Armani)
2. Beautiful (Estée Lauder)
3. Coco Mademoiselle (Chanel)
4. Chanel No. 5 (Chanel)
5. Cashmere Mist (Donna Karan)

OK, ok, Beautiful isn't a surprise, nor is Chanel No. 5, those fragrances are so classic they're a lock for the top spots. Coco Mademoiselle is an interesting one, since we were sure that everyone was like sooo over their current ad girl, Keira Knightley, but it's obvs just us who thinks she just a poor-man's version of Penelope Cruz with a perma-pout. And Cashmere Mist? We have to think some of those sales were a case of mistaken identity. We've never touched the stuff but the bottle looks like an exotic sex toy.

But the real shocker was No. 1: Acqua di Gio. Seriously!? Acqua di Gio!? We thought that fragrance was hot like, four years ago when we were having our Año Español and all the boys (including us) were awash in that sweet, citrus-y smell. But that was four years ago!

"It's just an easy fragrance, a good juice that easy and likable and that no one is going to hate you for gifting," Grant told us, admitting even she had been surprised that the fragrance had stayed on top for the past several years. "Men can wear it to work and to the club, and women like it, which you know is the number one factor for the guys. It isn't overpowering and its versatile. They've hit on a formula that is working on both the mass and prestige levels."

Grant also told us that a new ad campaign, by parent L'Oréal's agency Publicis, that offered new imagery for the popular fragrance, was well timed to continue the momentum of the brand last year, swapping out male model Larry Scott with Lars Burmeister (pictured above, with product), and bowing a new TV campaign, which you can view, to your water-dripping-on-abs delight, below.

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