Coty Beauty is launching a new cosmetics line that’s different enough to attract new consumers but tame enough to appeal to existing Rimmel customers.
“We looked at the lack of growth in the category and saw that we needed to do something more dramatic,” said Rick Goldberg, vice president of cosmetics for Coty Beauty.
“We wanted to get away from the manufactured sameness that we see again and again, so we decided to create new textures and forms like a three-in-one eye shadow with jagged edges.”
Launching in February, Rimmel Underground will feature 105 stockkeeping units with a range of color cosmetics for the lips, eyes, face and nails.
“The line is very edgy and exciting, but still very wearable and affordable,” said Eric Thoreux, president of Coty Beauty Americas.
The new line, which will change twice a year, will be sold in about 3,000 to 5,000 food, drug and mass stores, and will have an urban concentration on the West Coast in stores such as Longs. It also will be sold in Ulta’s Chicago stores and in select Wal-Mart, Target and Kmarts, in addition to supermarket chains such as HEB and Wegmans. The company also is looking into the Canadian market and has plans to expand the Underground line into Rimmel’s current full distribution in 14,000 doors by 2008. According to an industry source, the Meijer superstore chain is picking up Underground and using it in a space that was allocated to Vital Radiance. An Ulta spokesman also confirmed that the new line will help satisfy shoppers looking for something different in its stores.
“The product has a point of difference. It’s more of a trendy prestige offering at the mass level and it’ll have incremental sales, which will compliment our mass cosmetics section rather than compete with existing items,” said Montean LaPorte, Ulta’s divisional merchandise manager.
According to LaPorte, the new collection will have a wide appeal. “The demographics of the new items fit our store,” she said. “The products are fun for someone in their 20s, but the proposition they have could even translate to someone in their 30s and 40s.”
LaPorte said Rimmel Underground will be merchandised next to the current Rimmel display and will take some of the Vital Radiance space.
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Underground will appear on a 2-foot fixture in stores. The horizontal display will feature multiple “how-to” visuals showing specific looks, zeroing in on different applications, such as the eyes or lips.
“The display is more visual and less technology-driven and features the type of consumer we’re trying to target in the images,” said Thoreux.
Although company executives wouldn’t comment, industry sources estimate that Underground could bring in as much as $30 million to $50 million in first-year retail sales in its full 14,000-door distribution, with about $3.5 million spent on incremental advertising. The advertising spend is low since there will be no television advertising at the launch of the line. Instead, the company is seeking out alternative sources of advertising to reach its target Generation Y consumers.
Goldberg estimates that Underground will increase Rimmel’s business by 30 percent.
According to Information Resources Inc., Rimmel sales increased 51.4 percent to about $30 million in food, drug and mass stores — excluding Wal-Mart — for the 52-week period ended Oct. 8.
Underground is aimed at Gen-Y women between the ages of 16 and 29 years old who want to exude youthful fun and sexiness. Designed for multicultural consumers, the color palette allows users to create subtle or mainstream looks, while an edgier palette offers consumers the chance to experiment. Although there is an eclectic range of colors, the looks are designed to be wearable, said Goldberg.
“Our consumer is an opinionated, independent individual who knows the importance of belonging,” said Goldberg. “She’s all about doing it yourself, but also is very connected to the rest of the world and concerned about what’s happening. She’s a trendspotter and is passionate about keeping herself in the know. When it comes to makeup, she’s not afraid to experiment with color.”
Rimmel translated this concept into makeup by creating new textures, forms and finishes, demonstrated by Three Sum, a trio of eye shadows pressed together in a jagged pattern, and Stir It Up, a velvet, smooth cream shadow base sprinkled with two shades of shimmering powder designed to give a different color finish during each application.
Other products for the eyes include Double Play Day/Night Mascara; Lash Bling Mascara, available in copper, sapphire blue and purple, and Shake It Up, a liquid shadow that comes in many colors, from icy white to midnight blue. Smokin’ Eye shadow powder is made from micronized kajal powder with a sponge-tip applicator to help create a smoky eye look. For the lips, the line features Sweet Stuff Lipstick, Kiss Off lip gloss, Loud Mouth lip color and Gloss Over, which offers five lip gloss shade combinations, including pinks, roses, browns and lavenders.
According to Goldberg, while Rimmel London is more mainstream, Underground will feature a social networking presence on the Internet, and the company plans to create an underground hub and community around the brand.
“The line is different enough that it will attract new consumers and add to the offerings for existing Rimmel customers,” said Goldberg.
There will be a print advertising campaign and extensive online efforts, utilizing MySpace, YouTube and other nontraditional methods such as text messages and blogs. Print ads will break in about six beauty, health and lifestyle magazines in March. Starting in the spring, a guerilla marketing campaign will be launched, featuring the “U” logo on signs, billboards and T-shirts. Rimmel Underground also will begin sponsoring up-and-coming female artists in makeup, music and fashion as brand ambassadors in specific markets.
“This kind of sponsorship entails a partnership, and our brand ambassadors will be influential in this underground community,” said Kina Guyton, Coty’s senior marketing manager of U.S. cosmetics. “We will provide them with products that they can give to key people in their fan base and friends.”
As part of the guerilla advertising campaign, a limited number of items will be given away to create buzz around the Underground line, said Guyton. The company also plans to introduce “U” products in select markets such as a signature “U” jewelry line, a “U” doll and “U” T-shirts and stickers that will be created by up-and-coming design firms.