Navigation Links
Kline Analysts Say Clinique-Allergan Deal Sets Beauty Industry Precedent in Channel Diversification
Date:1/28/2008

- Smart Strategy Capitalizes on Growing Trend in Professional Skin Care -

LITTLE FALLS, N.J., Jan. 28 /PRNewswire/ -- Beauty industry analysts at worldwide consulting and research firm Kline & Company are calling Thursday's announcement by Estee Lauder to marry its powerhouse Clinique brand with specialty pharmaceutical company Allergan a shrewd diversification strategy by the cosmetics maker. The strategy will allow Estee Lauder to gain a foothold in the booming medical distribution channel. It will also position the Clinique brand for growth through cross-channel marketing and help balance the overall lackluster performance in the prestige beauty market, according to Kline.

"Estee Lauder has always been innovative and aware of the value in diversifying their channel mix," says Carrie Mellage, director of the Consumer Products practice for Kline's market research group. "With low, single-digit growth in the prestige skin care market, the Clinique brand has suffered somewhat, along with the rest of the market. Meanwhile, the medical channel is growing fast, posting a 16.5% jump in 2007. It's no surprise that Estee Lauder would see the opportunities here and tap into this outlet."

Estee Lauder is set to begin manufacturing and distribution of its new Clinique-branded line of skin care products, to be marketed by Allergan and sold only through doctors' offices, in the fall. The new line will be designed to complement in-office procedures, a product strategy that has surged in popularity over the last year, according to Kline's research. The deal will also bolster Allergan's position in the medical channel, where it already has a solid presence with its Botox, M.D. Forte, and Prevage brands. There will likely be other cross-channel benefits for the Clinique brand as well.

"The medical channel is actually a drop in the bucket compared to the overall Clinique reach, so this move is not likely a purely sales-driven strategy," says Karen Doskow, project manager for Kline's Consumer Products practice. "It's also about brand extension -- a marketing play to extend the Clinique brand, similar to the way Dove, Aveeno, and Neutrogena have used doctors as a marketing channel by asking them to recommend their products to patients. It builds credibility, and it's an opportunity to grow outreach efforts across all channels."

Doskow also points out that one reason for the unprecedented growth in the medical channel is the surge in the number of physicians dispensing skin care products to their patients. According to data from Kline's in-depth report Professional Skin Care 2007, due to be published later this month, dermatologists and plastic surgeons are now being joined by a new category of "other" physicians, which includes general practitioners, gynecologists and obstetricians, and even dentists.

"We've seen a 36% jump in the number of 'other' medical specialties now dispensing skin care products to their patients," Doskow says. "Dermatologists and plastic surgeons are losing their market share to other specialists who are now treating patients for conditions like adult acne and age spots."

"This all adds up to a potentially greater market share for the Clinique brand and underscores the value of diversification across multiple channels in order to achieve optimum market reach."

For more information about Professional Skin Care 2007, go to http://www.klinegroup.com/reports/y562ghijk.asp.

About Kline

Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for nearly 50 years. For more information, visit http://www.KlineGroup.com.

For more information, contact:

Carrie Mellage

Director, Consumer Products Industry Practice

+1-973-435-3412

carrie_mellage@klinegroup.com


'/>"/>
SOURCE Kline
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. AUDIO from Medialink and GlaxoSmithKline: Get Ready to Get Moving to a New You in the New Year
2. Audio from Medialink and GlaxoSmithKline: Cleaning House ... Overhaul Your Fridge and Pantry to Lose Weight
3. VIDEO from Medialink and GlaxoSmithKline: Really Think You Can Lose 30 Pounds in 30 Days?
4. AUDIO from Medialink and GlaxoSmithKline: Setting Realistic Goals for a New You in the New Year
5. AUDIO from Medialink and GlaxoSmithKline: Shifting Your Focus for a Lighter, Healthier New Year
6. GlaxoSmithKline Files for FDA Approval of PROMACTA(TM) (eltrombopag) to be the First Oral Platelet Growth Factor for Rare Blood Disorder
7. GlaxoSmithKline Receives FDA Complete Response Letter for Cervical Cancer Vaccine
8. GlaxoSmithKline Presents Innovative Neuroscience Pipeline
9. Pharmacopeia and GlaxoSmithKline Collaboration Identifies Two Additional Lead Compounds
10. GlaxoSmithKline Obtains Exclusive U.S. OTC Marketing Rights to MEVACOR(R) (lovastatin) from Merck & Co., Inc.
11. Genmab and GlaxoSmithKline Initiate Ofatumumab Rheumatoid Arthritis Phase III Program
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... ... June 26, 2016 , ... On June 10-11, 2016, A Forever Recovery, a ... and World’s Longest Breakfast Table in Battle Creek, MI, where the rehabilitation facility is ... to some of the world’s leading providers of cereal and other breakfast foods. Its ...
(Date:6/25/2016)... ... June 25, 2016 , ... Experts from the American Institutes ... Research Meeting June 26-28, 2016, at the Hynes Convention Center in Boston. , ... advance care planning, healthcare costs and patient and family engagement. , AIR researchers ...
(Date:6/25/2016)... , ... June 25, 2016 , ... As a lifelong ... Cum Laude and his M.D from the David Geffen School of Medicine at UCLA. ... to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai ...
(Date:6/24/2016)... ... 2016 , ... Those who have experienced traumatic events may suffer from a ... such as drug or alcohol abuse, as a coping mechanism. To avoid this pain ... following a traumatic event. , Trauma sufferers tend to feel a range of emotions, ...
(Date:6/24/2016)... ... June 24, 2016 , ... Dr. Amanda Cheng, ... treatment. Dr. Cheng has extensive experience with all areas of orthodontics, including robotic ... osteogenic orthodontics. , Micro-osteoperforation is a revolutionary adjunct to orthodontic treatment. It ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , Belgium , June ... MKT: VNRX), today announced the appointment of Dr. ... of Directors as a Non-Executive Director, effective June ... Company,s Audit, Compensation and Nominations and Governance Committees.  ... Dr. Futcher will provide independent expertise and strategic ...
(Date:6/23/2016)... , June 23, 2016  MedSource announced today ... its e-clinical software solution of choice.  This latest ... possible value to their clients by offering a ... preferred relationship establishes nowEDC as the EDC platform ... MedSource,s full-service clients.  "nowEDC has long been a ...
(Date:6/23/2016)... 2016 Any dentist who has made an implant ... process. Many of them do not even offer this as ... high laboratory costs involved. And those who ARE able to ... a high cost that the majority of today,s patients would ... Parsa Zadeh , founder of Dental Evolutions Inc. and inventor ...
Breaking Medicine Technology: