• by Christine Bittar , June 27, 2006

Health and beauty brands experiment with online, minus the frills

Consumers may be flocking online to check out the latest car models, but that doesn't mean they're using the Web as often to look at new summer lipstick colors. While topics including dieting, nutrition, and vitamins all ranked higher, only 12 percent of consumers researched health and beauty online, according to Burst Media's Jan. 2006 study of 1,000 Internet users over 55.

Still, many health and beauty brands  especially those marketed to tweens and teens, such as Unilever's Axe and Procter & Gamble's line of anti-perspirants, Secret Sparkle  are using Web sites complete with downloads, quizzes, and other flashy features to entice their target customers.

Except for youth or lifestyle brands like Axe, industry consultants say that for now the most worthwhile efforts are Web sites, e-mail, and search marketing programs. "Podcasting is all the buzz because it's sexy, but the fact is, penetration isn't high and return on investment isn't positive [in the category]," says Marc Blumberg, senior vice president at interactive agency imc2, which handles P&G brands including Crest and Prilosec.

"The recent Acuvue [contact lens brand] podcast got Johnson & Johnson a lot of headlines, but in general, the audience must be young or the nature of the industry should lend itself to podcasting to make it worthwhile, like music or something celebrity-driven," Blumberg explains.

Conversely, many companies don't spend enough on search because it isn't sexy, he says. "The average mature firm spends about 10 to 20 percent of online budgets on search, and that's not optimal," Blumberg says. If a company isn't online at all yet, or if the entire marketing budget is going to online media, Blum-berg maintains it should all be funneled into search.

While Blumberg says that most consumer packaged goods marketers have doubled their online spends in the last two years, investments in e-mail and customer relationship management (CRM) remain small, and most online ads could be a lot sharper.

Angela Kapp, vice president-CRM and new initiatives at Estée Lauder, says, "It's often easier to put a new brand online"  such as Lauder's new Sean Combs fragrance, Unforgivable  "than to figure out how to incorporate a mature brand online."

Another example is Maybelline's three-year-old Garnier Fructis haircare line. The brand image is imparted on its site  everything from the bright green packaging to an energetic theme song. Consumers are driven to Fructis.com by print ads, packaging, and banner ads on iVillage, Seventeen, and Maybelline, says Kari Niles, who works on Fructis at Avenue A/Razorfish.

Fructis' site is fairly interactive. Niles points out that Fructis, starting in early 2004, was one of the first brands to introduce video on hairstyling tips. Downloads of the brand's theme song from the TV campaign are also available.

On the peppy, user-friendly site, fruit slices and lemon and lime cubes bounce around the screen. The site offers hair quizzes and makes product recommendations based on hair type or desired look.

"Styling videos" on the Fructis home page show people of varied types and ethnicities. If visitors choose the redhead with smooth waves, they'll learn that her style is "the flip" and receive styling tips with the recommended Fructis styling aid. Meanwhile, the "carefree curls" guy has a full head of bushy, highlighted hair. Other styles include "the perfect body" and "faux-hawk."

"If there's a selection question or educational aspect, a good Web site is more likely to influence offline sales," says Blumberg. "There could be a huge risk in picking the wrong hair color," he says. Maybelline's site for Garnier 100% Color dye offers tips on home hair coloring and how to pick shades. Tooth-whitening products may also be confusing, he says. "If you can help a person make a choice, they'll be more loyal. That could also be the case if there's a lifestyle component. Chances are a guy isn't going to the Old Spice site for product information [but to watch the video of the sexy brunette dancing]."

Still, it's important to understand CRM and loyalty, emphasizes Blumberg. "Online marketers are most concerned about getting new people, but they should also be concerned about keeping visitors."

Estée Lauder is an exception. For Kapp, CRM is top of mind. Kapp, who created the company's Clinique site in 1995, has been experimenting globally with many of Lauder's brands. "Retention is very important, and we've been trying to figure out the best ways to do it" for each brand, she says. For Clinique, for instance, Lauder wants online efforts to get consumers back into the store.

Of the Lauder brands, Crème de la Mer, MAC, and Origins are the most active in using direct mail, online media, and e-mail. It's easier to build a database if there are standalone stores, as with MAC and Origins, Kapp says. The high-end La Mer brand is available only in upscale department stores, so a high percentage of first-time purchasers buy online due to limited distribution.

In Asia, Lauder is testing simple messaging service (SMS) and multimedia service (mms). In Korea, Lauder text-messaged mall shoppers to let them know there was a gift with purchase. The trial was small, but response was good, according to Kapp. "We can't really do it here, but it's much easier in Asia because of the infrastructure and high penetration of cell phones," she adds.

For the Origins brand, Kapp tries to offer something special to high-value consumers twice a year. A thank-you can be amazingly important, says Kapp. Direct-mail thank-you cards sent in April contained wildflower seeds, which also served as a way to introduce customers to the Flower Fusion line.

"We're trying to figure out how to get existing customers back, because [in this category] repeat purchases have to be within three to four months," says Kapp. She says that with e-mails, a marketer can personalize by area when there is a special event or store opening or closing, and also send product reminders with notes introducing an item the customer might enjoy given a recent purchase.

Industrywide, Kapp says 20 percent is standard for opening e-mail messages, but that open rates for Lauder are closer to 30 or 40 percent, with more consumer surveys and how-to e-mails in the works. However, she admits, "E-mail is not a panacea. It's only one type of communication. CRM is like dating: You don't want to ask too many questions on the first date, and you don't want to make it into a one-night stand. A good relationship is about [ongoing] communication."