• Ad Age, Tuesday, March 14, 2006 12 PM

Can Max Factor be saved? That's the question being posed not only in the cosmetics industry but at parent company Procter & Gamble as well. The once venerable brand, named after the famous Hollywood makeup man, has fallen far in recent years. Just recently, the 97-year-old brand was de-listed from Walgreens, CVS, Rite Aid, and Target. The move cut distribution from 26,000 to 10,000 stores, more than 25 percent of them Wal-Marts. The brand had roughly $170 million in U.S. sales last year, according to estimates, and Max Factor's shares last year fell 0.7 points to 2.1 percent in eye makeup, 0.3 points to 2.1 percent in face makeup and 0.7 points to 5.7 percent in lipstick. But P&G is being optimistic. "We've right-sized the brand for our most productive doors," said a spokeswoman, pursuing a "niche strategy" in the U.S. The company also is making a concerted effort to resuscitate the brand. It hired a prominent designer to give Max Factor a new look, while new ads featuring Carmen Electra as the new face of Max Factor broke last month. Whether the strategy will work remains to be seen, but observers say it is unlikely that P&G will discontinue the brand because it would prove too costly and embarrassing.

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