Since P&G bought Herbal Essences from Bristol-Myers as part of the 2001 Clairol deal, the brand has been doing far better overseas--thanks to rollouts into new markets--than in the
U.S., where it has been steadily losing market share.
Herbal Essences has been threatened in the U.S. by two relatively new flankers with similar market positions: L'Oreal's Garnier Fructis and Unilever's Sunsilk. Its sales are down 10% so far this year in shampoo and conditioner, even though category sales are up 8%, according to Information Resources Inc. P&G spent $28.5 million on measured media for the brand last year, according to TNS Media Intelligence, but is on pace to more than double that sum this year.
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