Build Loyalty Through Innovation

Protection enhancements, packaging tweaks and smart marketing stand to build trial and loyalty within the store brand feminine hygiene segment.

Demand for feminine hygiene products might be less susceptible to economic ups and downs than other discretionary consumer products, but the prolonged severity of the economic slowdown brought declines in spending globally between 2007 and 2009, according to a January 2011 report by San Jose, Calif.-based Global Industry Analysts Inc.

"Bearing the brunt of the recession are branded products, while emerging triumphant are private labeled products, which are becoming increasingly attractive given their low price points and competitive quality levels," the report states.

Still, data from the Chicago-based market research firm SymphonyIRI Group suggest growth on the store brand side of feminine hygiene is slowing, at least within the United States. Although dollar and unit sales of private label sanitary napkins and liners rose 3.8 percent and 4.0 percent, respectively, during the 52 weeks ending Aug. 7 (U.S. supermarkets, drugstores and mass merchandiser outlets, excluding Walmart), dollar and unit sales of store brand tampons actually fell by 1.9 percent and 4.6 percent. (See the table, p. 58.)

Do contemplate product improvements such as odor neutralization technologies for pads and anti-bacterial benefits for tampons.

Consider an upgrade

In its "October 2010-March 2011 Category Insight: Feminine Hygiene and Incontinence Products," global market researcher Mintel International outlines a number of steps manufacturers and retailers could take to boost the appeal of existing feminine hygiene products. For starters, they could invest in odor neutralization technologies for pads and incorporate anti-bacterial benefits into tampons to help allay fears about toxic shock syndrome. They also could consider "handbag-friendly" packaging that keeps tampons and pads in top condition, as roughly a quarter of women users cite this area as a concern.

Don't rely on "generic" packaging; consider dark backgrounds with neon highlights for younger women, as well as classy "feminine-style" packaging that appeals to other women.

Elizabeth Scott, vice president of sales — retail for Reidsville, N.C.-based Albaad USA, points to shaped tins and cloth purses as discreet, handbag-friendly possibilities. Other innovations worth considering on the packaging side include complex die-cut boxes, boxes with windows and classy, feminine-style packaging, she notes.

But before pursuing any new trends, retailers need to weigh the risks and determine how well such efforts align with their corporate values and marketing strategies — and fit their unique consumer base, Scott says.

"The cost of introducing high-end sophisticated packaging, for example, may not be appropriate if this doesn't appeal or apply to their demographic," she says. And "simply copying the success of national brand offerings is no guarantee, although there may be merit in riding the wave."

Sometimes simpler tweaks to products and/or packaging can be enough to reinvigorate store brand items within the segment. For example, wings on pads and colored target zones within a pad's core — innovations common on the national brand side — might be improvements worthy of consideration. But as the national brands further refine and differentiate their products to appeal to more specialized uses, it becomes more difficult for private label manufacturers to keep up, notes Rob Lippucci, product marketing manager for HOSPECO, Cleveland.

On the packaging side, the addition of consistent color coding, according to absorbency level, delivers "quick and intuitive communication of functionality to women and provides retailers with healthy sales and share gains," says a spokesperson for Great Neck, N.Y.-based First Quality. Messaging also should convey the number of hours of protection from leakage the consumer can expect.

Do communicate on the package front specific information about product performance and safety.

Executed correctly, on-pack claims could help assure women that store brand products are safe and reliable, too, Scott says, and perform as well as the national brands. She believes a claim such as "This product meets all FDA standards" could coexist with the "compare to" statement on packages.

"As feminine hygiene is such a personal purchase, especially tampons, the messaging needs to convey that it meets all health and safety standards, FDA regulations, etc., regardless of where it is manufactured," she notes. "Tampons are classified as a Class 2 medical device, so additional requirements are necessary — plant audits and product testing."

Packaging sized for economy also holds appeal to consumers on the store brand side. Lippucci says he sees a continuing trend toward "jumbo" and "super-jumbo" packs. But trial-size packs with a price point of less than $1.00 help stimulate trial and capitalize on a trend that's worked well for dollar stores, he adds.

"Generally, no incremental investment is needed by the retailer, yet there is a great opportunity to develop a price/value-conscious consumer," Lippucci says.

But avoid a "generic" look. Such packaging often confuses consumers, who still maintain the "brand is queen" mindset, Lippucci says.

Ponder niche growth areas

Store brand opportunity also knocks in certain niche areas. One such area is within the youngest consumer base. Scott points to strong growth potential in "tween" sub-brands aimed at the 10-year-old to 18-year-old set.

Lippucci agrees. Bright colors, dark packaging with neon highlights and bright labels that tout "bonus buys" stand to draw the attention of younger consumers, he notes, who tend to have shorter attention spans.

"These products utilize packaging that is fresh and unique to tie-in with the latest fashion trends and the 'little black dress' mindset — every woman should have one," Lippucci says. "Some see this as a reaction to the white packaging movement. The black-box type of packaging and lifestyle has been noted by some to be the antithesis of this 'clean-white' packaging design trend."

Marketing and promotional efforts geared toward these younger women — who are just establishing feminine hygiene purchasing habits — also is a major opportunity, Lippucci adds. He says e-mail, texting, social media and two-dimensional quick-response (QR) codes that smartphones can read resonate well with these consumers, who often view traditional media as archaic.

"This will hopefully allow them to develop a positive first opinion of the private label products and continue to purchase them for the foreseeable future," he says.

Eco-conscious women, too, make for a potentially lucrative niche. To meet the needs of these consumers, retailers could invest in natural and/ or organic materials, biodegradable formats and other "green" factors, Scott says.

Don't use tired promotional messages that focus only on price.

Sell at the shelf — and beyond

Merchandising and promotion also are critical to store brands' expansion within the feminine hygiene category. Shelf sets organized by item instead of brand provide shoppers with the best point of comparison to the leading brand, the First Quality spokesperson notes.

"Women can compare absorbency, product style, count and price/value at shelf quickly," the spokesperson says. "It is a fact that women do not like to spend a lot of time in the feminine products section. Shelf set is a proven way to highlight 'compare and save.'"

Still, store brand products need to be displayed prominently within that mix, Lippucci notes.

"Promote the fact that the private label products are lower priced, but educate the consumer on their usage and that the quality is comparable to the brand," he says.

In addition to eye-catching packaging, Lippucci suggests attention-grabbing tactics such as print and e-mail ad circulars, bonus buys, shelf labels highlighting temporary price reductions and bright pricing strips that highlight an everyday low price that is 20 percent to 25 percent lower than the national brand. And end caps displaying an array of store brand products and clip strips with trial packs are particularly effective in building trial.

Scott points to opportunities in creative promotions — independent from the national brands and incorporating loyalty cards — cause marketing and social media. And retailers could display internal and external feminine hygiene items together, and also cross-merchandise such items with other health and wellness products, over-the-counter preparations, baby care items, skincare products and more.

Retailers also will want to keep usage in mind when it comes to merchandising. Although the primary use of sanitary pads is still linked to the menstruation cycle, the First Quality spokesperson says, a "fairly significant" number of women use these products instead of bladder protection pads to deal with light incontinence, as the former products make them feel "old."

"What should be avoided is either doing nothing to promote the brand or using the same old tired promotional messages that may focus only on price," Lippucci stresses.

Look What's New

Azalea Tampons from Austin, Texas-based Whole Foods Market are said to be made with certified organic cotton fibers. Featuring chlorine-free paperboard applicators, the tampons also boast an ultra-soft top sheet for comfort and an organic absorbent core to provide a superior yet breathable protective layer. The tampons retail in a recyclable 14-count box.

Newly redesigned from Walgreen Co., Deerfield, Ill., are W Super Long Maxi Pads with Wings. The pads are said to be 1-3/4 in. longer than regular maxi pads. They feature a Dri-Soft cotton-like cover to help keep users clean, dry and comfortable; a Dri-Lock core to absorb fluid quickly; larger flexi-wings for extra side-to-side protection; and side channels combined with end channels for more secure leakage protection. The individually wrapped pads retail in a 16-count flexible package.