Differentiating and Positioning:
Market positioning has been aided by agreements to utilize the great marketing and sales resources of Amazon.com. Infusium 23 is no exception and this strategy also includes more traditional Helen of Troy product lines such as curling irons and hair clippers. Product differentiation includes such aspects as an attractive sale price point of $7.99, an attractive new scent, redesigned bottles and better hair results (Gold, 2010). Price is a very important factor, as this consultant found out in a Google search on September 6, 2010. The second most popular search on the Google pull-down menu was for Infusium 23 coupons, even given the competitive price of the product currently. A great example of this can be found offered by Walgreens on not just Infusium 23, but related Helen of Troy products. The coupons bring the price down to a super low of $4.99 per bottle. Obviously, price is as important as brand loyalty. In addition, the coupons are mixed with other Helen of Troy products such as those in the Oxo kitchen product line (Mercedes, 2010).
The consultant team's intriguing observation is that given the success of outlets such as Amazon, there is now less brand loyalty amongst consumers. The co-branding and mixing of products is now an accepted practice, as long as the items have some logical, functional link. An example is that a consumer would go straight from the bathroom to the kitchen in the morning. Infusium 23 hair conditioner and Oxo kitchen products therefore have a logical link in the typical consumer's mind. We can continue linking coupon offers in this way to take full advantage of the current trends in co-branding and marketing. This goes along very well with the company's history of developing product lines by product develop which inevitably requires price modification to position the products and differentiate them from their competition.
This view is supported by analyst David Gibbs. In quarter one of this year (2010) profits were $0.59 versus estimates of $0.57 and $0.47 for the first quarter of last year. Revenues were up 11% to $160.2 million vs. estimates of $161.3 million. According...
Rubin, "Helen of Troy…plans to continue expansion of its Oxo house-wares lines as well as continue to reduce costs and pursue additional acquisitions (Gibbs, 2010)." Despite the near miss on revenue, the shares of Helen of Troy increased by nearly 7.5% on following the company's numbers. Sales out of its personal-care line (Helen of Troy's largest component) rose by 11%. It was aided by its acquisitions of the Infusium 23, Pert Plus and Sure brand lines. Helen of Troy sells licensed products under the Revlon and the Vidal Sassoon names as well as its own brands. Its houseware line sales increased by 12% as the OXO brand remained very strong. The company's gross margins expanded to 45.2% from 40.7%. Helen of Troy's shares also rose an additional 2% on Friday to finish the week up 10.5%. The company has done very well during tough times for consumer spending. It continues to perform well in spite of an economic outlook that is at best uncertain. Many of Helen of Troy's competitors have looked out abroad for growth. Instead, Helen of Troy has gone almost exclusively the acquisition route. However, once some deals go bad, it is likely that investors might be likely to bolt. But until then, the company will be a solid investment for product lines looking for exposure to the U.S. consumer market (ibid, 2010).
Works Cited:
Gibbs, David. (2010, July 11). earnings recap: helen of troy (hele) pops despite economic trojan war. Retrieved from http://wallstcheatsheet.com/trading-markets/earnings-recap-helen-of-troy-hele-pops-despite-economic-trojan-war/?p=14240/
Gold, Grace. (2010, August 16). Infusium 23 relaunches under new ownership with focus on hair health. Retrieved from http://www.stylelist.com/2010/08/16/infusium-23/
Helen of troy corporation. Retrieved from http://www.fundinguniverse.com/company-histories/Helen-of-Troy-Corporation-Company-History.html
Helen of troy fourth quarter conference call and year end conference call for 2009. (2009,
May 19). Retrieved from www.helenoftroyusa.com/inv/tranpdf/05_13_09.pdf
Mercedes, Initials. (2010, May 10). Walgreens: possible free…
