Posted by Barry Silverstein on September 1, 2010 01:45 PM
How does a 63-year old brand re-invent itself and become the potential Number 2 competitor in the $6 billion hair care market? Although it fits neatly into the niche between bargain brands and premium brands, Tresemme has higher aspirations.
In a positive sign, it boasted organic sales growth in the second quarter of 2010 approaching 13%, even though the US hair care market has been hurt by a lingering recession.
Casey Keller, president of Alberto-Culver U.S., which owns the Tresemme brand, tells Ad Age, "Our positioning of professional performance at an affordable price is really hitting a sweet spot right now for women."
Tresemme, according to market research firm Symphony IRI, had sales of $211 million, only $10 million behind premium brand Garnier Fructis (made by L'Oreal), for a one year period from July 11, 2009 to July 11, 2010.
Pantene (made by Procter & Gamble) leads the premium brand category with $436 million in sales. Tresemme, however, grew faster than both competitive brands, and it was the only leading brand to gain share in all four mass hair care primary segments: hair spray, styling products, shampoo, and conditioner. Garnier Fructis saw a gain only in the hair spray segment, while Pantene saw gains in the shampoo and conditioner segments.
Tresemme has benefited from a combination of factors, including increased shelf space at Wal-Mart stores and a new "dry shampoo" product called Fresh Start, which allows women to delay a full shampoo and freshen up their hair instead.
The brand has also improved its visibility through its tie-in with the television shows Project Runway and, more recently The Fashion Show, a media-savvy strategy which, according to Deutsche Bank analyst Bill Schmitz, has contributed significantly to Tresemme's success.
Alberto-Culver will have a digital presence for Tresemme at Mercedes-Benz Fashion Week, kicking off Sept. 9th in New York, including sponsoring and styling the Dirty Little Secret original Web series for Elle.com, which is also available on Tresemme's Facebook page.
While Tresemme has a long way to go before it catches Pantene, the brand is within striking distance of Garnier Fructis. For a brand that is an old-timer, taking over second place would represent a major victory.