Thursday, December 02, 1999
P&G lends Noxzema name to razor-maker
BY RANDY TUCKER
The Cincinnati Enquirer
Procter & Gamble has agreed to license its Noxzema Skin Fitness brand name to a Los Angeles-based razor and blade maker who has introduced a new line of women's shavers under the brand.
Universal Group, which makes private-label razors for mass-market chains, including Cincinnati-based Kroger, began shipping the new Noxzema Skin Fitness blades and razors to stores last month.
The licensing agreement — financial terms of which were not disclosed — will help P&G build brand awareness for Noxzema Skin Fitness, introduced in April as a new line of skin-care products for active women.
It will also help P&G test the waters of the estimated $6 billion worldwide blade-and-razor market. That is one of the few categories in which the Cincinnati packaged-goods company does not compete directly.
P&G's contract with Universal could also be the start of a new growth strategy for the company's existing brands.
“By licensing our brand names, we think we can further build the brand equity of some brands, if we pick the right partners,” Mindy Patton, a P&G spokeswoman, said Wednesday.
Securing licensing-agreements for brand names also promises big gains for Universal, which until now has supplied only discount-priced, private-label blades and razors to retailers and wholesalers in the United States and abroad.
The new line of Noxzema Skin Fitness razors range in price from $3.99 for a three-pack of disposable single-blade razors to $6.99 for the K-3
triple-blade razor and refill blades.
The K-3 razor is priced comparably to Gillette's premium-priced Mach III triple-blade razor, which was the top-selling new product in 1998, according to the industry publication Brandweek magazine.
Unlike the Mach III, the K-3 will be marketed to women, who make up the smaller but faster-growing segment of the razor market, said Dave Caruso, vice president of sales for Universal.
“The women's segment of the category has been growing rapidly at about 13 percent a year for several years,” Mr. Caruso said. “And women have shown a willingness to spend more money on something that really meets their needs. And we feel like this is something that's not out there now and really fills a need.”
In addition to the bikini shaver and the K-3, Universal will also offer twin-blade razors and refill cartridges under the Noxzema Skin Fitness brand.
The razors already have hit store shelves in the United States at Wal-Mart, Kroger, Albertson's and Walgreens, among others.
Distribution outside the United States is expected to begin next year.
Universal will support the launch with print ads and television commercials beginning early next year, Mr. Caruso said.
In the meantime, the razors will ride the coattails of P&G advertising for the Noxzema Skin Fitness skin-care products, he said. “Our products will benefit from the advertising that P&G does as well as what we do on our own, simply because the products have the same brand name,” Mr. Caruso said.
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