STORES PREPARE FOR REVLON'S COLORSTAY LAUNCH

CHRISTINA VEIDERS / Additional reporting: Peter Malbin

NEW YORK -- Supermarket chains targeting hair coloring are set to adjust their planograms for the August ship of Revlon's ColorStay hair coloring entry into the premium segment.

The brand, which crosses over from the estimated $180 to $200 million ColorStay cosmetic franchise, is being backed by an estimated $40 million in advertising and promotion.

Grocery accounts said to be committed to the full 24 stockkeeping unit line are Pathmark Stores, Woodbridge, N.J.; Wakefern Food Corp., Elizabeth, N.J.; and H.E. Butt Grocery Co., San Antonio, according to Revlon executives who previewed the product for SN at corporate headquarters here. These accounts declined to comment when contacted by SN.

However, Revlon and industry insiders are calling this a major launch for the company in a segment where two suppliers control 80% of the business.

"As Revlon launches ColorStay Haircolor, it will bring new users to the category and will have a significant impact on the entire segment," said Rick Rolling, account executive with Acosta Sales, Tampa, Fla.

"I think it will do fairly well," said Steve Sorenson, general merchandise and health and beauty care manager at Dan's Foods, Salt Lake City. "Revlon's ColorStay cosmetic line has done really well at food. It won't totally take over the market but it will compete with Clairol and L'Oreal. The price can be maintained. Revlon is consistent about putting a lot of coupons in our store ads and that's when they get the sales," Sorenson said.

"The whole ColorStay name is huge. It's big and the impact will be huge [in hair coloring]," said a broker for Ferolie, Montvale, N.J., who asked to remain anonymous.

Revlon expects "to disrupt the balance of power" in the hair coloring category," said Charles Busta, Revlon's executive vice president and general manager of its Beauty Care Group, U.S.A.

Even though the category is up 5.2% to $994 million for the 52 weeks ending March 30, 1997, according to Chicago-based Information Resources' latest InfoScan data, Busta says the premium segment, which represents about 62% of category sales, has been lackluster due to lack of competition.

Like Revlon's long-lasting lipstick formulation that launched the ColorStay brand in 1994, ColorStay Haircolor's point of distinction is that it won't fade between applications. "Stays In Stays Alive" is the motto. "This answers a key need of haircolor consumers," said Eileen Glynn, Revlon's vice president for beauty care marketing.

It's also the first creme-gel formulation on the mass market for easy, no-mess application, Glynn added. The product will be priced at $6.99.

The advertising and promotional campaign, which breaks in the fall, will consist of print and broadcast advertising. In print there will be two-page spreads and four-page inserts with a pop-up coupon. The brand will also be promoted in freestanding inserts. A try-it free offer will be featured on-pack. Next year, Revlon will look at cross-promotional opportunities with its ColorStay cosmetic franchise.

This represents a particular opportunity for the supermarket channel which only has an 18% share of the category, said brokers. "By putting ColorStay in haircolor and by advertising it, the consumer is going to look for it in food now," said rolling.