Chemical Reaction, by Pete Born – Women’s Wear Daily
COVER STORY
Halston’s $10 M Catalyst
New York—With packaging right out of the chem Lab—test tubes, flasks and beakers –Halston Borghese is projecting $10 million in business for Catalyst for Men, its new Halston scent. It’ll be launched next May, in time for Father’s Day.
New York—Last May, when Catalyst was launched, it was the first time in 17 years that the Halston name made a major splash in the fragrance market.
Halston Borghese Inc. is ready to take its second step next spring with Catalyst for Men.
But this time, the company will be more methodical in mapping its strategy. Even the packaging—reminiscent of test tubes, beakers and flasks—will smack of laboratory analysis and scientific method.
The spring launch of Catalyst was an exclusive with Saks Fifth Avenue. The women’s fragrance is being rolled out to 600 department store doors this fall, and expects to top out at 800 doors this year.
David Horner, president for North America at Halston Borghese, said he plans to introduce Catalyst for Men in a different way: through a series of regional exclusives with department store retailers.
Although discussions with stores are still in the early stages, Horner estimated that Catalyst for Men will be launched in 300 doors next spring, then roll out to 500 more in the fall.
That total is roughly the same as the women’s fragrance, but the men’s distribution would be more targeted to specific retailers in particular markets, Horner said.
“We changed our strategy for Catalyst for Men,” he said. “It’s different than for Catalyst.”
He identified Saks as a probable launch store on a national basis, although discussions have just begun with store executives. Horner plans to be making presentations over the next month.
Horner said he intends to seek launch partnerships with dominant department stores in different markets. He cited Dayton’s, Hudson’s & Marshall Field’s plus select divisions of May Department Stores Co. as possible regional partners.
Allen Burke, divisional merchandise manager of DH & Field’s, said a strategy combining a high visibility specialty retailer on a national basis with powerful regional department stores seems like “a plan that makes good sense.”
Steve Bock, vice president and divisional merchandise manager at Saks, said Calayst ranked in the store’s top 10 for spring, then slipped to the top 20 this fall after its distribution was widened, although it continues to do well.”
Bock said Saks is “very enthusiastic” about the new scent, and described it as “very different.” Launch details are still under discussion.
Although the product is still under development, the basic ideas have been fleshed out.
“The name Catalyst has something to do with a chemical reaction,” said designer Marc Rosen, who also did the Catalyst packaging. “This is what made me think of the beakers and test tube stands.”
“That’s what men and women are about—chemistry.” said Horner.
He noted that different products will come in the differently shaped packages. A silver stand holding three 1.7-oz. test tubes will contain an eau de toilette, after shave and a moisturizing cream with an SPF of 6. The cream will be marketed as a protective product to be worn outdoors, said Horner.
The trio of test tubes will be sold as a $35 value set.
The flask will hold 3.4 ounces of eau de toilette and the beaker will hold the bath gel, Horner noted, adding that a miniature flask is being produced for fragrance sampling.
Horner said he is also toying with an idea of coloring the liquids green or blue for a soothing effect.
Another idea under consideration is to manufacture the product with liquid components separated into blue and white that would blend into pale blue after being shaken.
The items will range from $30 for a 3.4-oz. moisturizing after shave balm to $47.50 for a 3.4-oz. spray. A 1.7-oz. eau de toilette spray will be $35, the same price as a 3.4-oz. after-shave.
Competitively speaking, the pricing is higher than Aramis and Ralph Lauren’s Polo and below Lancaster’s Cool Water, Horner said.
The fragrance, being developed by Firmenich, is 90 percent finished, he said. He described it as a fresh spicy scent.
In plotting distribution, Horner’s aim is to find partners. “We would rather be in fewer doors and be more important in the long term,” he said. “I want to be careful that we and the accounts understand what is required.”
Horner maintained that the only way to develop a brand beyond the launch period is to form strong partnerships with retailers.
“Exclusive distribution by market and intensification by brand are the way of the future,” he said.
Referring to the sharpened competition for shelf space, triggered by the abundance of new launches this year, Horner noted retailers have become choosier.
“Everyone is not will to make commitments until they see who is spending the most money with the newest thing,” Horner said. “We are not building classics any more.”
His long-term goal, Horner said, is to double his fragrance volume to $100 million by 1995. That would include Halston’s 1975 signature women’s fragrance, the two 1976 men’s scents, Z-14 and 1/12, Catalyst and Catalyst for Men, plus the Nautica brand that the company acquired in December.
Although the men’s line is still in development, Horner said the fragrance will probably be introduced in May to get a jump on Father’s Day business.
He declined to discuss numbers, but sources indicate that the firm is shooting for first-year wholesale volume of $10 million, compared with the Catalyst women’s plan of $12 million this year. The promotion and launch budget for the men’s fragrance also is estimated at $10 million. That figure includes funds for co-op TV, Horner said, noting that the women’s fragrance was not advertised on television.
He maintained that a TV campaign, which probably will be broadcast in 10 to 12 markets, is more effective in the men’s fragrance market.
“There’s a dual market,” he said. “Both women and men purchase the fragrance and react to the commercials. There’s more bang to the buck.”
Horner noted that the firm probably will use about 30 million Scent Seal inserts—as it had for the Catalyst launch—in store catalogs and magazines. The company also will hand out vials on cards, deluxe replicas of the eau de toilette bottles and scented blotters.