POP CULTURE STRATEGY FUELS BAND-AID BRAND
Company sees how decoratives help it stick to success
It’s a brand name so synonymous with a product that few people call it by anything else.
Just a few years ago, though, Band-Aids had lost their stickiness in the U.S. adhesive bandages market, which had been flooded by alternative options.
But thanks to a strategic campaign to rehabilitate the aching Band-Aid brand — with a little help from Elsa, Anna and Yoda — Johnson & Johnson has stabilized sales and increased market share.
The 95-year-old Band-Aid brand first got decorative options in 1956 — the patriotic Stars & Strips — and has had many variations over the years.
But Johnson & Johnson’s decision to expand decorative offerings this year has fueled renewed interest.
The reversal of fortunes for the Band-Aid brand correlates directly with a big bet in 2015 on decorative adhesive strips, featuring characters from the Disney animated movie Frozen and the Star Wars franchise.
The company does not reveal revenue data for the Band-Aid brand, but Johnson & Johnson worldwide group chairman Sandi Peterson told investors in July that Band-Aid sales rose 6.3% in the first six months of 2015 and gained 2 percentage points in market share, compared to the same period in 2014. That came after the introduction of Frozen around Halloween 2014 and Star Wars in February 2015.
Although some Band-Aid box- es still boast about “superior breathability,” “flexibility and comfort” or “one-step infection protection,” the decorative boxes feature the Band-Aid brand name and little else but a splashy image of a fictional character, such as C-3PO, Dora the Explorer or Disney princesses.
Michael Marquis, general manager for J&J’s oral care, wound care and health essentials brands in the United States, said decorative Band-Aids now account for 20% to 30% of sales.
“As opposed to talking to consumers about the specific merits of our stickiness, our fabric or the different features of the product, a lot of what we’ve been realigning our message around is, how do we connect with people around their passion points?” Marquis said in an interview. “That’s how people live their lives is around the things they’re passionate about.”
J&J’s market share in the broader category — defined as first aid, tape, bandage, gauze and cotton — was 44.8% in the 52 weeks ending Nov. 1, with revenue of $377 million during that period, according to research firm IQI.
That’s 10.2% higher than sales during the calendar-year 2013, when market-share hit a low of 43% market share, according to IQI. That category also includes J&J’s Neosporin brand and other products.
Marquis emphasized that the brand has also had success with other strategies, including a “tough strip” variation and marketing efforts on cooking shows and magazines, under the premise that amateur chefs are prone to cuts in the kitchen.
The Frozen Band-Aids have been a particularly big hit, prompting countless socialmedia photos of people showing off their fingers wrapped in bandages featuring the lovable Olaf or the spunky Anna.
Greg Marcotte, a high-school math teacher in Worcester, Mass., said his 8-year-old daughter likes the Frozen Band-Aids, while his 10-year-old daughter prefers the superhero option.
“I almost feel like they’re a fashion accessory,” Marcotte said, adding, only half jokingly, that his kids “enjoy getting hurt a little bit more.”
Johnson & Johnson boosted its marketing budget to fortify Band-Aid brand’s appeal to what Marquis calls the “chief care officer” in the home.
The company increased its advertising spending on the Band-Aid brand by 9% to $8 million during the first six months of 2015, compared to the same period in 2014, according to Kantar Media.
Millennial parents, one of J&J’s targets for the Band-Aid brand, are seeking “not only the performance attributes but they also want the emotional qualities” in a brand, Marquis said.
That emotional connection had frayed in recent years. Johnson & Johnson had been losing sales to private-label competitors as customers perceived parity in choice for adhesive bandages.
“That’s how people live their lives is around the things they’re passionate about.”
Michael Marquis, Johnson & Johnson