NEW YORK — Jennifer Lopez’s second fragrance — and its accompanying media plan — proves that Lancaster isn’t willing to sit still with its hottest license.

In fact, Still Jennifer Lopez, the second Lopez scent from Coty’s Lancaster Group Worldwide division, could end up outselling its popular younger sister — giving Michele Scannavini, president of Lancaster globally, and Bob Cankes, president of Lancaster in the U.S., a strong base upon which to continue building Lancaster into a fragrance powerhouse in the U.S.

Still is being positioned as a glamorous, sophisticated scent that appeals to a different consumer than Lopez’s first fragrance, Glow by JLo. “Jennifer has multiple facets to her personality, and this second scent illustrates that,” noted Catherine Walsh, senior vice president of marketing for cosmetics and American licenses at Lancaster.

Olivier van Doorne, worldwide creative director of Select Communications who directed the advertising campaign, noted that in the ads for the first fragrance, the visual was “almost angelic,” while the campaign for Still is “vulnerable and glamorous.”

“Jennifer is a chameleon —?she gives you a lot to play with,” said van Doorne, noting the team shot more than six possible ads, each reminiscent of an old-school film star. “We almost had too much to choose from,” Walsh added with a laugh. The double-page image chosen features a blonde Lopez draped seductively over an armless couch, à la Marilyn Monroe, while the single page is of a seductive Lopez with her skirt swirled around her body. Both poses are shot from below and the finishes are soft, giving a dreamy, sensual vibe. The campaign was shot by Nick Knight.

“We went to Jennifer with words like ‘ambitious,’ ‘seduction’ and ‘sensuality,’” noted Walsh, who added the working name for the fragrance was “Legend.” The team brought dozens of names to Lopez, but Still was the one that hit a strong chord with Lopez, added van Doorne. A poem was included on creative boards during the development of the fragrance, one line of which became the tag line for the advertising: “In the eye of the storm, I am Still Jennifer Lopez.”The target age for Still also differs sharply from Glow by JLo’s as well. While Glow by JLo’s target was a 15- to 25-year-old, Still is aimed at a woman 25-plus, with many users expected to be in their earlyto mid-30s, like Lopez herself.

The juice, developed by Lopez and Quest International, features top notes of sake — at Lopez’s suggestion — as well as white pepper, mandarin and Earl Grey tea; middle notes of pink freesia, honeysuckle, orange flower, rose and wild jasmine, and base notes of sandalwood, musks, amber and orris.

Pricing for the range is 10 to 15 percent higher than JLo’s price points. In the U.S., the range will include eau de parfum sprays in 50-ml. and 100-ml. sizes, $49 and $65 respectively, as well as a 200-ml. shower gel for $25 and a 200-ml. body lotion for $30. In selected countries — not including the U.S. — a 30-ml. eau de parfum spray also will be available.

The bottle, a rounded shape that is faceted all over, is intended to resemble a jewel, noted Walsh. A grayish rose-beige, the bottle’s logo is printed on the back so that it is viewed in front through the facets. The logo is in a deep rose. And since jewelry is such a strong part of Lopez’s identity, a faux-diamond ring is a part of the package, placed between the top of the bottle and the cap.

The U.S., which has accounted for about 50 percent of the Lopez business since its launch, will be the first to get the new fragrance. It will be launched in limited distribution in Japan around the holidays and in the rest of the world in spring 2004.

The fragrance breaks in October in most of its 2,000-door U.S. distribution, although two stores will get it early —Robinson’s/May on Sept. 14 and Macy’s Herald Square on Sept. 21. “Macy’s Herald Square was our largest door for Glow by JLo and we expect it to be the largest for this one, too,” noted Cankes.Advertising will be produced as single pages, double-page spreads and four-page spreads.

While none of the executives would discuss sales projections, industry sources estimated that Still could do upward of $50 million at retail in its first year in the U.S. Sources also estimated the brand could spend as much as $15 million on advertising and promotion in Still’s first year. Sampling also will play a major part, with in-store sampling, as well as upward of 15 million scented strips and 25 million blow-ins planned.

Cankes was quick to point out, however, that there would be no ramping back on support for Glow by JLo, either in store or in advertising. In store, the two fragrances will be merchandised differently to highlight their separate positionings: Glow by JLo will continue to be sold at the fragrance bar in cases, while a separate display wall for Still will be installed in stores.

While all of the executives hinted at much more to come from Lopez’s beauty collection, no one would get specific, although Scannavini did note the intention is to build up Lopez’s product range in the years to come. The brand is rumored to be working on a color cosmetics collection and a body line.”

— Julie Naughton

Valentino, UCI Part Ways

MILAN — Valentino has ended its fragrance and cosmetics licensing deals with Unilever Cosmetics International. The move, effective immediately, ends a relationship between the companies dating back to the Eighties.

Neither Valentino or Marzotto, which bought Valentino in 2002, could provide further details on the future of the brand’s beauty business. It is not clear whether Valentino wants to strike another licensing pact or aim to produce beauty products in-house. “We’ll evaluate what to do at this point,” said a Marzotto spokesman.

— Amanda Kaiser

Avon Earnings Up 10.6%

NEW YORK — The winds of change were favorable for Avon Products in the second quarter.

Citing a double-digit sales increase in international markets and a weak dollar, Avon reported Wednesday a 10.6 percent increase in net income for the three months ended June 30, and the direct marketer of beauty products elevated its earnings forecast for the year.Andrea Jung, chairman and chief executive officer, commented, “Certainly, as we move into the second half, we see a powerful combination of excellent business fundamentals, and for the first time since I have been the ceo, a tailwind is behind us versus the headwinds we faced over the past couple of years. Everything is working for us.”

Profits totaled $171.5 million, or 71 cents a diluted share, for the quarter, beating Wall Street’s consensus estimates of 69 cents, as well as the expectations Avon issued last month for a mid-single-digit gain. In last year’s quarter, Avon reported profits of $155 million, or 64 cents a diluted share.

The earnings upside reflects almost 2 cents of stronger operating results due to more favorable foreign exchange rates than previously forecast, and just more than 1 cent from a lower effective tax rate effected in part by a recent tax audit settlement.

Revenue for the quarter rose 8.3 percent to $1.64 billion from $1.51 billion a year ago, its strongest quarterly dollar-denominated sales growth in three years. Excluding exchange rate fluctuation, sales were up 10 percent, marking the fifth consecutive quarter of double-digit growth in local currencies.

Sales for the period were driven by a 14 percent increase of beauty products, up from an 11 percent increase in the first quarter, reflecting a 29 percent increase in skin care sales and a 14 percent gain in the number of active representatives.

Jung was especially pleased with the strength in beauty sales, which accounted for 68 percent of total sales, up from 64 percent last year.

In the U.S., its largest market, Avon’s sales grew by 3 percent, in line with the company’s expectations, while operating profit was flat versus the prior-year quarter. Sales were driven by a 3 percent increase in units and a 4 percent rise in active representatives. Beauty sales were ahead 11 percent on the strength of new product launches, including Cellu-Sculpt and an aerosol version of Skin-So-Soft.

Internationally, sales were up 12 percent. European sales shot up 36 percent in dollars and 22 percent in local currencies, helping operating profits expand by 48 percent, driven mostly by gains in units and active representatives of 16 percent and 26 percent, respectively. In Latin America, sales were flat in dollars, but rose 15 percent in local currencies, with nearly all major markets in the region contributing double-digit increases in local currency sales and active representatives. The region’s dollar operating profit rose 10 percent. In the Pacific region, sales rose 5 percent in dollars and 2 percent in local terms, with strong growth despite an estimated 6 percent sales drop due to SARS.“Clearly they have turned around,” commented William Steele, a cosmetics and personal care products analyst with Banc of America. “This is a company that has improved dramatically since [Jung] has taken over as ceo. The company has strong top-line and bottom-line growth and cash flow productivity and those are the metrics investors look for and why the stock has been performing so darn well.”

Accordingly, shares of Avon rose 43 cents, or 0.7 percent, to close the day at $64.13 on New York Stock Exchange trading.

Avon raised yearly profit guidance to range between $2.60 and $2.65 a share, versus $2.22 in 2002 including a 10 cent a share charge in the third quarter. In June, guidance called for EPS of at least $2.55. The current consensus estimate is $2.57.

In the first half, earnings strengthened 7.6 percent to $270.4 million, or $1.13 per diluted share, versus $251.3 million, or $1.04, reported in the comparable period last year. Sales for the six months also rose 7.6 percent to $3.11 billion from $2.89 billion.

— Jennifer Weitzman

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