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January 2008

Rogaine Seeks Place in the Morning Routine

Jan 2008

Since its introduction in 1988, Rogaine has always been a bit of a punch line, not only for what it does (help grow hair) but also for its sales results, which never quite (insert bad hair-growth pun here).

But 2007 was a breakout year for Rogaine. A mousse-like version was introduced in 2006 and proved far more popular than the traditional liquid formulation, which comes in a bottle with an eyedropper. The foam version is dispensed by pressing a nozzle, a convenient feature for a product meant to be used twice a day.

Now comes a new marketing campaign for Rogaine that tries to reposition it as an everyday bathroom essential — like deodorant or toothpaste — rather than a medication. “Your daily grooming routine probably already includes brushing, shaving, maybe more,” reads a promotion on the Rogaine Web site. “Take a look at what adding just a few minutes more with Men’s Rogaine Foam can do.”

The campaign tries to encourage younger men to start using Rogaine before hair loss is evident, since the product is most effective when used on thinning patches rather than outright bald ones. And for the first time Rogaine is directly catering to gay men by purchasing spots on Logo, the gay-themed channel owned by Viacom.

Unlike many ads for hair growth or replacement products, the Rogaine spots do not show “before” and “after” images. Rather, the themes are convenience and efficacy: with assiduous use, the message goes, Rogaine can not only regrow hair but keep remaining hair out of the shower drain. (The slogan: “Use it or lose it.”)

“In the morning it’s all about get in, get out,” begins a commercial by BBDO in New York that began appearing recently. It shows a young man getting ready for work by shaving, showering, brushing his teeth and, yes, rubbing a dollop of foam into the crown of his head.

Rogaine was developed by Upjohn, now a division of Pfizer, but was bought in 2006 by Johnson & Johnson, which created the product’s new identity around the foam version.

“The key here is compliance, and the foam experience is much more something that’s going to fit into lifestyles,” said Meghan Marschall, a Johnson & Johnson spokeswoman. By talking to men as young as their early 20s, “we’ve expanded our target audience by a roughly a decade,” she said.

The television spots, introduced Dec. 31, are running on ESPN (television and radio) and traditional prime-time series like “CSI” and “Law and Order,” as well as on “The Tonight Show With Jay Leno.” Johnson & Johnson would not say how much it was spending on the campaign.

The company is also putting ads on dry-cleaner hangers, hoping to remind men of Rogaine while they are getting dressed. The idea is to reach them "during their morning routine, when they’re the most image-conscious," Ms. Marschall said.

In 1968, Upjohn first tested minoxidil, the generic name for Rogaine, to treat high blood pressure, but began hearing reports of an odd side effect: Patients taking the drug reported that hair was sprouting on their backs, cheeks and heads. Some researchers saw a silver lining and began developing a topical form of minoxidil for the scalp.

Rogaine was introduced in 1988 as the first drug approved for baldness by the Food and Drug Administration. Financial analysts went wild for it, predicting $500 million in annual sales.

But the public was less enthusiastic. Rogaine has been available over the counter since 1998, but annual revenue, which was $47 million in 2002, declined to $31 million in 2006, the year Pfizer sold the product, according to the market research firm Information Resources (which excludes sales at Wal-Mart.)

But in 2007, sales suddenly jumped more than 25 percent, to $42 million. Johnson & Johnson sees a clear link between the introduction of the foam version and the spike in sales. Indeed, the women’s version of Rogaine is available only as a liquid, and slightly fewer women have been buying it, according to Nielsen data. (The manufacturer says women should avoid the men’s formulations, which could cause them to sprout facial hair.)

As for the two versions of Rogaine for men, the color schemes are the same on the labels, but the foam has a sporty scent, whereas the liquid smells slightly medicinal.

Actors in the new spots have only a hint of hair loss, which is evident during a brief overhead view of them applying Rogaine. “I think it’s very similar to what you see with women’s anti-aging skin creams,” Ms. Marschall said. “They used to target women with visible signs of aging, but now women in their 20s are buying the products even before they have any signs of aging.”

Such an approach, she said, is “a big move away from Rogaine treating a condition to being part of an everyday grooming routine for men who want to look their best.”

Gersh Kuntzman, author of “Hair! Mankind’s Historic Quest to End Baldness,” said that marketing to men before they develop what he calls the “flesh yarmulke” makes sense. (Johnson & Johnson does not recommend Rogaine for bald spots beyond the circumference of about a soda can.)

“The whole key to Rogaine is getting these guys to use the product before they even acknowledge in their own minds that they need it,” Mr. Kuntzman said. “The thing with baldness is when a guy thinks of himself as bald, it’s too late. Then he’s going to accept baldness and just be an old bald guy or try a lot of coverup products.”