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Olay.pdf
- 1. Facelift At Olay FaceliftAt Olay Facelift At Olay Himanshu, Mark Himanshu, Mark Merghani, Mona, Merghani, Mona, Sapna Sapna MBA 661
- 2. PROCTER & GAMBLEIN OUR LIFE
- 3. SK-II a luxurybeauty brand in Japan Pantene and Head & Shoulders shampoos Olay Skin care $9 billion in annual sales. P&G Beauty Presenting P&G Beauty Product
- 4. Global Skincare in2017 The global skincare market grew steadily from $98 billion in 2012 to $128 billion by 2017. The largest skincare market was China($26.9 billion).The U.S.($17.9 billion). China was also the fastest-growing market at 8.7% annual growth,followed closely by South Korea(7.4%) and theUS(6.7%).
- 5. France was thelargest exporter of skincare products to China,primarily through LOréal and Lancôme. The second-largest exporter was South Korea,a skincare innovation hub. In 2016,among Chinese consumers, L’Oréal had 4.7% market share followed by Mary Kay with 4.2%,and Olay with 3.3%. the reality of China’s modern beautv-products consumer who increasingly buys makeup and skincare items while traveling abroad or shopping online. China The World’s Largest Skincare Market
- 6. Skin Care -US Market $ 17.7 Billion in 2016 70% of adults occasionally using facial cleansers 2011 – 2016 Growth (6.7 Billion Annual) Industry Revenue 70% 30% 70%
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- 8. PRODUCTS ON MARKET Neutrogena Hydration products,in millenniums. Aveeno for natural ingredient 26% Market Share 1 Approaching Millennium 2
- 9. Magazine and TV Sephora, Ultra Indie Brands (Independed, Innovative, Purposful Brands) Walmart , Costco,Target Direct to Consumer ( DTC) Acne Treatment ( Roden + Field) Customer Approach
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- 11. Initially niche player,Korean brands entered Walmart in 2016 when mass retail introduced Masqueology sheets. 2015-2016 US sales increased to 27% in skin care. Innovative products such as sheet masks and essences, packaging, branding and mists concepts captured attention. Advertising the ingredients like retinol, maple syrup and snail mucus. In 2014, SOKO glam introduced 10 step korean skin care routine from (Step-1) eye removal makeup to (Step-10) applying night cream which broden awareness among the US consumers about variety of skin care products. Lead to growth of DTC brands like glossier and roadan+fields.
- 16. TOTAL EFFECTS included active ingredientsuch as vitaniacin, 3 part vitamin formula designed to reduce pimples. in marketing olay stated it would "fight 7 signs of aging"which included wrinkles,rough skin, uneven tone, dullness, visible pores, blotches,age spots and dryness.
- 17. Olay marked halfprice than other brands Lancome, estee lauder and clinique. In 2000, launched daily facials, which were disposable cleaning cloths designed to remove make-up, oil and grime. $60 facial to 60-sec facial everyday.
- 18. Launched in 2003,higher price $19.99. The messaging used to promote reflected the rising popularity of plastic surgery. The product promised to fight wrinkles without such drastic measures as chemical peels,cosmetic surgery or laser. L‘oreal became the competitor advertising “ Botox in a bottle” in 2005 $1 billion in global sales made best skin care brand in US. Regenerist
- 19. Masstige & X-Pro Totaleffect and regenerist elevated olay's positining to a mass prestige level brand. This made cemented olay as a premium offering in mass environment. The rejunivation of the skin care category in the mass channel encouraged retailers to expand the shelf space for skin products. Higher marigins grew to sales overall. Olay competed with L'Oreal, Neutrogena and aveena in mass market and clinique, estee lauder and lancone in prestige category Olay introduced X-Pro which is proffessional anti aging line in 2008. it contained the most sophisticated formula designed by dermatalogist the kit caused $60 causing retail sale to clock $100 million in fist year.
- 21. 144 New SKUs(Sub brand ,brand) A Wide range of products To Compete with DTC Strategy (Cost leadership) What went wrong?
- 22. Strategy (Cost leadership) 144 skuscreated confusion Consumers often were not sure which add. they saw End up not buying anything
- 23. Strategy ( FocusedAnti- aging ) Millennials perceived as a brand for their mother or grand mothers Retailers faced competition against natural and new brands as well as DTC brand for younger consumers This Resulted in reduced self space for the products in retailers such as walmart
- 24. Pressure to reachyounger generation let olay to launch a separate line in 2013 called “Olay Fresh” This kit had combination of three products Cleanser, Moisturizer,lotion, and a brush. This produced connected with the younger consumers But was not enough to offset the losses of other products and popular enough to get self space and advertising Strategy ( Focused Fresh Effects)
- 25. What is Olay’sIdentity ? Adding a new line of Fresh Effects even confused the consumers as what is the identity of the brand. New Leadership lead Olay to try different strategy Cost leadership or reduced price Introduction of new Products Incentives to retailers Increased media budget Nothing worked to save on the declining sales of olay
- 26. Olay’s add campaigns Agenda “YourBest Beautiful” 01 “Challenge What's Possible” 03 "Anti-aging" to "Ageless" 04 “Love The Skin You are in” 02
- 27. Identity Crises 1 The Brandspoint was loss 2 Olay got so to big and too complicated 4 Competing with DTC and Korean Brand 3 Consumers were not sure what olay is anymore 5 Who Is Olay?
- 28. Strategy, Structure & Rivalry Porter's DiamondModel Factor Conditions Related & Supporting Industries Demand Conditions
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- 35. Target younger womenTarget younger women Optimizing the product portfolio
- 36. Expand product portfolio Reduce numberof SKUs Choosing the right customer segment
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