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Marketing Analysis Of The Product Olay Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 3017 words Published: 1st Jan 2015

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The Procter & Gamble

As a consumer goods company P&G had global, on the ground presence in about 150 countries, more than 300 brands manufacturing, distribution and selling acclivities going on day to day basis.

P&G compete a wide collection of categories ranging from baby care, household care, fabric care, beauty care, food and food care, per care and as well as health care.


The trust by the women over fifty years made Olay as the world wide leader in skin care products. The entrepreneurial and innovative chemist Graham wulff, from South Africa, in the early 1950s developed the formula for Olay. In next followed twenty years, graham along with his business partner Mr. Jack Lowe, put up the company that they both shaped to market Olay hooked on successful international organization with a 10 million dollar turnover a year.

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When Mr. Wulff functioning for the Industrial Development Corporation (IDC) in South Africa in the early 1950’s. As he was a productive inventor, he set up a laboratory at his home, at his home he used to develop products at his free time. He determined to formulate a product which extensively cares for skin, as his attention turned to skin care.

The brilliant advertising and marketing intuition of Mr. Jack Lowe’s has invented the first name as Oil of Olay, designed the label and wrote on the pack copy. Jack wrote the advertising copy to the magazines and newspapers as tips and beauty hints with suggestions on how to use the product. Then Adams National Industries formed by both the partners Graham and Jack to market Oil of Olay.

A high demand made to the product as Oil of Olay made remarkable to success in the South African market. The extremely effective style advertisements proved by the ‘reader’. In 1985 Procter & Gamble acquired the Oil of Olay making Oil of Oaly from strength to strength.


Olay has offering a multitude of 11 product line, some of them are …

“Olay Professional Pro-X”

“Olay Professional Pro-X is a scientifically advanced line of skin care that gives you younger-acting, younger-looking skin in 28 days. Guaranteed.* It works by resignaling your skin to repair the moisture barrier and boost the surface-cell turnover rate. The result? A new anti-aging breakthrough that’s potent, proven, and professional.”

“Olay Definity”

“The face of anti-aging will forever be redefined. Go beyond lines and wrinkles. New Olay Definity transforms the look of brown spots, dullness and uneven skin tone. The result? A look that’s highly defined. Luminous. More flawless.”

“Olay Regenerist”

“Olay Regenerist, formulated with the exclusive Olay Amino-Peptide Complex, beautifully regenerates skin’s appearance, without irritation, by renewing its outer layer one cell at a time. The result is skin that looks, feels and behaves more like new skin.”

“Total Effects”

“The key to the success of Total Effects is its exclusive VitaNiacin formula. Proven effective in fighting multiple signs of aging, this exclusive combination helps rejuvenate and beautify your skin while improving the condition of the skin’s moisture barrier.”

“Olay Complete”

“Olay Complete moisturizers give your skin all-day moisture, vitamins and UVA/UVB protection in a lightweight formula for healthy skin every day. Suitable for all skin types, Olay Complete matches your skin’s needs with its formulas for regular, sensitive, combination/oily or extra dry skin.”

“Olay Hydrate & Cleanse”

“Olay Hydrate & Cleanse dissolves oil, makeup and dirt while a mild surfactant gel matrix helps to sweep away impurities for a clean, rinsed feel. Formulated with an emollient cleanser and skin hydrators, Olay Hydrate & Cleanse leaves skin feeling and looking beautifully healthy.”

“Daily Facials”

“Daily Facials gently clears away oil, dirt and makeup down to the pores, leaving your skin refreshed, rejuvenated and beautifully clean. From quick, convenient cloths to double-sided discs to powerful scrubs, masks and more, Daily Facials has a cleansing product perfect for you.”

“Olay Clarity”

“Life can be stressful, but it doesn’t have to get under your skin. Olay Clarity is the first line of Olay cleansers with a dual-hydroxy formula to actually help your skin resist blemishes aggravated by stress and hormones, day after stressful day.”

“Olay Body Lotion”

“Olay Body Lotion products don’t just moisturize. They actually strengthen the skin’s natural moisture barrier to prevent dry skin over time, thus breaking the cycle of dry skin. The result is a strong, essentially impermeable moisture barrier that protects your healthy skin from the elements. With regular use, skin stays hydrated, supple and radiant – even if you skip a day.”

“Olay Body Cleansing”

“Olay’s moisture-rich shower products will take your shower to a whole new level with luxurious moisturizers and skin-loving cleansers. There’s one that’s just right for every skin type. Shower your body in skin-loving cleansers and moisturizers from Olay today.”

“Olay Touch of Sun”

“A moisturizer with a touch of sunless tanner, Olay Touch of Sun gives your skin a radiant, sun-kissed glow. No streaks. No orange coloring. No sun required.”

Source: www.docstoc.com/docs/14719894/Oil-Of-Olay-Products

Skin Care Market:

Skin care products consumption grew over the years of the review period. Women are spending more money to get a good look. For a better and younger look they are willing to try new products. to maintain consumer loyalty and loyalty, the companies in skin care industry adopting the latest technology and making the revolutionary substances to new products. The improved number of working women equates the women spending more money to spend more on their skin care, skin care become one of the favorite path for expenditure.

Brand Strength:

The introduction of Skin Tone Analysis System (STAS) by P&G’s Olay brand in selected stores enables Olay beauty consultants with a proper training to analyze customer’s skin type as well as perform consultations to suggest the best product to meet their needs. Aimed at the clinical dermatology market created at CDP originally development of technology is STAS. STAS encourages brand loyalty increasing the basket spends, as it is powerful sales tool providing the customers along with graphical demonstration of the science that backed the range of Olay.


Olay Strenghts:


Olay is made available widely in may retail stores and also made available online as well. Olay has innovated many product lines in the skin care segment to reach a different and a large variety of consumers world wide who have their own set of needs, and most importantly Olay is a very long established company under Procter & Gamble’s hood which is one of the largest companies and globally dominating.

Olay has a spread widely all over by installing kiosk’s in malls and retail stores through out and had achieved a large number of customers who are quite happy with the positive results of the product. The brands range from high end to low end, respectively, to reach different demographics. Olay does have free samples on their websites, which does allow users to try out their products without any obligation to them initially, making it an attractive offer. Nonetheless, this is a skin care line specifically geared toward anti aging prevention in women.

The main ingredients of Olay are pentacide peptides that helps in reduction of wrinkles and make the skin look younger ,because of its miracle treatment success the consumers are quite satisfied with its results thereby making them buy the product again and again.

Olay weaknesses:

Some of the issues found in Olay ingredients are that there are no results from the clinical trials which they had posted for any of the product lines in their website. And also the unavailiabilty of personal testimonies makes it difficult to believe all the claims of their products because the reviews given on them did not have names or pictures. It was hard be convinced of the credibility of these type of claims when more details were not provided with the result that each person had using the skin care line. Another problem that occurred was that customers are not able to directly purchase Olay through Olay.com, making them have to go to another source. The odds are that you have heard of Olay before because it is so well known as a big name brand. This product line has a lot of money that has gone into it, but they are still lacking the conclusive information necessary with the support of clinical evidence to show what their products really have to offer.  One more issue could be the fact that this line targets women specifically who are middle-aged and also some of the main ingredients used have been contentious in the past. This includes the use of additives like glycerin, which have been argued will remove moisture from the skin instead of adding it to the complexion. Olay would do better to potentially focus on more powerful active ingredients in their skin care line to attract users.

One of the main drawback of Olay is that its priced very high because of which not many customers buy the product as a result of which olay looses its customers to its competitors like Garnier, L’oreal and others who are priced according to the mass market consumers.


There are significant benefits to a successful brand extension:

“Identify logical new product possibilities”

“Capitalize on the paid-for equity in established brand names”

“Enable a company to enter new categories at significantly lower cost”

“Reduce the risk of failure given the already established awareness and trust”

“Create a positive synergistic effect with the efficiencies of umbrella branding and advertising”

“Reinforce the consumers perceptions of the parent brand name”

“Bring news to existing brands when there is otherwise nothing new to say about them”

“Brands are a constraint to enter into new variants.” Brands (not production capabilities) are the prime barrier to entry into most categories. Many companies could make a cola, but only Coca-Cola owns that brand. As a result, well known existing brand names can be the way for a company to enter a new category that otherwise would be impossible. Our brand extension study for Reese’s identified peanut butter as a logical brand extension. Hershey could not have efficiently entered the peanut butter category without the Reese’s brand. In effect, brand extensions allow a company to capitalize on the “previously paid for” recognition, reputation and leverageable equity of its brand names. With the prohibitive cost of establishing new brands (just ask ex dot-coms), brand extensions save companies money. When done correctly, they also reinforce the properties of the existing parent product through synergy and bring news to the brand. It is not uncommon to find sales of the parent product rising after the launch of a successful brand extension.

“Notice how was the Olay brand introduced into the soap business”:

source: http://www.brandextension.org/benefits.html

Olay has launched a various types of skin care products so as to extend the brand into different variants in the skin care segment very successfully there by validating its brand effectiveness prevailing on its consumers minds . The procedure of extending a brand also has other potential benefits. In recent years, the UK’s cosmetics market has seen many brands launching exclusive and expensive lines after gaining some of the market share. Examples of this include Procter & Gamble’s Olay skincare line.Olay on itself is a great example of a brand which recognized a need for multi-branding, which let them avoid one brand cannibalizing the market share of another as well as reserved more valuable space on stores shelves for their products. In November 2008, they launched a range of premium skincare products under its Olay brand. The Olay Pro-X range is aiming at mass market but is being marketed as a luxury product at the same time. This is closely related to P&G’s desire to re-position the brand for high-end market customers. The Pro-X series is yet another additional line in ‘Olay’s family’ and it benefits from the fact that the awareness of core brand can reduce costs. Olay has been an established and popular brand so its name will increase the willingness of consumers to try new brands. According to P&G spokesman, “Pro-X is aimed at customers who are more likely to buy mid- to premium-range skincare products from department stores”. (Marketing Week, 30.10.08). The fact that Pro-X is an extension, not a new brand, makes it much easier for distributors and retailers to agree on distributing and selling it as they don’t need to worry about potentially risky aspects, e.g. safety issues. Customers’ perceived risk of purchase also becomes lower than in the case of a completely new brand.

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P&G first did a research if the online marketing would benfeit the brand and wether if it will influence the minds of the customers as they wondered that wether the payback is better than the other media choices in terms of influencing sales, they then focussed on “effectiveness” and have come up with a strategy as ., does online advertising affect sales? If it did, then how can the marketer achieve sales in the most cost efficient manner and it included the best frequency, targeting and other dynamics. P&G started with an ample frequency of 40 ads per consumer over 8 weeks this was way too past the point making it expensive, however it was very effective and then the next step they took was to make the brand efficient and they cut the frequency down and entered online there by making a tremendous impact on its sales.



According to the source brand value mainly on the financial performance and the brand market performance and olay has very efficiently balanced both its financial and the brand’s market performance.

Olay is Britain’s bestselling skincare product, according to Marketing’s Biggest Brands survey. However, year-on-year sales were down by 11% in the 12 months to July 2005, and in this year’s Readers’ Digest Most Trusted Brands survey, Nivea knocked Olay off top spot being one amongst its tough competitor (bowery).

Olay undoubtedly has done a marvelous job of building on its heritage of skincare for its major&core target – the older women. Women of this age have a greater disposable income and will buy premium products, even if using mass-market brands for their daily skincare. The major challenge for Olay is to target young customers. The anti-ageing brands are driven by constantly changing ingredients, making it hard to build specific benefit loyalty. Olay ‘s ads are approachable and real. It is a safe, trusted and comfortable brand.(according to SHIRIN VALIPOUR GLOBAL BUSINESS DIRECTOR, JWT)

source: http://www.market-intelligence.com.au/images/brand.png


Olay has received quite some awards stating its Brand loyalty,Brand image among which some of the latest award’s are.,

Glamour Magazine gave their “Glammy Award” to…Olay Regenerist Eye Lifting Serum, for Best Drugstore Eye Cream,(September, 2009).

Life & Style Magazine gave their “Beauty Award” to… Olay Definity Eye Illuminator , for Best Eye Cream, (August, 2009).

Better Homes and Gardens’ “Best New Product Award” goes to.. Olay Definity Color Recapture for “Best New Anti-Aging Product” and “Best New Product Overall” in a survey among 50,000 consumers, (January,2009)

Consumer Survey of Product Innovation gave their “Product of the

Year Award” to… Olay Body Wash plus Spa Exfoliating Ribbons Winner

Body Care Category. Survey of 100,000 people by TNS. (January, 2009).

These awards prove that the brand has made a significant impact on the consumers mindsets and has established a very strong brand loyalty, and also its Brand Image as an unbeatable market leader in the skincare industry in the anti ageing cosmetic sector.


Olay mainly targets middle aged women from 25-45 as the product is for reducing wrinkles with the basic concept of looking young and therefore so is the target market, though Olay could have implemented research and developed new age products for younger women to achieve the market share and increase is brand equity, Inspite of very few publics falling into the brand’s target the brand has marked a place as a global leading skin care product.





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