1) EXECUTIVE SUMMARY
Olay is the top facial skin care retail brand in the world and is one of Procter & Gamble (P&G)’s multi-billion dollar brands. It is the world’s number one facial care brand in the past four years (2006-2009) based on Euromonitor data. For the 2009 fiscal year ended June 30, Olay accounted for an estimated $2.8 billion of P&G’s $79 billion in revenue. Olay has extended its heritage as a moisturizer to stay looking young, to formally creating the “anti-aging” category” in mass stores with the launch of Olay Total Effects in 1999. The launch was almost double the typical price of a mass market moisturizer at the time. Today, there are tremendous products in market more expensive than Olay. While expanding its brand presence among its loyal core audience, Olay has extended its product lines to new markets. At present, Olay already has 10 product lines; Olay Professionals, Regenerist, Definity, Total Effects, Age Defying Series, Complete, Facial Cleansing, Olay Body Chain, Olay Body Cleansing and Olay Classics. Furthermore, under Total Effects, there are 17 products which can be classified into 4 categories; facial moisturizers, specialty treatments, facial cleansers and body washes. A P&G executive told investors on 9 September 2010 at a Barclays Capital conference in Boston that it is launching Olay in 15 new markets this year—including Brazil, a huge and rapidly expanding economy. It plans to increase its global presence from 69 to 100 markets in two years. Olay also has ventured into new products for new target markets. Ed Shirley, vice chair of Global Beauty and Grooming, said P&G also sees good opportunities in Asian countries for male skin care products. The company already has launched its new Olay Men Solutions in China. Olay performance in winning customers confidents is remarkable. One of the reasons is proved by a recent study conducted by P&G Beauty scientists in Cincinnati, The study is about comparing seven anti-ageing creams and their ingredients revealed that Olay Total Effects beats 6 other creams when it comes to its composite score in restoring moisture, enhancing exfoliation and protecting skin from free radicals. 2) COMPANY DESCRIPTION
Olay is a product truly born from love, as it was created by a man as a gift for his wife. In the 1950s, chemist Graham Wulff and his wife together, fine-tuned everything from absorption and texture to the delicate pink shade and instantly recognizable fragrance. At last, the legendary Oil of Olay Beauty Fluid was born. With his formula complete and the first batch mixed by hand, he and Jack Lowe his lifelong friend and business partner soon created a company to produce and market Oil of Olay. Within five years, Olay was enjoying phenomenal success in South Africa, and in 1959 expanded into England, the United States, the Netherlands, Canada and Germany. Needless to say, the Olay business flourished. Eventually, Olay was sold to Richardson Merrill, which later became Richardson-Vicks. In 1985, Procter & Gamble bought Richardson-Vicks and gained the Olay brand. In 2000, Procter & Gamble decided to shorten the brand name to Olay. The formula had evolved over the years, and the original name no longer fit with what women have come to expect from Olay—a light, greaseless formula that absorbs quickly into the skin. Today, Olay is one of the most recognizable brands in the world. Yet through all the changes and innovations, the philosophy upheld by Graham Wulff remains just as relevant as ever: Help women look and feel beautiful. That’s a potent formula for success. Olay’s current slogan is “Love the skin you’re in”. 3) STRATEGIC FOCUS AND PLAN
|The mission of Olay is to enhance all that is beautiful in women by providing simple to sophisticated skin care solutions to continually | |improve women’s skin and women’s lives....