Royal Purple

1. Procter and Gamble with reference to Olay Royal Purple Section # 002 Lisa Dale, KaylieKostolansky, Rebecca Mefford, Stephene Tarver

2. Procter and Gamble: Olay • Procter and Gamble (P&G) is a company that produces the highest quality products to make everyday life easier. • Olay focuses on using the latest scientific developments to give consumers the best skin possible. • We chose Procter and Gamble because they are a company that has been around for over 150 years. They are one of the few companies that has weathered social transitions that have left lesser companies bankrupt. P&G has recognized the importance of marketing and this is what has kept them a dominating force in the market place. • We chose the specific brand of Olay because it too is a brand that has held true through many beauty trends. Olay, like their parent P&G, understands the importance of developing solid marketing strategies.

3. PART 2: Advertisement • https://youtu.be/MQ3k6BFX2uw • Procter and Gambles “Thank You Mom” ad is highly effective because it associates the comfort and piece of mind of having your mom by your side. This message resonates with almost everyone, causing it to leave a memorable, emotional impact. This impact helps to pull P&G into the consumers evoke circle. This ad was run during the 2016 Rio Olympics which was a great time to run the ad. The Olympics is one of the most watched programs on television. This helped many consumers from around the world see the ad. It was also a good idea to prey on consumers when they are already emotional from watching their country compete.

4. PART 3: SWOT ANALYSISSTRENGTHS • Procter and Gamble • Customer loyalty which has kept Proctor and gamble thriving since 1837 • Product diversity such as cleaning (Tide), cosmetics (Olay), and  feminine hygiene (Tampax) • Convenient customer service provided in many ways such as email, phone, or questionnaires that are always there to answer any questions customers may have. • Olay • genealogical research of aging skin  • product diversity of all different skin types such as aging, dry, and oily skin • High quality and effective ingredients such as Retinylpropionate which reduces wrinkles and niacinamide which renews the skins while strengthening it's moisture barrier.

5. PART 3: SWOT ANALYSISWEAKNESSES • Procter and Gamble • Relies on mature markets which limits its consumer base • Beauty and health products are mostly for women • Does not make and offer any private label products for the retail customer • Fake P&G products are being sold • Olay • Cost compared to other brands is high • Target market excludes younger people will not need anti wrinkle • Brand image less established than competitors like Clinique • Lots of product recall • Excessive dependence on Walmart

6. PART 3: SWOT ANALYSISOPPORTUNITIES • Procter and Gamble • With internet expanding to more remote regions of the globe, it is possible to expand into more markets. • The possibility to acquire smaller brands • Increased purchasing power of the middle class in China, India, and the United States increases demand • Men being more conscious about household and hygiene products • Olay • Due to growing globalization it is possible to expand even more into international markets • Many older consumers now have social media and there is an opportunity to expand further online • Younger women are understanding that they need to start taking care of their skin now • New technology is helping make products more effective

7. PART 3: SWOT ANALYSISTHREATS • Procter & Gamble • Legislative restrictions on microbeads in soaps (Microbead-Free Waters Act) • Negative environmental impact from microbeads lead to hostile customers • Johnson and Johnson makes products that are almost identical to P&G, causing people to confuse the two. • Market share erosion: long term declines in market share due to new entries into market • Fake P&G products are being sold • Olay • Consumer budget • Jars lead to a fast break down of retinol the active ingredient in anti-aging cream • Growing trend of body piece, older women loving their wrinkles instead of trying to change them.

8. PART 3: SWOT ANALYSISTOWS MATRIX for P&G

9. PART 3: SWOT ANALYSISRECOMMENDATION • OS: Olay has expanded into men’s facial care with their line of Olay for Men. • OW: Olay should start bringing it’s brand into men’s evoke circle. • TS: Consumer loyalty will be able to overcome initial backlash due to microbeads • WT: Procter and Gamble must continue to push R and D to come up with new and innovative products to differentiate themselves.

10. PART 4: 4 P’SPRODUCT • Olay became a part of the global market when the Total Effect was released. This expanded Olay outside of just the moisturizer cream market. The Total Effects product aims to keep people looking young, making it an "anti-aging" brand. The Olay brand speaks of being passionate about making a difference in the buyers skin. Because there is competition in this market, Olay uses before and after videos as advertisement to show the potential buyers what the product can do. The benefit of Total Effects has been very positive which gets the buyers to keep coming back, making them brand loyal. The product meets the customer needs and demands by making them look younger, which is a big trend in today's society.

11. PART 4: 4 P’SPRICE • In April of 2011 Olay was number one on brands and finances list of the top 50 cosmetic brands. Their estimated revenue was 13,802 and enterprise value was 35,777. • Olay is a more expensive brand than other dollar store brands. This is because they claim to work better than dollar store brands. Olay’s tag line for the past decade has been that they work better and are less expensive than department store brands. We see that Olay’s price is, on average, between $10-$35. The average dollar store brand like Maybelline is priced between $5-$10, while the average department store brand is priced between $30-$60. Olay is priced so that it is competitive with department store brands, and it’s product works better than dollar store brands, leaving it to be the only logical choice.

12. PART 4: 4 P’SPROMOTION • Why • Companies use promotion to help consumers make purchasing decisions regarding the product. It also helps to ease rebranding transitions by making the consumer aware of the products new look and features. This increases sales and the acceptance of not only rebranded products but also of new products. Brand equity can also be created by promotion. Promotion is one of the best ways to address competitor actions and it creates a channel of conversation between the company and it’s targeted consumer base. Promotion also helps to attract consumer attention by giving the customer information about the product which fosters interest and motivates consumers to purchase. • How • Olay understands the dynamics of their target audience. They use promotions such as selling ProX with a sample pack of Olay Complete attached. This lets customers try a product without committing to buying the second product. Olay uses promotions like this to expand the awareness within it’s target market. Olay also uses newspapers to advertise sales on their products, this appeals to their target market of average working moms. Olay uses both one and two directional means of communication to reach the customer. Olay also wishes to fulfill two basic objectives, to make customers aware of the product or its brand, and to persuade the customer to pick the product over others. This helps to establish brand loyalty.

13. PART 4: 4 P’SPLACE • Olay is placed in multiple different isles, this helps customers to see the products multiple times. It also shows product diversity. Olay placed it’s young women line “Olay Fresh Effects” on lower shelves. This is because the product sold less frequently and Olay didn’t want to pay for the premium shelf space. Also Olay places lower cost products on the bottom shelf because it is in peoples natural instinct to look down for lower prices. Olay also places their best selling products towards the shorter end of the premium shelf space because the average height of women is 5’4.

14. PART 5: GROWTH STRATEGY • Future revenue growth will come from its biggest brands in its main segments of business • Will reduce their product lines (by 15%-20%) to create a more efficient line & will lower inventory to a manageable level • Have a three-tiered cost savings program -- this consists of 18 new manufacturing sites in developing markets, supply chain transformation in the US & lower marketing expenses. • Feel that P &G's future will derive from their largest brands, not from their many small ones. • To focus their portfolio more by consolidating some of their leading brands • They feel that the keep component to drive the growth in a product category is the premium category, which they are considering focusing on more.

15. PART 6: STPSEGMENT CHARACTERIZATION Hi my name is Cindy, as a young adult, I spent my days in jazzercise, dancing at night clubs, and using baby oil to tan. Now, my two kids are grown and off on their own. I’m not yet old enough to have grandchildren but I am old enough for my younger years to come back and haunt me. At 54 I enjoy watching my daughter and son grow up and start their own lives. I do not enjoy, however, watching wrinkles form. When I was younger I didn’t take care of my skin, and now I’m trying to reverse the damage. I want something that makes me look and feel younger, but I’m not a fan of surgery. I want my daughters friends to mistake me for her older sister and my husband to forget we have already been married for 3o years.

16. PART 6: STPPERCEPTUAL MAP

17. PART 6: STPPOSITIONING STATEMENT • To the woman who has spent her years following the beauty trends while raising a family and succeeding in her career, the Olay line of products works better than department store brands at one third of the cost because at Olay we do genealogical research to find which formulas work best for different women at the most beautiful stage of their life.

18. PROJECT WRAP UP:OUR TAKEAWAYS • It was interesting to use what we have learned and put all of it together into one big project. Sometimes it is hard to see just how everything fits together until it is brought forth in a presentation like this. • The project seemed really overwhelming at first but once all of the pieces were there, it was actually pretty easy and all of the pieces just kind of fell into place. • I wish there had been some kind of presentation aspect to it, more than just the ads. We did a lot of work on this project and I wish people could see it. I would also really like to see others companies.

19. References • Gonzalez, Deirdre. "The Anti-Aging Market." Article City. N.p., n.d. Web. 15 Nov. 2016. • "Olay: Brand Profile." Olay Advertising & Marketing Profile. Adbrands.net, 29 July 2015. Web. 16 Nov. 2016. • "Proctor and Gamble Co." Reuters. Thomson Reuters, n.d. Web. 15 Nov. 2016. • Zigu. "Procter and Gamble SWOT." MBA Skool - Study.Learn.Share. N.p., n.d. Web. 16 Nov. 2016. • DebashisMondal, Student at LCM Pvt.ltd Follow. "Swot Analysis P&g." Share and Discover Knowledge on LinkedIn SlideShare. DebashisMondal, 14 Oct. 2013. Web. 20 Nov. 2016. • Martin. "Business, Marketing, Marketing Mix, Promotion in Four P's." Cleaverisn. Martin, 8 Aug. 2014. Web. 14 Nov. 2016. • TrefisTeam, and Great Speculations Group. "P&G Reports Moderate Q3 Results, Lays Out Future Growth Strategy." Forbes. Forbes Magazine, 27 Apr. 2015. Web. 17 Nov. 2016. • Zigu. "Olay Total Effects | SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-Study.Learn.Share." MBA Skool-Study.Learn.Share. MBA Skool-study, 2015. Web. 20 Nov. 2016.

20. References • Influenster. Influenster Inc., n.d. Web. • Kaufman, Alexander C. "Obama’s Ban On Plastic Microbeads Failed In One Huge Way." The Huffington Post. The Huffington Post, 23 May 2016. Web. 11 Nov. 2016. • Abrams, Rachel. "Fighting Pollution From Microbeads Used in Soaps and Creams." The New York Times. The New York Times Company, 22 May 2015. Web. 9 Nov. 2016. • Newman, Andrew Adam. "How Anti-Aging Creams Get Old Too Fast." The New York Times. The New York Times Company, 2 Sept. 2015. Web. 11 Nov. 2016. • "Olay." Olay.com. Procter and Gamble, n.d. Web. 12 Nov. 2016. • "Top 50 Global Beauty Brands." N.p., n.d. Web. 14 Nov. 2016.