history Olay is an American skin care line. It is one of Procter & Gamble’s multi-billion dollar brands. For the 2009 fiscal year ended June 30, Olay accounted for an estimated $2. 8 billion of P’s $79 billion in revenue. Olay originated in South Africa as Oil of Olay. Graham Wulff (1916-2008), an ex-Unilever chemist from Durban, started it in 1949. The name “Oil of Olay” was chosen by Wulff as a spin on the word “lanolin”, a key ingredient. It was unique in the early days because it was a pink fluid rather than a cream, packaged in a heavy glass bottle.
Wulff and his marketing partner, Jack Lowe, a former copywriter, had tested the product on their wives and friends and were confident in its uniqueness and quality. Olay’s marketing was also unique, since it was never described as a moisturizer, nor even as beauty fluid. Nowhere on the packaging did it say what the product actually did. Print adverts used copy such as “Share the secret of a younger looking you” and talked about the ‘beauty secret’ of oil of Olay. Other adverts were written as personal messages to the reader from a fictitious advice columnist named Margaret Merril.
They ran in Readers’ Digest and newspapers and often looked like editorials. Wulff and Lowe, who ran the company under the banner of Adams National Industries (ANI), did not sell the product to the trade, but waited for pharmacies to ask for it based on consumer requests. As the company began to market the product internationally, it was decided to modify the name of the product in each country so it would sound pleasing and realistic to consumers. This led to the introduction of Oil of Ulay (UK and Ireland), Oil of Ulan (Australia) and Oil of Olaz (France, Italy, the Netherlands and Germany).
In 1970, ANI opened a test market in USA (Chicago), and was expanding into northern Germany. Today The Olay brand has expanded into a range of other products grouped in “boutiques” including Complete, Total Effects, Professional, Regenerist, Quench (North America), White Radiance (Asia) and Olay Vitamins (USA). Olay is the market leader in many countries including USA, UK, and China.  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 Total Effects in 1999.
Active Hydrating Formula, generally the least expensive variety, bears the closest resemblance to the pink “Oil of Olay” marketed in the US before the P acquisition. The launch was almost double the typical price of a mass market moisturizer at the time. Today, there are numerous products in market more expensive than Olay. Olay Regenerist was the best performing anti-aging cream in a 2006 test done by a consumer association, outperforming some much more expensive brands.  This report also stated: But the U. S. onsumer union said none of the creams tested produced a dramatic improvement. : It advised that staying out of the sun or using skin products with a high sun protection factor was the best option. The consumer union said: ‘We found that after 12 weeks our toprated products did smooth out some fine lines and wrinkles. ‘ However, it added: ‘Even the best performers reduced the average depth of wrinkles by less than 10 per cent, a magnitude of change was, alas, barely visible to the naked eye. In August 2007, Olay was launched in India.
Olay’s current slogan is “Challenge what’s possible”, which was changed from “Love the skin you’re in”. Since 2010, “Oil of OLAZ” is called only “OLAZ” in German-speaking countries. Slogan : “Olaz la? t Sie strahlen. ” (lit: “Olaz lets you shine. “) The Olay/Olaz brand is known for animal testing, according to a list published by PETA.  Marketing strategy Olay : Love the Skin You are In Brand : Olay Company : P&G Agency : Saatchi & Saatchi Brand Analysis Count : 277 This July P&G launched its premium skin care brand Olay in India.
Olay is a $2 Bn global brand has met with phenomenal success in all the markets it entered. Olay was born in the lab of a chemist Mr Graham Wulff in the early 1950’s. At that time the brand was named Oil of Olay. Later when P acquired it, the brand was renamed Olay. Olay was available in India as an imported product. Now P directly markets this brand with all the relevant marketing mixes in place. Olay is tapping the premium slice of the Rs 2100 crore Indian skin care market. Olay has launched its first product in the anti-ageing segment with its Total Effects subbrand.
Anti-ageing segment is still a niche with a market size of Rs 60 crore. The segment is but growing very fast. Olay has launched its Total Effects anti ageing solution after much consumer research. It had conducted research on over 6000 ladies of age between 30-69 years from three continents and identified 7 signs of ageing. 1. Fine lines and Wrinkles 2. Sagging skin 3. Uneven skin tones. 4. Age spots 5. Appearance of pores 6. Dull skin 7. Dryness Total Effects is differentiating itself through the presence of the ingredient VitaNiacin.
VitaNiacin is a pa tented formulation that contains Niacinamide Vitamin B3 ,Vitamin E and Provitamin B5 Pathenol + sunscreen protection. Olay true to the concept of Global Brand and Local strategy has launched itself with a series of promotional campaigns. The brand has the bollywood diva Sushmita Sen as the brand ambassador. Currently Olay is running two campaigns in the visual media. One campaign is th Olay brand building campaign featuring Sushmita Sen and another is for the Total Effects moisturizing lotion. Watch the Tvc : Total Effects
For the Total Effects range, the company uses a testimonial type of campaign featuring a Model/TV Anchor. The focus is more on the functional benefits of the product rather than harping on any emotional benefits. The brand is positioned as a brand that celebrates beauty within and outside. The brand worldwide uses the tagline ” Love the skin you are in “. The brand believes that Looking Good and Feeling Good are inseparable. Loving the skin we are in is the most beautiful feeling of all. Olay Total Effects is priced at Rs 599 for a 50 gm bottle.
By Indian standards, this accounts for a premium category. Olay Total Effects is targeting ladies between the age 30 – 60. Besides this anti-ageing product, Olay has introduced cleansers, facepack and moisturizing lotions. The brand is expected to introduce its blockbuster range of products in India in a phased manner. The premium skincare segment was in a vacuum ever since HUL decided to cater to the masstige segment by repositioning Lakme and Ponds. Now with P and ITC seriously looking at premium segment, the market is going to witness a marketing war in days to come.