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INTERNATIONAL MARKETING MANAGEMENT PROJECT

Submitted by:Ankita Kohli E-09

Mahak Gugliani E-10Avinash Talreja E-35

Sai Giridhar E-37Pradeep Kapil E-38

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ADOPTATION OF THE INDIAN CULTURE BY OLAY to capture Indian market

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About Olay

Olay is a $2 Bn global brand has met with phenomenal success in all the markets it entered

At that time the brand was named Oil of Olay. Later when P&G acquired it, the brand was renamed Olay.

Olay was launched in India in August 2007Olay is tapping the premium slice of the Rs

2100 crore Indian skin care market.

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Mission Statement

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.

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What is marketing mix??

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OLAY and it’s 4 P’s

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Product - India

The Olay Products available in India are:

1. Classic:a) Olay Moisturizing Lotion

b) Olay Moisturizing cream

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Product - India

The Olay Products available in India

2. Total effecta) Total Effects Normal

b) Total Effects Gentle

c) Total Effects Cleansers

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Product - USA

The Olay Products available in US are:

1. Olay Professional2. Definity3. Regenerist4. Total Effects5. Complete

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Product - USA

6. Deep Cleansing7. Daily Facial8. Age Defying Series9. Olay Classic10.Olay Body Lotion11.Olay Body Cleansing12.Cosmetics

Cultural Impact on the product

India is a market where anti-ageing solutions are nascent as people use chandan, tumeric and various home made products which are considered natural, affordable and effective. Olay was therefore launched in a category to tap into the premium segment before its goes mass with its brand.

Cultural Impact on the product

The products are launched in India keeping in mind the Indian climatic conditions. The climate is generally hot throughout the year in India, Olay launched products and packaged them accordingly.

The talk about “how to break the cycle of dry skin” and the damage of UV radiations and how olay helps in reducing it.

Cultural Impact on the product

Since the product is new to the Indian market, they launched the product in smaller packets so as to induce the potential customers to try the new product thereby braking the conventional methods of using home made pastes.

The Key ingredients used were changed because of difference in the skin types in India.

Promotion

The Brand Worldwide uses the Tagline

“LOVE THE SKIN YOU ARE IN” .

The Brand believes that looking good & feeling good are inseparable.

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Cultural Impact on the promotion

The company has planned huge investment on electronic and print media including online promotion for publicity and marketing of the product. They use:

Television AdvertisementsTeasersHoardingsMagazines Newspapers

They are using “Pull promotion mix strategy” to attract our customers as we are new in the market.

Cultural Impact on the promotion

• Olay has its separate website for the Indian market.

http://www.olay.co.in

• They made use of the other social networking sites like facebook as most of the Indian working woman are now tech-savvy and use these networking sites for business purposes.

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Free SamplesThe website

provides options wherein the customers can fill in the details to avail free samples. It emphasis on the Indian mentality of trying anything which is free.

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Promotion – IndiaBrand Endorsement

Olay is being endorsed by bollywood’s most famous celebrities Sushmita Sen, Kajol and Katrina Kaif, They are the most downloaded Indian actresses on the net with most reputed brand endorsements in their kitty. They are the face of international fairness cream Olay in India.

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Mass Media

Olay places advertisements in magazines which are most popular amongst the indian woman such as Cosmopolitan, Femina, Elle etc

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Website

The website provides a coupon which consumers can print outs to avail discounts

The professional advice is available for the customers to build customer relationships

Olay Club

FAQs

They have special FAQ’s keeping in mind the Indian woman and answers for India on their website so as to give a personalized touch to the Indian customer:

Promotion - Advertisement

Promotion - testimonials

Testimonials by famous indian actresses:

“When it comes to

fighting the 7 signs of ageing. I trust only Olay Total Effects”

-Kajol   “In just one year, my skin

feels so many years younger.”-Soha Ali Khan

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Price - India

Olay Moisturizing Lotion 150ml: Rs 399Olay Moisturizing cream 50gm: Rs 199Olay total effects anti ageing cream 50gm: 699

Initially “Value based pricing approach” was used for the evaluation of price.

The prices reflect a strategy of:1. Market penetration pricing.2. Delivering maximum satisfaction by giving

affordable price.

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Price - USA

 In US prices range for total effect varies from 19 to 30 US $ .

while Olay classics the price ranges from 20 to 25$

In USA, there is bundle pricing strategy is also being followed.

Cultural Impact on the price

Since the competition in the Indian market is fierce and they need to capture a major share, olay has an introductory price which are currently cheaper than the US prices.

As per the standard of living in India and the income levels, the product is still considered expensive and a premium product.

Cultural Impact on the price

They could not use bundle pricing strategy as very few products are available in the Indian market.

They offer discounts and rebates which further slashes the prices

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Place

P&G launched Olay in July 2007 in India.Initially Olay was available in market as an imported product.

Olay Total Effects was launched in 6 metros for the first phase of the launch, and the company planned to extend its presence to 25 cities and then add another 44.

The brand was made available in around 2,000 outlets in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore.

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Cultural Impact on the Place

At launch of the product strategy of “Selective distribution” was used. Marketing through well known stores and outlets like hyper retail stores, chemists, beauty advisors and the existing distributors in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore for assured reach of the product through well established channels.

They give special trade discounts for retailer that places volume orders. The retailers also gather research information for the company.

Cultural Impact on the Place

There are special Olay counters at cosmetics stores with counseling by expert beauty consultants at departmental stores

There are large modern retail outlets and further education on skincare and Olay as a brand.

“Indirect marketing channel” for the distribution of the product.

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Place - USA

The products can be found in mass merchandise stores such as Costco or Sam’s Club unlike India.

Even US follows indirect channel of distribution

These products can also be found in the local grocery stores and drug stores.

US follows mass distribution of the product as it is a well established brand existing over years.           

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Segmentation

Demographic segmentation that is on the following basis:

Age - Above 35Income Level – 30,000 and aboveGender - FemalesSocial status – High middle class

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Target strategy

Olay have used “Segmented marketing” while targeting the customers. They target:

Middle aged women of more than 30 years age of higher middle class.

As our product removes wrinkles that are formed on the skin of middle aged women.

Also geographically the target customers are: People residing in metros and Tier 2 cities.

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Positioning

A positioning built on meaningful differences, supported by appropriate strategy and implementation, can help the company build competitive advantage.

Olay positioning the product in the minds of people by the slogan and logo that reflects youth, as it makes the skin wrinkle free like the skin of young people

The brand is positioned as a brand that celebrates beauty within and outside

“Be Young Again”

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Competition

The premium skincare segment was in a vacuum ever since HUL decided to cater to the massive segment by repositioning Lakme and Ponds. Now even P&G and ITC is seriously looking at premium segment.

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Conclusion

Besides this anti-ageing product, Olay has introduced cleansers, whitening lotions and moisturizing lotions. The brand is expected to introduce its blockbuster range of products in India in a phased manner.

With the growing market and competition the brand will soon experience a marketing war in the days to come.

THANK YOU