Olay Regenerist Micro Sculpting Cream

Marketing Research Report

Vinyl Anderton Isaac Clark

Rachel EklundSarah MillerColin Truhe

Mingzhu Zhu

2.

Executive Summary

• Originally, we set out to learn more about Olay and its products, specifically its Regenerist Micro Sculpting Cream. We found that Olay has been on the cutting edge of beauty prod-ucts since the first cream was invented by a South African man in 1952 (Our history, 2017). Olay has been a driving force for new beauty products with its dedication to researching new ways to help its consumers. When compared to other products, Olay has managed to offer visible results at an affordable cost, adding to the products appeal. Almost all of Olay’s advertisements for the Regenerist Micro Sculpting Cream feature a modern look, with a woman who appears more confident in her appearance after the use of the Olay product. A direct appeal at middle aged women with a desire to appear young.

• Owned by the parent company, Proctor and Gamble, Olay is a valuable piece to the variety of different companies and products that are under Proctor and Gambles web. Although our research briefly examined Proctor and Gamble, we focused the majority of our atten-tion on Olay, specifically its Regenerist Micro Sculpting Cream. We learned that the an-ti-aging cream is sold worldwide, but is marketed mainly to Caucasian women in North America. Olay is offering a solution to the natural process that is aging, helping women to appear youthful. By appearing to defy the aging process, the women who use Olay join an elite group. Olay focuses on one’s beauty and loving themselves, so what’s not to love about Olay? (Olay Grebenar, 2017; “Is it DNA?” 2017; Olay Commercial, 2013; Olay Caillon. 2013; Olay Regenerist Micro-Sculpting Cream, 2014).

Olay Research Report 3.

• Industry Overview 4

• Inderect Competitors 10

• Direct Competitors 10

• Product Features and Benefits 8

• Product Overview 6

• Company Overview 5

• References 13

• The Future of Olay Micro Sculpting Cream and Advertising 12

• Product Advertising 11

Table of Contents

4.

Procter and Gamble is in the industry of cosmetics, beauty supplies, and perfume stores. This industry distributes cosmetics, beauty supplies, toiletries, and perfumes (Cosmetics, 2018). The U.S. beauty industry reached $17 billion in 2016. This was a growth of 6 percent over the previous year. Makeup contributed 82 percent of the total industry gain. Skincare made up only 1 percent in 2016 (Cosmetics, 2018).

The United States had the largest cosmetics industry in the world in

2016.

The beauty industry is on a growth trajectory that is expected to continue. The industry as a whole is

likely to be worth $90 billion by 2020, with growth driven by premium makeup

(Cosmetics, 2018).

Industry Overview

(Cosmetics, 2018)

(Olay, n.d)

Olay Research Report 5.

Company Overview

Olay Regenerist Micro-Sculpting Cream is created by Olay, a company with a long history. In 1952 a South African man named Graham Wulff, created a beauty fluid to help women, like his wife, find deep hydration without having to use the thick heavy creams that were the standard for the time (Our history, 2017). This first light oil has been dubbed the original product of Olay.

By the late 1950s, Oil of Olay became available to women across the globe (Our history, 2017). As the definition of beauty progressed, so did the products that Olay produced. In the 1960s, Olay created new products, including night cream formulas, to respond to women’s ev-er-changing needs (Our history, 2017). This begins Oil of Olay’s start as a company striving to be on the cutting edge.

( Issa-Salwe, 2012).

( Issa-Salwe, 2012).

( Issa-Salwe, 2012).

6.

Product Overview

In Olay’s current promotional video, “real-look-ing” women try out the product and then report younger, healthier looking skin at the end of the video (Olay North America, 2017). This video also repeatedly mentions the results compared to expensive creams. Currently, Olay’s slogan is “Ageless” and their mission statement is to make women “look and feel beautiful” (“About Business Info Founded,” 2017).

Olay Regenerist Micro-Sculpting cream is brand-ed as an affordable product that brings noticeable results.

The Regenerist line is Olay’s Ad-vance Anti-Aging Skin Care Col-lection. Regenerist Micro-Sculpt-ing Cream is designed with Advanced Anti-Aging ingredients for wrinkle results. It has two siz-es. They are 1.7 fluid ounce and 0.5 fluid ounce (Olay Skin Care Products and Tips, 2017).

Olay Regenerist Micro-Sculpting Cream is rich-cream moisturizer. The cream is white and rich. It has a soft smell. It hydrates skin when a customer applies it on his/her face and neck in the morning and night. It can be used entire year by people of every age.

Its new formula with Amino Peptide Complex helps regenerates surface cells to take years off skin age. The anti-aging moisturizing formula penetrates into skin’s surface to improve texture and elasticity (Olay Skin Care Products and Tips, 2017).

What Micro Sculpting Cream is

Newest promotional video

• The Olay logo, a woman combined with the gold and black color pallete present Olay as a professional, feminine brand that every woman has access to.

• The Regenerist Micro-Sculpting Cream is packaged in a round, heavy glass jar, saturat-ed with red color. The entire Regenerist line is made to look expensive and luxurious.

• This differs from the Fresh Effects line which comes in bright, energized packaging and is targeted toward women looking to brighten and energize their skin (“Shop fresh effects fresh,” 2017).

Regenerist skin care line

What’s it like?

7.

Beside “Oil of Olay,” Olay has many popular products. Olay Regenerating Serum is a moistur-izer harkening back to “Oil of Olay.” It exfoliates to help clear away dead skin cells by using a complex blend of ingredients, which includes amino-peptide complex (Olay Skin Care Products and Tips, 2017).

Olay Total Effects Anti-Aging Moisturizer is designed to fight the seven specific signs of aging that Olay has identified to leave skin looking young and revived. It reduces lines and wrinkles, dark circles, puffiness and it enhances skin brightness (Olay Skin Care Products and Tips, 2017).

Olay Regenerist Micro-Sculpting Cream is available for purchase both in stores and online. Customers can go to supermarkets like Walmart, Target and Walgreens. It’s also available on the Olay website, Amazon, Ulta and so on. It retails for $26.99 for 1.7 fluid ounce and $10.49 for 0.5 fluid ounce (Olay Skin Care Products and Tips, 2017).

Olay Regenerist Micro-Sculpting Cream hit the market in 2006. It had a new formula with Ami-no Peptide Complex, Hyaluronic Acid and Niacinamide in 2013 (Olay’s Award Winning Products, 2017).

Olay’s range of products includes offerings for face care, body care, bath, cosmetics, and more. “Oil of Olay” is Olay’s first product. It is a moisturizer created by a South African chemist Graham Wulff in the 1950s. He was inspired by his wife, who wanted deep hydration without using thick, heavy creams (Maple Holistics, 2016).

What it does

The history

Where it’s sold

Olay Research Report

8.

Features and Benefits

Olay Brand Name

Small, compact, and chic

packaging

Reverses the

appearance of aging

Improves Skin Texture

on Hands and Face

Well respected brand that’s been around for 65 years and become a well-known name in the

world of beauty products.

Easy to carry around and provides the consumer with a well-known brand name. Not large or obtrusive and can easily be carried around.

Reduces the apperance of wrinkles. This gives consumers a more youthful appearance.

Makes skin smoother and less rough on both hands and face. Doesn’t irritate skin due to use.

9.Olay Research Report

Hyrdrates Skin

Fragrance-Free

Option

Money Back

Guarantee

Fast Working

Available at Many Stores

Easy to Follow

Instructions

( Daniels, 2017).

This product also helps skin stay hydrated so it doesn’t become dry and crack.

For people who don’t like face products with a scent they have the option to choose a fragrance free option.

Consumers have an easy way to get their money back for a product they didn’t like.

Doesn’t take long to work so consumers get fast results that can be sees after one use.

Olay products are sold in a large number of retail stores and supermarkets, making it easily accessed by

consumers.

Helps consumers to know how to use the product and receive the best results by providing step by step instructions.

10.

Competition

Direct competition

Indirect competition

• Neutrogena Rapid Wrinkle Repair Serum is a major direct competitor in drugstore anti-aging topical creams. This serum is lightweight, plumps lines immediately, and reduces fine lines in as little as a month. It contains hyaluronic acid, a glucose complex, and retinol (Siegel, 2015).

• L’Oréal Paris Revitalift Triple Power Serum which retails for $24.99. The secret ingredient in this product is the Pro-Xylane, which is a plant extract that stops your skin from producing the elastase enzyme, which breaks down collagen. This will ensure the skin is firmer with regular use (Siegel, 2015).

• Boots No. 7 Protect & Perfect Intense Serum is the last direct competitor. The stabilized vitamin C provides protection from sun damage and brightens your skin which make fine lines appear less noticeable. This serum retails for $24.99 (Siegel, 2018)

• Garnier is an indirect competitor that sell types of skincare like creams, moisturizers, and cleansers. Biore is a drugstore brand sold alongside Olay. It’s most popular skincare line is the Skinactive line, targeted to those wasnt a more natural skincare regimen (Siegel, 2015).

• Biore is a drugstore brand that ranges in price form $5-$20 (Siegel, 2015). Biore has many popular products but the most popular is the Micellar water that is used to remove makeup and cleanse the face (Siegel, 2015).

• Cetaphil has a message of being old-fashioned and incredibly tough on acne. It is a drugstore brand as well (Siegel, 2015).

Olay Research Report

11.

Advertising with

Proctor and Gamble spends most of its

money in advertising, specifically on advertising in North America.

In 2016, Proctor and Gamble spent 7.2 billion on advertising (Advertising

expenditure, 2017). The company announced that its goal is to reduce its

spending on advertising by 2 billion dollars over the next 5 years (Neff, 2017). The company’s reasoning is that it did not

see an increase from the additional digital advertising, specifically

in the fourth quarter.

Money Spent

Competitive nature worldwide

Procter and Gam-ble invests billions of dollars

in advertising every year in over 60 countries. The company found external

partners for more than half of all product innovation (The Procter & Gamble Co SWOT

Analysis, 2018).It has invested over 7 billion dollars in advertising and renewed its products regularly to help gain customer loyalty and revenue growth to stay at the top. As one of the world’s largest consumer product manufacturers, Procter and Gamble has

revenues of over 65 million dollars and serves over 4 billion people worldwide providing

hair, oral, baby, home, and fabric care.(The Procter & Gamble Co SWOT

Analysis, 2018).

In Olay’s ads the message is straight forward: it was simply to buy the Olay product and by doing so, the cream will reduce the appear-ance of fine lines and wrinkles. The claim is that the product will start changing the look of your skin before you use one full bottle. Within the commercials it stated you could buy the product online or in the stores located close to you. The top three messages in these commercials would be the product and how well it works, the price and how cheap it is, and also how young and happy the actors look after using the product. These commercials are targeted to the middle aged women who is starting to, or already has, aging characteristics like wrinkles. It is pro-posed that this cream by Olay will make the aging marks reduce and you will have younger healthier looking skin. This product works for all types of women of all ethnicities and ages although this is not seen very much through the advertisements. (Olay Grebenar, 2017; “Is it DNA?” 2017; Olay Commercial, 2013; Olay Caillon. 2013; Olay Regenerist Micro-Sculpting Cream, 2014)

Advertisments

12.

The future of Olay Regenerist Micro Sculpting Cream

The commercials are all very similar from 2013 to 2017.The last two most recent commercials are still giving the same information, but have a lighter airier feel than the other three. This made it seem different enough to keep the commercials interesting (Olay Grebenar, 2017; “Is it DNA?” 2017). One of the most important aspects of the commercials that need a revamp is the actors that are portrayed. They are all very similar looking and do the same exact motions in each commercial (Olay Grebenar, 2017; “Is it DNA?” 2017; Olay Commercial, 2013; Olay Caillon. 2013; Olay Regenerist Micro-Sculpting Cream, 2014). If the actors were more ethnically and racially diverse that would be a refreshing change. Olay could also include men or women that are actually older with wrinkles. That would show that Olay is progressive, open, and honest about what older women look like.

Another important thing that should be changed is the overall

design, because each commercial looks exactly the same. Each ad had red swirls and close-ups of the product and the actress posing. The first ad had a bit of story at the beginning with the actress being in a office and being bored, but all of the other ads had no story or skit to go along with the information (Olay Commercial, 2013). Adding a bit of a story or some kind of joke in the commercial will make the audience remember the product more because of the funny ad.

The advertising that has previously been done for this product only targeted women of around middle-age, 35-50. Olay did this by including more professional, mature outfits on the actresses (Olay Grebenar, 2017; “Is it DNA?” 2017; Olay Commercial, 2013; Olay Caillon. 2013; Olay Regenerist Micro-Sculpting Cream, 2014) An untapped, potential consumer could be older men. It is socially acceptable to think that women should care about looking younger, while men are fine with

growing older. In order to stay current and relevant, this brand must become more progressive in their philosophy on anti-aging products.

Another target audience that is being ignored in these videos are younger women and minorities. All the actresses in the ads are very pale, and seem to be in the middle class or higher. (Olay Grebenar, 2017; “Is it DNA?” 2017; Olay Commercial, 2013; Olay Caillon. 2013; Olay Regenerist Micro-Sculpting Cream, 2014). The class specification makes sense because the product is on the pricier side of around $30, but ignoring minorities can cut out a huge portion of consumers. Also, younger women are becoming more aware that anti-aging products work better if you start using them before you see signs of wrinkles as a preventative measure. Having some advertisements targeted towards women in their late 20s could bring in more revenue.

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http://us.pg.com/annualreport2017/annual-report.html#/

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About. (n.d.). Facebook. Retrieved from

https://www.facebook.com/pg/OlayUS/about/?ref=page_internal

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FJYYF038054060/8e9d76005dfedc04944251fe6362e3a6?u=wuacc_mabee

Daniels, L. (2017, June 19). Olay Regenerist Micro Sculpting Cream Review.

Retrieved from https://www.consumerhealthdigest.com/wrinkle-cream-reviews/olay-regenerist-micro-sculpt

ing-cream.html

Issa-Slawe, Hafsa. (2012) Olay Turns 60. Muslimah Beauty

Retrieved from http://muslimahbeauty.com/2012/06/27/olay-turns-60/

Maple Holistics. (2016). Olay Company History and Products Review 2016. Bath &

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Neff, J. (2017, April). P&G will cut $2 billion in marketing but spend some back to become ‘irresistible’.

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Olay. (2017). Olay Award Winning Products. Retrieved from

https://www.olay.com.au/en-au/beauty-trends/award-winners

Olay. (2014). Olay Regenerist Micro-Sculpting Cream Commercial - 2014 [Television

Commercial]. Retrieved from https://www.youtube.com/watch?v=V9GwgQkC2fk

Olay (2017). Olay Regenerist Micro-Sculpting Cream Face Moisturizer. Retrieved

from https://www.olay.com/en-us/skin-care-products/regenerist-micro-sculpting-cream-moisturizer

Olay North America. (2017, February 17). The 28 Day Study l Olay (Video file). Retrieved from

https://www.youtube.com/watch?v=pjQispXJE3A

14.

Olay (2017). Is it DNA or is it Olay Regenerist? | Olay [Television Commercial]. Retrieved from

https://www.youtube.com/watch?v=XAQ1CWaS8Zw

Olay. (2013). Olay Regenerist Commercial featuring Emily Caillon [Television Commercial].

Retrieved from https://www.youtube.com/watch?v=1cemXFV9McY

Olay (2017) Olay Regenerist Commercial - Suzana Grebenar #2 [Television Commercial].

Retrieved from https://www.youtube.com/watch?v=4UQmLAXJQbc

Siegel, Elizabeth. (2013, March 18). 10 Under $30: The Best Drugstore Anti-aging Products.

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https://www.allure.com/gallery/ten-anti-aging-drugstore-products-under-30Shop Fresh Effects. (n.d.). Olay.

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Retrieved from https://www.youtube.com/watch?v=V0CVfxWOguY

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