MASTER IN INTERNATIONAL MANAGEMENT | FINAL PROJECTAdolfo Fernández, Celia Morales, Ananya Jain

L A U N C H I N G I N T H ES P A N I S H M A R K E T

w w w . o l a y . e s

Agenda

01 Preliminary AnalysisSpanish Market Characteristics

Master in International Management | Olay Launch in the Spanish Market

Target & Brand Value PropositionGetting Our Niche

Launch ObjectivesBe Bold & Humble

Pricing Strategy & PromotionsShowing Our Value

Distribution ChannelsBe Present & Make Yourself Noticeable

Communication StrategyTransmitting Our Essence

02

03

04

05

06

PRELIMARYANALYSISSpanish Market Characteristics

PRELIMINARY ANALYSISSpanish Market Characteristics

Master in International Management | Olay Launch Spanish Market

At a glance

The facial skin care market in Spain as of 2014 , is valued at €416MMannually , growing at 116ix . vs previous year

Products

33%

Cleansers Treatments

Distribution Channels :

Department stores , drugstores andperfumeries , hypermarkets andsupermarkets .

Branded Competitors Segments

45%

Mass Market(114)

Prestige(123)

67%

55%

TARGET & BRANDVALUE PROPOSITIONGetting Our Niche

TARGET & BRAND VALUE PROPOSITION

Master in International Management | Olay Launch Spanish Market

Getting Our Niche

Target

Woman , 30-55 years old , living in metropolitan areas of Spain ,

mid to high social class , beauty-seekers , looking to reduce thesigns of aging through simple and multifunctional solutions .

Positioning statement

Frame of Reference

Point of Difference

Reason Why

Skincare products

Going beyond skincare and improving women ’s skin , providingconsumers the aspiration of Prestige and the accessibility of amass-market brand .

Superior product performance which has been tested and canbe proven , resulting in products with prestige quality ataffordable prices . A deep understanding of women ’s needs .Worldwide No .1 in woman skincare .

“For mature women who want visibleanti-age improvements, without havingto resort to procedures or surgery, Olayis a mass market brand of Skincareproducts, that fulfills the aspiration of aprestige brand, offering premiumquality at an affordable price, makingwomen feel younger, beautiful andcomfortable with themselves, thanks toa woman-to-woman understanding,

and to its superior productperformance, which has been testedand can be proven to go beyond skincare”

POSITIONING STATEMENT

LAUNCHOBJECTIVESBe Bold & Humble

LAUNCH OBJECTIVESBe Bold & Humble

Master in International Management | Olay Launch Spanish Market

Annual Goals

Build brand awareness , emphasizing on Olay ’s unique valueproposition of Prestige quality at affordable prices , attemptingto convert other brands ’ consumers to Olay .

Establish an emotional connection with the consumer , in orderto fulfill Olay ’s premise of “woman to woman talk”, and seek forconsumer conversion to the brand .

Brand Awareness

"Woman To Woman Talk"

Position Olay as the top Mass Market brand , in between itsimmediate competitor L ’Oreal , and the low-end of the Prestigesegment .

Positioning

Achieve a market value of 7% in the first year , 10% in thesecond and 15% in the third .

Market Value

LAUNCH OBJECTIVES

Master in International Management | Olay Launch Spanish Market

Be Bold & Humble

Total Effects

Product Portfolio

Day cream SPF15

Night nourishingcream

Eye creamDay cream SPF Daycream w/o perfume

Regenerist

Moisturizer SPF30

Antispotscream

Under eye - Puffinessand dark circle

EssentialCleansers

Wet cloths fordry/normal

Wet cloths forsensitive

Tonic Cream cleanser

Gel Exfloliant Eye make upremover

PRICING STRATEGYAND PROMOTIONSShowing Our Value

PRICING STRATEGY & PROMOTIONSShowing Our Value

Master in International Management | Olay Launch Spanish Market

Pricing Strategy

Market Trends

Competition-based approach

Aspiration of Prestige at affordable prices .

Niche was identified between the top Mass-Market brandL ’Oreal and the low-end of the Prestige segment .

Increased willingness to pay in the treatmentssegment (more money was spent on almost the samenumber of units),

Higher prices don ’t have a negative impact on the numberof units purchased , or on the repeat rate of purchasing .

Promotions

Gifsets would be exclusively sold for Mother ’s Day andChristmas at El Corte Inglés .

Discount promotions (15%) would be limited to periods ofsales in Spain (January and July).

PRICING STRATEGY & PROMOTIONS

Master in International Management | Olay Launch Spanish Market

Showing Our Value

Positioning Map

RBRETAILER BRANDS

High Prices

Low Prices

LowQuality

HighQuality

Positioning map for Mass Market Skincarebrands based on Bodybell.com

PRICING STRATEGY & PROMOTIONS

Master in International Management | Olay Launch Spanish Market

Showing Our Value

Total Effects

Recommended Selling Prices (R .S .P)

Day cream SPF15

Night nourishingcream

Eye cream

Day cream SPF Daycream w/o perfume

Regenerist

Moisturizer SPF30

Antispotscream

Under eye - Puffinessand dark circle

Essentials

Wet cloths fordry/normal

Wet cloths forsensitive

Tonic

Cream cleanser

Gel

Exfloliant

Eye make upremover

R.S.P

€21 .50

€21 .50

€21 .50

€25 ,50

R.S.P

€40 .00

€32 .00

€27 .00

R.S.P

€2 .99

€2 .99

€8 .19

€8 .19

R.S.P

€7 .19

€8 .19

€7 .69

DISTRIBUTIONCHANNELSBe Present & Make Yourself Noticeable

DISTRIBUTION CHANNELSBe Present & Make Yourself Noticeable

Master in International Management | Olay Launch Spanish Market

Department stores, drugstores and perfumeries

Highest percentage of value sales .Contribute to the construction of the prestigeimage .

Supermarkets

Hypermarkets

01

02

03

Fuel the market growthKey to create coverage and awareness

Private labels .

Private labels have a low value share .

Fuel the market growth .

COMMUNICATIONSTRATEGYTransmitting Our Essence

COMMUNICATION STRATEGY

Master in International Management | Olay Launch Spanish Market

Transmitting Our Essence

In-Store Activities

Stands in every El Corte Inglés .

Premium shelf stands in 1/3 of Hyper/D&P(Bodybell & Juteco).

Standard decoration in 2/3 D&P/Hyper .

Main customers

COMMUNICATION STRATEGYTransmitting Our Essence

Master in International Management | Olay Launch Spanish Market

Media

TV

P&G product bundling :

Only Total Effects , as thisrange could be a moreimpactful entrant in theSpanish market

Sampling

Print

Olay would spend aconsiderable amount onprint media to emulatethe Prestige strategy .

Max Factor (Olay 7ml minisizes ofmake-up remover , etc .)

Additional 3ml sachet to be givenout at El Corte Inglés .

Visita

F A S H I O N W E E K

MADRID

www.demujeramujer.es OTOÑO- INVIERNO

2015/16

1-5 FEBRERO 2016

Feria de MadridDC Area 4 .1

#DEMUJERAMUJER

yconviértete en nuestra imagen.

Síguenos en : www .olay .es

COMMUNICATION STRATEGY

Master in International Management | Olay Launch Spanish Market

Transmitting Our Essence

Digital Marketing #demujeramujer

Online StoreBrand Collections Blog Link : www .demujeramujer .esInbound Marketing : content creation : beautytips , explanation of the formulas…)

Website

Demujeramujer .com : successful personal stories of Olay ’scustomers .YouTube channel (Additional ads and explanatory videos),Instagram , Facebook and Twitter accounts #demujeramujer

Social Media

Search Engine Marketing

Content

Social Profiles :

Google Adwords to advertise specific productdiscounts and new campaigns .

Elena SuárezMujer, madre y emprendedora

Sólo otra mujerpodría entenderte

MASTER IN INTERNATIONAL MANAGEMENT | FINAL PROJECTAdolfo Fernández, Celia Morales, Ananya Jain

L A U N C H I N G I N T H ES P A N I S H M A R K E T

w w w . o l a y . e s

BUDGET ALLOCATIONFinancial Analysis

Master in International Management | Olay Launch Spanish Market

FINANCIAL STATEMENTSFinancial Analysis

Master in International Management | Olay Launch Spanish Market

*Break even in year 3.