Literature review for olay
Looking better seems to equate with looking younger, and there is a readily apparent fear of aging. Many Urban adults seem to be dissatisfied with their natural appearance. In an online poll, Popular Demographics asked adults to rank their level of happiness with their personal appearance, and on a scale of 1 to 10 (with 1 being least happy), nearly half of the 2510 respondents (47 percent) gave themselves a score of 5 or lower. The poll found that:
87 percent of adults say that if they could change any part of their body for cosmetic reasons, they would; half would change multiple body parts …
Fewer than 1 in 7 adults (18 percent of men and 10 percent of women) are happy enough with their bodies that they wouldn’t change a thing.
A survey released by the Federation of Indian Chambers of Commerce and Industry (FICCI) reveals that 12 personal care products would continue to register growth rates that vary from 10 per cent to 20 per cent and above.
With the skin care market showing double-digit annual growth, P&G-owned Olay arked its entry into the $535 million Indian skin care market with Olay Total Effects Anti-Aging cream. "Today, anti aging is only 3% of the total skin care market at [$15 million], which means there is huge potential. It has been doubling every year for the last three years," said Sumeet Vohra, head of marketing, P&G India.
"With our latest Olay anti aging product, we feel we can make a difference to Indian women with specific skin care needs. With the launch of four new Olay brand skin care products, we want to establish a strong presence in the country." P&G rival HUL launched its Pond's International range of skin care with targeted approach for every age group and skin type, and Olay's delayed entry might cost the company some market share. Justifying the move, Vohra added,
"There are other players already present in the market, but we delayed our entry because we wanted to be absolutely sure that the product is right for Indian skin. We also tweaked the product a bit to suit Indian skin types. Secondly, we wanted to make sure that it is right from an economic standpoint, and we believe the time is right now. Today, women are more willing to embrace anti aging products, since looking youthful is a key beauty trend.
Finally, this move fit in our sequence of priorities, because whenever we launch something new, we want to focus on it and put in the right amount of resources and energy behind each one of them." Olay Total Effects has been launched in six metros for the first phase of the launch, and the company plans to extend its presence to 25 cities and then add another 44. In speaking about the market share the company looks to gain with the Indian launch of the new product, Vohra said that the anti-aging products market is still nascent in the country, so there is ample room for the company to grow.
"There is a great need to increase awareness about this product. Initially Olay Total Effects will be available in around 2,000 outlets—including hyper retail stores, chemists, beauty advisors and through existing distributors in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore," Vohra added. The company has previously introduced three other skin care ranges—White Radiance, Beauty Fluid and Olay Cleansers—to the Indian market.
"We are seeing price escalation in skin care," said Carrie Mellage, industry manager, consumer products, for Kline & Co., noting that women are seeking products with technology that improve their appearance. Mellage said that dollar sales across all beauty channels including mass, prestige, spa, specialty and direct -- are increasing at a more rapid clip than unit sales, indicating that price tags are inching up. Last year, dollar sales of facial treatments increased 7.8 percent, while unit sales grew 3 percent, according to Kline and Co.'s Cosmetics & Toiletries USA 2005 Report.
Industry consultant Allan Mottus declared, "Drugstores need MAC Cosmetics and Clinique pricing to survive. The problem is the consumer isn't willing to pay those prices. She's feeling pretty burnt out." Referring to Max Factor and Vital Radiance's troubles, Mottus continued, "retailers were initially attracted by their higher price points, but that excitement didn't hold the last three or four months."
A higher cash register ring does come with challenges. For instance, several mass retailers have locked Definity behind glass to prevent theft. Brace said that P&G is working to resolve such issues as price points climb higher. He added that on shop-along with consumers who buy beauty across multiple channels, P&G found that many women arrived at department store counters armed with knowledge and in some cases knew more than the beauty adviser. Brace said, "The consumer drive for sophistication is driving prices higher."
“It is the working woman who is more conscious of the way she looks rather than the woman who stays at home. And in India that segment is still small, unlike the Chinese market where there is a high population of working women. To that extent, the brand might have its limitations in India” said Dr. R. K. Joshi senior consultant and coordinator of dermatology at Indraprastha Apollo Hospital New Delhi.
• Anti-ageing solutions are nascent but gaining ground
• Fastest growing segment in the skincare market (approximately 3 per cent of the overall skin category, it has doubled in the last three years)
• Development of the skincare category in India
• Growing consumer awareness
Looking better seems to equate with looking younger, and there is a readily apparent fear of aging. Many Urban adults seem to be dissatisfied with their natural appearance. In an online poll, Popular Demographics asked adults to rank their level of happiness with their personal appearance, and on a scale of 1 to 10 (with 1 being least happy), nearly half of the 2510 respondents (47 percent) gave themselves a score of 5 or lower. The poll found that:
87 percent of adults say that if they could change any part of their body for cosmetic reasons, they would; half would change multiple body parts …
Fewer than 1 in 7 adults (18 percent of men and 10 percent of women) are happy enough with their bodies that they wouldn’t change a thing.
A survey released by the Federation of Indian Chambers of Commerce and Industry (FICCI) reveals that 12 personal care products would continue to register growth rates that vary from 10 per cent to 20 per cent and above.
With the skin care market showing double-digit annual growth, P&G-owned Olay arked its entry into the $535 million Indian skin care market with Olay Total Effects Anti-Aging cream. "Today, anti aging is only 3% of the total skin care market at [$15 million], which means there is huge potential. It has been doubling every year for the last three years," said Sumeet Vohra, head of marketing, P&G India.
"With our latest Olay anti aging product, we feel we can make a difference to Indian women with specific skin care needs. With the launch of four new Olay brand skin care products, we want to establish a strong presence in the country." P&G rival HUL launched its Pond's International range of skin care with targeted approach for every age group and skin type, and Olay's delayed entry might cost the company some market share. Justifying the move, Vohra added,
"There are other players already present in the market, but we delayed our entry because we wanted to be absolutely sure that the product is right for Indian skin. We also tweaked the product a bit to suit Indian skin types. Secondly, we wanted to make sure that it is right from an economic standpoint, and we believe the time is right now. Today, women are more willing to embrace anti aging products, since looking youthful is a key beauty trend.
Finally, this move fit in our sequence of priorities, because whenever we launch something new, we want to focus on it and put in the right amount of resources and energy behind each one of them." Olay Total Effects has been launched in six metros for the first phase of the launch, and the company plans to extend its presence to 25 cities and then add another 44. In speaking about the market share the company looks to gain with the Indian launch of the new product, Vohra said that the anti-aging products market is still nascent in the country, so there is ample room for the company to grow.
"There is a great need to increase awareness about this product. Initially Olay Total Effects will be available in around 2,000 outlets—including hyper retail stores, chemists, beauty advisors and through existing distributors in Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore," Vohra added. The company has previously introduced three other skin care ranges—White Radiance, Beauty Fluid and Olay Cleansers—to the Indian market.
"We are seeing price escalation in skin care," said Carrie Mellage, industry manager, consumer products, for Kline & Co., noting that women are seeking products with technology that improve their appearance. Mellage said that dollar sales across all beauty channels including mass, prestige, spa, specialty and direct -- are increasing at a more rapid clip than unit sales, indicating that price tags are inching up. Last year, dollar sales of facial treatments increased 7.8 percent, while unit sales grew 3 percent, according to Kline and Co.'s Cosmetics & Toiletries USA 2005 Report.
Industry consultant Allan Mottus declared, "Drugstores need MAC Cosmetics and Clinique pricing to survive. The problem is the consumer isn't willing to pay those prices. She's feeling pretty burnt out." Referring to Max Factor and Vital Radiance's troubles, Mottus continued, "retailers were initially attracted by their higher price points, but that excitement didn't hold the last three or four months."
A higher cash register ring does come with challenges. For instance, several mass retailers have locked Definity behind glass to prevent theft. Brace said that P&G is working to resolve such issues as price points climb higher. He added that on shop-along with consumers who buy beauty across multiple channels, P&G found that many women arrived at department store counters armed with knowledge and in some cases knew more than the beauty adviser. Brace said, "The consumer drive for sophistication is driving prices higher."
“It is the working woman who is more conscious of the way she looks rather than the woman who stays at home. And in India that segment is still small, unlike the Chinese market where there is a high population of working women. To that extent, the brand might have its limitations in India” said Dr. R. K. Joshi senior consultant and coordinator of dermatology at Indraprastha Apollo Hospital New Delhi.
• Anti-ageing solutions are nascent but gaining ground
• Fastest growing segment in the skincare market (approximately 3 per cent of the overall skin category, it has doubled in the last three years)
• Development of the skincare category in India
• Growing consumer awareness