INDIAN SKIN CARE & ANTI AGEING CATEGORY: LAUNCH of P&G’s OLAY

Market Size

• Indian skincare market ~ Rs 2,100 crore
• Skincare moisturiser market ~ Rs 1,600 crore
• Premium Skincare Market ~ 450 crore
• Skincare market has been steadily growing at 16 per cent as of last year
• Anti-Ageing Market ~ 60 crore

Trends

• 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

Brands & Companies

• HUL – Pond’s Age Miracle Range
• P&G – Olay Total Effects: Fighting the ‘7 signs of ageing’ (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness). Olay is a $2-billion brand.
• L’Oreal
• Garnier: In India from last decade

Target Consumer: Indian Women - looking for one product that will help her stay young and beautiful

P&G’s Strategy: Launching Olay in this Anti-Ageing category is a strategy to tap into the premium segment before its goes mass with its Olay brand. With the launch of the Olay range in India, P&G enters the skincare category. Apart from anti-ageing, Olay will make its presence felt in the whitening, moisturising, and cleansing products segments as well. According to Mr. Vohra, P&G has a large portfolio of brands globally and is constantly evaluating the right propositions for the Indian consumer. Currently P&G is focusing on existing categories and with the launch of the Olay range, P&G will continue to stay committed to meeting unmet consumer needs in India by bringing in the right brands and the right technologies from across the globe

Globally P&G’s personal care market is around $20 billion, of which $2 billion is contributed by Olay

Barriers: 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

Brand Ambassadors: Apart from Sushmita Sen, other brand endorsers during the launch of the brand included successful professional women who have excelled in their respective fields. These were women such as Roopa Purshottam, Economist & Head, Future Trends (Future Group), fashion designer Anita Dongre and Tisca Chopra, TV anchor and actor, among other ‘real’ beauty icons who were roped in by P&G to speak about the virtues of the Olay brand during the launch.

Manufacturing: Just like the rest of the P&G brands, it will import Olay from its manufacturing unit in Thailand, which supplies to many other countries besides India. Although the brand is present in over 55 countries across the world, in the SAARC countries, Olay is not marketed by P&G.

Olay’s Market & Distribution: In India, the brand has been distributed and has been available in the grey market all this while. Now countering the grey market should be the top priority for the company. Building quick distribution to ensure availability of the brand will help in moving the products away from the grey market. As per Mr. Vohra, a part of the Olay range was available in select outlets through third party distributors or through the grey market. Today, with the launch of Olay, P&G will be offering the Indian consumer a full Olay experience and bringing in a range to meet her needs, which will now be widely and easily available at all nearby chemists and stores.

Pricing: Rs 599 for a 50 gm pump jar

Consumer Activation: Olay counters at cosmetics stores with counselling by expert beauty consultants at departmental stores and large modern retail outlets and further education on skincare and Olay

Source: Hindu Business Line - 30th Aug, 2007