Formal Written Report and a Creative Marketing Presentation for marketing mix - Essay Example

? Formal Written Report and a Creative Marketing Presentation for marketing mix Letter of Transmittal Ask Consultant 11 Louise Street USA Mr. Robert A. McDonald 16 May 2012 Chief Executive Officer USA Dear Mr. McDonald Further to your request on 16 May, I hereby attach a report analysis based on the creative marketing presentation of Olay. The report pays particular attention on the marketing activities adopted by the company to attract the target customers. The repot findings suggest that Olay has been a successful brand within its target market and the brand has been able to target the right segment, the females particularly of all age groups. The positioning strategy, promotional strategy used by Olay. Recommendation for Olay is that to invest more in its R&D and marketing mix strategies especially the promotional factors. Olay being a topmost brand, a handful of recommendation has been provided. Thank you for providing me the opportunity to prepare the report. I will be glad to discuss any further queries in the upcoming meeting on Monday 21 May. Yours Sincerely Chris Director- Ask Consultants Executive summary The project report deals with the marketing and branding strategies of Olay one of the top most beauty brand of 2012. The main purpose was to discuss about the product, Olay total effect, its promotion strategies and pricing strategies. Olay practices the skimming pricing strategy as its products is priced at a high rate right from its introduction. Promotional tools include commercial advertisements, print media, offers, discounts and others. Olay is one of the most profitable brands of P&G and it continues to invest in its R&D for better added features. Contents Executive summary 3 Contents 4 1. Formal introduction 6 1.1 Authorization and Purpose 6 1.2 Limitation 6 1.3 Scope of the report 6 2. Product and target market 6 2.1 Product- Price and Features 7 2.2 Target market based on at-least 4 descriptors 8 2.3 Product Strategy 8 2.4 Product type and the Marketing Mix Implications 9 2.5 The Three levels of product 9 3. Promotion Strategy 10 3. 1 Positioning Strategy 10 3.2 Promotional tools 10 3.3 Copy of One Promotional Tool 11 4. Print Media 12 4.1 Advantages and disadvantages of using Print Media 12 5. Pricing Strategy 12 5.2 Pricing Objective and Strategy 13 5.3 Perceptual Mapping 14 Perceptual map at the introductory stage of the PLC 14 Perceptual map at the maturity stage of the PLC 15 6. Marketing Mix adjustment strategies 15 7. Conclusions & Recommendations 16 Reference 17 1. Formal introduction 1.1 Authorization and Purpose The purpose of the report is to analyses the marketing and the branding strategies of Olay which the company has implemented and currently perceiving the strategies. 1.2 Limitation Most of the information was based on secondary research and due to time limit an extensive primary research was not a part of the report. 1.3 Scope of the report The report contains detail information about the brand Olay and its product total effect. The paper discusses the target market, promotion, product strategy of Olay, the positioning statement of Olay, also the perceptual map taking price and quality as two dimensions. 2. Product and target market Product is the core of any marketing plan for an organization. It is the product that leads the company either towards the success or failure. Products are of many types, the type of product which is dealt in this case is the consumer goods products. Products are those which are consumed or used by the consumers. The brand chosen here is Olay, manufactured by Proctor & Gamble. Olay is regarded as worldwide leader in skincare and the brand is the most trusted by women for around 60 years. The product to be discussed further is Olay, Total effects. This product has been in demand for its features as it claims to fight seven signs of anti ageing problem (Olay, 2012). In this competitive world, women has been equally at par with their counter partners, the male segment and this has lead to more increase or demand of the grooming section. In order to tackle the issue with regards to skincare P&G has introduced line of products which claims to compliment her youthful looks in every stage of her life (Olay, 2012). Hence it can be concluded that the target market for Olay is the large section of women of all age group who loves to stay good, look good at all age of their lives. 2.1 Product- Price and Features The product chosen is Olay Total Effects, which has been manufactured to fight the seven signs of ageing for a visibly younger looking skin. The product line of total effect includes from moisturizing to cleansing and also special treatment for skin and these arrays of products are dedicated towards making her skin look at its best. Olay total effects, with its Vita Niacin formula proves effective for fighting against the seven signs of ageing which are wrinkles, fine lines, appearance of age spot and pores, rough texture, dullness, uneven skin tone and dryness. P&G has included new range of products such as the total effect sensitive, which is designed to take care of the sensitive skin (Olay, 2012). It can be said that Olay total effect series is a complete regimen for beauty for women who cares about the look at any given age. P&G has distributed free sample of Olay total effect in order to enlarge its target market towards the newer generation (Olay-a, 2012). Olay has adopted the premium pricing because Olay has been segmented into the premium skincare line and it has been named the top beauty brand of the year 2012 (Brand Finance, 2012). Price varies from products to products; the total effect night touch is priced at AU $17.00; total effect 7 in 1 anti Ageing day Moisturizer is priced at AU $ 16.99; the eye transforming cream is charged at AU $ 16.63 (Chemist direct, 2012). 2.2 Target market based on at-least 4 descriptors Olay has targeted the women segment of all age group but their target markets are also further segmented based on age, requirements, and skin types and so on. The Olay total effects serve variety of problem faced by women. Thus the target market can be divided into four relevant descriptors. The first target market for Olay is the anti ageing group that is women who are above the age group of 35. To address the need Olay has come up with anti ageing cream to fight the seven signs of ageing. The next target market is those set of women who are exposed to sunrays due to nature of work, the fairness cream with UV protection. Thirdly, Olay has targeted women based on their different skin types such as for dry skin, normal skin, oily skin and others. And finally, another target market of Olay is women with puffiness under their eyes. Olay huge product line serves the problem of each and every type of skin problems that women tends to face and the tagline of Olay also supports its range of product which says “Love the skin you are in” (Olay, 2012). 2.3 Product Strategy Women forms an important part in the decision making process. If women are not taken into consideration in the process of marketing and package design, markers are surely to miss an opportunity for increase in the sales process. Women are seen as economic opportunity as according to a survey it has been revealed that more than 80% of the consumer purchasing decisions are made by women and they form an important part of any marketing campaign. Women provide a message for the brand marketers. P&G is one such company which has targeted the right group. P&G as per its umbrella theme, “Touching lives, improving life” has implemented into its entire product line. This is particular in case of its Olay brand which has targeted the women sector. The branding team of P&G understood that women have to make hard choices in each and every day about the products that they purchase. P&G’s Olay total effect goal was to reach the anti ageing target customers. Its communication revolved around one single line “Love the skin you are in”. This tagline of Olay Total Effect embedded in the newly designed package created a mindset that the skin is unique and it is Olay that embrace the special skin of a woman (Sucharda, 2004). 2.4 Product type and the Marketing Mix Implications The product chosen for further discussion is Olay Total effects, one of the prominent products for Olay. Olay total effects help to solve the issue of anti ageing problems that women tends to face after a certain age. This product has been further categories into five different sections such as facial moisturizers, cleanser, and specialty treatment and also body wash and lotion. Olay total effect was targeted towards range of women with maturing skin who stills face the problems of breakouts and others. The price set was relatively high but since the product was accepted the price was however not an issue as the product satisfied the beliefs and core value of women and the product was made available to every retail outlets. 2.5 The Three levels of product The three level of product includes Core product, Actual product and augmented product. The core products are referred to the benefit the product offers. In case of Olay total effect, the benefit includes spotless skin with no marks of anti ageing for all women of different age group. It is a satisfaction that they receive in terms of skin and grooming factor. The actual product for Olay is its branding and the features that the products are embedded with. Olay total effects, with its Vita Niacin formula proves effective for fighting against the seven signs of ageing. Its branding strategies are also very effective which has managed to create a position in the minds of the target customers. The target market is aware that it is Olay that gives the guarantee of falling in love with the skin they are in with. Augmented product included with Olay is the peace of mind that a woman feels after experiencing Olay as the product gives a feeling of younger looks. 3. Promotion Strategy Promotional strategies which are being used by Olay to promote its Total effects include both the push and pull strategy. Push strategy has helped the brand to create a demand for the product within the target market. Similarly in the pull strategy, Olay has been spending a huge amount of money on its advertisement and promotional activity in order to build up the customers demand for total effect. Apart from advertising, word of mouth, sampling, discounting and publicity were also used by Olay in the initial stage of its promotion. Currently the company uses advertising as a means of its promotional strategy. 3. 1 Positioning Strategy Olay has tried and succeeded in positioning the brand in the minds of the target customers with the help of the slogan and logo which aims to reflect at the women as it assure to make the skin wrinkle free and glowing at all age. The brand has positioned as a brand that celebrates beauty both within and outside. The tagline of Olay is been used as its positioning strategy as it allows women to love the skin they have and with Olay taking care of their skin, it rejuvenates the skin and makes them feel young all different level of the age. 3.2 Promotional tools Promotional tools adopted by Olay is through media both print and television. Advertisements have been used to promote the Olay total effects. The most popular advertisements are used to convert customers from different brand and promote brand loyalty and prevent its target customers to switch brands. Olay uses mass media advertising through placing advertisements in magazines such as Glamour, Elle and others. Olay has also hired brand ambassadors for promoting its total effect and these starts share their personal experience before and after using Olay. This has highly motivated the common people and gave rise to demand of Olay and its products. In addition to the above, Olay total effects are also advertised on big bill boarded and hoardings so to attract the target market and also special offers as a part of its promotion strategy are also offered. This has further helped the target customers to feel the product and experience its benefits towards their skins. 3.3 Copy of One Promotional Tool The above promotional activities are done through the print media in order to cater to the target market. Print media has been an important part in the promotional strategy. Olay makes use of the print media to showcase its products and its features. 4. Print Media 4.1 Advantages and disadvantages of using Print Media Print media is considered to be the most flourishing industries and is regarded as an important and popular medium to reach the target customers. The different types of print media such as the newspaper, magazines have its own advantages and disadvantages and they should be of prime importance to the marketer. Advantages of print media are that these types of media tend to have a loyal readership which proves to be useful for advertisers as compared to other form of advertisers. The size of the advertising space can be chosen according to the need and estimated budgets of the marketers. Magazines and newspaper have loyal fans in terms of its readers proving to be an advantage for the marketers in the process of marketing the product. These forms of print media tool are always in the eye amongst the general public. In addition to the advantage their lies also few disadvantages of using the print media. The cost incurred for the promotion might be expensive; the life of print media is limited, and also an extensive planning is required to advertise in print media. Olay has used the print media mainly in magazines such as Glamour, Elle and Cosmopolitan to promote its products and also newspaper. It has helped Olay to target the women who has the habit of reading magazines or the newspaper. Thus this can be said that print media suits the needs of the target market and one of the most popular form of promotional tool. 5. Pricing Strategy Price is one of the Ps which constitutes the marketing mix and is an important ingredient in the marketing mix. Pricing strategies changes as the product passes through the different stages of the life cycle. When companies introduces new product, they usually face the challenge of setting the price for the first time. Thus marketers choose between market skimming or market penetration pricing strategy. In market skimming markets set a high price for the new product in order to skim maximum amount of revenue generated from the particular segment that are willing to pay the high price set by the marketer. In this pricing strategy, the quality of the product and the image should support the high price and there are substantial amount of customers to purchase the product. The second type of pricing strategies is the market penetration where the marketers set a low price for its product to attract a large number of customers and capture a large market share. In order to adopt the pricing strategy, the market should be highly sensitive towards the price so that the low pricing strategy induces market growth and the low pricing should be able to keep out the competitors (Kotler, 2008, p.287). 5.2 Pricing Objective and Strategy Olay has segmented its product, Olay total effect into the premium segment of the products and are charged a higher price than its competitor’s product. The pricing objective maintained by Olay is of “Status Quo Pricing”. This is because the company P&G has been in the favorable position and thus sets objectives of status quo. Through the objectives Olay tries to maintain a decent market share, meeting the pricing strategy of its competitors, price stability and maintaining a good brand image. Therefore the strategy adopted by Olay is of market skimming pricing strategy as the products are highly priced. Olay total effect was priced at a high rate at the very stage of its introduction. However Olay’s pricing strategy has been successful due to the high quality and the brand image that it perceives. 5.3 Perceptual Mapping Perceptual map at the introductory stage of the PLC High Quality Low Price High Price Low Quality The above perceptual map of Olay explains its existence in the introductory stage in the PLC. The two dimensions taken are price and quality. It can been seen from the above figure that Olay at the introductory stage charged a high price and also perceived to have a high quality but since the products were not used by the customers they were not sure about its quality. Thus Olay total effect perceives a high price but medium level of quality Perceptual map at the maturity stage of the PLC High Quality Low Price High Price Low Quality The next perceptual map explains the PLC of Olay in the maturity stage. It can be concluded that Olay, in its maturity stage has perceived a high price as well as high quality for its products. Olay charged a premium price for its products and the quality of the products seems to be extremely high in comparison to its competitors. 6. Marketing Mix adjustment strategies Olay’s marketing mix caters to the need of women and has targeted the upper middle class to higher income level groups of women as Olay is perceived to be a premium product and has adopted the market skimming pricing. Olay total effect has understood the need of women and assures to fight the seven signs of ageing. Thus it can be said that the product and pricing strategy adopted by Olay is perfect. However in the promotional strategy some alternation can be made. Olay promotes its products through advertisements in television and also through print media. In addition to this, Olay can conduct events in association to its product and also can sponsor certain events such as beauty pageant. It can distribute trail package to its target customers and also provide free grooming tips to the customers. This will further help the brand to build up its brand image and create brand awareness. It is required for a brand to keep on conducting its promotional activities to keep a track of its customers and induce sales. Thus Olay can maintain its brand image through performing certain activities and it will help the customers to know about the new products that are being introduced by the company. 7. Conclusions & Recommendations Therefore based on the above analysis of the product and the brand it can be concluded that Olay has been able to mark its presence in the minds of the customers. Olay has ranked top in the top brands of 2012 with a brand value of $11.8 billion. One of the most productive brands of P&G is Olay and it have been the forefront of innovation surrounded with new technology and ingredients which transforms the skin and thus ranked as the top beauty brand. Thus P&G should keep on investing in its R&D and introduce new products like Olay to target the female segment of the society. Reference Brand Finance, 2012. Olay is the most valuable beauty brand in the world. [Online]. Available at [Accessed 12 May 2012]. Chemist direct, 2012. Olay Total Effects Products. [Online]. Available at: < http://www.chemistdirect.co.uk/total-effects_v_629.html> [Accessed 11 May 2012]. Kotler, P., 2008. Principles of Marketing. South Asia: Pearson Education India. Olay, 2012. Total effects. [Online]. Available at: < http://www.olay.co.uk/skin-care-products/total-effects> [Accessed 11 May 2012]. Olay-a, 2012. Olay Total Effects Introduction. [Online]. Available at: < http://buy-olay.com/olay-total-effects-introduction/> [Accessed 11 May 2012]. Sucharda, L., 2004. THE WAY TO A WOMAN’S HEART. [Pdf]. Available at: < http://www.designnorth.com/downloads/cms/download-13.pdf> [Accessed 12 May 2012]. Read More