Speaking at the Barclays Capital Back to School conference in Chicago yesterday, P&G’s vice chairman of global beauty and grooming brands Ed Shirley stated that the objective to grow the Olay brand would form a key part of its global growth strategy in the future.
Shirley stated that the emphasis for the brand this year would be new markets, and underlined Brazil, currently one of the fastest growing retail markets in the world, as a key focus for the push.
The expansion of the brand is also expected to continue into 2011, with the ultimate aim being to increase the number of markets where Olay is sold from the current figure of 69 to 100 over the course of the next two years.
During the presentation Shirley stated that the ramp-up would be fast, acknowledging that for development of the Olay brand ‘we have been too slow in bringing innovation to the market place.’
“Eventually we will have a whole [Olay] portfolio in every market in the world,” Shirley said.
Shirley also emphasized how the acquisition of the Gillette business has helped to develop the company’s emphasis on male personal care and grooming products, shifting the emphasis away from the core focus on female consumers.
Stating that this would mean more future growth across the board for male grooming, Shirely specifically referred to growth from the Olay brand, which he said would become a core part of the strategic growth plans for the brand.
Over the years Olay has extended its reach beyond being a simple moisturizing product to clearly define itself as a leader in the fast-growing anti-aging segment.
The fact is that the development of the men’s grooming market has led to significant growth in the areas of moisturizing and anti-aging products, something P&G will be hoping to tap into by extending the reach of the Olay brand.
In fiscal 2009, P&G estimated that the Olay brand accounted for approximately $2.8bn of the group’s total $79bn revenues. It is currently the leading skin care brand in a number of the biggest global markets, including China, the UK and the US.
The company’s beauty and grooming operations have grown from a $9bn turnover to $27bn turnover in just seven years, growth that has been fueled by both organic growth and acquisitions, including the Gillette business.