Previously we saw the SWOT analysis of Body Shopto, today we will look at the SWOT analysis of Olay.
Olay is a well-known multinational brand whose products are designed to address the problem and to satisfy the needs of the customer. As a result, it offers a diverse range of products to cater to the various demands of different skin problems.
The company lacks proper marketing of the brand due to which it is not getting a significant market share, in today’s world digital marketing is a very useful tool for the growth of a company. If you want to know more about digital marketing, do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this blog, we will look at the SWOT analysis of Olay and understand the reason behind the success of the brand, but before that let’s know more about the company.
About Olay
Olay, the American Skin Care brand. Originated in South Africa in the year 1949. From the house of the most leading FMCG brand Procter & Gamble.
It is dedicated to assisting all women in reaching their greatest potential by developing goods that provide genuine skincare.
The company’s products are related to skincare, it includes anti-aging, increasing whiteness, moisturizers. They all are predicated on the universal basis of true care.
With Olay, you may celebrate each challenge with regenerated, healed, and Glowing Skin in an always-changing world. You can trust us to hit the mark in this endeavor, as each Olay product contains decades of experience.
| Founder | Graham Wulff |
|---|---|
| Year Founded | 1952 |
| Origin | United States |
| No. of Employees | 400 (2020) |
| Company Type | Private |
| Market Cap | NA |
| Annual Revenue | $5.6 Billion (2020) |
| Net Income/ Profit | NA |
Services Provided by Olay
Following are the products offered by Olay:
- Face Washes and Cleanser
- Toner
- Face Creams
- Moisturizers
- Whitening Creams
Competitors of Olay
Some of Olay’s top competitors are as follows:
- Ponds
- Garnier
- Lakme
- Loreal
- Gatineau Paris
Now that we have learned more about Olay, let’s take a closer look at its SWOT analysis.
SWOT Analysis of Olay
SWOT analysis is a vital strategic planning tool that can be used by Reliance Industries managers to do a situational analysis of the organization. It is a useful technique to analyze the present Strengths (S), Weaknesses (W), Opportunities (O) & Threats (T).
1. Strengths of Olay
This aids in identifying the fundamental areas of the olay where it outperforms the competition and has a market advantage. Strengths are typically the companies main competencies
- Strong Brand Name – Olay has developed a strong brand name in the market over the years. Customers can link the brand with advertisements, and it has a strong brand image. On the basis of the brand portfolio, a strong brand name is acquired.
- Strong Parent Company Brand – Olay is owned by Procter & Gamble (P&G), a well-known consumer goods company. As a result of having a strong parent brand in the industry, Olay has been able to reach a large customer base.
- Product Quality – The product quality is excellent, as seen by the visible effects of using the goods. The product aid in the reduction of aging effects on the skin as well as the prevention of dark spots.
- Distribution Network – Olay is owned by P&G (procter&gamble) the distribution path of any P&G brand is a big strength. It has a well-developed logistics network with a wide reach of products. The label is available in several high-end retailers and boutiques. It ca
2. Weaknesses of Olay
This is the organization’s pain point, where it lacks the necessary resources and capabilities. Businesses must focus on these areas to say ahead of the competition.
Let’s take a look at some of Olay’s weaknesses.
- High Price – The product costs are quite high, putting them squarely in the premium market group. Olay focuses on a very restricted group of clients by charging a premium price for its products, which causes it to lose a customer in the market for other items.
- Market Investment – A substantial amount of money is spent on the brand, so the return on investment for the product is not particularly great.
- Product Recalls – Olay has had to recall items from the market in several instances, compromising the brand name and positioning in the market.
- Dependence on Retail Stores – Retailers are Olay’s primary point of sale, therefore sales are contingent on their availability and the way products are displayed in the store’s layout.
3. Opportunities of Olay
Opportunities are external features of the company environment that are likely to contribute to its success.
- Increased Focus – Not only Olay but also P&G is increasing its focus on the skincare industry to develop the market, which is seeing tremendous growth. Olay is in a terrific position, and it can drive a lot of income for itself if it can simply stay in business for a few more years and build a reputation as a fail-proof brand.
- Increasing Disposition Income – As incomes in emerging markets rise, people can purchase more goods and invest in better items for themselves. This aids the brand in gaining more clients. At the same time, the economy is expanding, which serves to expand the entire market size.
- Cooperations – The beauty and cosmetics industry operates in a fast-paced, ever-changing environment. Every product for skincare has been upgraded. This allows Olay to extend and enhance its product portfolio regularly in order to keep up with the fast pace of change and consumer entertainment.
- Social Media Presences – Olay has to increase brand visibility and popularity, which requires being active on social media platforms since almost everyone is captivated by the freshness that emanates from there. Olay can employ intriguing campaigns and advertising on social media platforms like Instagram and Facebook.
4. Threats of Olay
This study aids in determining which areas have immediate or future impacts on the firm. As a result, companies must be ready to deal with market threats.
- Increase in the Cost – Almost every country was driven into disarray when Covid-19 broke out. On the one hand, concerns about inflation rates are likely to surface, as the cost of raw materials rises, affecting the brand’s other operations. On the other hand, new rules and legislation are applied differently in other countries, creating further impediments to the company’s operations.
- Competition – The beauty industry has a lot of players and is a highly competitive industry. As a result, expanding the consumer base becomes extremely challenging. It is easier to entice non-users than it is to persuade customers to switch brands.
- Plagiarism – Doves recently mimicked Olay’s method by displaying real-life clients onto a screen to demonstrate the impact of its products. When the one element that propels your brand forward in the market is removed, your marketing strategy is rendered useless.
Conclusion
Olay has a huge presence in the market worldwide as well as the competition. So they need to work consistently by keeping their Strengths, Opportunities, Weaknesses, and Threats in the back of their mind to overcome competition and for the long term survival in the market.
The company has positioned and marketed its product well, but the awareness and reach were limited when compared to competitors.
It should increase the frequency of marketing digitally with the campaigns globally to create a digital presence to cut off the competition by scaling different levels of brands connection in the mind of consumers. If you want to learn about digital marketing, IIDE is the solution for you it has world-class courses in digital marketing which can help you upskill your knowledge.
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