OLAY REGENERIST. Driving Skin Care Category Sales

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1 OLAY REGENERIST Driving Skin Care Category Sales

2 Skincare Category Australian Skincare has growth at 6.44% on average between (Aztec Facial History Grocery) Skincare growth has been driven by Anti-aging, growing at 10.91% CAGR Olay has been key driver of both AA segment (TE, Reg, Definity, Monaco) and total category growth delivering 10.01% CAGR Olay is committed to continuing to driver total brand sales via Anti-aging that continue to drive category growth

3 Olay Strategy for continued growth Continue to drive awareness of Regenerist Establish it as the best and most advanced anti-aging skincare via innovation and holistic marketing plan Leverage on Power claim to bust their inherent believability barrier Step change in FMOT to shake her out of Olay is a grocery brand notion

4 Olay Strategy for continued growth Stage 1 Micro Sculpting Serum Background: In 2000, Olay launched Olay Total Effects which started the anti-aging revolution in ANZ (first mass brand at $30) In 2009, Olay launch Olay Regenerist Micro-Sculpting Cream which once again step changed the anti-aging segment In 2010, Olay will continue to drive the super premium segment via the expansion of the Olay Regenerist Super-Cream range.. Introducing Olay Regenerist Micro Sculpting Serum 50ml the first line extension in the Olay Super-Cream range. Opportunity: It will switch consumers across from other brands, trade up consumers & add incremental products to the consumer s regimen

5 Big Success of Micro Sculpting Cream Big Success Thanks to Strong Support From YOU Now, Olay is Expanding the Premium Line-Up to Further Drive the Category Growth

6 Step 1: Understand WHO, Purchase Barrier and Unmet Needs Top needs from target shopper Reduces Existing Wrinkles and Fine Lines Delays Wrinkles and Fine Lines From Occurring Firms Up Skin Attitude towards skin care It is worth paying more for quality skin care ingredients (67%, 152 ivr) I put a lot of effort in looking my best (53%, 147 ivr) It is important that my facial skin care brand keep pace with the latest technologies (63%, 197ivr) Trial Barriers Superiority Need to strengthen best in AA/innovator equity Not top of mind, not YET the gold standard in AA Credibility/Believability Lack of proof on how product works Has provocative claims but unsure if it can deliver

7 Step 2: Product Innovation

8

9 Product Innovation Product Technology Micro Sculpting Serum Regenerist s Highest Concentration of Pentapeptides Ever Potent Active Firming Package Monaco system with 5ppm penta-peptide & 5% Niacinamide to target firming. 10% Glycerin and 0.1% sodium hyalauronate to target moisturisation. Boosted anti-oxidant system (carnosine, green tea and BHT) Panthenol (1.25%) Refined Active Delivery System Silicone in water emulsion incorporating silicone elastomer, silicone oils and hydrophilic powders to minimise water evaporation without waterproofing the skin Luxurious Look and Feel of a Prestige Serum Blend of Definity elastomers & Monaco particles to give the feel/application of a W/S serum Orange mica to give luxurious experience (the product looks and feels great! Expected delivery to store: 23 rd August 2010

10

11 Step 2: Product Innovation Product Technology Slide is confidential not to be left with customer

12 HUGE TVC - 30 sec TVC on Monte Carlo Step 3: Huge $5.9 million Marketing Plan Magazine Max - 5 page advertorials in key Aus 1 titles - Addresses superiority barrier - Drives education around serums Spend $1.3M Spend $0.5M Digital - blasts - Banner ads Print Spend $3.7 TV Online Spend $.2M HUGE TVC - Premium In- store execution - design how Aus 1 wants to shop In-Store ER/PR Spend $.2M ER/PR - P&G Launch events (May and Aug) - Exclusive pitches - Blogger outreach

13 Step 4: The Right Shelving and Display Shelving Strategy: Incremental Ranging OR Shelves Micro Sculpting Serum with Micro Sculpting Cream as a premium line-up Within the premium line up, Shelving follows regimen order. i.e., Serum MS Cream Glorify the premium line-up on shelf with branding and education

14 Step 4: The Right Shelving and Display Drive Trade IN & UP & ACROSS to Olay Premium Boutique & Category Growth - Displays Premium Line-Up Together with Regenerist Base Range - Elevate the In-store Experience to have a Prestige Look & Feel - Drive Awareness & Trial of Olay Premium Boutique/Line-Up - Strong closure claim: Firms as well as Serums costing $500*

15 Step 5: Premium Pricing for Premium Proposition Line Priced with Micro Sculpting Cream to Expand the Category Growth via Further Driving Trade In and Up ANZ Micro Sculpting Serum Micro Sculpting Cream RRP $49.99 $49.99 RPP $44.99 $44.99 All decisions regarding retailer ranging, shelving, prices, and promotions are at the sole discretion of the retailer. Any recommendations from P&G are non- binding suggestions only.

16 New Regenerist line up With more to come!

17 Promotion Opportunity to help close sales in store Display opportunity to support $5.9 million launch & maximize sales for your store: - Counter unit: $40 - Display bin: $75 All you have to do is order $500 (RRP) of Olay products (including new Micro Sculpting Serum) per display and have the display up for at least 1 month Recommendation Purchase 12 units of new Olay Micro Sculpting Serum per store - Top up on Olay in every store to reach $1000 (RRP) value - Provide 2x Olay displays, 1x Bin and 1x counter unit per store - Catalogue in October and December 2010

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