Applying Science to Strategy: Olay's Rebranding Journey

Background: Olay's Rebranding Challenge

From Oil of Ulan and Ulay, then to Olay - a bold decision made by P&G to unify the brand under a global name in 1999.

A well-known skincare brand during my grandmother's time, Olay faced a rebranding challenge to stay relevant in a rapidly changing market. They aimed to attract a younger audience while retaining their existing customers.

Applying the key learning points from the HBR article "Bringing Science to the Art of Strategy," Olay successfully navigated their rebranding journey.

FIVE Scientific Steps to Strategy Making - The OLAY study

1. Move from Issues to Choice (and pick one option).

2. Make several versions of the options already identified (and dwell on them).

Generating creative options requires a clear concept of possibilities, an imaginative team, and effective debate management.

3. Evaluate the Strategic Option (based on Version 2).

Reverse engineer your decision.

1. Describe what needs to be true for each of your possibilities to be successful once you've listed them all.
2. Use the framework (see image) for uncovering the necessary criteria.

Applying the framework based on OLAY's strategic option.

4. Identify the Barriers of Choice

When the P&G reviewed the nine conditions it had come up with for the Olay masstige option, three conditions worried the team:

5. Conduct Tests for the Barrier Conditions

Through scientific testing, P&G discovered that pricing had a significant impact.

• At $12.99, there was a positive response from mass shoppers, but few department store shoppers were interested.
• At $15.99, purchase intent dropped, while at $18.99, interest surged.
• At $18.99, it prompted crossover buyers from prestige stores to discount outlets.

Benefits of Testing - Pricing Strategy:

1. Precise pricing conveyed the right message, appealing to different shopper segments.
2. Testing helped the team grasp the risks and benefits of various price points, allowing informed decision-making within the context of existing conditions.
3. Tests cannot eliminate all uncertainty, but they aid in risk assessment and decision comparison.

Conclusion: Balancing Art and Science for Success

Scientific strategy-making often leads to bold decisions, as exemplified by Olay's transformation from "Oil for Old Ladies" to a prestige product line.

The approach demands three mindset shifts:

1. Focusing on, "What might we do?" over "What should we do?";
2. Imagining "What would I have to believe?" rather than "What do I believe?";
3. Concentrating on the right questions, not just answers.

This approach nurtures scientific inquiry and leads to unexpected successes.

The author?Felicia Phuah?holds an MBA with distinction from the University of Strathclyde, UK, and is currently an HRD Corp accredited trainer and an International Certified Professional Trainer (ICPT, IPMA, UK) specializing in EQ/AQ leadership, positive psychology, mental resilience, and strategic corporate wellness program. She is also a wellness marketer, a certified nutritionist, and also a practicing aromatherapist. She has conducted over 200 workshops and trained over 10,000 people nationwide.