Summary Statement/Abstract
P&G is a global company that is involved in many different markets including beauty and grooming and household care. The company has been through a lot of change due to the O2005 project that was undertaken in 1999 and saw a complete overhaul of the company during those years. One product that also was involved a lot during that time was the SK-II skin care product which was popular in Japan and a man named de Cesare wanted to take the product global to either the Chinese or European market. However, in order to do this there was a lot of analysis and research which had to be done to determine which market was the best to move the product to and de Cesare had to make a recommendation to the GLT knowing that
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A third factor to consider when making the recommendation to the GLT would be to take the three options that were presented which were: expanding to mainland China, expanding to Europe, or building on the brand’s success in Japan. All three of these choices hold different analyses which need to be considered before making any recommendation in the SK-II presentation. By doing all the research necessary in each market to determine which will be the most successful through the use of blind testing in both the Chinese and European markets along with determining market capabilities in each to decide on future profitability. From there analysis must be done to compare these markets and the profitability of each to the already proven success in the Japanese market and find out if expanding would be worth the cost as compared to trying to grow upon the 3% market share that was already held in the country which was proven could be doubled in the next six to seven years. Ultimately the determining factor of what recommendation will be given to the GLT will rely on the analysis done on all three opportunities that have been presented to de Cesare to figure out the financial situations of each opportunity and which best fits into what the company is trying to accomplish in this market.
Does SK-II have the potential to become a global brand within P&G’s worldwide operations? Why or why not?
I believe that SK-II does not have
This looks at the possibility of how SK-II cosmectics product can be a booming brand in Japan for P&G company to grow their market share and have a profitable outcome to cover up for their loss in the last few years.
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• We recommand P&G to directly invest in this market by focusing only on Marketing and Distribution to roll out SK-II (a special product) in a foreign market. It should not be an advantage for P&G to acquire subsidiaries, or to license or to franchise because resources and capabilities of SK-II are located in Japan. It would be difficult to find same raw materiels to produce SK-II in another country. Exporting SK-II in a foreign market will be better, for that they should emphasize on: • Differentiation advantage, • Changing customer behavior, • Product positionning, • Pricing policy, • Advertisement, • Counseler team…
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