* Case Paper: P&G Japan: The SK-II Globalization Project Mina Uwakubo Hawaii Pacific University Mr. Louis R. Collazo MGMT 6310 April 8, 2012 SK-II’s success is not only prestige skin care product or advanced technology but also its marketing approach to build the new brand. P&G succeeded to connect between the core technology or product concept and local market. Through Japanese market among the world’s toughest competitors, P&G developed potential source of innovations. In addition, SK-II’s marketing strategy built a new approach, Market research, Concept, Packaging, Positioning, Communications strategy. It was a big challenge that P&G shifted from Mass marketing, such as Olay brand, to Class marketing. SK-II’s …show more content…
• Price: Premium price • Place: Luxury and counter at department store • Promotion: Counseling by beauty counselor, TV advertising, Beauty magazines P&G utilized and rebuilt its distribution channels of using trained personnel at beauty counters throughout Japan. SK-II’s success had been achieved in a culture where the customers, distribution channels, and competitors were different from in other countries. For example, Japanese customers more educated, average Japanese women spent 4.5 minutes on her face cleansing, and most sophisticated users of beauty products in the world. On the other hand, in China customers due to Olay’s education recently moved from a one-step skin care process to a three-step cleansing and moisturizing process. However, unlike China, Europe had a large and sophisticated group of beauty-conscious customers who is already practiced a multistep regimen. As we see it is model is transferable but they have to modify some of models characteristic depending on customers behavior, competitors and market factor. P&G Japan’s competitive advantage is firm-specific but SK-II’s advantage is country-specific. I would suggest that de Cesare would be to expand SK-II brand within Japan. The company should continue to build on SK-II’s success in Japan. By building on brand's success in the proven domestic market, Procter & Gamble would be
They are women with incomes of $25,000 or more a year that care about their appearance and spend money on beauty products. They tend to have curly or frizzy hair. They are women that tend to use beauty salons and keep up with fashion and fashion trends.
The factors appropriate for SK-II as an existing brand in a country which would have had some priority over other products in the market will have to consider the PESTEL factors, Porter 's five forces, SWOT,Marketing mix,Investment decision and the culture as well must be understood to position the product in new global market.
This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.
1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in
Supplementary Material In each guideline, specific points must be adapted to reflect a company’s products and/or services. The decision as to the appropriateness of specific data and the depth of coverage depends on company objectives, product characteristics, and the country market. Some points in the guidelines are unimportant for some countries or some products and should be ignored. Preceding chapters of this book provide specific content suggestions for the topics in each
3. The brand promise was backed by good reputation and high quality product with good image of the end product. Their strategy was to aim and communicate the benefit to the end user, and show how the ingredient branding can properly improve the brand value of polycarbonate. With awareness and that both the manufacturer of the end product and the company that makes the most elementary component of the product stands for flawless quality and the consumer can trust this product. This was materialized though ingredient branding campaigns and multistage marketing strategies, such as cooperation marketing. Where each partner finances its own part, and resulted in a win, win situation. The integration of advertising and public relations pushes the message to more consumers minds. This also lead the end user the willingness to pay more for products labeled with Makrolon ingredients and increase demand and today Makrolon is a well known brand.
The main target market for the company is people of 15 and over years of the age, who represent healthy and luxurious lifestyle, and appreciate high quality product. Such people are mostly representatives of business who loves take care of their health and body: regular work out in gym, yoga, SPA, aroma therapies etc. Those people demonstrate elegant style in everything, starting from a coffee what they drink and finishing a shampoo or hand lotion what they use. Bright example of such group of customers can be those who prefer Starbucks coffee to Tim Horton’s one.
Branding is critical to a successful new product launch because brands better allow a customer to identify a firm and judge the product’s quality. Brands benefit the firm in that they secure competitive advantage, allow for a price premium over competitors and create strong brand loyalty (module 7A). All of these factors are critical to a product’s final identity and the connections that consumers will associate with it. Consumers also tend to associate an added benefit with successful brands. This is known as brand equity (module 7A). Svedka had established their brand identity early on. They wanted to be known as high quality vodka at a relatively inexpensive cost.
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.
For Europe, in order to have a chance in European market which crowded with world well-known beauty care brands, SK-II need to be launched in unique distribution channel from other P&G
I. Problem The Shiseido company is weak in understanding the market needs and is looking to create a strategy that will both increase global market share and reap success in the high potential Chinese market.
With a successful product in the US, Colgate-Palmolive decided to target its global audience by marketing to various geographies, especially the growing emerging markets, such as China and Mexico. Their global strategy posed immense challenges in terms of overcoming cultural
In the highly competitive Japanese skin-care market, P&G¡¦s new SK-II product has proven its success as a premium and prestige offering. P&G has gained significant knowledge transfers from SK-II development and further, has successfully tapped the fickle Japanese market and has devloped a loyal user-base in Taiwan and Hong Kong. With its phenomenal success, it is only logical that P&G consider rolling-out the SK-II product-line to the international market. However, while there is significant worldwide growth potential within the $9 billion prestige skin-care industry, based on recent organizational changes, new corporate priorities, and thorough market assessment, P&G must base its decision on current resources and capabilities to
The case of Flying Tiger in Japan initially caught our attention due to the big success immediately after market entry. Later on in the process we learned that there are many challenging aspects of operating the Flying Tiger business in Japan. The massive news media coverage and public attention in the early stage after the entry, served as a head start for the company. However it is not possible to sustain that level of attention, so it is necessary for Flying Tiger to figure out how to build a long-term competitive position in the Japanese market. We found that Flying Tiger needs to constantly reinvent and build the brand image, as the branding and the ‘story’ of the brand is extremely important in Japan. It is crucial for Flying Tiger to hold on to their uniqueness.