P&G in Japan Essay

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P&G Japan

Q1. Why was SK-II so successful in Japan?
Statement: By based on research of Japanese market, P&G made clear targeting and positioning, and developed new products which fulfilled customers’ needs, built the effective distribution. As a result, P&G could establish differentiation advantages for the following. • Product: “Foaming massage cloth” , Elegant dispensing box “Foaming massage cloth” increase skin circulation through a massage while boosting skin clarity due to the microfibers’ ability to clean pores and trap dirt. • Price: Premium price • Place: Luxury and nice counter at department store • Promotion: Counseling by Beauty counselor, TV advertising, Beauty magazines

Description
Targeting Positioning Affluent women
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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…

Q3. Contd. Which country should be the priority?
Porter national diamond analysis Supporting Industries Superior in-store infrastructure Counseling counters Cosmetic R&D centre MDO, Max factor Strategy, Structure and Rivalry High number of domestic competitors with high innovation. Tough competition Presence of prestigious foreign brand Intense, established, well respected , high experience and famous competitors Limited competitors in high-cosmetic market which can lead to low innovation and learning improvement as well as an opportunity to easily reach a huge market for P&G

Country

Factor Condition

Demand Conditions

Japan

High R&D technology and innovative. Skin care Educated labor force Home-grown resources comparative advantage

Sophisticated and wealth customers Slow market growth trend High potential in

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