SK-II, Japan
P&G Japan: The SK-II Globalization Project (Harvard Business School case)
Case Summary
In “P&G Japan: The SK-II Globalization Project” case study, the author Christopher Bartlett presents the P&G’s plan of pushing SK-II as a global beauty product. In late 1999, Paolo de Cesare, President of Max Factor Japan, had given an idea to the Global Leader Team (GLT) of P&G’s Beauty Care Global Business Unit (GBU) that whether it was a good idea for pushing SK-II to become a global P&G brand. Since the product was successful in Japan ($150 million in sales in 1999), P&G then was considering in expanding its SK-II to be distributed worldwide. There was also an effort of the Global Growth strategy of P&G at that time as an influence factor to support SK-II as a global brand. Durk Jager, Chief Operating Officer, had been set up Organization 2005 (O2005). O2005 was dealing a developing of new product and quickly launch out worldwide. The O2005 strategy could bring more annual earnings growth and company’s annual saving. On the other side, there was also a cost of restricting, closing plants, and job losses in the first five years.
Later, Paolo de Cesare got a promotion as a global franchise leader for SK-II. In promoting SK-II as a global brand, he came up with three alternatives of opportunities. The first choice was introducing the brand into mainland China. The second choice was a chance of introducing SK-II to Western market. The third choice was working on the successful home Japanese market. Considering these three alternatives, Paolo de Cesare knew that his decision needed to able to work well with company’s ability and structure. Developing from a local focus to global focus was one of many tasks that challenged P&G in order to develop its ability.
Problems Identifications
Did SK-II have the potential to develop into a major global brand?
Which markets were the most important to enter now?
How should company and its global strategy implemented in P&G’s newly
Case Summary
In “P&G Japan: The SK-II Globalization Project” case study, the author Christopher Bartlett presents the P&G’s plan of pushing SK-II as a global beauty product. In late 1999, Paolo de Cesare, President of Max Factor Japan, had given an idea to the Global Leader Team (GLT) of P&G’s Beauty Care Global Business Unit (GBU) that whether it was a good idea for pushing SK-II to become a global P&G brand. Since the product was successful in Japan ($150 million in sales in 1999), P&G then was considering in expanding its SK-II to be distributed worldwide. There was also an effort of the Global Growth strategy of P&G at that time as an influence factor to support SK-II as a global brand. Durk Jager, Chief Operating Officer, had been set up Organization 2005 (O2005). O2005 was dealing a developing of new product and quickly launch out worldwide. The O2005 strategy could bring more annual earnings growth and company’s annual saving. On the other side, there was also a cost of restricting, closing plants, and job losses in the first five years.
Later, Paolo de Cesare got a promotion as a global franchise leader for SK-II. In promoting SK-II as a global brand, he came up with three alternatives of opportunities. The first choice was introducing the brand into mainland China. The second choice was a chance of introducing SK-II to Western market. The third choice was working on the successful home Japanese market. Considering these three alternatives, Paolo de Cesare knew that his decision needed to able to work well with company’s ability and structure. Developing from a local focus to global focus was one of many tasks that challenged P&G in order to develop its ability.
Problems Identifications
Did SK-II have the potential to develop into a major global brand?
Which markets were the most important to enter now?
How should company and its global strategy implemented in P&G’s newly
References: Bartlett, Christopher A. "P&G Japan: The SK-II Globalization Project." Harvard Business School Case 303-003, March 2003. (Revised March 2004.) Japanizm. “Beauty Industry in Japan.” Japanizm. Accessed November 15, 2013. http://www.japanizm.co/column/beauty-industry-in-japan/. Jian, Serena. “New Level for China’s Beauty and Personal Care Market.” In-Cosmetics. Accessed November 15, 2013. http://www.in-cosmetics.com/Online-Press-Centre/Euromonitor/Expanding-Middle-Class-and-Digital-Technology-Drive-Chinas-Beauty-and-Personal-Care-Market-to-a-New-Level/. Oprah. 2010. “China’s Beauty Boom.” Oprah, March 3. Accessed November 15, 2013. http://www.oprah.com/oprahshow/Chinas-Beauty-Boom-Lisa-Ling-Reports/1. Rossi, Emilio, Antonia Prlic, and Robert Hoffman. 2007. “A Study of European Cosmetics Industry.” Paper prepared for European Commission, Directorate General for Enterprise and Industry, November. Accessed November 15, 2013. http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=4561.