P G In Japan
Jenny Inman
Jacob Collins
Kyle Spielbusch
MGMT 328-001
Proctor and Gamble in Japan
SK-II is a Japanese prestige skin care line of Proctor and Gamble. In November 1999, Max Factor Japan president, Paolo de Cesare was preparing to meet with the Global Leadership Team (GLT) of Proctor and Gamble’s Beauty Care Global Business Unit (GBU). Since Max Factor Japan was the center of P&G’s rapidly growing cosmetics business in Asia, and it already had some European market experience as well, De Cesare believed it was time to expand the SK-II line into P&G’s global market, and make it a global brand. As he prepared his proposal for the GLT, de Cesare did recognize that the potential risks in expanding SK-II into China and Europe.
In order to prepare for his meeting with the GLT, de Cesare has to consider a few different factors in his recommendations in his SK-II presentation. The first and arguably important factor to consider is the differences and similarities in the markets of Japan, and the proposed markets of China and Europe. Obviously no global market is the same, so even though SK-II has been very successful in Japan, this does not necessarily guarantee success in any other markets. In order to determine if the expansion to China and Europe would be worthwhile, de Cesare would need to conduct a thorough analysis of each target market, as well as an analysis of the industry in general.
Other possible suggestions would be to follow the model of other companies in the same industry who have made the successful transition into the global market. Companies such as L’oreal and Estee Lauder have both been successful in the global market. L’oreal’s transitional strategy allows them to adapt their products to the needs of the global market, and therefore increase efficiency. Estee Lauder is more of a manufacturer of skin care products, but also makes use of the transitional strategy in the global market. If P&G and SK-II follow the lead of a transitional strategy,
Jacob Collins
Kyle Spielbusch
MGMT 328-001
Proctor and Gamble in Japan
SK-II is a Japanese prestige skin care line of Proctor and Gamble. In November 1999, Max Factor Japan president, Paolo de Cesare was preparing to meet with the Global Leadership Team (GLT) of Proctor and Gamble’s Beauty Care Global Business Unit (GBU). Since Max Factor Japan was the center of P&G’s rapidly growing cosmetics business in Asia, and it already had some European market experience as well, De Cesare believed it was time to expand the SK-II line into P&G’s global market, and make it a global brand. As he prepared his proposal for the GLT, de Cesare did recognize that the potential risks in expanding SK-II into China and Europe.
In order to prepare for his meeting with the GLT, de Cesare has to consider a few different factors in his recommendations in his SK-II presentation. The first and arguably important factor to consider is the differences and similarities in the markets of Japan, and the proposed markets of China and Europe. Obviously no global market is the same, so even though SK-II has been very successful in Japan, this does not necessarily guarantee success in any other markets. In order to determine if the expansion to China and Europe would be worthwhile, de Cesare would need to conduct a thorough analysis of each target market, as well as an analysis of the industry in general.
Other possible suggestions would be to follow the model of other companies in the same industry who have made the successful transition into the global market. Companies such as L’oreal and Estee Lauder have both been successful in the global market. L’oreal’s transitional strategy allows them to adapt their products to the needs of the global market, and therefore increase efficiency. Estee Lauder is more of a manufacturer of skin care products, but also makes use of the transitional strategy in the global market. If P&G and SK-II follow the lead of a transitional strategy,