P&G Japan: the Sk-Ii Globalization Project
1. As Paolo DeCesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting?
There are many factors that need to be considered when deciding recommendations to the GLT of SK-II.
Being that this is P&G’s first proposal to build a Japanese brand worldwide, it is important to take into consideration different cultures than of the consumers in Japan.
Since 2005, P&G's global organization has been in the middle of a restructuring program, which can sometimes cause a disruption to the normal functions of the company.
Local managers resisted the surfacing of new products based on the possible negative impact on local profit. Lafley’s idea that most of the budget allocated for advertising should be adjusted to focus on two main products: MaxFactor Color and SK-II, since SK-II had such a high margin. However, DeCesare’s point of view surrounded the idea that SK-II could break into the $9 billion skin care market. From Jager’s eyes, his concern surrounded that a major product development technology center was needed for Japan’s demanding consumers. Ideally, this would also support product development throughout Asia and other parts of the world. For Ram, it was considered that SK-II would work best as introduced into Chinese department stores as Oil of Olay. Ram also predicted China to be the second largest market in the world for upscale beauty products
2. Does SK-II have the potential to become a global brand within Procter & Gamble’s worldwide operations? Why or why not?
SK-II’s potential surrounding breaking into the global market and becoming a competitive brand would allow P&G to obtain a high margin product while still making a high-quality product. The characteristics of the SK-II’s clear, un-perfumed liquid makes it distinctly different from other products. With this P&G would also sell its
There are many factors that need to be considered when deciding recommendations to the GLT of SK-II.
Being that this is P&G’s first proposal to build a Japanese brand worldwide, it is important to take into consideration different cultures than of the consumers in Japan.
Since 2005, P&G's global organization has been in the middle of a restructuring program, which can sometimes cause a disruption to the normal functions of the company.
Local managers resisted the surfacing of new products based on the possible negative impact on local profit. Lafley’s idea that most of the budget allocated for advertising should be adjusted to focus on two main products: MaxFactor Color and SK-II, since SK-II had such a high margin. However, DeCesare’s point of view surrounded the idea that SK-II could break into the $9 billion skin care market. From Jager’s eyes, his concern surrounded that a major product development technology center was needed for Japan’s demanding consumers. Ideally, this would also support product development throughout Asia and other parts of the world. For Ram, it was considered that SK-II would work best as introduced into Chinese department stores as Oil of Olay. Ram also predicted China to be the second largest market in the world for upscale beauty products
2. Does SK-II have the potential to become a global brand within Procter & Gamble’s worldwide operations? Why or why not?
SK-II’s potential surrounding breaking into the global market and becoming a competitive brand would allow P&G to obtain a high margin product while still making a high-quality product. The characteristics of the SK-II’s clear, un-perfumed liquid makes it distinctly different from other products. With this P&G would also sell its