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
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Table of contents 1.0 Introduction 2 2.0 New Product Development of SK-II 3 2.1 Strategy 3 2.2 Idea Generation 4 2.3 Screening 5 2.4 Concept development and testing 6 2.5 Business analysis 7 2.6 Product Development and Testing 8 2.7 Test Marketing 8 2.8 Commercial and launch 9 3.0 Critical Issue of SK-II 11 4.0 Conclusion 12 References: 13 1.0 Introduction The Procter & Gamble Company (P&G) boasts boatloads of brands. The world ’s top maker of household products
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Case 5: P&G Japan: The SK-II Globalization Project Questions: 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: Political: Tariff (ex: China government took 35% to 40% import tariff on SK-II) Economic: The economic scale
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P&G Japan: SK-II Globalization Case SK-II is a high-end skin care product‚ which has proven to be a success in the highly selective and competitive Japanese cosmetics market. It fits in the Japanese environment nicely. For starters‚ the wealthy Japanese society gives P&G a large market to target. Also‚ the uniquely sophisticated habits of Japanese women means they are more likely to accept the more complicated procedure required by SK-II. SK II involves six to eight steps‚ which is more
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External Analysis SK-II is originated in Japan and is being exported to other countries including China. It is easy for SK-II to have a market share in China because of similar skin type of Chinese to that of Japanese (whom it was originally introduced) and their developed skin care practices. They were also at ease to penetrate China because they already had existing distribution networks as well as trained counselors who will now be a one of their means to increase sales by promoting the product
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SKII SK-II has the potential to be a global brand within P&G’s worldwide operations‚ but the commercial success of internationalization depends on which specific markets P&G aims to target. When comparing the prospect of entering the Chinese market against the prospect of entering the UK market‚ we can see that the Chinese market is more favorable due to several qualitative and quantitative factors. Qualitatively‚ P&G has already experienced success in China’s premium skin-care market through a non-traditional
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consumer preferences‚ and business structures versus the United States‚ Japan is definitively a market that P&G should continue to do business in. With a population that is more than half the size of P&G’s largest market (U.S.A) and a per capita income higher than other major markets for P&G (such as West Germany)‚ Japan is simply a market that P&G cannot exit if it hopes to continue to grow internationally. In fact‚ Japan is the second largest market for consumer-packaged goods in the
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SK-II: Damage Control in China‚ Case Summary Major Strategic Challenges: P&G´s miscommunication had led SK-II to be torn by political debate‚ treated not on a fact basis. Rather‚ SK-II became a symbol of consumer dissatisfaction in foreign cosmetic overpower in China‚ and public hysteria was machinated as a tool (also in supporting nationalistic trade wars between China‚ the U.S.‚ and Japan). Negative effects were looming on P&G´s other brands in China and the SK-II brand in other markets
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EXECUTIVE SUMMARY: This case examines P&G and whether or not it has the ability and means to make SK-II a global brand. Paul de Cesare‚ President of Max Factor Japan and GLT member of the beauty care GBU‚ had to recommend one of three alternatives for a global strategy for the SK-II brand: expand into China‚ build on the brand’s success in Japan‚ or introduce SK-II to Europe. In doing so‚ he also had to keep entry strategies for the different markets in mind‚ and also the organizational change brought
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Hierarchy‚ to analysis it is in which adopters stage‚ and what we could do more on promotions to help the products to lead the way of success and do better in the market. Background SK-II is a Procter & Gamble Beauty brand‚ launched in 1980 in Japan. The history of SK-II goes back to the 1970s when a scientist in Japan noticed that very soft and youthful hands of women working in a Japanese sake brewery. After years of research the scientists were able to isolate natural‚ nutrient-rich liquid which
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