The factors appropriate for SK-II as an existing brand in a country which would have had some priority over other products in the market will have to consider the PESTEL factors, Porter's five forces, SWOT,Marketing mix,Investment decision and the culture as well must be understood to position the product in new global market.
This looks at the possibility of how SK-II cosmectics product can be a booming brand in Japan for P&G company to grow their market share and have a profitable outcome to cover up for their loss in the last few years.
Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business, taxation/subsidies. Economic: this relates to all the criteria that contributes to a country's attractiveness for foreign business suc as P&G's GDP, per capita income, import restriction. Socio-cultural: This includes the culture of Japan in terms of their laws, values, different tribes, language, demographic statistics, as P&G need to take notice in order to position their new product in a global market. Technological: This postulate the processes of manufacturing the product such as the materials and machines, the rate of technological changes, new patent and products. Environmental and Ecological factors: looking at the rate of global warming, waste and recycling, pollution control in japan to know if it will be suitable for the invention of the product and wont be a risk. Legal: competitive laws, employment laws, judicial& legislative system, company law as well as the intellectual property rights.
PORTER'S FIVE FORCES
Michael Porter (1960) is one of the pioneer of strategies to formulate the 5 forces of an industry analysis to go globally. Bargaining power of Buyers
Bargaining power of supplier
Threat of new entrant
Threats of substitute
ProductWhen P&G is marketing SK-II product, it need to create a successful mix of: the right product
sold at the right price
in the right place
using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. The appearance of the product - in line with the requirements of the market The function of the product - products must address the needs of customers as identified through market research. The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan. The priceOf all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organization's pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in...