Table of contents
2.0 New Product Development of SK-II
2.2 Idea Generation
2.4 Concept development and testing
2.5 Business analysis
2.6 Product Development and Testing
2.7 Test Marketing
2.8 Commercial and launch
3.0 Critical Issue of SK-II
The Procter & Gamble Company (P&G) boasts boatloads of brands. The world's top maker of household products courts market share and billion-dollar names. The company divided into three global units which are household care, beauty and grooming, and health and well-being. The company also makes pet food and water filters and produces a soap opera. P&G's many famous brand are under P&G Multinational Corporation which included Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest, Downy or Lenor, Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, SK-II, and so on. Their market capitalization is greater than the GDP of many nations. They penetrate more than 180 nations of the world. Their purpose is to come out with the branded products and services of superior quality and value that improve the lives of the world’s consumer. In return, the consumer will reward the P&G with leadership sales, profit and value creation (P&G, 2011). SK-II is a one of the Procter & Gamble Beauty brand. This product has been launched in Japan market since 1980. SK-II can be considered as the one of the most expensive beauty brands in the world until today. SK-II history started at 30 years ago, when a scientist in Japan noticed that old women who working in a Japanese Sake brewery have very soft and youthful hands accidentally. The scientist was curious with that incident. So, they started conducting a research to find out the answer (Wikipedia, 2011). During that research, the scientist used 5 years to screen over 300 types of yeasts and refined the precise conditions for fermentation. Through these precise conditions for fermentation process, it would lead to the discovery of SK-II's signature ingredient which is “Pitera”. According to the SK-II Singapore (2011), Pitera is a blend of vitamins, contain of amino acids, minerals, and organic acids. These ingredients will work together to allow the skin's natural surface rejuvenation process to function at its prime and also enhancing the renewal of the skin's outer layer. If the consumer used the Pitera continuously, they will have a clearer looking and smoother skin. So, SK-II Company assumed that Pitera is the secret key for those who wished to have a beautiful skin. In 1980, the Japanese branch of Max Factor acquired rights to the ingredient, and launched the first cosmetic product containing the ingredient. As the result, they are quiet successful and managed to get a lot of loyalty customers. So, Max Factor decided to expand the range and renaming it Max Factor SK-II.
However Max Factor had flipped through five different owners, all of the owner neglected the SK-II product. Till 1995, the current owner Procter and Gamble executive and brand manager A.G. Lafley was sent to Japan to solve P&G's declining business in Asia. Lafley made many changes at Max Factor and he noted that Japanese women disliked the brand, so he decided to focus on the SK-II. After that, SK-II became Japan's top prestige cosmetics brand and the sales were better than Shiseido within five years. Then, SK-II expanded into several markets, but the products sold outside the Asia do not bear the Max Factor name. They called the product as "SK-II". In Japan, and most of Asia, SK-II is a sub-brand of Max Factor, and still bears his name. When the time goes by, people just mention about SK-II instead of Max Factor SK-II (Wikipedia, 2008). In this paper we will look through new product development stages of SK-II. 2.0 New Product Development of SK-II
In order to develop a new product, SK-II had to go through...
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