Case 5: 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: Political: Tariff (ex: China government took 35% to 40% import tariff on SK-II) Economic: The economic scale may affect price strategy.
Culture: Different culture, demographic structure, and society. Geographic: Climate and race.
Technology: R&D ability to keep the core competence.
There are several aspects to prepare for the meeting:
SWOT analysis- what is strengths, weakness, opportunities, and threats of the SK-II. Which entry strategies should be implemented? Marketing strategy, timing, investment, position and segment. Culture and economic analysis-the analysis should be based on the business model of SK-II if it aligns with the culture and economy.
2. Does SK-II have the potential to become a global brand within Procter & Gamble’s worldwide operations? Why or why not? I think that SK-II has the potential to become a global brand within Procter & Gamble’s worldwide operations. Because SK-II has a high profit margin and high quality; clear and unperfumed liquid makes it diversified from other products; superior product technology and in-store consultation service; Good brand awareness and reputation in Japan; Success in Taiwan and Hong Kong. Thus, SK-II has those lots of advantages to develop into a global brand with an appropriately marketing strategy.
3. Which of the three market options should Paolo DeCesare recommend to the GLT? What benefits do you expect to gain? What risks do you see? Paolo DeCesare should recommend introducing the brand to Mainland China; Restructure the brand position strategy in Japan; Introducing SK-II into the large western...
Please join StudyMode to read the full document