P&G in Japan
P&G Japan
Q1. Why was SK-II so successful in Japan?
Statement: By based on research of Japanese market, P&G made clear targeting and positioning, and developed new products which fulfilled customers’ needs, built the effective distribution. As a result, P&G could establish differentiation advantages for the following. • Product: “Foaming massage cloth” , Elegant dispensing box “Foaming massage cloth” increase skin circulation through a massage while boosting skin clarity due to the microfibers’ ability to clean pores and trap dirt. • Price: Premium price • Place: Luxury and nice counter at department store • Promotion: Counseling by Beauty counselor, TV advertising, Beauty magazines
Description
Targeting Positioning Affluent women aged over 30s Prestige skin care Premium price R&D team: Market research → catches up demanding Japanese women, Develop Technology → excels Japanese competitors Sales: Training → beauty counselors, Promotion → Counter design
Capability
Q1. contd. What was the business model behind the success?
Statement: SK-II ’s success is not only prestige skin care product or advanced technology but also its marketing approach to build the New brand. P&G succeeded to connect between the core technology or product concept and local market. Through Japanese market among the world’s toughest competitors, P&G developed potential source of innovations. In addition, SKII ’s marketing strategy built a new approach, Market research, Concept, Packaging, Positioning, Communications strategy. It was a big challenge that P&G shifted from Mass marketing, such as Olay brand, to Class marketing. SK-II ’s marketing strategy
Description
Market Research Concept Packaging Positioning Communication strategy
Find the customer needs, habits Japanese women’s needs: sensitive with skin condition habits: five or six step cleaning Classify customers, Specify attractive market Affluent women aged over 30s
Define the customer value Prestige skin care
Q1. Why was SK-II so successful in Japan?
Statement: By based on research of Japanese market, P&G made clear targeting and positioning, and developed new products which fulfilled customers’ needs, built the effective distribution. As a result, P&G could establish differentiation advantages for the following. • Product: “Foaming massage cloth” , Elegant dispensing box “Foaming massage cloth” increase skin circulation through a massage while boosting skin clarity due to the microfibers’ ability to clean pores and trap dirt. • Price: Premium price • Place: Luxury and nice counter at department store • Promotion: Counseling by Beauty counselor, TV advertising, Beauty magazines
Description
Targeting Positioning Affluent women aged over 30s Prestige skin care Premium price R&D team: Market research → catches up demanding Japanese women, Develop Technology → excels Japanese competitors Sales: Training → beauty counselors, Promotion → Counter design
Capability
Q1. contd. What was the business model behind the success?
Statement: SK-II ’s success is not only prestige skin care product or advanced technology but also its marketing approach to build the New brand. P&G succeeded to connect between the core technology or product concept and local market. Through Japanese market among the world’s toughest competitors, P&G developed potential source of innovations. In addition, SKII ’s marketing strategy built a new approach, Market research, Concept, Packaging, Positioning, Communications strategy. It was a big challenge that P&G shifted from Mass marketing, such as Olay brand, to Class marketing. SK-II ’s marketing strategy
Description
Market Research Concept Packaging Positioning Communication strategy
Find the customer needs, habits Japanese women’s needs: sensitive with skin condition habits: five or six step cleaning Classify customers, Specify attractive market Affluent women aged over 30s
Define the customer value Prestige skin care