Sk II - International Marketing

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  • 1. P&G JapanSK-II
    ChiaSaiWeng
    Andy Frost
    Ty Gilstad
    Tyler Frisbie
    Marton Hortolanyi
  • 2. TV Commercial
  • 3. Procter and Gamble
    Purpose
    “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.”
  • 4. Corporate Structure
    Global Business Unit
  • 5. Core Strengths
  • 6. O2005
    Speed
    Employee Communication
    Global Strategy
  • 7. SK-II
    Began in 1980 in Japan
    Considered a Ritual or Experience
    The Ritual:
    Purifying
    Renewing
    Personalized Treatments
  • 8. Globalization Factors & Analysis
    Differing Cultures
    Training
    O2005 Restructuring Program
    Differing Views of Power Positions
    Markets and Strategies
  • 9. Global Potential – SK-II
    Pros
    High margins
    High quality
    Positive brand image in Japan
    Distinctly different product
    $9 billion worldwide prestige skin care market
    Cons
    Does not fit P&G portfolio
    Little brand awareness outside of Japan
    Translating product value to western society
  • 10. Market Options
    Mainland China
    Restructuring within Japan
  • 11. China
    Benefits
    Target market growing 30%-40% per year
    Success of P&G brand “Olay”
    Risks
    Major competitors already exist in China
    Customer readiness
  • 12. Japan
    Benefits
    Strong brand awareness
    Adding value can quickly gain market share
    Risks
    Low market growth rate
    Pricing strategy in Japan does not fit the P&G line
  • 13. Implementation
    China
    Build strong brand identity to deter counterfeit products
    Educate consumers
    Squeeze profit margins because of import duties
    Japan
    Accuracy and credibility of skin diagnosis
    Enhance customer loyalty
  • 14. Questions?