Essay about PG Japan Sk-2


Case Paper: P& G Asia: The SK-II Globalization Project

Mina Uwakubo

Hawaii Pacific University

Mr. Louis L. Collazo

MGMT 6310

The spring 8, 2012

SK-II's achievement is not only prestige skin care merchandise or modern technology but as well its advertising approach to build the new brand. P& G succeeded for connecting between the key technology or perhaps product idea and local industry. Through Japanese market among the world's hardest competitors, P& G created potential source of innovations. Additionally , SK-II's web marketing strategy built a fresh approach, Market research, Concept, The labels, Positioning, Marketing and sales communications strategy. It was a big concern that P& G moved from Mass marketing, including Olay brand, to Category marketing. SK-II's marketing strategy. The primary issue about the case may be the transformation of " SK-II" from a local brand to a global brand. This case allows us to evaluate just how companies can easily " internationalize" their brands, and the road blocks and issues that they face while addressing this issue. So far, SK-II could be characterized as local merchandise in Asia with a sizable regional customer base in Taiwan and Hong Kong. SK-II manufacturer is positioned on the high- end of skin care and provides large margins for the P& G. To adopt Japanese independent sales style for skin-care, they were marketed through exceptional stores by well- skilled beauty consultants. At first, to measure the actual reasons behind the difference between Japanese people and other business management, I sum up the significant reasons why P& G's Japanese people operation was obviously a failure until 1984 the following: 1 . P& G did not take the time to decide the local needs based on the culture and common techniques among Japanese people customer. The item development was based on Traditional western markets and it was believed that it will streamline itself to other locations of the world. 2 . Stagnation in innovation can be described as failure for every business. With technology usually moving forward at a fast rate, it is essential for all retail products to constantly put forth effort in research and development. R& D is one of P& G's good points, the mismanagement of the division generated complacency inside the development work. Due to the deficiency of improvements as well as the time shed, it allowed other opponents to release outstanding products quickly and proficiently. This in the end led to a substantial decrease in business for P& G. 3. The Japanese syndication system is sophisticated and difficult to assimilate to. P& G did not analysis and make a plan to form fresh efforts in distributing the items efficiently and take advantage of the benefits of the syndication system frequently used. Instead of repairing the problem, P& G converted towards decreased pricing which will drove the distributors apart and induced sales to drop. Corporate management methods and the actual managers at head office in ALL OF US and EU have certainly won various achievements in the usa and The european union and somewhere else. In many cases, yet , Western managers and American management groups are unwell prepared to succeed in Japan. On many occasions, like P& G, major changes in pondering and supervision methods and personal changes for headquarters will be necessary to flourish in Japan. Yet , there are very few Western firms, which address this expertise. In this case, there have been two key changes that P& G implemented to improve its businesses to increase their profitability. Firstly, P& G increased R& D budget and subsequently, they restructured with a plan called Business 2005. Organization 2005 addressed corporate ethnic changes in turning into less risk averse and more productive with use of period. They urged innovation and creative high risk decisions with new products at a rate of more than once a month. Process alterations included settlement reform with greater incentives based on overall performance, stock options to all or any employees, streamlined administrative facets of marketing, payroll, and financial constraints on a more...