P&G Japan

1404 words 6 pages
Probable questions
1. Does SK-II have the potential to become a global brand within Procter & Gamble’s worldwide operations? Why or why not?
2. Which of the three market options should Paulo Decesare recommendation to the GLT? What benefits do you expect to gain? What risks do you see?
3. How Should he implement your recommended option? What are the implications for P&G’s new post-O2005 organization? What support and/ or resistance do you expect? How will you manage it?
4. Why was SK-II so successful in Japan? How is it creating value and what is the business model?
5. How transferable is this model and what are barriers?

P&G Japan: The SKII Globalization Project

GLT – Global Leadership Team
GBU – Global
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Marketing expertise was also shared, allowing the organisation to exploit local learning

Decisions
Japanese Opportunity
Tapping into P&Gs extensive technological resources – extend the SK-II line beyond its traditional product offerings
Although would take a considerable amount of time and effort, it would exploit internal capabilities and external brand image
Product innovation and superior in-store service – competitive advantage in Japan

China
Operating since 1988 only
Entrepreneurial beauty care manager in China
Some were worried that SK-II would be a distraction to P&Gs strategy of becoming a mainstream Chinese company and to its competitive goal of entering 600 Chinese cities ahead of competitors
Targeting an elite consumer group with a niche product was not in keeping with the objective of reaching the 1.2 billion population with laundry, hair care, oral care, diapers and other basics

Europe
De Cesare – new the European market well
Without any real brand awareness or heritage, would SK-II’s mystique transfer to a Western market

Organisational constraint
De Cesare recognised that his decision needed to comply with the

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