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Case09P&G Japan: The SKII Globalization Project

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grouptwo ibsm

on 10 December 2013

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Transcript of Case09P&G Japan: The SKII Globalization Project

In the GLT meeting, we suggest Paolo to use

About O2005
Ways to manage it
Increase the compensation for removal.

Set performance assessment and fair institute.

Set training course.

Set benchmarking and chose the talented staff to lead the team after the transformation.

P&G Japan:
The SKII Globalization Project

49933027 Caiying
49933030 Ellen
49933034 Stephen
49933036 Peiru
49933046 Byron
49933047 Barry
49933048 Sunny
Thank you for listening
Use Olay’s highly successful brand images.
Establish distribution channels through Olay launch.
Price premium.
P&G grown 60% investment on R&D and spent highly on advertising.
Innovated slowly.
High price- high import duties in China (35% to 40%).
SK-II’s brand awareness is low in Europe.
Rapid growth of skin care market in China.
Europe had many sophisticated beauty conscious customers.
Japanese women- most sophisticated users of beauty products, world’s leading consumers.
Heavy competition .
Cultural differences.
Existing products and competition.
Advantages & Disadvantages about global launch of SK-II
Prove P&G’s ability of producing superior product.
Create higher revenue.
Sharing the $9 billion skin-care market.
Supply chain.
Capture the new segment of market in the world.
Diversion for the existing product line.
SK-II is no name recognition outside of Japan, Taiwan and Hong Kong.
Different cultural values in the different part of the world.
P&G has an existing supply chain.
SK-II is very successful in the Japanese market.
SK-II may provide growing opportunity to P&G in other countries.
Launch the SK-II brand in Europe.
Expanding the SK-II offerings–anti-aging and skin-whitening and BIS.
Three Market Options For SK-II In The Future
Adding the new segments to the SK-II will have lower start cost.
Launching the BIS.
Increase the market share in Japan.
Consumers may need better quality service.
Fierce competitor in the Japanese market .
Launch the SK-II brand in Chinese market.
Chinese beauty care market has an excellent growth potential.

Good time to take action and move into the market.

Existing infrastructure and experience gained form Olay brand can be used.
Culture and habits of the customers are different.

Trade-off: Development of SK-II vs. goal of entering in the 600 Chinese cities.

Risk of Counterfeits.

Higher cost to educate Chinese customers.
Presence of well-established relations with the stores in England.

Presence of abundant customers in the European market targeted by SK-II.
Highly competitive market.

Needs more dedication to teaching customers

Launch of SK-II in Europe will be more expensive than in Chinese market.

It is a mature market.
Since Olay has more than 1000 department in China .
Enter China’s first tier city
Into second tier city
Cultural revolution
Slow, conformist, and risk averse.
Stretch, innovation, and speed.
After implement O2005, we expected the support and resistance as fallow.
Changing the processes
Extend the reach of the stock option plan.
Replace the episodic nature of separate marketing, payroll, and initiative budgets.
Changing the structure
Standardizing manufacturing processes, simplifying brand portfolios, and coordinating marketing activities.
Eliminate bureaucracy and increase accountability.
Reduce the levels between the chairman and the front line.
Eliminate bureaucracy and increase accountability-operating more efficiently.

Increasing efficiency

Stock option plan from senior management.
The loss of 15,000 jobs.

Employees could not get used to the culture change.

Eliminate bureaucracy and increase accountability.

Problems between employees and managers.
Full transcript