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P&G Draft

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by

Nam Hoang Son

on 7 November 2014

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Transcript of P&G Draft

Part 1:
P&G
& SK-II Introduction
Part 2:
The Three Market Options
Part 3:
Strategic Recommendations
P&G Introduction
SK-II
THE THREE MARKET OPTIONS
Japan
Europe
China
Opportunities
Threats
Opportunities
Threats
Opportunities
Threats
Recommendations
- Max Factor acquisition
- Organisation (post O2005)
- Strong research team
- Adaptability to Japanese market (e.g. habit, premium products)
How to do?
Our Strategy
- Established in 1837
- More than 80 countries
- Revenue: 84 billion in 2013
- Max Factor acquisition in 1980
- Big Five (70%):
Shiseido, Kanebo, Kose, Pola, Kao.
- Foreign manufacturers: Avon, L'Oreal, Estee Lauder, P&G.
Strength:
Weakness:
- Small market share in rich markets (3% in Japan)
- Comparatively weak marketing due to budget cuts (post O2005)
- Distribution system:
Beauty counsellors, specialty stores, department stores.
- Japanese consumer habits

- High average income
- Increasing demand in organic products
- Beauty conscious consumers (multistep process)

- Relatively large market size

- High average income

- Consumer loyalty
- High marketing & adversting cost

- High direct competitors in premium segment

- Different Distribution system
- Huge market size



- Distribution channel: department stores, supermarkets and online retailing.


- Competition

- Average Income
- Consumer habits
- Counterfeit
- Competition
- Strict regulations
- Step 1: Growing sustainably in Japan and neighbourhood markets

- Step 2: Expanding to Europe

- Step 3: Entering Chinese Market
Global Potential?

- Product lines, not geography
- Technology innovation
- Marketing and educating users
- Different categories

+ product safety
+ luxury restrictions
+ protectionism of domestic industry
+ registration
THANK YOU
FOR
YOUR
ATTENTION!!!

Forever 16
Company
WORLDWIDE SITES
Sustainability
Full transcript