P&G Japan: The SK-II Globalization Project Harvard Case Solution & Analysis

Problem Statement

The case “P&G Japan: The SK-II Globalization Project” basically examines and explains the fact whether P&G has the potential and ability to make the SK-II brand or product as a global brand or not. Basically, the case analyzes the fact that since the new CEO, Paogo de Cesare is being transferred to Japan where he has to take over the recently launched beauty product care that is being developed in Japan. With the product being a success in the Japanese market is being examined as to whether it should take into Chinese market or in the European market or stay in Japan. Since the product in the Japanese market is priced at almost $100, it is not a typical product of P&G.

Current Situation

The case basically examines the fact whether P&G has the ability to develop SK-II a global brand or not. In the case, the company is basically looking for various options to develop SK-II into an international beauty product. Paolo de Cesare who is the President of Max Factor Japan has been assigned with the task of analyzing the current situation of SK II Project where he has to report to Alan Lafley who is the Vice President Asian region for P&G.

Alan Lafley who has been a part of the Japanese market for a long time has been a part of the industry where he knows the Japanese market preferences. As the case states, the competition has been stiff in the global market regarding the use of beauty products. Japan has no different situation either, the women in general are fond of beauty products have been spending specifically an average amount of time 4.5 minutes at the end of the day to look after their skin. When compared with an American woman she generally takes not more than 1.7 minutes for their skin and beauty. This ratio or time indicates that a Japanese woman is fonder of beauty products than an American woman.

With the current situation of beauty products in the industry, SK- II can be a productive brand which has been able to attract a large customer base. The brand has been able to achieve significant returns with SK- II is being the flagship brand for the company. The product has been quite significantly selling its products in Singapore, Malaysian and Korean markets. The brand SK – II has three major products in its profile which include the SK- II Foaming Massage Cloth , SK-II Facial Treatment Essence and the SK-II Facial Treatment Clear Lotion. Along with this, as the case states, the company has been quite keen to ensure that the product remains as an important brand in the market.

To stay ahead of the competition in the industry, de Cesare has been focused on managing its products or the brand through product innovation and superior in store service that has had the potential to accelerate the growth rate that has recently slowed down by 5%.

The main focus of the company and de Cesare has been to analyze the global potential of SK- II whether it has the capacity to present itself as a global brand or not. The GBU head has been focused on beauty care as the core brand where it can be exported to new markets also.

Porter Diamond

Cage Analysis

While evaluating the current situation through CAGE analysis it can be seen that although Chinese population is similar to the Japanese market, however, the Japanese consider health as a major priority where they spend a lot on they health. This will help the product being sold in Japanese market. On the other hand, Chinese look for cheaper products. In comparison to European market which looks for high quality products. Legal implications for any product being sold in Japan needs legal and health implications, however, this does not happen in Chinese markets. The market in Japan is fonder of brands, whereas, Chinese people do not really care for brands. The economic situation of the general public is more price conscious in China as compared to Japanese market.P&G Japan The SK-II Globalization Project Case Solution

Adaptation

While entering into a new market, SK – II should offer variation as per the demands of the industry. Since the suggested market for SK II is Global market, therefore, the variation should be made keeping in mind the population different countries. For example, the variation for SK - II in India can offer low priced products also. Since the spending patterns in this part of the world are limited, therefore, low priced products should also be offered by SK - II according for the region. Therefore, the design for the product should be such where it can offer low priced products......................

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