SK-II: Damage Control in China Harvard Case Solution & Analysis

In 2006, SK-II, the brand of skin care products, was about to become a billion dollar brand Procter & Gamble ("P & G") and China is seen as a key source of future growth and will soon be the largest market in the world. September 14, 2006, the Chinese government banned the sale of some skin care products P & G products in SK-II line. P & G was concerned that public protests against these products can spread and infect the brand from other products in the country. All that P & G tried to resolve the scandal failed, resulting in the media, consumers and the government feel the rage. P & G expressed confidence in their SK-II products in China, said it will work with government agencies to address the problems, but repeatedly failed public relations and has been accused of "arrogance" to consumers. Although, P & G had experience in protecting its SK-II products in court in connection with a claim in the previous year, the company seemed to have learned nothing about the preparation for future crises. P & G, one of the most trusted brands in the corporate world, was close to losing faith in the Chinese consumers, SK-II, and possibly in the P & G, but just poor, how he handled the crisis. Many analysts argue that doing business in China is very different from doing business in developed markets. When it comes to public relations, as the rules to be so different that even experienced leaders of the country several times a mistake? case allows for discussion on how to respond to the crisis public relations, brand equity rescue after a disastrous incident, react to the situation and anticipate the damaging information to the media. "Hide
on Kineta Hung, Richard Farmer Source: University of Hong Kong, 21 pages. Publication Date: January 11, 2008. Prod. #: HKU697-PDF-ENG

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