Get instant access to this case solution for only $15

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

Solution Id Length Case Author Case Publisher
873 1068 Words (4 Pages) Christopher A. Bartlett Harvard Business School : 304811
This solution includes: A Word File A Word File

De Cesare should not recommend to the beauty care GBU that SK-II become a global brand because of the differences in the ritual followed for face cleansing i.e. The six step cleansing ritual is a rather time consuming act which tends to be a lot to ask for in numerous parts of the world. Additionally, the cost involved in perpetuating the image would cause its profits margins to decrease, and operating costs to increase. Furthermore, the image of P&G as a brand that utilizes mass marketing efforts with cheap prices cannot be implemented on a global level because this would allow for deterioration of brand equity in the minds of its loyal customers. Additionally, SK-II is more of a high end product in Japan, which would be in danger of losing customers if the customers identify the similarity of the mass-marketed Olay and SK-II itself.

Following questions are answered in this case study solution:

  1. Should Paolo recommend to the beauty-care GBU that SKII become a global brand? Why or why not?

  2. How transferable is the Japanese model?

  3. Does O2005 support or impede SKII’s transfer worldwide?

  4. Evaluate the Chinese, UK and Japanese options. Which country should be the priority?

  5. Does Jager’s major strategic change from national responsiveness to worldwide innovation and learning make sense?

  6. How well has P&G implemented this strategic change? What specific advice would you give to make 02500 more effective?

P G Japan The SK II Globalization Project Case Analysis

How transferable is the Japanese model?

The Japanese model emphasizes the profound usage of SK-II even with its six step ritual, as opposed to the three step ritual followed elsewhere in the world. The Japanese model is extremely intricate primarily due to its cultural provisions. The marketing strategy of utilizing the distribution outlets and departmental stores was their first mistake when P&G entered the Japanese market with SK-II. It was then that they realized that the Japanese market was a tough nut to crack; therefore, utilized the prominent method of providing consultancy services for walk-in customers with respect to their face-cleansing methodology and other services. The Japanese consumers were extremely demanding in many instances of product development for instance in the case of laundry detergent business built around the concept of All Temperature Cheer, was ignoring the fundamental practice of Japanese consumers utilizing tap water for doing laundry.

Does O2005 support or impede SKII’s transfer worldwide?

The O2005 was an effort that if considered in line with the growth pattern of SK-II could prove to be extremely beneficial. This is due to the prime reason that De Cesare was the member of Beauty Care GBU and also the global Franchise Leader for SK-II. These two roles provided to one individual gave rights that can prove to be productive in terms of delegation of a product range that requires utmost care. It is like the manager takes care of an errand that he considers extremely crucial. Additionally, the primary profit responsibility shifted from P&G’s four regional organizations to seven Global Business Units (GBUs) that are supposed to manage the product development, manufacturing, and marketing of their respective categories worldwide. GBUs were also supposed to standardized manufacturing process, simplify brand portfolios, and coordinate marketing activities. Furthermore, the decrease in managerial layers within the hierarchy allowed for less time in implementation of any strategy or marketing process.

Evaluate the Chinese, UK and Japanese options. Which country should be the priority?

De Cesare was provided three options to consider for the future proliferation of SK-II as a global brand. Evaluating each option individually would allow for an estimation of which country could prove to be a potential player in increasing the profitability of SK-II. Considering the scenario of expansion within the European region provides us with a rather doubtful picture because basing the decision on one individual as done in the case study would create a bias. Essentially, the European market size of $8,736 and a growth rate of 7 percent are not that attractive if compared with the next option of China which stands at $1022 with the growth rate of 28 per cent. On the other hand, Japan stands at $6869 with a growth rate of 6 percent. China certainly seems like a viable option to consider in terms of profitability and also considering the fact that the labor costs are excessively low. Additionally, the step of trying this market in a few regions would provide with a head start as to the prospective potential of SK-II.

Does Jager’s major strategic change from national responsiveness to worldwide innovation and learning make sense?

Jager’s initiatives made sense in terms of his experience and working knowledge. Similarly, his strategic change form national responsiveness towards worldwide innovation and learning made sense. This step can be attributed to the identification of certain key areas of change during the losses arising in Japan. Jager realized the importance of innovation due to strong competitive forces fin Japan who identified their strengths in terms of creating products that gave additional benefits or added advantage to the users compared to the competitor products. Such competitive advantage was only achieved through the Japanese emphasis on research and development. Therefore, Jager was intent to create a scenario of excessive pressure on research and development activities and also the active implementation of such new products worldwide. This initiative was evident from the O2005 structural change that was vital in eliminating excessive slowdown of global implementation and the increasing backlog of current innovative ideas and marketing procedures.

How well has P&G implemented this strategic change? What specific advice would you give to make 02500 more effective?

The O2005 was an extremely efficient amalgam of ideas, yet it was implemented in an unorganized manner. The case study depicts certain pieces of words that describe the employee’s ideology of the O2005 model. Now, the jest of the problem lies in the lack of communication.

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price

$25

Save $10 on your purchase

-$10

Amount to Pay

$15

Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price

$0

Get More Out of This

Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.

Essay Writing Service
whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon