PG Jap The SK-II Globalization Case: P-G Japan

1748 Words 7 Pages
Register to read the introduction… In fact, deregulation of labor aimed at strengthening international competitiveness and increasing the fluidity of employment has steadily eroded the traditional system of lifetime employment, seniority-based wages, and enterprise welfare at Japanese businesses. Many Japanese companies are now moving more toward a performance- based system when it comes to rewarding and promoting employee to be global company.
In order to figure out whether SK-II is a product that can be global brand, we need to identify reasons for SK-II’s success in the Japanese market. First, by based on research of Japanese market, P&G made clear targeting and positioning, and developed new products which fulfilled customers’ needs, built the effective distribution. As a result, P&G could establish differentiation advantages for the following. • Product: “Foaming massage cloth”, Elegant dispensing box “Foaming massage cloth” increase skin circulation through a massage while boosting skin clarity due to the microfibers’ ability to clean pores and trap dirt.
• Price: Premium
…show more content…
For example, Japanese customers more educated, average Japanese women spent 4.5 minutes on her face cleansing, and most sophisticated users of beauty products in the world. On the other hand, in China customers due to Olay’s education recently moved from a one-step skin care process to a three-step cleansing and moisturizing process. However, unlike China, Europe had a large and sophisticated group of beauty-conscious customers who is already practiced a multistep regimen. As we see it is model is transferable but they have to modify some of models characteristic depending on customers behavior, competitors and market factor. P&G Japan’s competitive advantage is firm-specific but SK-II’s advantage is country-specific.
I would suggest that de Cesare would be to expand SK-II brand within Japan. The company should continue to build on SK-II’s success in Japan. By building on brand's success in the proven domestic market, Procter & Gamble would be able to fully utilize the company's competitive advantages. In this case, the company has achieved only 3% of the market share of the $10 billion beauty product market, and in addition the Japanese skin care market is forecasted to grow at 28% two-year growth rate. Given these opportunities, de Cesare is well advised to strongly expand SK-II brand within
…show more content…
This could potentially make P&G Japan isolated from the rest of the world markets. P&G Japan could be oblivious to changes in the world market, and miss opportunities that could have allowed collaboration in R&D with other divisions that could have led to introduction of new and innovative products. To remain a major market player, P&G needs to keep expanding its products at a global level. I do not believe that the choices between expansion into China or Europe or increasing sales in Japan are all mutually exclusive with each other. All three of the markets can be critical to the successful globalization of P&G and its

Related Documents