There are many factors that need to be considered when deciding recommendations to the GLT of SK-II.
Being that this is P&G’s first proposal to build a Japanese brand worldwide, it is important to take into consideration different cultures than of the consumers in Japan.
Since 2005, P&G's global organization has been in the middle of a restructuring program, which can sometimes cause a disruption to the normal functions of the company.
Local managers resisted the surfacing of new products based on the …show more content…
Keep in mind that the cost of a market expansion might be more than diversifying, or creating, a product. The basics of the product can be revised by adding different options: anti-aging, anti-whitening, etc… The technologists and marketers in Japan work jointly to increase the accuracy of a skin’s diagnosis. Japan has a rich market where SK-II shows success. To innovate and add greater service, SK-II has potential to grow even more in Japan. However, trends from the past few years show the growth rate has matured. Therefore, a brand restructure may not garner attention from its customers.
I would strongly suggest that P&G move forward with DeCaesare’s option to introduce SK-II into China. The Chinese market promises a significant potential for profit, being that the brand is already well received in similar regions of Hong Kong and Taiwan.
The affluent Chinese consumers could likely share a similar outlook regarding skin care. It would be advisable to test SK-II practicability as suggested by Ram. P&G could even try experimenting with a few counters in Shanghai, and if successful, move the brand to other urban areas. The introduction of SK-II in China would be an opportunity to tap into a large market that has the potential to increase the company’s profits, also allowing P&G the opportunity to learn how its products operate in a large developing country. By using China’s developing economy, P&G would garner marketing skills along with other valuable knowledge