MKT 8720 Winter 2008 – Group 5 P&G Japan: The SK-II Globalization Project1 Recommendations  Build SK-II a global brand - Go to greater Asian market (China, South Korea, Malaysia, Singapore, Thailand)  Fashion cues from Tokyo  Exact the same products  Celebrities in advertising  High end - Be patient with US / European markets  Crowded competitors  Less steps in skincare process (localization)  Potential growth - Keep building the success in Japan  R & D  Potential growth

MKT 8720 Winter 2008 – Group 5 P&G Japan: The SK-II Globalization Project2 Markets Growth Rate

MKT 8720 Winter 2008 – Group 5 P&G Japan: The SK-II Globalization Project3 Recommendations - continued  Implement O2005 with patience - Organization structure for globalization  culture  processes  structure - Not to transfer everything to global focus  Authorize local marketing plan and budget - No push on profit  Allow more time, effort, and costs - Top executives’ attitude  Optimistic & objective

MKT 8720 Winter 2008 – Group 5 P&G Japan: The SK-II Globalization Project4 Alternatives?  Stay in Japan? - Pros  Double sales in Japan next 6 or 7 years  Great potential for growth - Cons  Home market growth had slowed  Exploit internal capabilities & external brand image (High cost)  Lose international markets to competitors