P and G Company

A) As Paolo De Cesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting?

As Paolo De Cesare, the factors need to consider before deciding what to recommend the SK-II presentation to the global leadership team GLT are:

1) This is the 1st product proposal to expand Japanese product world-wide. Even though other countries have a different culture than that of consumers in Japan which is why it is a big risk to launch.

2) P&G’s global operation is in the midst of a 2005 restructuring program, can be disruptive.

3) Cost in 1980’s of running all local product development labs and manufacturing plants was limiting profits, ever since then local manager’s resisted emergence of new products because of the negative impact on local profit. Hence new products could take a decade or more to be introduced worldwide.

4) Lafley’s POV was that most of the adverting budget should be spent on 2 products: Max Factor and SK-II as those products have a high margin.

The analysis to be done for preparing for the meeting is:

1) The analysis should be based on the business model of SK-II and it shall be very important understand if the business model of SK –II aligns with the cultural and organizational changes of Organizational changes of 2005.

2) We should consider some entry strategies like Marketing Mix, timing strategy, investment decision, and also consider SWOT Analysis; hence we should position the product in the market with all these consideration.

B) Does SK-II have a potential to become a global brand within P&G’s worldwide operations?

Pros

1) High margin product

2) High Quality product

3) SK-II is clear, unperformed liquid makes its distinctly different product.

4) Japanese innovation with Lipfinity.

5) P&G`s Global rollout of Swiffer dry mops :: Awareness towards...