One of the most global corporations in the world is Procter and Gamble . P G products have been entering overseas countries since the 1930s . By the mid 1990s , P G products and brands are available in over 75 countries , up from 27 countries a decade before . The strong overseas push is indeed one major growth catalyst for P G . The overseas push is centered around creating products for each local market while having an organizational structure which reflects the US structure . In Japan , P G implemented in-country product research and development to cope with local competition .
One such product was SK-II , a premium facial care product line . SK-II was successful in generating significant profits not only in Japan but also in the export markets of Hong Kong and Taiwan . This was especially important due to the level of competition in the Japan market and the highly selective Japanese beauty product market . In planning to expand the SK-II brand internationally , DeCesare should consider many factors .
First is the market of the market for premium beauty products globally , the size and whether SK-II can compete against established brands .
He should also analyze the performance of SK-II in the markets it had already entered – Hong Kong and Taiwan . Also , he would have to study whether the rigorous beauty regimen implemented by SK-II is compatible with the behavior of beauty product consumers in other global markets . The ability of SK-II to become a global brand will depend on how it fits with the Procter and Gamble portfolio .
It will also depend on how P G will market SK-II in foreign markets . As a premium brand from Japan , SK-II will have to compete with established P G brands like Olay as well as premium offerings from the competition such as Estee Lauder .
The personalization aspect of SK-II stores is also an innovation which P G can export out of Japan . Should P G be successful in marketing SK-II as a premium brand , then SK-II will find its place as a global brand within P G ‘s wide brand portfolio . If I were in the position of choice , I would recommend the Chinese market for expansion . The rising standard of living in China as well as their booming economy will translate to a steadily rising market for beauty products . It is also most likely that the beauty care standards and practices of China is similar to Japan – the same could not be easily said for continental Europe .
The introduction of SK-II would also serve to complement the expansion of Olay . Lastly , since China is such a newly opened market , foreign premium brands like Estee Lauder may not be well established . The risks involve possible competition between two P G brands , however this can be mitigated by moving Olay downmarket and positioning SK-II firmly in the premium segment . As previously mentioned , P G should move to segment the Chinese beauty care market . To aid this , SK-II should be introduced and marketed…
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