P&g Marketing Strategy
Essay by financedebut • April 23, 2019 • Case Study • 318 Words (2 Pages) • 563 Views
Key Issue:
P&G will have to decide whether they should expand SK-Ⅱ to global skin care and prestige beauty market.
External environment:
Japanese market is large, but the home market growth had slowed recently years. Strong innovative competitors also exist in Japan.
China has high potential market growth, but it also has high tariff and low salary. The local competitors provide cheap products.
EU market has huge number of potential consumers, but the market is crowded of high-profile, well-respected competitors.
Time of face clean is less and face clean regimen is simpler in Europe and China than in Japan.
Internal environment:
The company culture is changing from “slow, conformist and risk averse” to “stretch, innovation and speed”.
The reward system is changing to emphasize risk taking, and align all employees and outsiders with the overall success of the company.
Budget of marketing, payroll and initiative is integrated globally.
Businesses are reorganized from regional to global.
Sales of SK-Ⅱ relies on accuracy and credibility of skin diagnosis by beauty consultants.
Strategic option:
Strategic options | Strength:
| Weakness:
|
Opportunity:
| Globalize prestigious Japanese product. | Integrate globalization and reconstruction. |
Threat:
| Differentiate by choosing customers and locations. | Enter different markets step by step. |
Recommendation:
Enter Chinese market, and consider entering Chinese a verification of O2005 to get support from whole company. Invest heavily in marketing and customer education in China, and only focus on high income people in big cities. Do not rush, first enter Chinese market and then enter EU market if entering China is successful.
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