As you guys know, I submitted an article called Developing a Global Brand which talked about the dilemma Procter & Gamble faced regarding internationalizing one of their key Japanese product called SK-II. Well, I was looking through the files and I found out some of the notes that I wrote for the paper. I decided it would be beneficial if I submitted those notes as well. I guess you can use these notes as a reference to my Internationalizing a Brand paper.
I am also going to give you guys a list of some other papers that might be a useful read for you: Developing A Global Brand, Starbucks Marketing Strategy International Marketing, Group Dynamics, Corporate Culture, and Organizational Culture. Financial Statement Analysis
Jager had a strategic intent of changing the culture of the company from being risk averse , slow, conformist, to being rebels, introducing radical new products.
GBU would now manage product development, manufacturing, and marketing of their respective categories worldwide. This was historically the responsibility of 4 Regional organizations.
Old Regional Organizations were reconstituted into 7 market development organizations that assumed responsibility for local implementation of GBU's global strategies.
Transnational activities such as accounting, human resources, payroll, and much of IT were coordinated through a global business service unit.
Factors to take into account:
- Is SK-II the right brand for Procter & Gamble to internationalize?
- Is the brand SK-II the strategic fit for the company, since the company relies on high volume selling, while SK-II is a premium niche product.
- The management or executives of GBU didn't know what SK-II was. For them, it was Olay of Japan.
- Risk Taking culture (as envisioned in O2005).
- The competitive nature of the Japanese market allows for more innovative products.
- Consider the fragmented nature of European market.
- What are the risks of introducing the product in Europe?
- The success of SK-II in Taiwan and Hong Kong, which are culturally similar to China.
- Change in Organizational Structure as a result of O2005, and its effect on new working relationships and affect on company's corporate culture.
- Probable places SK-II could be a success.
- SK-II is already a regional product, or even a global product by some standards.
- Sophistication of SK-II and the cost of teaching consumers in developing countries the steps required to fully utilize the benefits of the product.
- How will Procter & Gamble introduce SK-II in developing countries? Will it license the product, do a joint venture, form a strategic alliance?
Related Developing A Global Brand - Notes Articles
Internationalization - Business Strategy and Structure
Developing a Global Brand
Johnson & Johnson Mission Statement Analysis
Marketing Strategy
Internationalization - Strategic Alliance : Joint Ventures, Equity Alliance, Short-Term, Contractual Agreements, Collaboration
Starbucks Marketing Mix
Starbucks Experience
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