International Advertising Case Analysis 2

International Advertising Case Analysis 2 - TO Professor...

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Unformatted text preview: TO: Professor Bill Smith FROM: DATE: October 9, RE: P&G Japan: The SK-II Globalization Project PROBLEM: Should the Japanese SK-II product be a global product? CRITICAL FACTORS: (1) This is P&G’s first-ever proposal to expand a Japanese brand worldwide. Other countries have a different culture than that of consumers in Japan which is why this is a big risk (2) P&G’s global organization is in the midst of a 2005 restructuring program; it 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 general managers’ resisted emergence of new products because of the negative impact on local profit. (4) Lingle’s POV was P&G should meet the demands of every nation, but still have local self sufficient subsidiaries; P&G built their company around his POV (5) Lafley’s POV was that most of the advertising budget should be spent on two products- MaxFactor Color and SK-II; SK-II had such a high margin (6) de Cesare’s POV was there is a great...
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