De Cesare should not recommend to the beauty care GBU that SK-II become a global brand because of the differences in the ritual followed for face cleansing i.e. The six step cleansing ritual is a rather time consuming act which tends to be a lot to ask for in numerous parts of the world. Additionally, the cost involved in perpetuating the image would cause its profits margins to decrease, and operating costs to increase. Furthermore, the image of P&G as a brand that utilizes mass marketing efforts with cheap prices cannot be implemented on a global level because this would allow for deterioration of brand equity in the minds of its loyal customers. Additionally, SK-II is more of a high end product in Japan, which would be in danger of losing customers if the customers identify the similarity of the mass-marketed Olay and SK-II itself.
Should Paolo recommend to the beauty-care GBU that SKII become a global brand? Why or why not?
How transferable is the Japanese model?
Does O2005 support or impede SKII’s transfer worldwide?
Evaluate the Chinese, UK and Japanese options. Which country should be the priority?
Does Jager’s major strategic change from national responsiveness to worldwide innovation and learning make sense?
How well has P&G implemented this strategic change? What specific advice would you give to make 02500 more effective?