1. P&G JapanSK-II ChiaSaiWeng Andy Frost Ty Gilstad Tyler Frisbie Marton Hortolanyi

2. TV Commercial

3. Procter and Gamble Purpose “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.”

4. Corporate Structure Global Business Unit

5. Core Strengths

6. O2005 Speed Employee Communication Global Strategy

7. SK-II Began in 1980 in Japan Considered a Ritual or Experience The Ritual: Purifying Renewing Personalized Treatments

8. Globalization Factors & Analysis Differing Cultures Training O2005 Restructuring Program Differing Views of Power Positions Markets and Strategies

9. Global Potential – SK-II Pros High margins High quality Positive brand image in Japan Distinctly different product $9 billion worldwide prestige skin care market Cons Does not fit P&G portfolio Little brand awareness outside of Japan Translating product value to western society

10. Market Options Mainland China Restructuring within Japan

11. China Benefits Target market growing 30%-40% per year Success of P&G brand “Olay” Risks Major competitors already exist in China Customer readiness

12. Japan Benefits Strong brand awareness Adding value can quickly gain market share Risks Low market growth rate Pricing strategy in Japan does not fit the P&G line

13. Implementation China Build strong brand identity to deter counterfeit products Educate consumers Squeeze profit margins because of import duties Japan Accuracy and credibility of skin diagnosis Enhance customer loyalty

14. Questions?