As Paolo Decesare, What Factors Do You Need to Consider Before Deciding

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This is my own view to the question The factors appropriate for SK-II as an existing brand in a country which would have had some priority over other products in the market will have to consider the PESTEL factors, Porter’s five forces, SWOT,Marketing mix,Investment decision and the culture as well must be understood to position the product in new global market. PESTEL FACTORS This looks at the possibility of how SK-II cosmectics product can be a booming brand in Japan for P;G company to grow their market share and have a profitable outcome to cover up for their loss in the last few years.

Political: this inturns the legislation and government rules of the country that may influence and pose as a threat to the business, taxation/subsidies. Economic: this relates to all the criteria that contributes to a country’s attractiveness for foreign business suc as P&G’s GDP, per capita income, import restriction. Socio-cultural: This includes the culture of Japan in terms of their laws, values, different tribes, language, demographic statistics, as P;G need to take notice in order to position their new product in a global market.

Technological: This postulate the processes of manufacturing the product such as the materials and machines, the rate of technological changes, new patent and products. Environmental and Ecological factors: looking at the rate of global warming, waste and recycling, pollution control in japan to know if it will be suitable for the invention of the product and wont be a risk. Legal: competitive laws, employment laws, judicial; legislative system, company law as well as the intellectual property rights. PORTER’S FIVE FORCES

Michael Porter (1960) is one of the pioneer of strategies to formulate the 5 forces of an industry analysis to go globally. Bargaining power of Buyers Bargaining power of supplier Threat of new entrant Threats of substitute Competitive rivalry MARKETING MIX ProductWhen P&G is marketing SK-II product, it need to create a successful mix of: the right product sold at the right price in the right place using the most suitable promotion. To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features – for example, it must look good and work well.

The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. The appearance of the product – in line with the requirements of the market The function of the product – products must address the needs of customers as identified through market research.

The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan. The priceOf all the aspects of the marketing mix, price is the one, which creates sales revenue – all the others are costs. The price of an item is clearly an important determinant of the value of sales made.

In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers’ opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organization’s pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert. The placeAlthough figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. Place’ is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers. The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service.

The pace and creativity of some promotional activities are almost alien to normal business activities. The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective. Read more: http://businesscasestudies. o. uk/business-theory/marketing/marketing-mix-price-place-promotion-product. html#ixzz1o2kt48qU This is what i saw on google for the question to the answer below: 1] As Paolo De Cesare, what factors do you need to consider before deciding what to recommend in your SK-II presentation to the global leadership team (GLT)? What kind of analysis will you need to do in preparing for that meeting? As Paolo De Cesare, the factors need to consider before deciding what to recommend in the SK-II presentation to the global leadership team (GLT) are: 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) Local general managers’ resisted emergence of new products because of the negative impact on local profit. 4) 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. 5) De Cesare’s POV was there is a great opportunity for SK-II to break into the $9 billion worldwide prestige skin care market. ) Jager’s POV was that a major product development technology centre was needed for demanding Japanese consumers; this would also support product development throughout Asia and other parts of the world. 7) Ram’s POV was SK-II should be introduced into Chinese department stores as Oil of Olay moves into “second-tier stores”; also predicted China to be the 2nd largest market in the world for prestige beauty products. 1) How would the cultural and organizational changes of O2005 affect SK-II in becoming a global brand? ) The analysis should be based on the business model of SK-II and it shall be very important to understand if the business model of SK-II aligns with the cultural and organizational changes of O2005. 3) Which countries are most attractive? It is significant to find out the global skin care market global prestige skin care market to find out the potential markets in other countries. 4) Which entry strategies should be implemented? The entry strategies in terms of Marketing Mix, timing strategy, investment decisions, strengths, weaknesses, opportunities and threats must be understood to position the product in new global market.

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