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SK-II Public Relations Plan
Lexie Olson
Luc Hancock
Stacie Slater
Cheyenne Knowles
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Table of Contents
Background...................................................3-5
Situational Analysis......................................5-6
Core Statement.............................................6
Goals.............................................................6
Objectives....................................................6-7
Key Publics and Messages.........................7-9
Strategies.....................................................10-11
Tactics..........................................................11
Evaluation....................................................11-14
Budget.........................................................15-19
Calendar......................................................20
References..................................................21
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Background
SK-II is a Proctor & Gamble Beauty brand, launched in 1980 in Japan. SK-II was
developed by Max Factor Japan after five years of researching an ingredient called
Pitera. Pitera is a by-product of the fermentation process in brewing sake, a rice-based
alcoholic drink. This ingredient is used by SK-II to assist in the rejuvenation of skin and
has helped SK-II become a major beauty brand in a number of markets.
Originally sold exclusively in Japan, SK-II products entered the mainland Chinese
market beginning in 1999 after being enticed by the market potential of reported sales to
Chinese women. By September 2006, SK-II had 97 sales counters in China with more
than 400 sales personnel. SK-II became the number two luxury skin care brand in China
and Chinese sales accounted for approximately 7% of the brand’s global sales. After
Japan, China was the brand’s largest market. Official imports of all such beauty
products from Japan in 2005 amounted to a total of US$46.8 million.
On September 14, 2006, The National Quality Inspection Department of the
State General Administration of Quality Supervision, Inspection and Quarantine
(“AQSIQ”) announced that nine SK-II skin care products contained chromium and
neodymium, substances banned in cosmetics under Chinese law. (Hung, 2008). These
ingredients were banned by Chinese law due to the fact that exposure can cause skin
irritation or allergic reactions. It is known that trace amounts of these substances occur
naturally in products through the manufacturing process and was not reported as an
additive, ingredient, or by-product. Days after this discovery against SK-II, other foreign
cosmetic products, including Clinique, Estee Lauder, Christian Dior, Lancome, and
Shiseido were found by Hong Kong’s Standards and Testing Centre to contain these
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same substances, with some even having higher amounts than SK-II (Hung,
2008). However, SK-II was the only cosmetic brand being called out for containing
chromium and neodymium.
There are two major problems to consider when analyzing the crisis faced by SKII: the political factors surrounding the brand and the brand’s response to the crisis.
China and Japan have a long history of tensions and conflicts. “China and Japan,
the world’s second and third largest economies, do not get along. Increasingly noisy
nationalist movements in both countries seem to consider the other country their ancient
enemy, with citizens leading sometimes violent anti-Japanese or anti-Chinese protests
and national leaders, including the heads of states, promoting confrontation over
diplomacy” (Fisher, 2013). Poor Sino-Japanese relations and significant events during
this period are thought to frame the SK-II events. In July and August 2006 there was a
sudden increase in government warnings about suspected tainting of imported
Japanese foods. Shortly after these reports, the SK-II incident began. “Given the
exceptionally low reporting of similar cases of domestic Chinese foods being tested and
reported as being of poor quality in the same period, some commentators felt there was
a specific anti-Japanese campaign during this period.” Perhaps targeting SK-II was
used to subtly warn the American and Japanese governments to take Chinese
economic concerns more seriously.
Another issue faced by SK-II was the manner in which they responded to the
crisis. First, SK-II challenged AQSIQ’s announcement that its products were harmful to
the public by publicly denying that the amounts of chromium or neodymium in the
lotions were excessive enough to cause health worries. Such denial is not accepted by
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the culture of the Chinese government. “China’s Communist Party dominates the state
and society in China, is committed to maintaining a permanent monopoly on power, and
is intolerant of those who question its right to rule” (Lawrence, 2012). Speaking out
against the government and challenging its authority was SK-II’s primary mistake in
response to the crisis. In order to restore this relationship, SK-II will make a formal,
public apology to the government. Not only will SK-II apologize, but it will also
communicate that it’s learned from the mistake and will benefit the public in the future.
The second response problem made by SK-II was its unorganized refund policy
on banned products. “According to public relations experts, the company's poor
handling of the trouble could overshadow the test results themselves” (China Daily,
2006). SK-II outlined four conditions for customers to be eligible for refunds; each of
these conditions were objected by consumers and commentators. For those that did
meet the requirements, the refund process was hectic and unorganized. “Hundreds of
customers crowded SK-II counters seeking refunds, overwhelming staff… Scuffles
broke out between customers not wanting to wait in crowded conditions or to lose their
place in line.”
To move on from this major crisis and the mistakes made in response to the
crisis, rebranding, acting to restore damaged relationships, and promoting the SK-II
company and various products are necessary steps to take toward brand recovery.
Situation Analysis
In order to rebrand SK-II and restore positive messages among the public about
the brand, it is necessary to understand Chinese culture and implement tactics to
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successfully target those publics. In an article published about a week after the incident,
it was stated that, “An ongoing poll by Sina.com, one of the country's most popular
websites, shows that 98.8 per cent of 143,774 respondents say they will never buy SK-II
products again” (SK-II, 1). In an effort to change these attitudes, it is vital to create a
strong social media campaign; to do so, it is important to understand social media
trends of the country. In China, people from 19-40 years old make up 82% of social
media users and 43 % of these users are females (Millward, 2013). When analyzing the
most popular social networking sites in China, a few stand out. QZone is utilized by 712
million people, Sina Weibo by 500 million people, and Pengyou by 259 million people
(Millward, 2013). This campaign will use these social media outlets as well as
promotional events to restore the public’s opinion of SK-II throughout China.
Core Statement:
The public has lost its trust in SK-II and negatively correlates the brand with health risks
and unfair practices due to the crisis and the company’s responses to the crisis.
Goal:
Our goals for this campaign are to restore consumer trust in the company, repair the
relations with the Chinese government, and to rebrand SK-II to increase positive
attitudes toward the company.
Objectives:
1. Gain positive support from government through one press conference by
December 2, 2013.
2. Rebrand the bottle for the release of the campaign by December 1, 2013.
3. Create a celebrity endorsed ads using gymnast Deng LinLin to be released by
January 1, 2014 and run through March 8, 2014.
4. Hold one colossal SK-II event in a local casino in Hong Kong with an attendance
of 750 on Saturday, March 30, 2014.
5. Achieve 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to 7 p.m.
January through March.
6. Gain a following of 1 million on SK-II social media accounts by June 2014.
7. Produce and distribute 10,000 coupons prior to and during Chinese New Year
(Jan. 31) and Women’s Day (March 8).
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8. Create and host a SK-II contest running April 1, 2014 through June 15, 2014
with a participation of 100,000 consumers.
9. Gain 100 positive media placements from outlets such as Weibo, Xinhua, Beijing
Review, and Shanghai Daily by June 15, 2014.
10. Increase SK-II sales by 40% by June 15, 2014.
Key Publics and Messages
1. Chinese government- State Council and National People’s Congress
Self interests- Power, wealth, equality, the Chinese public, reputation, control, authority,
military, communism, safety, regulation, law
Current Relationship- Government
Third Party influentials- Publics of China, neighboring countries, different branches of
the government, wealthy investors
What objective they help to accomplish1. Gain positive support from government through press conferences by December 2,
2013.
1. Gain a following of 100,000 on SK-II social media accounts by June 2014.
3. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II has completely redesigned their formula and manufacturing process to
ensure that all governmental health concerns are addressed and reached.
Primary: SK-II contains local, Asian DiTera ingredients meant to nourish and replenish
damaged skin of consumers while contributing to the Chinese economy.
Secondary: SK-II apologizes for its previous mistakes and is fully dedicated to
promoting an entirely new line of improved and safe products.
2. Chinese females with disposable income living in rural areas ages 20-40
Self interests: Health, beauty, sex appeal, owning products that warrant self confidence,
purchasing affordable products, social status, maintaining a steady income
Current relationship- Consumers
Third Party influentials- Husbands, co-workers, friends, males in the community, bosses,
celebrities, magazines
What objective they help to accomplish1. Hold one colossal SK-II event in a local casino in Hong Kong with an attendance
of 750 on Saturday, March 30, 2014.
2. Achieve 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to 7 p.m.
January through March.
3. Gain a following of 100,000 on SK-II social media accounts by June 2014.
4. Create and host a SK-II contest running April 1, 2014 through June 15, 2014 with
a participation of 100,000 consumers.
5. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II is a luxurious brand of healthy skin care products that magnifies and
refreshes the face’s true beauty.
Primary: SK-II will make you feel and look irresistible.
Secondary: SK-II contains local Asian DiTera ingredients that help to nourish and
replenish damaged skin.
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3. Chinese urban female white-collar workers with disposable income ages 20-40
Self-interests: Health, beauty, status, owning products that showcases their wealth and
social status, presenting a modest and traditional image
Current Relationship- Consumers
Third Party influentials- Husbands, co-workers, friends, males in the community, bosses,
celebrities, magazines
What objective they help to accomplish1. Hold one colossal SK-II event in a local casino in Hong Kong with an attendance
of 750 Saturday, March 30, 2014.
2. Achieve 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to 7 p.m.
January through March.
3. Gain a following of 100,000 on SK-II social media accounts by June 2014.
4. Produce and distribute 10,000 coupons prior to and during Chinese New Year
(Jan. 31) and Women’s Day (March 8).
5. Create and host a SK-II contest running April 1, 2014 through June 15, 2014 with
a participation of 100,000 consumers.
6. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II is a luxurious brand of healthy skin care products that magnifies and
refreshes the face’s true beauty.
Primary: SK-II is for women who wish to redefine beauty.
Secondary: SK-II contains Asian DiTera ingredients that help repair skin damaged from
life’s daily struggles.
4. Chinese female spouses of nouveau, wealthy business executives with disposable
income ages 20-40
Self Interests- Health, beauty, status, owning products that showcases their wealth and
social status, presenting a modest and traditionally image, pleasing their husband,
caring for their family
Current Relationship- Consumers
Third Party Influentials- Husbands, co-workers, friends, celebrities, magazines
What objective they help to accomplish1. Hold one colossal SK-II event in a local casino in Hong Kong with an attendance
of 750 on Saturday, March 30, 2014.
2. Achieve 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to 7 p.m.
January through March.
3. Gain a following of 100,000 on SK-II social media accounts by June 2014.
4. Produce and distribute 10,000 coupons prior to and during Chinese New Year
(Jan. 31) and Women’s Day (March 8).
5. Create and host a SK-II contest running April 1, 2014 through June 15, 2014 with
a participation of 100,000 consumers.
6. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II is a luxurious brand of healthy skin care products that make you feel
and look irresistible.
Primary: SK-II will remind your man why he fell in love.
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Secondary: SK-II contains DiTera ingredients that are safe and healthy for all dedicated
mothers and wives.
5. Local governmental owned media in China such as Xinhua, CCTV, and People's
Daily
Self interests- Viewership, presenting factual relevant information fast and first, money,
network status, adhering to government regulations
Current Relationship- Opinion leaders
Third Party influentials- Reporters, audience/viewers/ networks/ producers, government
What objective they help to accomplish1. Gain positive support from government through press conferences by December
2, 2013.
2. Gain a following of 100,000 on SK-II social media accounts by June 2014.
3. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II has completely redesigned their formula and manufacturing process
line to ensure that all governmental health concerns are addressed and reached.
Primary: SK-II’s newly formulated product line contains local Asian DiTera ingredients in
a redesigned bottle that benefits all consumers.
Secondary: SK-II apologizes for previous mistakes and is ready to move forward to
become a new market leader in the beauty product industry of China.
6. Chinese female celebrities ages 20-40 including actresses, music influentials and
gymnasts.
Self interests- Status, fame, money, beauty, fans, career, positive press, success, honor
Current Relationship- Opinion leaders and consumers
Third Party influentials- Media, friends, other celebrities, agents, magazines
What objective they help to accomplish1. Hold one colossal SK-II event in a local casino in Hong Kong with an attendance
of 750 on Saturday, March 30, 2014.
2. Create a celebrity endorsed ad to be released by January 1, 2014 and run
through March 8, 2014.
3. Gain a following of 100,000 on SK-II social media accounts by June 2014.
4. Produce and distribute 10,000 coupons prior to and during Chinese New Year
(Jan. 31) and Women’s Day (March 8).
5. Create and host a SK-II contest running April 1, 2014 through June 15, 2014 with
a participation of 100,000 consumers.
6. Increase SK-II sales by 40% by June 15, 2014.
Message: SK-II is a luxurious brand of healthy skin care products made to illuminate the
faces of the world’s most beautiful and famous.
Primary: SK-II is made for beauty icons.
Secondary: SK-II contains DiTera ingredients that will photograph flawlessly.
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Slogan: Pure Allure
Strategies:
1. We will hold a press conference to kick the campaign off with an apology to the
Chinese Government and to the people affected by SK-II’s previous products.
With this, we hope to mend our differences and move on with our new and
improved product. The government plays a large part in China and is the top
influencer. If we can get them to back us up, this would be huge, as it would
make us a lot more credible and appealing to the Chinese consumers.
2.
We will use a celebrity endorsement to promote the SK-II product line. The face
of the campaign will Deng LinLin; she played a huge part in the Chinese gold medal in
2008 and won gold in 2009 and 2012 world championship. She is a very influential
leader and will help tap into the targeted demographic. When seeing someone like
LinLin using the product our hope is that it will influence others to do the same.
3.
We will hold an SK-II sponsored party at a casino in a Vegas-like atmosphere
with models and live music. This will help spread the word about the product through
word of mouth and will also give the product a “coolness” factor with the younger
demographic.
4.
We will hold launch parties in malls offering free makeovers. This gives a chance
to the consumers to try the product risk-free. This will help generate buzz through word
of mouth and allow customers to try the revamped version of SK-II without the risk of
having to pay for it.
5.
We will launch a social media campaign through Sina Weibo and Tencent Weibo
which boasts an over 1 billion users. This campaign has the power to do so much and is
crucial since it targets so many users. This social media campaign will have to be
detailed oriented in order to use it to its full potential and tap into all the users.
6.
We will target key holidays in China in order to be ultra visible during a time when
the most shopping happens. After all the other strategies have been implemented, we
are hoping consumers will see SK-II as a changed and improved product. With the other
strategies being successful many shoppers will flock to the stores to buy SK-II products
with the knowledge that it is a safe and effective line.
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7.
We will hold an SK-II contest where you buy the product and have a chance to
win a photo shoot in Tiananmen Square with the world-renowned gymnast Deng LinLin
if you follow simple rules. This will garner free publicity in one of the busiest squares in
China helping to get the word out about it.
Tactics:
1. Send personal invitation letter to each media affiliate inviting them to press
conference.
2. At the casino party and at the malls we will print and hand out 5,000 pamphlets
with information about the products and changes that have been made.
3. In the mall, we will also hand out free samples with the pamphlets directing them
to our social media account so that they can voice their opinion on the new line of
SK-II.
4. We will create accounts on both Weibo sites to interact with people so that we
can understand how they like the new product line.
5. We will be targeting Chinese New Year (Jan. 31) and Women’s Day (March 8)
with special promotions and coupons to entice buyers during the highest
shopping seasons.
6. When you buy SK-II you will get a promo code inside the product. You will then
have to enter online to win a photo shoot with the endorsed celebrity (Deng
LinLin) in Tiananmen Square of Hong Kong. There will be a live feed of photo
shoot in Tiananmen Square.
7. We will hire a popular band to play at the casino party.
8. We will hand out free samples of the new product line at the casino party.
9. We will sell tickets to the casino party online from our social media sites.
10. We will dress models and servers in “Pure Allure” SK-11 gear.
11. We will provide free drinks and appetizers at the event.
12. We will create elaborate displays showing off the new SK-11 product line at the
casino party.
13. We will create posters advertising the contest that will be placed in various
locations that feed to our target audiences. These posters will showcase a
scannable QR code that directs them to SKI-II social media websites.
14. Have our endorsed celebrity attend the casino event.
Evaluation
Tactic: Send personal invitation letter to each media affiliate inviting them to press
conference.
Evaluation: We will determine the success of this tactic by recording how many
invitations we send to media affiliates and comparing it to how many actually attend the
event.
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Tactic: At the casino party and at the malls we will hand pamphlets with information
about the products and changes that have been made.
Evaluation: We will determine the success of this tactic by first ensuring that all 5,000
pamphlets are distributed to target publics. Pamphlets will display links to our social
media websites. We will determine if the pamphlets were well received by noting
contribution to the growing number of hits on our social media pages.
Tactic: In the mall, we will also hand out free samples with the pamphlets directing
them to our social media account so that they can voice their opinion on the new line of
SK-II.
Evaluation: We will determine the success of this tactic by keeping track of how many
customers who are given samples actually end up purchasing the SK-II products.
Additionally, we will monitor comments made on social media websites talking about the
samples and products. We will keep track of how many are positive and how many are
negative.
Tactic: We will create accounts on both Weibo sites to interact with people so that we
can understand how they like the new product line.
Evaluation: We will determine the success of this tactic by monitoring the number of
hits the Weibo website receives. We will also monitor positive and negative comments
made about the SK-II products.
Tactic: We will be targeting Chinese New Year (Jan. 31) and Women’s Day (March 8)
with special promotions and coupons to entice buyers during the highest shopping
seasons
Evaluation: We will determine the success of this tactic by first counting the number of
promotions and coupons that are distributed to consumers. Next, we will track how
many of these are actually used by consumers and compare the total sales that resulted
from the promotions to previous sales.
Tactic: When you buy SK-II you will get a promo code inside the product. You will then
have to enter online to win a photo shoot with the endorsed celebrity (Deng LinLin) in
Tiananmen Square of Hong Kong. There will be a live feed of photo shoot in Tiananmen
Square.
Evaluation: We will determine the success of this tactic by keeping track of how many
consumers enter the promo code online. Our goal is to engage 100,000 consumers. We
will also monitor attendance of the live photo shoot to evaluate the hype and success of
the contest.
Tactic: We will sell tickets to the casino party online from our social media sites.
Evaluation: We will determine the success of this tactic by monitoring the number of
tickets we sell to the casino event. Our goal is gain an attendance of 750 guests.
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Tactics: We will hire a popular band to play at the casino party. We will hand out free
samples of the new product line at the casino party. We will dress models and servers
in “Pure Allure” SK-11 gear. We will provide free drinks and appetizers at the event.
Evaluation: We will determine the success of this tactic by placing evaluation cards in
various locations at the event (e.g. tables, entrances, bar). Guests are asked to note
their opinion on the individual aspects of the party listed above. These will be collected
after the event and collaborated into one document that tracks both the positive and
negative reactions to every individual aspect of the event.
Tactics: We will create posters advertising the contest that will be placed in various
locations that feed to our target audiences. These posters will showcase a scannable
QR code that directs them to SKI-II social media websites.
Evaluation: We will determine the success of this tactic by ensuring that all posters are
first distributed to target publics. We will determine if the posters were well received by
tracking how many individuals choose to access further contest information through the
QR code.
Tactics: Have our endorsed celebrity attend the casino event.
Evaluation: We will determine the success of this tactic by ensuring that our celebrity
attends the event. We will record how much media attention she receives and note the
resulting media placements and coverage.
The overall effectiveness of the PR plan will be evaluated by first seeing if all objectives
were met. Secondly the campaign will evaluate if SK-II sales have increased by 40% by
June 15, 2014.
Objective: Gain positive support from government through press conferences by
December 2, 2013.
Evaluation: We will determine the success of this objective by first monitoring if the
governments response to the press conference was positive as hoped. Secondly, we
will monitor media coverage of the press conference to see if it was well reported and
received.
Objective: Rebrand the bottle for the release of the campaign by December 1, 2013.
Evaluation: We will determine the success of this objective by noting if the bottle is
redesigned and released by December 1, 2013. We will post images of the new bottle
on social media sites to allow consumers to comment on the redesign. The redesign will
be successful if there is a much larger amount of positive feedback than negative.
Objective: Create a celebrity endorsed ad to be released by January 1, 2014 and run
through March 8, 2014.
Evaluation: We will determine the success of this objective by monitoring online, media
and consumer comments about the commercial. We will also contribute the
commercials success by evaluating if sales are increasing by 40%.
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Objective: Hold one colossal SK-II event in a local casino in Hong Kong with an
attendance of 750 on Saturday, March 30, 2014.
Evaluation: We will determine the success of this objective by first determining if we
met our attendance goal of 750. We will also monitor media placements that cover the
event to see if it was well received.
Objective: Achieve 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to
7 p.m. January through March.
Evaluation: We will determine the success of this objective by measuring if we reach
our goal of 10 SK-II makeovers per hour in malls every Friday from 10 a.m. to 7 p.m.
January through March. Additionally we will track how many consumers purchase actual
products after receiving a makeover.
Objective: Gain a following of 100,000 on SK-II social media accounts by June 2014.
Evaluation: We will determine the success of this objective by tracking the number of
followers SK-II receives on social media accounts, time spent on the site, number of
website shares and positive comments made by June 2014.
Objective: Produce and distribute 10,000 coupons prior to and during Chinese New
Year (Jan. 31) and Women’s Day (March 8).
Evaluation: We will determine the success of this objective by first ensuring that all
coupons were distributed to target audiences. Next, we will track how many of these are
actually used by consumers and compare the total sales that resulted from the
promotions to previous sales.
Objective: Create and host a SK-II contest running April 1, 2014 through June 15, 2014
with a participation of 100,000 consumers.
Evaluation: We will determine the success of this objective by tracking how many
consumers participate in the contest. If we reach our target goal of 100,000 consumers
then this objective was successful.
Objective: Gain 100 positive media placements from outlets such as Weibo, Xinhua,
Beijing Review, and Shanghai Daily by June 15, 2014.
Evaluation: We will determine the success of this objective by monitoring and tracking
media placements in the target outlets. We will record the number of placements, where
they appeared, and whether or not the coverage was positive or negative. If we gain
100 positive media placements by June 15, 2014, then we reached our goal.
Objective: Increase SK-II sales by 40% by June 15, 2014.
Evaluation: We will determine the success of this objective by tracking and recording
all SK-II sales. If sales have increased by 40% by the designated time, this objective
was successful.
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Budget
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Calendar
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References
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3 May 2013. Web. 27 May 2013. <http://www.washingtonpost.com/blogs/world
views/wp/2013/05/13/are-japan-and-china-really-ancient-enemies-or-is-thissomething-much-newer/>.
Hung, Kineta. (2008).”SK-II: Damage Control in China”. Asia Case Research Centre.
Millward, Steven. "Check Out the Numbers on China’s Top 10 Social Media Sites
(Infographic)." Tech in Asia. N.p., 13 Mar. 2013. Web. 28 May 2013.
<http://www.techinasia.com/2013-china-top-10-social-sites-infographic/>.
"SK-II Gets Under Consumers' Skins." China Daily. CRIENGLISH.com, 25 Sept. 2006.
Web. 28 May 2013. <http://english.cri.cn/2946/2006/09/25/167@143164.htm>.
United States. Cong. Asian Affairs. Understanding China's Political System. By Susan V.
Lawrence and Michael F. Martin. Cong. Rept. R41007. [Washington, DC]:Congressional
Research Service, Library of Congress, 2012. Print.