Arntz, Amling, Giblin, Holstad, Slipock 1
Nick Arntz
Caroline Amling
Karli Giblin
Steven Holstad
Lara Slipock
SK-II PR PLAN 1
Background
China, officially known as the People’s Republic of China, is the most populated
country in the world at over 1.3 billion people. Since the introduction of economic
reforms in 1978, China has become the world’s fastest-growing major economy. As of
2013 it is the world’s second largest economy and the largest importer and exporter of
goods.
During the Maoist Period in China from 1949 to 1976, the use of cosmetics was
discouraged, resulting in little to no education about the cosmetics market amongst
consumers. Economic reform in the early 1980’s led to income growth and an expanding
urban middle class. During this period attitudes began to change and consumer awareness
increased. Cosmetics brands began to enter the market at a fast pace. China’s cosmetics
industry experienced rapid growth from 1997 to 2005 with average growth rates of 10.2
percent. National sales of cosmetics reached an estimated $8.6 billion in 2005. Urban
residents accounted for the majority of Chinese cosmetics consumers, purchasing a wide
range of products from low-end domestic cosmetic brands to high-end foreign brands.
Expenditure on cosmetics in China was still low compared to international standards,
with the average Chinese consumer spending just $6 per year on cosmetics while the
average Japanese consumer spent $241 per year. Creams and lotions had the highest
sales, followed by face wash and bath creams. Foreign brands accounted for 50 percent of
sales volume and 70 percent of the sales value.
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Proctor and Gamble (P&G) is an American multinational consumer goods
company that manufactures a range of products including personal care, household
cleaning, laundry detergents, and prescription drugs. P&G owns many of the world’s
leading cosmetics brands that include Olay, Covergirl and Pantene. P&G entered the
mainland Chinese market through Guangzhou province in 1988 after previous Asian
expansion in Japan in 1973. P&G’s sales represented 18 percent of China’s cosmetic
market. In 1981 P&G acquired Max Factor, which had been successful in the Japanese
market. Max Factor looked to develop a local Japanese product – the result was a highpriced, luxury skin care product called SK-II.
SK-II was launched in 1980 in Japan following the discovery of Pitera, a byproduct of the fermentation process in brewing sake. SK-II uses Pitera to assist in the
rejuvenation of skin, and is used almost exclusively by women to smooth skin and reduce
wrinkles. The product’s main target market consists of urban females with white-collar
jobs that provide them with disposable income to afford expensive foreign cosmetics.
They often bought select luxury products to compliment low and mid-range products they
were familiar with using. This group represented between 5 and 7 percent of the
population. The secondary consumer base were nouveau riche business executives or
spouses of white collar workers, those who were educated abroad or who had travelled
outside China, and were in their 40’s or younger. This differs from the typical age range
for American consumers of luxury goods, which was 40-70. Popular cosmetics brands
among this group included Shiseido, Wella, Revlon, Chanel SA, Lancôme, Estée Lauder,
Maybelline, Vichy, and SK-II.
SK-II was originally sold exclusively in Japan, but in 1999 P&G China began
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distributing SK-II products on the Mainland. By 2006 the brand had 97 sales counters in
China and 400 sales personnel in every tier one city and most tier two cities. SK-II
became the number two premium skin care brand and sales in China accounted for 7% of
the brand’s global sales.
In 2005, SK-II found itself facing its first legal issue: A woman claimed the
product gave her skin an itching and burning sensation and claimed she purchased the
product solely because of an advertising campaign in which Chinese actress Carina Lau
proclaimed, “My facial wrinkles and lines have been reduced by 47 percent after using
SK-II for 28 days and I look 12 years younger.” This brought to attention that the
advertisement failed to mention the product “could” reduce facial wrinkles and lines. As
a result, P&G received a $24,000 fine for “false advertising”.
The National Quality Inspection Department of the State General Administration
of Quality Supervision, Inspection and Quarantine (AQSIQ) tested samples from a batch
of SK-II products imported from Japan and sold in China. On September 14, 2006,
AQSIQ announced that nine of the SK-II products contained chromium and neodymium,
substances banned in all cosmetics under Chinese law. Chromium and neodymium are
metallic elements that naturally occur in many products and are sometimes unavoidably
present. Science has shown that trace levels of these elements are not an issue about
which any consumers should have safety concerns. According to tests done in Thailand,
Japan and Hong Kong, levels of chromium and neodymium were found to be extremely
low in SK-II products, well below the recommended safety limits (1).
P&G responded by saying that SK-II was not harmful to users and that the
amounts of chromium and neodymium found in SK-II were not enough to cause any
Arntz, Amling, Giblin, Holstad, Slipock 4
health issues. They further stated that “the production process of SK-II does not involve
the addition of the two ingredients,” and that these substances naturally occurred in
products during the manufacturing process.
Following the allegations, P&G announced on September 15th that customers
may receive a refund for their recent SK-II product purchases under four conditions:
1. The returned product had to be one of the nine specified for return
2. Consumers had to have a history of allergies and produce proof from
hospital
3. Consumers had to produce the original purchase receipt
4. The product to be returned should not have been used to more than twothirds of the original quantity (2)
Consumers returning products were also made to sign a document stating that SK-II was
not harmful to their health and they were returning the product of their own initiative, not
because SK-II products were faulty. This was referred to as the “King Clause” in Chinese
newspapers and caused a lot of anger and confusion among customers. There was uneven
enforcement of the refund policy and customer complaints were piling in at a rapid rate.
On the third day after the refund was announced, hundreds of customers began storming
SK-II counters seeking refunds and causing disorder. P&G closed SK-II counters and
instead created a hotline that customers could call to request a refund.
As a result of the chaos caused by the refund policy, P&G stopped accepting
refunds on September 22nd, citing concerns for staff as the reason and still insisting that
there was nothing wrong with the products. Unprepared for such a crisis, P&G ceased all
sales and operations at its SK-II sales booths in China. Chinese media accused P&G of
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arrogance and negligence due to their denial of wrongdoing and confusing return policy.
After all SK-II products were pulled from the Chinese market, the Hong Kong
Customs and Excise Department announced in a press release that there was “no
evidence to suggest that the products contained enough chromium and/or neodymium to
fail to comply with the General Safety Requirement under the Consumer Goods Safety
Ordinance” (3). The Health Sciences Authority of Singapore also announced that SK-II
products did not pose any safety hazards. The reports stated that the original testing in
China and the secondary testing in Hong Kong and elsewhere showed the amounts of
chromium and neodymium to be within acceptable levels. Furthermore, within days of
the accusations against SK-II, other foreign cosmetic products including Clinique, Estée
Lauder and Christian Dior were found by Hong Kong’s Standards and Testing Center to
contain the same substances, with some of the products having higher amounts of
chromium and neodymium than SK-II. However, there was no announcement or
investigation in China of SK-II’s rival products.
This led to questioning whether allegations against SK-II were due to the brand’s
Japanese origin and current underlying political issues between China and Japan. In July
and August 2006 there was an increase in government warnings about the suspected
tainting of imported Japanese food. The second warning was issued to the Japanese
government the day before the SK-II incident began and a third warning was sent one
week after the incident started. Certain commentators felt that there was a specific antiJapanese campaign during this period. Two events during this time, aside from historical
grievances that had formed the basis for poor Sino-Japanese relations, framed the SK-II
incident, which included the reduction of Chinese agriculture exports to Japan in June
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2006 and the election of a new Japanese prime minister on September 26th. Relations
between China’s leaders and the former Japanese prime minister had been tense,
especially during the end of his tenure.
SWOT Analysis
Strengths
Weaknesses
· Rapid growth of China’s cosmetics
· China’s attempts to sever ties with foreign
industry
brands
· China’s Booming Economy
· P&G is an American brand
· P&G is a respected national brand
· SK-II is a Japanese brand that is owned by an
·SK-II is a good product with proven
American brand
results
Opportunities
Threats
· China’s national pride- Create Chinese
· Tension between China and Japan
branch of SK-II that is manufactured and
· Tension between China and the U.S
sold in China
· Consumer and government distrust and
· Increase brand loyalty
hostility toward SK-II
· China’s national pride
· China’s refusal to integrate SK-II back into
the marketplace
· Low level of brand loyalty
Arntz, Amling, Giblin, Holstad, Slipock 7
Situation Analysis
SK-II, a product manufactured in Japan and imported to China by Proctor &
Gamble, faced a media crisis when the State General Administration of Quality
Supervision, Inspection and Quarantine tested products and found two substances illegal
under Chinese law. P&G was then faced with the problem of assuring the Chinese market
that their product is safe and complies with the Law of Product Quality. A chaotic return
policy further provoked the situation as disgruntled customers overwhelmed return
counters. After continual negative media coverage and government pressure, P&G
decided to pull SK-II from the market and now seeks to re-enter the market as a safe and
reliable brand.
In rebranding SK-II, P&G faces various challenges such as a the
Japanese/Chinese tension, distrust of prior product, and strained government relations. By
establishing SK-II CHINA as a product manufactured and developed with Chinese
products and personnel, P&G can establish national pride as well as alleviate tensions
concerning Japanese products and American ownership.
Core problem/opportunity:
By marketing SK-II as a product produced and manufactured solely within China
utilizing local Chinese ingredients, P&G can reintroduce SK-II CHINA while
establishing national trust and alleviating tensions of Japanese and American business
influences.
Arntz, Amling, Giblin, Holstad, Slipock 8
Goal:
Rebrand SK-II as a safe and reliable product among Chinese consumers
SK-II CHINA Employees
Demographic and psychographic profile
Chinese employees in factory positions range from 16-60 years of age. The mandatory
retirement age is 55 years old for women, 60 years old for men, and all workers make an
average wage of $1.36 US dollars and hour.
Motivating self-interests
•
Work related benefits
•
Wage security
•
Company pride
Status and current relationship with the organization and issue
The current relationship between the SK-II CHINA employees and the organization is
fairly neutral. While many, if not all, employees are aware of the scandal, they have not
let it affect their desire to work for the company. Keeping this in mind, knowledge of the
prior SK-II incident could possibly play a role in creating poor/negative morale among
factory workers. While the employees may not necessarily have exceptionally negative
sentiments towards P&G/SK-II CHINA, they most likely do not have a sense of brand
loyalty or company trust.
Arntz, Amling, Giblin, Holstad, Slipock 9
Third party influentials and opinion leaders
•
Government officials
•
Workers Union leaders
•
Business management team
•
Employee families
•
Co-workers of SK-II employees
•
Friends and peers
What objectives will they help you accomplish
•
By working with employees and cultivating a work atmosphere of open
communication, we can create an efficient and productive workforce.
•
Through helping workers to develop high company trust and loyalty, they can
ultimately become their own brand ambassadors helping improve the company
image for potential consumers.
Primary Message
P&G is dedicated to improving internal and external communication between SK-II
CHINA factory managers and employees to build a strong relationship built on mutual
dependency and trust.
Secondary Messages
•
P&G recognizes a previous lack of communication and would like to establish
better
Arntz, Amling, Giblin, Holstad, Slipock 10
open communication within the company to show our dedication to transparency.
•
P&G recognizes the value of employee knowledge in bringing pride and loyalty
among its working staff; thus, we would like each employee aware of all
improvements made to the SK-II CHINA product in order to build trust between
managerial staff and employees.
•
P&G wishes to establish an open office and open communication mentality with
factory managers so employees can feel comfortable voicing their opinions as
well as build relationships with their superiors.
•
P&G values each and every worker’s thoughts and beliefs and would like to
create a comfortable work community for all employees in which their voice can
be heard.
Objective
Achieve 100 percent internal employee awareness about SK-II CHINA product safety by
new factory launch.
Strategy
Ensure open transparent internal communication within SK-II CHINA factory between
employees and management.
Tactics
•
Hold initial forum prior to factory opening to inform employees about changes
made to SK-II CHINA products.
Arntz, Amling, Giblin, Holstad, Slipock 11
•
Create a promotional video briefly stating government safety approval, displaying
the locally sourced ingredients, detailing local manufacturing, and the skincare
benefits of SK-II CHINA products
•
Provide each employee with information packet entailing the brand’s new
directions and improvements.
•
Open hours with management (problem solving/team building) to promote open
communications as well as fostering trusting relationships within the workplace.
•
Allow employee feedback by creating an anonymous box for suggestions,
complaints or concerns to be addressed at a weekly employee meeting.
Evaluation
Objective One
Criteria
•
100 percent awareness of SK-II CHINA among employees
Tools
•
Benchmark survey among all SK-II CHINA employees upon hiring
•
Follow-up survey among all SK-II CHINA employees concerning knowledge of
product
Tactic One
Criteria
•
Tools
Hold forum for employees
Arntz, Amling, Giblin, Holstad, Slipock 12
•
Attendance at forum
Tactic Two
Criteria
•
Informational video to be shown at employee forum
Tools
•
Number impressions: forum attendance
Tactic Three
Criteria
•
Informational packet for each SK-II CHINA employee
Tools
•
Number packets produced and received by employees
Tactic Four
Criteria
•
Open hours with management
Tools
•
Number employees to visit office
Tactic Five
Criteria
•
Anonymous question box
Arntz, Amling, Giblin, Holstad, Slipock 13
Tools
•
Number respondents/participants
Government
Demographic Data
The State General Administration of Quality Supervision, Inspection and Quarantine
(AQSIQ) has 19 in-house departments, 15 direct associations, and 10 trade associations
and federations which all serve to enforce the laws and codes of the People’s Republic of
China. “AQSIQ has established 35 Entry-Exit Inspection and Quarantine Bureaus (CIQ)
in China's 31 provinces, nearly 300 branches and more than 200 local offices across the
country,” and additionally has over 180,000 staff members across the country.
Motivating Self-Interests
•
National pride
•
Boost economy
•
Increase jobs
Status of Current Relationship with the Organization and Issue
The current status of the relationship between P&G and the AQSIQ is not positive. For
one, the SK-II incident followed one week after rising tensions from China finding
increased levels of toxins in the foods imported from Japan. Thus, the AQSIQ used SK-II
to show Japan that the country’s standards must be adhered to. Additionally, China’s
disagreement with the US over unrelated issues was suspected to be another factor in its
Arntz, Amling, Giblin, Holstad, Slipock 14
decision to target P&G, thus making the investigation of SK-II political, not based on
safety concerns. Due to a misunderstanding and miscommunication on the part of P&G,
the company confronted the results of the tests rather than attempting to communicate
and cooperate with the AQSIQ from the very beginning. Denying any such substances
were “added” during the production process, P&G requested a re-test. However, the
company was unaware that by questioning the results and requesting a re-test, they
“broke a cardinal rule of business in China – the authority of the state is unquestioned in
China” (7). The AQSIQ was upset that P&G initially denied the allegations rather than
attempting to communicate and cooperate with the government agency. Finally, a chaotic
return policy implemented by P&G caused mass hysteria, confusion, and destruction,
which the government did not look fondly upon. Shortly thereafter, the state-owned
media portrayed P&G as arrogant and reported that SK-II products sold in China were
inferior to those sold elsewhere, though that was never confirmed by independent
sources.
Third Party Influentials and Other Opinion Leaders
•
The government as a whole in their quest to ban all Japanese and most Western
products
•
Higher level government officials/agencies
•
Associated affiliate standards and practices agencies
What Objectives will (this public) help you accomplish
•
Working closely with the National Quality Inspection Department of the State
Arntz, Amling, Giblin, Holstad, Slipock 15
General Administration of Quality Supervision, Inspection and Quarantine
(AQSIQ) will allow P&G to create SK-II CHINA and brand it as a safe, quality
product.
•
By working with the AQSIQ and associated agencies, P&G will be able to spread
the word that SK-II CHINA is separated from other globally sold SK-II products.
This will ensure the understanding that SK-II CHINA has no ties to Japan other
than SK-II CHINA being a product of American parent company P&G. The
People’s Republic of China could potentially disseminate information about SK-II
CHINA being sourced, produced, and sold 100 percent in China through its
owned media platforms.
Primary Message
P&G is dedicated to working closely with the National Quality Inspection Department
and the Department of Quality Management of the State General Administration of
Quality Supervision, Inspection and Quarantine (AQSIQ) in order to fully comply with
the Law on Product Quality of the People’s Republic of China regarding their Product
Quality Supervision and Management policies.
Secondary Messages
•
P&G sincerely apologizes for our miscommunication of our inquiry into the
AQSIQ’s position on banned substances in SK-II. What occurred was a
regrettable miscommunication on our behalf, and we seek to repair relations and
maintain an open relationship with AQSIQ and the affiliated branches.
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•
P&G will revise the SK-II formula and/or manufacturing process as needed to
ensure that chromium and neodymium (the two banned substances that were
found in SK-II previously) are reduced to an acceptable level or eliminated
completely in order to fully comply with the standards and practices of the
AQSIQ and affiliated laws.
•
SK-II CHINA will be completely sourced, manufactured and distributed in China,
by China, for China. The only tie to any foreign country would be the overall
ownership by American company, P&G. All employees of SK-II CHINA will be
locally Chinese.
•
P&G wish to establish randomly executed government agency reviews and testing
(minimum of four per year) of SK-II CHINA products to measure quality and
ensure all locally sourced ingredients are safe and legal. Testing at random
intervals unknown to P&G will allow for maximum reliability and transparency.
Objective One
Achieve government approval of SK-II CHINA as a safe product
Strategy One
Achieve a ‘safety approved’ status of SK-II CHINA by April first
Tactics
•
Show AQSIQ that all ingredients are locally sourced via the new website which
will host an interactive map detailing ingredient information and locations;
distribute a fact sheet.
Arntz, Amling, Giblin, Holstad, Slipock 17
•
Facilitate initial AQSIQ/National Quality Inspection Department/Department of
Quality Management testing of manufacturing ingredients and process to ensure
banned substances are at acceptable minimum level or eliminated completely.
•
Establish randomly executed AQSIQ SK-II CHINA testing (no less than four per
year) and release public quarterly reports to media.
•
Arrange a meeting between SK-II CHINA Chinese managerial staff and AQSIQ
to initiate an open discussion concerning the Hygienic Standard for Cosmetics of
the National Standard of the People’s Republic of China (GB7916-87) and the
Cosmetic Directive of European Commission 76/678/EEC which states that the
substances chromium and neodymium are allowed because they are technically
unavoidable in the manufacturing process (if applicable, in the case in which we
cannot eliminate the banned substances).
Objective Two
Establish a long-term relationship with the AQSIQ
Strategy One
Establish open lines of communication among P&G, the National Inspection Department
and the Department of Quality Management
Tactics for Strategy One
•
Create a fact sheet with information about SK-II CHINA ingredients and
production. Fact sheet will be distributed to AQSIQ and appropriate departments.
Arntz, Amling, Giblin, Holstad, Slipock 18
•
Publish information from fact sheet on interactive website which allows
users/visitors to see where the various ingredients are sourced in China.
•
Establish meetings with AQSIQ, National Inspection Department and Department
of Quality Management prior to product launch to discuss all aspects of the
revised product. Additionally discuss the health effects of chromium and
neodymium on the body.
•
Continue meetings every quarter to verify product safety and locality
•
Repair relations with a formal letter to the AQSIQ and necessary People’s
Republic of China agencies in which P&G apologizes for the miscommunication
in the previous incident, and state that P&G looks forward to fully cooperating in
all future testing as well as establishing and maintaining open lines of
communication and transparency
Strategy Two
Delineate SK-II CHINA product from SK-II sold in Japan prior to launch
Tactic
•
Have the government verify that SK-II CHINA is sourced in China and
manufactured by and for China. Post verification on website and social media,
and distribute news releases.
Evaluation
Objective 1
Criteria
Arntz, Amling, Giblin, Holstad, Slipock 19
•
Government approval of SK-II CHINA
Tools
•
Achieve Government approval
Tactic one
Criteria
•
Show AQSIQ all ingredients are locally sourced
Tools
•
Obtain written certification of government approval
•
Number of fact sheets distributed to individual government personnel
Tactic Two
Criteria
•
Facilitate initial AQSIQ substance testing
Tools
•
Obtain official documents from testing
Tactic Three
Criteria
•
Establish no less than four randomly executed AQSIQ testing per year
Tools
•
Obtain official testing reports from government
•
Number of news releases sent
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•
Number of media impressions
Tactic Four
Criteria
•
Meeting between SK-II CHINA managerial staff and AQSIQ
Tools
•
Obtain approval
Objective 2
Criteria
•
Establish positive long-term relationship with AQSIQ and affiliate departments
Tool
•
Benchmark survey of government attitudes towards SK-II division of Proctor and
Gamble
Tactic One
Criteria
•
Fact sheet with info on SK-II CHINA ingredients and production
Tools
•
Number of fact sheets distributed to government personnel
Tactic Two
Criteria
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•
Publish fact sheet info on interactive website
Tools
•
Number of website hits
Tactic Three
Criteria
•
Establish meetings with AQSIQ and appropriate departments to discuss all
aspects of revised product
Tools
•
Obtain government approval of product
•
Number of government officials in attendance
Tactic Four
Criteria
•
Continue meetings quarterly
Tools
•
Number of meetings per calendar year
•
Number of government officials in attendance
•
Government perception of product
Tactic Five
Criteria
•
Repair relations via formal letter
Arntz, Amling, Giblin, Holstad, Slipock 22
Tools
•
Number of government officials the letter was sent to
•
Number of communications with AQSIQ and relevant departments per quarter
Tactic Six
Criteria
•
Have government verify that SK-II CHINA is sourced and manufactured in
China. Post verification on website and social media, distribute news releases
Tools
•
Obtain written certification of government approval
•
Number of social media impressions
•
Number of website hits
•
Number of news releases sent
•
Number of media appearances
•
Number of media impressions
•
Number of positive impressions
Current Customers
Demographic information
The current customers for the SK-II brand consists of urban females ages 40 and
younger. These women have white-collar jobs that provide them with disposable income
to afford expensive foreign cosmetics. This group of females represents roughly 65-90
million people.
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Self-Interests
Personal appearance, status, health and safety
Third Party Influentials and Opinion Leaders
Media, family, friends, government, and co-workers
Current relationship
The current relationship status between SK-II and current customers is not positive.
Customers feel they cannot trust the SK-II brand due to the occurrence of illegal
ingredients found in their products and the lack of communication and information from
P&G and SK-II after this information was released.
Primary Message
SK-II CHINA is a safe and reliable product.
Secondary Message
•
We will provide all SK-II CHINA product ingredients and safety information.
•
We will work with the government every step of the way to ensure product safety
and comply with AQSIQ standards.
Objective One

Increase awareness of SK-II CHINA products by 50 percent by factory launch
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Strategy One
Enlist the support of targeted mass media regarding SK-II CHINA re-launch
Tactics

Create a promotional video briefly stating government safety approval, displaying
the locally sourced ingredients, detailing local manufacturing, and the skincare
benefits of SK-II CHINA products (same video as detailed in employee section)

Create media kit including news release, backgrounder, fact sheet, brochure and
blog post to send out to all influential media outlets and fashion and beauty
bloggers to generate buzz about the re-launch and rebranding of SK-II CHINA
Objective Two
Increase positive perception of SK-II CHINA among Chinese consumers by 50 percent
by factory launch
Strategy One
Show SK-II CHINA products are safe through use of mass media
Tactics

Test all SK-II CHINA products to ensure product safety

Hold a news conference on April seventh reporting the results of the SK-II
Arntz, Amling, Giblin, Holstad, Slipock 25
CHINA products.
◦ In addition to sharing the new test results, P&G’s Chief Executive officer,
A.G. Lafley will make a formal apology for the miscommunication and confusion
that resulted from the prior incident.

Send out news releases by April first to all influential media outlets with the retesting information, a statement from the government supporting SK-II CHINA as
a safe product and notification of upcoming news conference.

Post test results on the SK-II CHINA website and Sina Weibo page

Update Sina Weibo page as part of company promotion updating consumers on
product information and test results
Strategy Two
Show delineation of SK-II CHINA from its Japanese manufacturers to eliminate negative
brand association among consumers
Tactics

Send news releases regarding government verification of local manufacturing and
sourcing of ingredients and post on social media such as the website, Sina Weibo
and appeal to influential fashion bloggers concerned with the cosmetics industry
such as major Chinese fashion blogger sensation Han Huohuo, The Style Voyager
and A Pair and A Spare.

Feature only native Chinese brand ambassadors through billboards, ads, and
commercials.
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Strategy three
Show commitment to transparency through media relations strategies
Tactics

Hold a “grand opening” open house of the new SK-II CHINA facility allowing
media and the public to see the production process first hand.

Additionally, after the initial open house SK-II CHINA will allow interested
individuals to sign up for facility tours. Tours will occur twice a week for two
months.
Strategy four
Improve consumer confidence by establishing a new return policy for SK-II CHINA
products.
Tactics

Establish a new return policy to state that returns must be made within 30 days of
original purchase, with a receipt, and product must be less than one quarter used.
The return policy will be posted at the bottom of all receipts, displayed in stores at
the front counter, visible during checkout, posted on the SK-II CHINA website
and employee disclosure at checkout

Address new return policy in above stated news conference.
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Objective Three

Recover original sales of SK-II products within the first three months of factory
launch.
Strategy One
Showcase how SK-II CHINA benefits physical appearance such as smoothing skin and
reducing wrinkles
Tactics
• Advertisements showing before and after
• Post before and after on website
• Customer testimonials
• Brand Ambassador appearances in ads, commercials, and billboards
• Hold a promotional kick-off week at all department stores selling SK-II CHINA
products. Potential consumers can receive free samples and talk to beauty experts about
the product
Evaluation
Objective One
Criteria
Raise awareness of SK-II CHINA products
Arntz, Amling, Giblin, Holstad, Slipock 28
Tools

Benchmark survey to Chinese consumers about SK-II products

Survey after launch of SK-II CHINA regarding Chinese consumer awareness of
product
Tactic One
Criteria
Promotional Video
Tools

Post on SK-II CHINA website

Count the number of views the video receives

Cumber of mentions it generates on cosmetic blogs
Tactic Two
Criteria
Media Kit
Tools

Number of media kits sent out

Number of media appearances
Objective 2
Criteria
Increase positive perception
Arntz, Amling, Giblin, Holstad, Slipock 29
Tools

A benchmark survey of Chinese consumers opinions regarding SK-II products
before launch of SK-II CHINA.

An additional survey will be given after launch to see how perception has or has
not changed
Tactic One
Criteria
Facilitate initial AQSIQ substance testing
Tools
Obtain official documents from testing
Tactic Two
Criteria
News conference
Tools

Number of reporters who came to conference

How many ran a story on it afterwards

Number of positive impressions
Tactic Three
Criteria
News Release
Arntz, Amling, Giblin, Holstad, Slipock 30
Tools

Number of news releases sent

Number of media appearances

Number of media impressions
Tactic Four
Criteria
SK-II CHINA website
Tools
Number of page views
Tactic Five
Criteria
Sina Weibo
Tools
Number of social media impressions
Tactic Six
Criteria
Grand Opening
Tools

Number of attendees

Number of reporters there
Arntz, Amling, Giblin, Holstad, Slipock 31

Number of media appearances
Tactic Seven
Criteria
Facility Tours
Tools
Number of attendees each week
Tactic Eight
Criteria
Return Policy
Tools

Benchmark survey to Chinese consumers on their opinion of current return policy

Additional survey after factory launch regarding new return policy
Objective Three
Criteria
Increase sales of SK-II CHINA products in China
Tools- Analyze monthly sales growth
Tactic One
Criteria
Advertisements showing before and after
Arntz, Amling, Giblin, Holstad, Slipock 32
Tools
Count number of media appearances
Tactic Two
Criteria
Post before and after on website
Tools
Count number of page website page views
Tactic Three
Criteria
Customer Testimonials
Tools
Count the number of website page views
Tactic Four
Criteria
Brand Ambassador appearances
Tools

Count how many times commercials are shown and what time of day they are
shown

Count how many ads are produced

Count how many billboards are placed and analyze average amount of traffic that
Arntz, Amling, Giblin, Holstad, Slipock 33
passes by
Tactic Five
Criteria
Promotional kick off event
Tools

Count how many people attended the event

Count how many samples distributed
Potential Consumer
Demographic Information

Urban females ages 40-70 with white-collar jobs or spouses with white collar jobs
that provide them with the disposable income to afford expensive cosmetics.

Urban females ages 40 and younger with white-collar jobs who do not currently
use the product.
Self Interests

Status

Personal Appearance

Health and safety
Third Party Influentials and Opinion Leaders

Peers
Arntz, Amling, Giblin, Holstad, Slipock 34

Family

Friends

Government

Media

Sina Weibo – currently China’s number one social network site with over 400
million users. A cross between Facebook, and Twitter, it will be utilized in our
campaign in order to drive up sales of SK-II CHINA.
Current Relationship:
The current relationship between SK-II CHINA and potential customers is non-existent,
as they are uncertain of the safety of the products. These consumers have not used the
product so they have no loyalty or likeness of SK-II CHINA products. They have most
likely heard of the issue behind the SK-II CHINA products and are uncertain of their
view on the products.
Primary Message
SK-II CHINA is a safe, reliable and effective product
Secondary messages

We will provide all SK-II CHINA product ingredients and safety information

We will work with the government every step of the way to ensure product safety
and comply with AQSIQ standards

SK-II CHINA products provide physical appearance benefits such as smoothing
Arntz, Amling, Giblin, Holstad, Slipock 35
skin and reducing wrinkles. SK-II CHINA is an important product for anyone
looking to improve his or her facial features in the ways previously mentioned
Objective One
Raise awareness of SK-II CHINA products by 50 percent by factory launch
Strategy One
Enlist the support of targeted mass media regarding SK-II CHINA re-launch
Tactics

Create a promotional video briefly stating government safety approval, displaying
the locally sourced ingredients, detailing local manufacturing, and the skincare
benefits of SK-II CHINA products

Create media kit including news release, backgrounder, fact sheet, brochure and
blog post to send out to all influential media outlets and fashion and beauty
bloggers to generate buzz about the re-launch and rebranding of SK-II CHINA
Objective Two
Increase sales of SK-II products in China by 10 percent within six months of factory
launch
Strategy One
Showcase how SK-II CHINA benefits physical appearance such as smoothing skin and
Arntz, Amling, Giblin, Holstad, Slipock 36
reducing wrinkles
Tactics

Advertisements showing before and after

Post before and after on website

Customer testimonials posted on website

Brand Ambassador appearances in ads, commercials, and billboards

Hold a promotional kick-off week at all department stores selling SK-II CHINA
products. Consumers can receive free samples and talk to beauty experts about the
product
Evaluation
Objective One
Criteria
Raise awareness of SK-II CHINA products
Tools

Benchmark survey to Chinese consumers about SK-II products

Survey after launch of SK-II CHINA regarding Chinese consumer awareness of
product
Tactic One
Criteria
Promotional Video
Arntz, Amling, Giblin, Holstad, Slipock 37
Tools

Post on SK-II CHINA website

Count the number of views the video receives

Cumber of mentions it generates on cosmetic blogs
Tactic Two
Criteria
Media Kit
Tools

Number of media kits sent out

Number of media appearances
Objective Two
Criteria
Increase sales of SK-II CHINA products in China
Tools- Analyze monthly sales growth
Tactic One
Criteria
Advertisements showing before and after
Tools
Count number of media appearances
Arntz, Amling, Giblin, Holstad, Slipock 38
Tactic Two
Criteria
Post before and after on website
Tools
Count number of page website page views
Tactic Three
Criteria
Customer Testimonials
Tools
Count the number of website page views
Tactic Four
Criteria
Brand Ambassador appearances
Tools

Count how many times commercials are shown and what time of day they are
shown

Count how many ads are produced

Count how many billboards are placed and analyze average amount of traffic that
passes by
Arntz, Amling, Giblin, Holstad, Slipock 39
Tactic Five
Criteria
Promotional kick off event
Tools

Count how many people attended the event

Count how many samples distributed
Arntz, Amling, Giblin, Holstad, Slipock 40
Citations:
(1) Powers, Lisa. (2006). CTFA Statement On Chromium and Neodymium. Personal
Care and Products Council. Feb. 24, 2013.
http://www.personalcarecouncil.org/newsroom/20061101-1
(2) Hung, Kineta. (n.d.). SK-II: Damage Control in China. Asia Case Research Center
(3) Hung, Kineta. (n.d.). SK-II: Damage Control in China. Asia Case Research Center
(4)Burcz, Chelsea (2012) The Asian Influence: 15 Chinese Fashion Blogs We’re Excited
about Feb. 25, 2013 http://heartifb.com/2012/08/09/the-asian-influence-15-chinesefashion-blogs-were-excited-about/