SK-II: Damage Control
China
Katherine Allred
Ashley Aronson
Rachel Starr
Yana Nemecek
Andrea Blythe
November 2, 2011
1
Table of Contents
Background
3
Situation Analysis
3
Core Problem and Opportunity
4
Goals and Objectives 4
Key Public
4
Primary and Secondary Messages
7
Strategies and Tactics 9
Budget
14
Calendar 16
Communication Confirmation Table
28
Evaluation 28
Sources 29
2
Background
Proctor and Gamble (P&G) entered the Chinese marketplace in 1988 through the Guangzhou
province. With the cosmetics industry on the rise, China racked up US $8.6 billion in cosmetic
sales alone in 2005.
P&G has four large headquarters around the world and it serves customers in more than 180
countries. As an international company, P&G must constantly stay up to date with cultural
dynamics for each country it has a business presence.
A product line called SK-II was created in 1980 by Max Factor Japan. This product was made
by the fermentation process of sake in attempt to rejuvenate skin. SK-II was primarily sold in
Japan, until P&G decided to bring it into the Chinese market in 1999.
On Sept. 14 2006, Chinese authorities banned nine products from the SK-II line in the Chinese
sales market. These products contained trace amounts of chromium and neodymium, which
were a byproduct of the production. These chemicals had been banned by AQSIQ regulations.
Chinese government officials reported numerous incidences of allergic reactions. That same
day, P&G denied accusations that SK-II was harmful.
P&G offered refunds to customers of SK-II products. To obtain a refund, the customers needed
to: bring back the product that was two-thirds full, provide a doctor’s note proving an allergic
reaction to the product and sign a contract relieving P&G’s liability. After completing this
criteria, customers were informed they would not receive a refund for at least another month.
P&G opened its doors to refunds and saw little movement. With a low response rate, the
company loosened the guidelines for customer returns. The change in guidelines resulted in an
influx of returns, the sales personnel could no longer handle the amount of returns.
Due to security concerns, P&G held its returns in a hotel banquet hall. Angry mobs of
customers rushed through the doors, causing hectic chaos. As a result, P&G was left with a
mass amount of displeased customers who were no longer satisfied with the SK-II product line.
Now, SK-II has no presence on the Chinese market because SK-II product’s have been pulled
and its sales counters have closed. The company needs to work on relationships with the
Chinese government and customers while rebuilding SK-II’s brand reputation and
demonstrating its qualitative importance.
Situation Analysis
Due to the SK-II line, P&G has lost the trust of its customers, Chinese government officials and
shareholders. P&G faces a challenge of keeping the SK-II line in the cosmetics market, while
under suspension. Not only does P&G feel pressure from its customers to restore its
relationship by providing better alternatives for refunds, but P&G also needs to reassure
shareholders that the product is still profitable and beneficial to the company. P&G must
3
restore its relationship with its key publics to continue participating in the Chinese cosmetic
industry.
In order to relaunch SK-II into the Chinese marketplace, P&G must get the approval of Chinese
government officials. Rebuilding the relationship with previous customers will also be a
challenge. In order to stay competitive within the Chinese cosmetic market, P&G needs
innovative and creative ways to rebuild the SK-II product line.
Core Problem and Opportunity
To rebuild P&G’s reputation and relationship with customers and Chinese government officials
in order to successfully relaunch the SK-II line in China.
Goals and Objectives
Goal:
For SK-II’s image, reputation and relationship to be repaired with customers and Chinese
government officials by rebranding SK-II and following laws and guidelines set by the
government.
Objectives:
1. To increase SK-II sales in China from 7 percent to 10 percent by Jan. 1, 2009.
2. To increase long-term customer relations by 25 percent by Jan. 1, 2009.
3. To maintain a 90 percent employee retention rate by the relaunch day, Sept. 11, 2007.
4. To build and maintain relationships with Chinese government workers by May 1, 2007.
5. To inform shareholders that P&G is removing the product from the Chinese market for one
year by October 6, 2006.
Overview:
Our team recognizes the crisis of SK-II’s current situation. We suggest that P&G remove SK-II
products from the Chinese market for a year. During this time period, we suggest a rebranding
of the products, which would adhere to Chinese law and regulations.
Key Public
SK-II Counter Personnel
By 2005, P&G’s sales represented 18 percent of China’s cosmetics and toiletries market. By
2006, SK-II had 97 sales counters in China with more than 400 sales personnel in all one tier,
and most two tier cities in China. Counter personnel are females between the ages of 18 and
35 years old. SK-II became the number two premium skin care brand and sales in China
accounted for approximately 7 percent of the brand’s global sales.
4
After SK-II was pulled from the market, every SK-II sales counter shut down after the company
stopped taking returns, leaving some personnel without jobs. Counter personnel are worried
about the status of their employment. P&G needs to focus on maintaining positive relationships
with the SK-II counter personnel and guarantee that after the SK-II re-launch, the employees
will return without any negative feelings toward P&G. Counter personnel serve as ambassadors
between the SK-II product and the consumers. P&G will need to educate the personnel about
SK-II products because they are dealing with the customer first hand and will need to know all
the safety measures and product ingredients to inform the customer. Taking these measures
will benefit the company because it will keep the personnel happy and ready to return to work
after the relaunch.
Current Relationship: The relationship with SK-II counter personnel is very poor right now.
SK-II has been banned in the Chinese market putting stress on SK-II counter personnel who
may lose their jobs due to lack of customers at SK-II counters. P&G continually changed the
return policies, which created hardships for the counter personnel. P&G also shut down the
SK-II counters, which left 400 personnel without jobs. The counter personnel do not trust P&G
and they are unhappy about potentially losing their jobs.
Self-Interest: Personnel are worried about their jobs, especially with the downfall of the SK-II
brand. 400 personnel employees could lose their jobs, and they are worried that the
relationship between their employer and their country is in jeopardy.
Influential: Chinese customers, P&G, Chinese government, competitors, friends, family and
peers.
Shareholders
Shareholders are a large piece of what helps P&G succeed. Employees and investors are
interested in the future of the company and the each products success is detrimental to the
entire company. A product’s failure in the Chinese market might create a panic in the minds of
investors. Shareholders are mainly in the United States but employees are also shareholders,
who are worldwide and Chinese employees are in the middle of the crisis. The well being of the
product is a concern for both job security and potential dividends.
Current Relationship: Shareholders are worried about the product and possibly resulting in a
loss of money, equaling in fewer dividends. The image of the brand and possibility of the brand
not relaunching would result in a loss of money for shareholders. Because finances are
involved shareholders would possibly become overbearing and trying to become involved with
the situation. P&G would need to inform the public of the future of the product. Since the crisis
has begun, stock prices have not dropped significant amounts, small changes within one
dollar.
Self-Interest: The motivation for shareholders would be dividends that they receive from the
brand.
Influential: P&G, Stock Market, Chinese Government and customers.
P&G Consumers
SK-II customers are working females, age 20-50, who care about their personal appearance
and have the disposable income to afford foreign cosmetics. This group represents five percent
to seven percent of the population, bringing 65 to 90 million potential customers. These ladies
5
can afford luxury foreign items and tend to purchase such products for social and personal
reasons. The second target audience for consumers are educated females, including spouses
of white collar workers, those who have travelled outside of China, or business executives.
After losing such a high percentage of this select population, it is necessary to not only rebuild
beneficial relationships with SK-II customers, but to maintain these relationships so purchasers
will return for more products which will ultimately increase sales.
Current Relationship: The relationship between customers and SK-II is very weak.
Customers have lost trust with the product SK-II and do not believe the brand is reliable
anymore. Consumers are also livid with customer relations within the company from past
experiences with the return policy and therefore are now hesitant about purchasing the
product.
Self-Interest: Consumer will not readily purchase SK-II skin products because of the recall.
This target audience wants the best AQSIQ-approved product in the market that is also linked
to a reliable brand. These two points are crucial because these consumers have the tendency
to make only a one initial tester purchase and do not build long term relationships with
products. Most importantly, this audience wants a product that looks chic but is scientifically
proven to work effectively and flawlessly.
Influential: Chinese Government, friends, media, advertisements, AQSIQ, and competitors
such as Shiseido, Revlon, Dior, Estée Lauder and Maybelline.
Chinese Government
The Chinese Government is very important for any business venture in China. China is under
Communist rule and, therefore, the government is involved in every aspect of Chinese
economics, media and culture. After testing the SK-II products, the Chinese government
became worried when many of the products contained banned chemicals and they ultimately
shut down the SK-II counters. P&G must repair the strained relationship with the government in
order to rejoin the cosmetics market once again.
The Chinese economy is the third largest in the world after the US and Japan. China has the
largest population in the world with around 1.336 billion people and therefore has a huge
domestic market. The government’s approval is critical for P&G because without it they are not
allowed to enter the consumer market.
Current Relationship
Poor. The relationship between P&G and Chinese Government continued to decline after
AQSIQ found illegal chemicals, neodymium and chromium, in the SK-II products.
Self- Interest
To ensure that SK-II is adhering to laws and regulations in the Republic of China and ensure the
safety of the Chinese people.
Influential
6
P&G, other cosmetics companies and Chinese citizens.
Primary Messages
SK-II Counter Personnel
Primary Message
1. SK-II is a safe product to be representing and selling.
Secondary Messages
●SK-II products were retested after initial reports were taken by the AQSIQ. Testing
continued in Japan, Hong Kong, Singapore, Taiwan and South Korea, both by P&G and
by national quality assurance departments.
●Different regions have different standards to abide by. On September 26, the Health
Sciences Authority of Singapore announced that SK-II products did not pose any safety
concerns.
●The Hygienic Standard for Cosmetics of the National Standard of the Peoples Republic of
China and the Cosmetic Directive of the European Commission said:
“The directive provides that the presence of traces of chromium or
neodymium is allowed provided that such substances are technically
unavoidable in the goods manufacturing process. The cosmetic product
concerned must not cause damage to human health under normal use.”
●Original testing in China and secondary testing in Hong Kong had acceptable levels of
chromium and neodymium. Trained health officials and laboratory technicians would
conclude that--under normal usage--there was a low to no health hazard from SK-II
products.
Primary Message
2. P&G values its personnel and will strive to maintain positive relations with China and work to
rebuild the image of SK-II to ensure that it stays on the market and personnel will keep their
jobs.
Secondary Messages
●P&G offered to fully cooperate with the AQSIQ to enable SK-II to be allowed back on the
shelves for sale.
●P&G discontinued returns of SK-II caused riots and picketing by consumers. By rewriting
return policies, P&G employees will no longer be a target of animosity.
Primary Message
7
3. P&G ensures job security for SK-II counter personnel.
Secondary Messages
●SK-II was unexpectedly pulled from the market; therefore, jobs were unexpectedly lost.
●P&G values personnel loyalty and wants to provide job security for its personnel.
●P&G will do whatever is in its power to ensure jobs for currently unemployed personnel.
Shareholders
Primary Message
1. P&G is planning to remove SK-II from the market for one year.
Secondary Message
●P&G will inform its investors that its pulling the product from the market.
●Pulling the product should not dramatically influence stock price, as the company has
many other products in the market.
P&G Customers
Primary Message
1. The SK-II product line is a scientifically tested and AQSIQ approved product line that works
effectively and flawlessly on skin.
Secondary Messages
●P&G will research Chinese law and work with the government to reformulate a product
that is healthy for its citizens.
●The SK-II product line has amazing items that can purify, renew, brighten and nourish skin
to prevent it from aging.
●P&G is not trying to forget or ignore its past mishaps, but to embrace, learn and move on
from it for the benefits of the customers.
Primary Message
2. P&G cares about the well being of its consumers.
Secondary Messages
●P&G values the support of their loyal customers.
●P&G wants to build and maintain long-term beneficial relationships with their consumers.
●P&G wants to hear customer feedback, comments and opinions in order to sell the best
product to fit their wants and needs.
●P&G will create a return policy that benefits consumers’ needs.
Chinese Government
Primary Message
8
1. P&G values its relationship with the Chinese government and will follow and respect the
regulations set up by them.
Secondary Messages
●P&G wants to build a relationship with the Chinese government.
●P&G can’t sell their product if they don’t pass through the government-run testing centers.
●The Chinese took this opportunity to show the Japanese government that their laws and
standards are respected, therefore, it’s important to show the government the respect
they want.
Primary Message
2. P&G needs to alter its staff and review cultural customs before starting to repair its
relationship with Chinese government.
Secondary Message
●The Chinese government has many important customs and it’s necessary that the P&G
team learn these customs to make a good impression.
●The Chinese hold seniority and hierarchy to a higher level. It’s important than for P&G to
fill its staff with older, experienced team members.
Strategies and Tactics
SK-II Counter Personnel
Strategy 1:
Rebuild positive relationships between counter personnel and customers to re-establish
customer loyalty to SK-II products.
Tactics:
●Create the new return policy that will keep SK-II counters open for two months to take
returns on any SK-II product without any stipulations or clauses.
○SK-II will be taken off the market in October 2006, but the counters will remain
open until December 2006 to take returns only; they will not sell any products.
Products will re-enter the market in September 2007 after P&G rebrands SK-II
products.
○The return policy will take any SK-II product back for a full refund.
○Customers will not sign any documents deferring blame.
●All 400 personnel will remain in work for two months while personnel counters remain
open to take returns.
Strategy 2:
Educate SK-II counter personnel about the SK-II product so they will become experts on the
products they are selling.
Tactics:
9
●Fly 400 counter personnel to the Japanese factory to tour the factory and learn about the
SK-II product. Trip will include:
○Fly 10 personnel out at one time twice a week beginning the first week of January
2007 to the middle of May 2007.
■ The trips will be Monday to Wednesday and Wednesday to Friday.
○All expense-paid flight from China to Japan.
○All expense-paid two night stay.
○All expense-paid meals during two night stay.
●Provide a training session for counter personnel to learn important messages and
information about SK-II products.
○SK-II toxicologists will speak to counter personnel about health and safety
measures concerning SK-II products.
○Teach proper application process of products.
○Teach safety concerns and risks.
○Teach proper instructions.
○Inform counter personnel of ingredients in SK-II products.
●Provide counter personnel with free samples and communicate with them about the key
messages of each product.
Strategy 3:
Build employee relations and create benefits.
●China’s minimum monthly wage is $160 US per month. Give counter personnel severance
pay for temporary unemployment at 75 percent minimum wage for nine months[1].
●When SK-II re-launches and sales counters are reopened, give former employees first
priority in hiring.
●Provide counter personnel with $500 worth of SK-II products when counters reopen as a
“thank you” for personnel loyalty.
Shareholders
Strategy 1:
To inform shareholders immediately that P&G is pulling SK-II from the market.
Tactics:
●Create 8K which will inform shareholders that P&G is removing the product from the
shelves.
●Create news release which will be sent to all financial media outlets.
○Contact: Dow Jones, Bloomberg, Associated Press, Market Watch and Reuters.
○News release should inform: What happened, why it happened and what is the
company going to do going forward.
Strategy 2:
To create talking points filtered through the legal department.
●Talking points should be set for investor relations department, executives and employees
to answer any media questions.
10
P&G Customers
Strategy 1:
Rebuild long-term beneficial customer relations to create and maintain brand loyalty.
Tactics:
●Set up a 24-hour international live chat on the SK-II website Aug.6, 2007, a month before
the relaunch, where customer’s can receive premium service by talking to a SK-II
consultant for questions or concerns.
○Consultants will also have an email account to give to each participant after each
live chat session to continue building a long-term relationship with consumers.
●Send out an information kit on August 1, 2007, to all past consumer’s that include:
○A relaunch of the SK-II product announcement.
○An explanation of past incidents and how SK-II has worked with AQSIQ guidelines
to improve its product and make it more effective and better overall.
○An explanation of the new live chat feature on the website, where customers can
talk to a SK-II personnel members for any inquiries about the product.
○An explanation of the return policy.
○A “thank you” to customers for their support.
■ Highlight P&G’s high priority with customer relations and the importance of
customer feedback.
○A 20 percent off coupon for the customer’s first purchase of SK-II products.
○An informative pamphlet to educate consumers about the new SK-II product line.
○An invitation to sign up for the exclusive customer rewards program.
●The customer rewards program will include:
○An annual birthday coupon for 50 percent off any SK-II product.
○An exclusive card to calculate purchases, where every $500 spent results in $50
dollars off with next purchase.
○As a customer rewards member, every purchase includes 10 percent off of the
sale.
■ Every purchase made by a customer in the rewards program will be sent a
thank you card for their purchase.
Strategy 2:
Educate consumers about the new SK-II product line.
Tactics:
●Send out a press release Sept. 3, 2007, seven days before the product relaunch, to inform
all potential consumers that the new SK-II product line adheres to AQSIQ regulations.
○Note that the new line has amazing items that can purify, renew, brighten and
nourish skin and explain how it prevents it from aging.
○Mention new customer rewards program.
●With every purchase, include an informative pamphlet about the SK-II product line.
○This pamphlet will also feature information on SK-II’s 24-hour international live
chat.
●Use Social Media to spread the word about the new SK-II product line.
○Make an informative SK-II profile on RenRen, 51 and Chinaren on Sept. 10, 2007.
■ Note that RenRen and 51 are social networks for college students, and
Chinaren is a social networking site for college alumni[2].
11
Strategy 3:
Make customers feel connected to the brand SK-II, while still maintaining a foreign elegance.
Tactics:
●Change Sk-II’s color scheme from red, white and silver to the Chinese color qing (青花瓷)
[3], and gold.
○Maintain the porcelain look of qing in layout, with accents of gold[4].
●Change spokes model for SK-II to a new famous endorser.
○A female, age 25-40, who is classy, well-liked in the Chinese culture, down to earth
and can relate to our customers on a personal level.
●Set up an international customer story page on the SK-II website where all customers can
submit their success stories with the SK-II product line for other consumers to view.
Chinese Government
Strategy 1:
Create positive government relations to ensure that SK-II can re-enter the cosmetics market in
China.
Tactics:
●Research a different way of processing the SK-II products, to minimize the amount of
chromium and neodymium that results in the fermentation process, make sure they
adhere to the government regulations.
○Extensive research into common allergies within China in order to prevent any
allergic reactions from SK-II products.
○Aim for the SK-II products to be as planet based as possible.
●Transport government officials to factories and show them the production of SK-II.
○Fly out two people from divisions of the AQSIQ including the Department of Quality
Management, Department of Supervision on Inspection, Department of
Supervision on Product Quality, Department of International Co-operation[5].
○Work closely with the government research facilities to come to a product
compromise.
Strategy 2:
Establish a Guanxi.
Tactics:
●Research Chinese companies in the cosmetics market and establish a joint venture.
○Plan monthly business lunch with top Chinese companies on first Wednesday of
every month beginning in January.
○Lunch meetings will adhere to Chinese customs
■ Present business cards during first meeting
■ Only discuss business face-to-face
12
■ Older P&G employees will be present to discuss business
■ Plan and execute monthly banquets with Chinese businesses including food
and ballroom rental.
Strategy 3:
Build a reliable American SK-II team based in China to adhere to Chinese customs.
Tactics:
●Place senior P&G employees at the head of the SK-II team.
●Hire new employees fluent in both Chinese and English to lessen the translation gap
between the government and P&G.
●Produce new business cards with English and Chinese.
13
Budget
Budget
Detail
Key Public SK-II Counter Personnel
Rebuild positive relationship between personnel
Strategy
and customers
Create new return policy and take all SK-II
Tactics
products at full refund
Counter personnel will man counters for two
months
Strategy
Tactics
Strategy
Tactics
Educate SK-II counter personnel about
products
Fly counter personnel to Japanese factory
Pay for two night stay
Pay for meals
Provide educational training sessions at factory
Provide SK-II free samples to employees
Create employee relations to ensure 90 percent
employee retention rate
Provide severance for months of unemployment
Provide counter employees with first priority to
rehire
Provide "thank you" gifts for counter personnel
loyalty
Key Public Shareholders
Strategy
Inform investors of recall of SKII
Tactics
Create 8K
Create Press release
Strategy
Tactics
To create talking points through legal
department
Inform investor relations department of talking
points
Key Public P&G Customers
Strategy
Rebuild long-term customer relations
Tactics
Send out letters to all past consumers
Provide gift for customers first purchase
Informative pamphlet in product boxes
Invitation to sign up for rewards program
Annual birthday coupon
Discount off purchases
Send thank you cards for customers who make
purchases
Create 24-help line for customers
Strategy
Tactics
Strategy
Tactics
Educate SK-II customers
Send out press release about SK-II re-launch
Include informative pamphlet with every
purchase
Use social media to spread word about SK-II relaunch
Connect customers with SK-II brand
Change color scheme of SK-II for re-branding
Change spokesperson for SK-II products
Set up international customer story page
Per Item
Cost
Total
Projected
Sponsored
Credit
Actual
Projected
Approximately 10,000 customers
estimated to return
$125 $1,250,000
$0 $1,250,000
Minimum wage for 400 personnel
STRATEGY SUBTOTAL
$160
$64,000
$285 $1,314,000
$0
$64,000
$0 $1,314,000
All-expense paid round-trip flight
All-expense paid accommodations
All-expense paid accommodations
No cost
Small sample kits
STRATEGY SUBTOTAL
75 percent of minimum wage
No cost
Set cost
STRATEGY SUBTOTAL
PUBLIC SUBTOTAL
$300
$400
$400
$0
$100
$12,000
$12,000
$16,000
$16,000
$0
$4,000
$48,000
$0
$0
$0
$0
$0
$0
$12,000
$16,000
$16,000
$0
$4,000
$48,000
$1,080
$432,000
$0
$432,000
$0
$0
$0
$0
$500
$20,000
$1,580 $452,000
$13,865 $1,814,000
$0
$20,000
$0 $452,000
$0 $1,814,000
Set Price
No cost
No cost
STRATEGY SUBTOTAL
$100,000
$0
$0
$100,000
$100,000
$0
$0
$100,000
$0
$0
$0
$0
$100,000
$0
$0
$100,000
No cost
No cost
STRATEGY SUBTOTAL
PUBLIC SUBTOTAL
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25,000
$500,000
$25,000
$500,000
$0
$25,000
$500,000
$1
$20,000
$750,000
$130,000
$50,000
$20,000
$750,000
$130,000
$0
$0
$0
$0
$50,000
$20,000
$750,000
$130,000
$5,000
$5,000
$480,000 $480,000
$1,910,00
1 $1,960,000
$0
$0
$5,000
$480,000
Approximate costs to write and
send out letters
20% off first gift
Approximate costs to create
pamphlets
Set cost
50% off SK-II product
10% off products
Approximately $0.50 per card
Set cost
STRATEGY SUBTOTAL
No cost
Set cost
STRATEGY SUBTOTAL
Set cost
Set cost
Set cost
STRATEGY SUBTOTAL
$0
$0
$0 $1,960,000
$0
$0
$0
$0
$25,000
$25,000
$0
$25,000
$10,000
$35,000
$10,000
$35,000
$0
$0
$10,000
$35,000
$600,000 $600,000
$1,000,00
0 $1,000,000
$50,000
$50,000
$1,650,00
0 $1,650,000
$0
$600,000
$0 $1,000,000
$0
$50,000
$0 $1,650,000
14
Key Public Chinese Government
Strategy
Create relationship with Chinese government
Tactics
Research Chinese laws and regulations
Fly Chinese officials tour of Japanese factory
Pay for food accommodations
Pay for accommodations
Research Chinese cosmetic market
Plan monthly business meetings
Plan monthly banquets for Chinese business
Strategy
Build a reliable SK-II adhere to Chinese customs
Tactics
Place older employees in charge of team
Hire employees both fluent in Chinese and
English
Produce new business cards
PUBLIC SUBTOTAL
$3,595,00
1 $3,645,000
$0 $3,645,000
Set cost
All-expense paid trip
All-expense paid trip
All-expense paid trip
Set cost
Cost for food
Set Cost
STRATEGY SUBTOTAL
STRATEGY SUBTOTAL
$100,000
$300
$400
$400
$100,000
$500
$10,000
$101,100
$110,000
$100,000
$2,400
$2,400
$3,200
$100,000
$500
$10,000
$108,000
$110,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$100,000
$2,400
$2,400
$3,200
$100,000
$500
$10,000
$108,000
$110,000
$0
$0
$0
$0
$60,000 $240,000
$2,000
$2,000
$64,000 $244,000
$275,100 $462,000
$3,924,86
6 $5,937,000
$0
$0
$0
$0
$240,000
$2,000
$244,000
$462,000
No cost for swapping out
employees
Salaries
Set cost for printing
STRATEGY SUBTOTAL
PUBLIC SUBTOTAL
CAMPAIGN TOTAL
$0 $5,937,000
15
Calendar
October
2006
Sunday
Monday
Tuesday
1
Wednesday
2
Create Press Release
3
Thursday
4
Send Press Release in
for approval
Friday
Saturday
5
Edit Press Release
6
7
Send Press Release out
to the media
Being deciding detail
for return policy
Finalize Details for
return policy
Discuss Sales
Associates new wages
Finalize Sales
Associates new wages.
Send 8K to all investors.
Along with News
release to all financial
media outlets.
8
9
10
11
12
Inform Sales
Open new return
Associates of details of policy for customers
return policy
13
14
Create online message
board
MEETING: Sales
Associates-new wages
15
16
17
18
Start researching
possible Guanxi
22
19
20
21
27
28
Set up meeting with
possible top 3
Guanxi
23
24
Meeting with
Guanxi#1
25
26
Meeting with Guanxi Meeting with Guanxi Update Online Message
#2
#3
Board
Banquet/party with
chosen Guanxi
29
30
31
16
November
2006
Sunday
Monday
Tuesday
Wednesday
Thursday
1
Friday
Saturday
2
3
4
10
11
17
18
24
25
Update Online
Message Board
5
6
7
8
Starting
interviewing for
new bilingual
staff
12
13
9
Hire new
bilingual staff
14
15
Update Online
Message Board
16
Chinese customs
workshops for all
employees on the
SK-II team #1
19
20
21
22
Update Online
Message Board
23
Chinese customs
workshops for all
employees on the
SK-II team #2
26
27
28
Update Online
Message Board
Prepare
Shareholder letter
29
30
17
December
2006
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
2
8
9
Update Online
Message Board
3
4
5
6
7
Update Online
Message Board
10
11
12
13
14
Close counters
for return policy
17
15
16
Update Online
Message Board
18
19
20
21
22
23
29
30
Update Online
Message Board
24
25
26
27
28
Update Online
Message Board
31
18
January
2007
Sunday
Monday
Tuesday
1
Wednesday
Thursday
2
Begin talks with
Chinese
government about
improvement s
made to SK-II
3
Friday
4
Lunch with
Chinese business
Saturday
5
6
12
13
19
20
26
27
Update Online
Message Board
Fly out Counter
Personnel to
Japan
Fly out Counter
Personnel to
Japan
7
8
9
Fly out Counter
Personnel to
Japan
10
11
Fly out Counter
Personnel to
Japan
Update Online
Message Board
Meeting with
Guanxi
14
15
16
Fly out Counter
Personnel to
Japan
21
22
23
Fly out Counter
Personnel to
Japan
28
29
Fly out Counter
Personnel to
Japan
17
18
Fly out Counter
Personnel to
Japan
24
Fly out Counter
Personnel to
Japan
30
Update Online
Message Board
25
Update Online
Message Board
31
Fly out Counter
Personnel to
Japan
19
February
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
1
Saturday
2
3
9
10
16
17
23
24
Update Online
Message Board
4
5
6
Fly out Chinese Fly out Counter Dinner and
Government
Personnel to
banquet
Officials to Japan Japan
celebrating the
personnel and
government’s
visit
11
12
19
26
Fly out Counter
Personnel to
Japan
Update Online
Message Board
Fly out Counter
Personnel to
Japan
13
14
15
Fly out Counter
Personnel to
Japan
20
Fly out Counter
Personnel to
Japan
25
8
Lunch with
Chinese business
Fly out Counter
Personnel to
Japan
18
7
21
Fly out Counter
Personnel to
Japan
27
Update Online
Message Board
22
Update Online
Message Board
28
Fly out Counter
Personnel to
Japan
20
March
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
1
Saturday
2
3
9
10
16
17
23
24
30
31
Update Online
Message Board
4
5
6
Fly out Counter
Personnel to
Japan
11
12
19
8
Lunch with
Chinese business
Update Online
Message Board
Fly out Counter
Personnel to
Japan
Meeting with
Guanxi
13
Fly out Counter
Personnel to
Japan
18
7
14
15
Fly out Counter
Personnel to
Japan
20
Fly out Counter Fly out
Personnel to
Government
Japan
officials to
factories
21
Update Online
Message Board
22
Fly in
Government
officials to
factories
Update Online
Message Board
Fly out Counter
Personnel to
Japan
25
26
Fly out Counter
Personnel to
Japan
27
28
Fly out Counter
Personnel to
Japan
29
Update Online
Message Board
21
April
2007
Sunday
Monday
Tuesday
1
2
Wednesday
Thursday
3
Fly out Counter
Personnel to
Japan
4
Friday
5
Lunch with
Chinese business
Saturday
6
7
13
14
20
21
27
28
Update Online
Message Board
Fly out Counter
Personnel to
Japan
8
9
10
Fly out Counter
Personnel to
Japan
15
16
17
Fly out Counter
Personnel to
Japan
22
23
Fly out Counter
Personnel to
Japan
29
11
12
Fly out Counter
Personnel to
Japan
18
Update Online
Message Board
19
Fly out Counter
Personnel to
Japan
24
25
Fly out Counter
Personnel to
Japan
Update Online
Message Board
26
Update Online
Message Board
30
Fly out Counter
Personnel to
Japan
22
May
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
1
2
Friday
3
Lunch with
Chinese business
Saturday
4
5
11
12
18
19
25
26
Update Online
Message Board
Fly out Counter
Personnel to
Japan
6
7
8
Fly out Counter
Personnel to
Japan
9
10
Fly out Counter
Personnel to
Japan
Update Online
Message Board
Meeting with
Guanxi
13
20
14
15
16
Fly out
Government
officials to
factories
Fly in
Government
officials to
factories
Fly out Counter
Personnel to
Japan
Fly out Counter
Personnel to
Japan
21
22
17
Update Online
Message Board
23
24
Update Online
Message Board
27
28
29
30
31
23
June
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
2
Update Online
Message Board
3
4
5
6
7
Lunch with
Chinese business
10
11
12
13
8
9
15
16
22
23
29
30
Update Online
Message Board
14
Update Online
Message Board
17
18
19
20
21
Update Online
Message Board
24
25
26
27
28
Update Online
Message Board
31
24
July
2007
Sunday
Monday
1
Tuesday
2
Wednesday
3
Thursday
4
Friday
5
Lunch with
Chinese business
8
9
10
11
Saturday
6
7
13
14
20
21
27
28
Update Online
Message Board
12
Update Online
Message Board
Meeting with
Guanxi
15
16
17
18
19
Update Online
Message Board
22
23
24
]
29
30
25
]
26
Update Online
Message Board
31
25
August
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
1
Friday
2
Lunch with
Chinese business
Saturday
3
4
10
11
17
18
24
25
Update Online
Message Board
Send out Info Kit
5
6
7
8
9
Launch Sk-II
International Live
Chat
12
13
Update Online
Message Board
14
Fly out
Government
officials to
factories
19
15
16
Fly in
Government
officials to
factories
20
21
Update Online
Message Board
22
23
Update Online
Message Board
26
27
28
29
30
31
Update Online
Message Board
26
September
2007
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
2
3
4
Send out Relaunce Press
Release
5
Buy Employee
Gifts
6
Meeting with
Guanxi
7
9
15
16
22
23
Update Online
Message Board
Make Costumer
Rewards
Program,
informational
brochures and
coupons available
Meeting with
Guanxi
10
11
12
13
14
Make informative OFFICIAL
SK-II Profile
RELAUNCH
DATE
Update Online
Message Board
Give employees
gifts
17
18
19
20
21
Update Online
Message Board
24
25
26
27
28
30
Update Online
Message Board
27
Communication & Evalution Table
Key Public
Counter
Personnel
Shareholders
Chinese
Government
Consumers
Self-Interests
Primary
Influential
Messages
Possible job loss, 1.SK-II is a safe Chinese
relationship about product to be
customers, P&G,
employer and
representing and Chinese
country.
selling.
government,
2. P&G values its competitors,
personnel and will friends, family,
strive to maintain peers.
positive
relationships.
Possible dividend 1.P&G is planning P&G, Chinese
loss.
to remove product Government,
from Chinese
employees and
market.
customers.
To re-establish its
power over the
companies and
enforce its impact
on the Chinese
people.
Worried about
health aspects of
SK-II, not
receiving refunds
for faulty product.
1.Establish a
good relationship
with the Chinese
government.
2.Alter its staff
and review
cultural customs
before repairing
relationship with
Chinese
government.
P&G, other
cosmetic
companies, and
Japanese
government.
1.SK-II is tested
and approved by
AQSIQ.
2.P&G cares
about the well
being of its
consumers.
Chinese
government,
advertisements,
AQSIQ, and
competitors.
Objectives
Strategies
Tactics
Maintain a 90
1.Rebuild positive •
percent employee relationships
•
retention rate by between
relaunch date.
personnel and
customers.
•
2.Educate
personnel about
product to help
sell.
•
To inform
1.Inform
shareholders that shareholders of •
P&G is going to future of product.
recall SK-II from 2.Create talking
Chinese market. points through the
legal department.
Increase
1.Create positive •
relationship with government
Chinese
relations to ensure
government.
that SK-II can
reenter the
•
market.
2. Build a reliable
SK-II team to
adhere to Chinese
customs.
•
Increase longterm customer
relations by 25
percent by 2005.
1.Rebuild long- •
term beneficial
customer relations
to maintain brand
loyalty.
•
2.Educate
consumers about
new SK-II product
line.
Create new
return policy.
Personnel
will remain
working
Fly personnel
for factory
tour.
Create an 8k
Create
talking
points.
Transport
government
officials to
tour factory
in Japan.
Place senior
P&G
employees at
the head of
the SK-II
team.
Hire new
employees
fluent in
Chinese and
English.
Send out
letters: relaunch
announceme
nt.
Send out
press
release.
Evaluation Criteria and Tools
Objective 1
Criteria
Increase SK-II sales in China from 7 percent to 10 percent by Jan. 1, 2009.
Tools
Sales will be calculated from revenue made in China from the SK-II product line. These
calculations will begin Sept 11, 2007 and will end after business hours on December 31, 2008.
Objective 2
28
Criteria
To increase long-term customer relations by 25 percent by Jan. 1, 2009.
Tools
We will measure the usage of coupons redeemed that were given to repeat customers. We will
also track the sales of each product with repeat customers.
Objective 3
Criteria
Maintain a 90 percent employee retention rate by the relaunch day, Sept 11, 2007.
Tools
On Sept. 11, 2007, calculate the amount of returning employees and compare this number to
total employees working with the SK-II line on Sept. 10, 2007.
Objective 4
Criteria
To build and maintain relationships with ten Chinese government officials by May 1, 2007.
Tools
P&G will meet with 10 Chinese government members every month to build friendly
relationships and gain approval for the SK-II product line, until 6 months after the product is
relaunched.
Objective 5
Criteria
To inform shareholders that P&G is removing SK-II from the market for one year by Oct. 5,
2006.
Tools
P&G will watch stock market prices for the year and will measure how much the stock price
has dropped since releasing information about the recall of the product.
Sources
[1] http://www.chinapost.com.tw/business/asia/asia-china/2011/01/27/289231/China-ups.htm
[2] http://www.china-online-marketing.com/blog/internet-resources/top-chinese-socialnetworking-sitessns/
[3]
http://tinyurl.com/3s9l486
[4]
http://www.illuminantpartners.com/2011/01/17/color/
[5]
http://www.standardsportal.org/usa_en/prc_standards_system/key_organizations.aspx#AQSIQ
29
30