Strategic Public Relations Plan
SK-II Damage Control In China
Submitted by PR J453 Team 5
School of Journalism and Communication
University of Oregon
Niki Naboulsi – naboulsi@uoregon.edu
Lindsey Lake – lake@uoreogn.edu
Rachel Gehr -gehr@uoregon.edu
Melodie Seble -- melodie@uoregon.ed
Allie Hawes – hawes@uoregon.edu
Background
Industry and Environment
Proctor & Gamble Co. (P&G) is a Fortune 500 American multinational corporation founded
in 1837 that produces a wide range of consumer goods including cosmetic products, health
care items, pet supplies and baby care items. P&G cosmetic brands include CoverGirl, Max
Factor and Olay.
P&G entered the mainland Chinese market in 1988. China is one of the most populous
countries in the world, and is one of the fastest growing economies in the world. There are
1.3 billion Chinese citizens, which amount to approximately 560 million consumers. After
the Maoist period ended in 1976, in which cosmetics were discouraged, the cosmetics
industry in China grew rapidly, with annual growth rates of 10.2% between 1997 and
2005. By 2005, national sales of cosmetics in China reached US$8.6 billion. Additionally, by
2007, P&G sales amounted to 18 percent of China’s cosmetics and toiletries market.
In 1991, P&G acquired the cosmetic brand Max Factor, which had developed a high-priced
specialty product called SK-II. The brand had become popular in Japan since its launch
there in 1980. SK-II products began to be distributed by P&G China in 1999. By 2006, SK-II
had 97 sales counters in China, which accounted for seven percent of the brand’s global
sales.
In 2005, the SK-II brand suffered from an embarrassing lawsuit. A consumer purchased a
facial product from the brand, then claimed to have an allergic reaction to the product. In
addition, the consumer stated she purchased the product solely due to an endorsement of a
well-known Hong Kong actress, who claimed the SK-II product reduced wrinkles. P&G was
sued for false advertising, because the advertisement failed to mention the product “could”
reduce wrinkles. The court case was ultimately dismissed, but P&G was issued a fine and
was embarrassed.
SK-II product crisis
On September 14, 2006, P&G faced a crisis when the National Quality Inspection
Department of the State General Administration of Quality Supervision, Inspection and
Quarantine (AQSIQ), a state-run agency, released test results of SK-II products directly to
Chinese state-controlled media. The agency announced that nine SK-II skin care products
contained chromium and neodymium, chemical elements present in the earth’s crust that
exist in some cosmetics, and which may cause skin allergies in larger concentrations.
Chromium and neodymium are banned in Chinese products. One SK-II product, Whitening
Source Pan-Cake, contained 5.20 and 4.20 mg/kg of chromium and neodymium,
respectively, and the other eight products contained between .40 and .02 mg/kg of
chromium. One product contained .02 mg/kg of neodymium. AQSIQ had not tested for
these elements when it originally certified SK-II in 1998.
P&G responded to the AQSIQ’s announcement by denying that SK-II was harmful to users.
P&G stated that the levels of chromium and neodymium in the products were not high
enough to cause health worries. However, the company declared that it would
communicate with government departments to protect the interests of the customers and
that the affected SK-II products could be returned. Stating that the AQSIQ’s findings were
incorrect, P&G requested a retest of the products, despite warning that all P&G products
would be barred from sale if more banned substances were found in SK-II products. This
challenge of the Chinese government’s authority marks an important problem for P&G.
Chinese media, state and military are strictly controlled by the government, the Communist
Party of China. The government is the highest authority in China and has a great deal of
power, and therefore is not often challenged by Chinese citizens or companies. The Chinese
government is highly nationalistic and does not encourage challenges to state authority.
Additionally, a major external factor that affected P&G was the relationship between the
Chinese government and those of Japan in particular, as well as those of other countries
such as the United States of America. Due to “historical grievances” in addition to a 2006
reduction of Chinese exports to Japan, Chinese authority was tense toward Japanese
products.
The day after P&G’s crisis began, on September 15, 2006, the company outlined the four
conditions under which customers may receive funds for purchases of SK-II products,
which were produced in Japan. The four conditions were that the product must be one of
the nine, that the consumers had to have a history of skin allergies and produce proof from
a doctor, that an original receipt of purchase was required, and that the product must
contain more than two-thirds of the original amount. In addition, customers had to wait a
month for a refund and had to sign what has been called the “King Clause,” which states
that the SK-II products are not harmful to their health and are not faulty.
P&G did not publicly announce a recall of SK-II in China. On September 21, three additional
SK-II products were found to contain the banned substances. The next day, on September
22, P&G stopped all sales and operations at its Chinese SK-II sales booths. However,
Singapore’s Health Sciences Authority announced on September 23 that the products in
question did not pose safety concerns because the banned substances were present only in
trace amounts. Although this did not change the situation in China, it reinforces the theory
that there were more issues involved than just the safety of the products. It is possible that
the Chinese government used this matter to highlight its authority in political and business
situations, though to allege so would be dangerous for P&G and would risk further
sanctions against the brand.
Customers, in general, were outraged as a result of the SK-II crisis. P&G repeatedly changed
its product return policy, and as the days passed increasing numbers of consumers tried to
return the products. SK-II sales booths were overwhelmed due to the large number of
angry customers. The return centers were moved to hotel conference rooms to reduce
security issues. On September 22, one week after the crisis began, P&G stopped accepting
SK-II product returns altogether.
Trends in Opinions and Attitudes
As of the end of September 2006, P&G China was largely regarded as “arrogant” due to the
SK-II crisis. This was due to the lack of decisive action from the company. Customers who
had bought the affected products but who could not get refunds were furious. SK-II, which
originated in Japan and was produced there, caused additional tension in the Chinese
market due to historical strain between the two cultures. In addition, P&G was seen as
rebellious when it denied the state-run AQSIQ’s results and requested a retest.
Situation Analysis
As of the end of September 2006, the SK-II brand of Proctor & Gamble Co. faced a crisis
situation in the Chinese cosmetics market. Due to a recall of certain products that contained
trace amounts of banned substances, as well as a poorly handled return policy, P&G was
under fire from Chinese media, government and angry consumers. The company’s
challenge is to regain the good will and trust of the Chinese state and consumers, and to
clean up the SK-II products and rebuild the brand image.
One potential difficulty lies in persuading the Chinese market that the expensive, highquality SK-II products are safe and worth buying. A larger difficulty is to regain the trust of
the consumers, who, culturally, have a long memory of crises such as these. Additionally,
P&G will have to work with the Chinese government to get the banned products certified
for sale.
Core Problem
The core problem is the mistrust of SK-II and P&G by Chinese consumers and government,
which if not resolved will result in permanent damage to the brand images and loss of
revenue in the Chinese market.
Goal
Loyal and new Chinese customers are satisfied with SK-II products and value P&G’s
customer service; P&G maintains a positive, healthy relationship with AQSIQ and other
government organizations.
Profiles of Primary Publics
Current and Potential Consumers
1. Demographic and psychographic profile
Urban, female, white collar workers with a disposable income who are able to afford luxury
skin care products. These women represent between five percent and seven percent of the
population, or approximately 65 to 90 million customers. Other consumer bases are
nouveau riche business executives, spouses of white collar workers, and people who were
educated abroad or have travelled outside of China. They are in their forties or younger and
receive formal education that range from primary to post-graduate levels.
2. Motivating self-interests
Current consumers want to know the truth about what ingredients are in the skin care
products and they want the advertisements for the products to be accurate. They want the
process of returning a product to be simple and consistent.
3. Status of current relationship with the organization and issue
Current consumers are very upset with P&G. First, they believe that the P&G is falsely
advertising the effects of SK-II. Then, AQSIQ announced that SK-II products contained
substances that are banned in cosmetics under Chinese law. Also, when P&G allowed
customers to return the product its conditions were extremely difficult to abide by and
kept changing. Consumers are upset with how P&G interacted with them and feel the
company didn’t do enough to make up for its mistakes.
4. Third party influentials and other opinion leaders
Current consumers might start using other cosmetic lines if their trust in SK-II does not
improve. Friends and the government could also be influencing people not to purchase SKII products. Additionally, the Chinese media frame P&G as arrogant.
Key Messages
Primary
o A strong relationship between P&G, SK-II and customers is extremely important.
o We are committed to being honest and producing the best skin care products we
can.
o We’re here to make your refund process simple.
Secondary
o P&G will do everything it can to make up for past mistakes. Monthly newsletters will
keep current consumers updated, and gift certificates and extended counter time
will strengthen the relationship with consumers.
o Our products will include the best ingredients and our commercials will be accurate
concluding with a warning of natural ingredients that might enter the product.
o We’ll implement a new refund policy that will give consumers an easier and better
experience at SK-II counters. We will give gift certificates to make the experience
even better.
Target Audience: Government Officials
1. Demographic and psychographic profile
P&G’s denial of the accusations pertaining to the chromium and neodymium found in its
products caused a major issue with the Chinese government, which is highly honored and
holds most of the power in this communist society. Respect and hierarchy are major
aspects of the Chinese government and culture; it is offensive to deny or disagree with its
authority.
2. Motivating self-interests
The Chinese governmental officials work toward an equal playing field for businesses. It is
the government’s duty to make sure everyone is following the rules and working within the
same terms and regulations. The specific department - National Quality Inspection
Department of the State General Administration of Quality Supervision, Inspection and
Quarantine (AQSIQ) - is intended to make sure cosmetics, as well as other products, are
safe for everyone and do not contain substances that are harmful to the people. Whenever
a company or business fails to meet these standards, it is the AQSIQ’s duty to follow up and
make sure any issues are taken care of.
3. Status of current relationship with the organization and issue
P&G has unsuccessfully worked with the government officials from the AQSIQ due to its
unwillingness to cooperate and make changes to SK-II products. The disrespect caused by
P&G consequently created a hostile relationship between the two parties.
4. Third party influentials and other opinion leaders
Other cosmetic businesses that compete with P&G need to be aware of the situation and
make sure they do not run into similar situations. P&G can work with comparable
companies who have faced equivalent cases in order to learn and improve from its
mistakes. Along with that, medical doctors are the experts aware of the affects these
products can have on one’s skin.
The media play a large voice for this crisis, especially because the government controls
them. Readers take the stories seriously and evaluate the situation. Other countries that
sell SK-II products may or may not have similar standards as the Chinese set by the AQSIQ
and will voice their opinions on the situation that may affect P&G’s businesses there as
well.
Key Messages
Primary
o Our new SK-II product line is AQSIQ approved!
o Building a better business for a better future.
o We provide the higher quality skin care that is safe and healthy for you.
Secondary
o P&G is making it a priority to have all its SK-II products be government-approved in
order to provide safe products for its consumers. The new products will have AQSIQ
stamps to prove they meet regulations.
o Our company is working toward building better relationships with government
officials - AQSIQ - in order to fix the recent mistakes and to move forward and make
positive changes. Communication among different parties will help make sure we
are on the right track and developing in the right direction.
o P&G is making sure that all of our new products are approved by government,
health regulations and more important, relaying that message to the government
and our consumers. Through various events, promotions and marketing we are
proving to the market that our products are worth the price.
Objectives, Strategies and Tactics:
Target Audience: Current Consumers
Objective 1: To have 10 percent of consumers agree that P&G has improved communication
with consumers by March 1, 2007.
Strategy 1: Implement a program of clarification and education.
Tactic 1: Hold a news conference on November 1, 2006.
 Location: Hotel ballroom
 Attendees: Any consumers of SK-II, President Michael Beauchamp, SK-II managers,
and the media.
 Topics: Explanation of questioning the authority of the state, explanation of how
products are going to be different, an apology, and future plans explained.
Tactic 2: Monthly newsletter for one year.
 Sent to consumers of SK-II products who give their home address and want to keep
in contact with the operations of SK-II.
 Format: letter to consumers, bullet points of accomplishments of the last month,
future plans, and explanation of ingredients in all products.
Tactic 3: Survey consumers now on their opinion of P&G and give the same survey six
months later to measure satisfaction.
 First survey will be on the website the day before the news conference and stay up
for a week for people to complete.
 Second survey will be given on March 1, 2007 and on the website for one week.
o Surveys will be distributed through email from the addresses that consumers
have provided.
Evaluation: Clearing up confusion and explaining how products will be different will
continue to keep the relationship between P&G and current consumers healthy and
growing. The two surveys will measure if at least 10 percent of customers agree that P&G
has improved. The newsletter and survey will both be sent out to at least 1,000 subscribers.
The media coverage will be measured by how many times the conference is mentioned in
the news, how many minutes of airtime it receives, and how many mentions there are on
social media websites. The tone of coverage will be measured as well, whether it’s positive,
negative, or neutral.
Objective 2: To achieve 20 percent consumer satisfaction with the refund policy by January
1, 2007.
Strategy 2: Implement a new refund policy on October 1, 2006 that is clearer and easier for
consumers.
Tactic 1: Send out a press release about the new policy.
 Send out one week before the policy begins.
 Send to at least 20 media outlets, 10 local, 5 national, and 5 online.

Include that the refund policy will be implemented at all counters and that counters
will stay open past normal hours to assist more customers.
Tactic 2: For the new policy customers will bring back their SK-II bottle and they will be
given a refund or replacement.
 Return policy applies to any SK-II product.
 No receipts are required.
 For six months after the policy is implemented, the costumers who return a product
will be given a gift certificate of $50.00 for a future SK-II purchase.
 After three months of implementing the new policy, survey the consumers who have
returned products. When customers return a product they will be asked to go to a
website and complete a survey on how they rate the new policy.
Tactic 3: When consumers purchase something with the $50.00 gift certificate, give a
follow-up survey at the counter with 2 simple questions.
 Did the $50.00 gift certificate increase your satisfaction with SK-II?
 Are you currently satisfied with the way SK-II is performing?
Evaluation: Customers will be satisfied with the new refund policy and consumer’s
relationship with P&G will start to rebuild. The new policy will make it much easier on
customers to return products, especially with more counter time and such an simple policy.
The follow-up survey after the consumer’s future purchase with the $50.00 gift certificate
will question consumer’s opinion of SK-II and will help measure improvement.
Objective 3: For 40 percent of current customers to purchase SK-II products by December
1, 2006.
Strategy 3: Implement a six month long program to prove P&G is working hard to improve
the company and communicating with the current consumers to make sure they continue
to purchase SK-II products.
Tactic 1: One day a month for six months have a free trial day at all SK-II counters for all
products.
 During this day hand out free mini samples of popular products.
 Hire more employees for this one day to assist.
 Have a video playing on a loop with factory and manufacturing information on SK-II
products.
Tactic 2: Get addresses of current consumers and send them a card that is personally
signed from President Beauchamp.
 Letter will include changes P&G has made to their company and future plans.
Tactic 3: On the P&G website make a “bulletin-board” feature where consumers can post
anonymously about SK-II products, a problem they have, or questions.
 Response to any comment will take no longer than 48 hours.
 After three months insert a poll on the website with two questions.
o Has P&G improved?
o
Will you continue to buy SK-II products?
Evaluation: This will be measured by asking customers at the checkout counter if this is
their first purchase or not. That way P&G will know if their current consumers are
continuing to buy SK-II products. A letter and a free trial day will prove to current
consumers P&G is doing everything they can to keep them as customers.P&G will monitor
external bulletin boards, and with a comment section on the website consumers will be
able to get their questions answered right away, and if there is a problem P&G will be able
to fix it sooner. 1,000 consumers will be emailed with a poll. If at least 30 percent of people
agree that P&G has improved then P&G will see the success.
Target Audience: Potential Customers
Objective 1: Create trust in SK-II products and the corporation.
Strategy: Administer tactics to increase SK-II and P&G honesty and transparency.
Tactic 1: Implement a monthly newsletter for a year and half.
 Hand out to everyone, not just customers, at SK-II counters.
 Send more detailed newsletters (than at counters) via email to potential customers
who stop by counter for information.
 Include free product promotions within newsletter for interested customers who
sign up for email newsletters.
Tactic 2: Testimonials in newspaper from SK-II customers once every two months.
 In the monthly newsletter (tactic 1), explain how SK-II wants to hear “your”
feedback
 Format: SK-II audiences send in their stories about resolved disappointments,
loyalty to brand, or anything they wish to share. All op-eds considered.
Evaluation: By giving constant information on SK-II products and the inner-workings of the
company, P&G wishes to create strong relationships with a wide range of audiences and
increase number of customers by 35%. We will measure this increase by a survey at the
end of four months in the newsletter to see the newsletter’s impact on the customers. The
op-eds give current customers a chance to explain their experiences, no matter negative or
positive, with SK-II and why they are still with the company through all of the troubles. By
doing this, potential customers realize the transparency of the company and understand
the loyalty of current customers.
Objective 2: Increase sales by 40% by February 1, 2007.
Strategy: Engage in promotions and events to create positivity of SK-II products.
Tactic 1: Promotional give-aways
 During the Chinese New Year and holidays in December, create excitement about
brand by giving out promotional goods and services.
 Buy one, get one free for SK-II products when you are a new customer.
Tactic 2: Three ballroom formal dinner events over one year.
 Held in convention center ballroom




Anybody on distribution list can attend, email invitation and rsvp sent via email
newsletters
Formal, three-course dinner with executive staff of SK-II at cost of $20 per person.
The profits from the dinner will be a fundraiser for Chinese NGO.
Partner with Chinese fashion designers, who will have clothing to rent (profits for
Chinese NGO)
Format of Event:
o Introductions of P&G and staffing of local SK-II counters
o Presentations of upcoming events and new products
o Overall goal: create excitement about forthcoming advancements within the
company and an inside look into the future of SK-II and P&G
Tactic 3: Customer rewards program
 When a customer spends 200 US dollars, the customer receives a free package of
newly released SK-II products
 Tiered- system of rewards: the more you spend to SK-II, the more you receive.
 Simple as a discount to customer birthday rewards to new customer promotions
Evaluation: Incising a customer is more than gaining revenue; it gains loyalty and strong
relationships. By showing commitment to the customers and understanding their needs,
SK-II may find new audiences and create a new base never thought of. The main tool to
evaluate this tactic will also be a survey. These customers will already receive the
newsletter so it will be distributed that way. Personal contact is key in finding new
customers, so positive interaction at the SK-II counters is crucial to the success of this
objective. Fun, energetic and appealing events create excitement around the brand; thus,
leading to an unwavering customer base.
Objective 3: Expand knowledge and create excitement about brand by 40 percent by March
1, 2007
Strategy: Encourage brand excitement and provide inside information to customers by
opening communication from company to customers.
Tactic 1: SK-II promotional event
 This is a fun, day-long event for all ages, even kid-friendly, to come and see what is
new for SK-II April 13, 2007
 It will be held in a hotel ballroom in downtown Beijing, China.
 Hands-on activities, testers, facials for cost and new products available.
 Informational booths about ingredients in products and videos on how it is made.
o Various other fashion designers, cosmetic booths, home decor and food will
also be available.
 All of the events will be put on by SK-II staff and executive board to show inside of
what the company does.
Tactic 2: Launch Bulletin Board online
 This bulletin board is created by SK-II and creates conversation weekly with a post
about the inside of the company.
 Some topics:
New and upcoming for SK-II (products)
New management positions
Code of Ethics clearly stated
Anyone can view the bulletin board, but only those with registered emails can post.
o
o
o

Tactic 3: Product launch event February 16, 2007
 This event will be based off of the new cream customers have been discussing on
op-eds and bulletin boards.
o Completely based of customer feedback and launch of new products
 All people may come to this event and first 120 will get a free sample of the cream.
 Brochures and other informational packets will be distributed to all
 Clients, vendors, shareholders, and employees welcome
 Format of the Event
o This is not an extremely formal event
o Speakers from P&G will introduce new product and explain changes within
the SK-II products
o Celebrity spokespeople will give testimonials
Evaluation: Potential customers are drawn to events that cause excitement and market the
brand in a positive way. By showing involvement in the community and making sure all
audiences are noticed, SK-II plans to increase knowledge and excitement by 40 percent. A
survey will be handed out at the door that includes a gift card give-away for completing and
returning. This measurement will give insight to the changes in P&G and SK-II products.
Giving customers an exclusive look into SK-II and lets the audiences know that we wish to
be transparent and understand their feedback is greatly appreciated.
Target Audience: Government Officials
Objective 1: To have the AQSIQ and other government departments approve our new
products and have a positive and supportive relationship by the December 15, 2007.
Strategy 1: Host a large banquet for the AQSIQ government executives, members of the
Ministry of Health, as well as the Chinese, administrative P&G employees to present the
new SK-II product line on November 16, 2006 at the Hilton hotel ballroom in Guangzhou.
Tactic 1: Present each attendee with a package of samples from the new SK-II product line these will meet all the standards set by AQSIQ.
Tactic 2: Prepare a slide show presentation on what P&G has done since the recalls on its
products. Explain what the new products are with details describing everything they
contain. This is to be clear that they are following all of China’s regulations.
Tactic 3: Have President Michael Beauchamp express a formal apology to the entire
audience. Address the following:
 Admitting to their mistakes.
 What they should have done instead.
 Why they are apologizing.
 What they are going to do for the future.
 Thank everyone for his or her cooperation and patience.
Tactic 4: Mr. Beauchamp and other P&G executives will individually bow formally to all the
attendees briefly thanking them for their presence and apologizing for the inconvenience
their company has created.
Evaluation: We will review the number of attendees at the banquet understanding that if all
invited show up then we were successful; however if there is a small turn out then we will
need to reevaluate our plan. At the end of the event, the response from the attendees will
give us an idea of how they feel about our restructured business and products.
Objective 2: To have all P&G SK-II products meet the AQSIQ requirements and standards
for China by November 15, 2006.
Strategy 2: Communicate with the government to make sure P&G has an updated list of the
prerequisites for product ingredients. In addition, turn in all necessary forms, reports, etc.
so the government departments know everything going on with our products.
Tactic 1: Plan quarterly meetings with the head of the AQSIQ department to make sure that
SK-II products are continually following all the guidelines. Meetings will cover:
 Conversation about current SK-II products about if they have made any current
changes and if so, do they meet requirements.
 Discussion on potential new products P&G wants to come out with.
 Review, together, the AQSIQ standards and requirements.
Tactic 2: Add “AQSIQ Approved” stamps on all SK-II products. This will assure consumers
that their products are abiding by all governmental criteria.
Tactic 3: Send product updates through quarterly newsletters sent to the AQSIQ
department and distributors. Included in the newsletters will be current news on P&G’s
business in China, as well as other locations, philanthropic events and success, etc.
Evaluation: All SK-II products will be either approved or disapproved by the AQSIQ
department by November 15, 2006.
Objective 3: To have a clear message understood by the Chinese government on P&G’s
progress and how it is making changes to better the company by November 15, 2006, that
will continue for the next year.
Strategy 3: Provide several public meetings in the beginning of November and plan events
in order to show the advancements P&G has made over the past year.
Tactic 1: Write personalized letters to all the specific government members involved in this
case informing them why P&G is penitent and explaining its intention and what it is doing
to plan for a better future. Included with the letter will be a signed document, from all P&G
executives, promising to take responsibility and action any time an instance like this occurs
again.
Tactic 2: Hold a press conference on November, 5, 2006 at the Guangzhou city hall
conference room and have President Beauchamp display a public announcement to the all
the parties affected by the issues involving SK-II products.
 Admitting to their mistakes.
 What they should have done instead.
 Details as to what actually happened.
 What they are going to do for the future.


Outline the new, permanent return policy.
Thank everyone for his or her cooperation and patience.
Tactic 3: Host an event on November 25, 2006 at all SK-II sales counters to promote their
new SK-II product line - similar to a re-opening - and invite government officials to attend
the events that are at our larger distributor locations. Free samples of the new products, as
well as food and beverages provided.
Evaluation: Communicate with government officials, at the end of the year - December 30,
2006 and continue on for the following year, on their opinions on how they believe P&G
has improved and what they can continue to focus on and enhance. Go straight to the
officials in charge to make sure there has been progress made.
Calendar
Public: Current Consumers
Sept.
2006
Strategy: Implement
education/clarification strategy
Tactic: News conference (Nov. 1)
Tactic: Monthly newsletter to
consumers (for one year)
Tactic: Survey to consumers
(entrance and exit)
Strategy: Improve refund policy
Tactic: New policy implemented
(initial news release)
Tactic: Increased availability in
stores
Tactic: Gift certificates to
customers
Tactic: Survey consumers
Strategy: Brand improvement,
apology
Tactic: Free trial day at counters
Oct.
2006
Nov.
2006
Dec.
2006
Jan.
2007
Feb.
2007
March
2007 +
(once monthly)
Tactic: Note from President to
customers
Tactic: Bulletin board on company
website (implement immediately;
monitor every day)
Public: Potential Consumers
Sept.
2006
Strategy: Honesty program
Tactic: Monthly newsletter
(through March 2008)
Tactic: Op-eds every two
months
Strategy: Engage in
conversations
Tactic: Promotional giveaways
(Dec.)
Tactic: Formal banquets
Tactic: Customer rewards
program
Strategy: Brand management
strategy
Tactic: Promotional event (April
2007)
Tactic: Bulletin board
(implement immediately,
monitor daily)
Tactic: Product launch event
(Feb.16, 2007) (Includes
Oct.
2006
Nov.
2006
Dec.
2006
Jan.
2007
Feb.
2007
March
2007 +
planning, collateral material
production)
Public: Government Officials
Sept.
2006
Strategy: Product launch banquet
(Nov. 16)
Tactic: Samples of product line for
attendees
Tactic: Informative presentation
Tactic: Formal apology by President
at banquet
Tactic: Personal greetings by
President
Strategy: Ensure products meet
gov’t standards
Tactic: Quarterly meetings with
AQSIQ
Tactic: Add approval sticker to
products (Begin immediately)
Tactic: Product updates via quarterly
newsletter
Strategy: Public apologies/events
Tactic: Personal letters to gov’t
officials
Tactic: Press conference, apology
(Nov. 5)
Tactic: Event at SK-II stands (Nov.
25)
Oct.
2006
Nov.
2006
Dec.
2006
Jan.
2007
Dec.
2007
Budget
Current Customers
Objective
Improve the relationship between current
consumers by 10 percent by March 1,
2007.
Tactic
Cost
Hold a news conference at the hotel
ballroom.
$875.00
Monthly newsletter for one year sent
to consumers.
Survey consumers now on their
opinion of P&G and give the same
survey six months later to measure
satisfaction through our website.
Total:
Have 20 percent of current consumers be
satisfied with the refund policy by January
1, 2007.
Send out a press release about the new
policy.
For the new policy customers will
bring back their SK-II bottle and they
will automatically be given a
replacement.
$1,500
$0.00
$2,375.00
$350.00
$50,000.00
There will be extra counter time at SKII. The counter will stay open a little
later than others or open earlier.
$9,000.00
After a return, the customers will be
given a gift certificate of $50.00 for a
future SK-II purchase.
$10,000.00
After three months of implementing
the new policy, survey the consumers
who have returned products.
$0.00
Total:
$69,350.00
Have 30 percent of current customers
agree that P&G has improved and made
up for its mistakes and that they will
continue to purchase SK-II products by
December 1, 2006.
One day a month for six months have a
free trial day at all SK-II counters for all
products.
· During this day hand out free mini
samples of popular products.
· Hire more employees for this one-day
to assist.
Get addresses of current consumers
and send them a card that is personally
signed from President Beauchamp.
On the P&G website make a “bulletinboard” feature where consumers can
post anonymously about SK-II
products, a problem they have, or
questions.
Total:
Total Cost for Objectives:
$2,000.00
$500.00
$0.00
$2,500.00
$74,225.00
Future Customers
Objective
Create trust in SK-II products
and corporation by March 1,
2007
Tactic
Cost
Monthly newsletter for a year and half
Hand out at SK-II counters publicly
· Sent via email to potential customers who stop
by counter for information
· Include free product promotions within
newsletter for interested customers who sign up
for email newsletters
$3,000.00
Op-eds in newspaper from SK-II customers once
every two months.
$100.00
Total:
$3,100.00
Increase customers by 60% by
February 1, 2007.
Promotional giveaways during launch of new
products in December
· During the new year, create excitement about
brand by giving out promotional goods and
services.
· Buy one, get one free for SK-II products when
you are a new customer
Ballroom formal dinner events
· Held in convention center ballroom
· Anybody can attend, email initiation and RSVP
sent via email newsletters
· Formal, 3 course dinner with executive staff of
SK-II
$6,700.00
Customer rewards program
· When a customer spends up to $200, the
customer receives a free package full of newly
released products
$800.00
Total:
Expand knowledge and
excitement about brand by 40%
by March 1, 2007
$5,000.00
$19,500.00
SK-II promotional event
· It will be held in a hotel ballroom
· Hands on activities, testers, facials for cost and
new products available.
· Informational booths about ingredients in
products and videos on how it is made.
$5,000.00
Bulletin Board online
· This bulletin board is created by SK-II and
creates conversation weekly with a post about
the inside of the company.
$0.00
Product launch event
· All people may come to this event and first 120
will get a free sample of the cream
· Brochures and other informational packets will
be distributed to all
· Clients, vendors, shareholders, and employees
welcome
Total:
Total Cost for Objectives:
$800.00
$5,800.00
$21,400.00
Government Officials
Objective
Improve relationship with
government officials by the end of
the 2006-year.
Tactic
Cost
Present each attendee with a package of
samples of the new SK-II product line.
$500.00
Prepare a slide show presentation on what
P&G has done since the recalls on its
products.
$0.00
President Beauchamp will express a formal
apology to audience.
$0.00
Overall costs for catering, renting the room,
chairs, tables, tablecloths and flowers.
$9,000.00
Mr. Beauchamp and other P&G executives
will individually bow to all the attendees
briefly thanking them for their presence
and apologizing for the inconvenience their
company has created.
$0.00
Total:
$9,500.00
Have all P&G SK-II products meet
the AQSIQ requirements and
standards for China by November
15, 2006.
Plan quarterly meetings with the head of
the AQSIQ department.
$50.00
Add “AQSIQ Approved” stamps on all SK-II
products.
$15,000.00
Send product updates through quarterly
newsletters sent to the AQSIQ department
and distributors.
$700.00
Total:
Have a clear message understood
by the Chinese government on
P&G’s progress and how it is
making changes to better the
company by November 15, 2006
that will continue for the next year.
$15,750.00
Write personalized letters to all the specific
government members involved in this case.
Included with the letter will be a signed
document, from all P&G executives,
promising to take responsibility and action
any time an instance like this occurs again.
$1,300.00
Hold a press conference at the Hilton hotel
ballroom.
$900.00
Host an event at all P&G stands to promote
their new SK-II product line.
Free samples of the new products, as well
as food and beverages provided.
$18,000.00
Total:
$20,200.00
Total Cost for Objectives:
$45, 450.00
GRAND Total of all Objectives:
$141,075.00