background information
SK-Ⅱ is a high-end skin care product series owned by Procter & Gamble. SK-II was originally a small regional brand in Japan, and entered the mainland market on 1999 after being acquired by Procter & Gamble. Pitera patented by SK-II is extracted from natural yeast after fermentation based on the theory of microbiology (biology, cytology and bacteriology). Contains free amino acids, minerals, organic acids, inorganic acids and other essential natural ingredients for healthy skin, and has excellent moisturizing and special moisturizing functions.
Japan's Procter & Gamble Company broke the scandal after the SK-II illegal door incident in 2005. On September 6, 2006, the General Administration of Quality Supervision, Inspection and Quarantine announced: "The banned substances chromium and neodymium were detected in SK-II brand cosmetics from Japan." The inspection and quarantine department found that the neodymium content of a batch of SK-II key protein muscle powder cake was as high as 4.5 mg/kg.
After the incident, AQSIQ attached great importance to it. SK-II products were quickly removed from the shelves and sealed, and P&G promised to return them. So far, the SK-II incident has attracted the attention of many media at home and abroad.
10 10/23, the AQSIQ and the Ministry of Health issued a joint statement, saying that cosmetics containing trace amounts of chromium and neodymium in SK-II cosmetics are brought in, and normal use of cosmetics containing trace amounts of chromium and neodymium is less harmful to consumers' health. Based on the clarification of the safety of SK-II products in this statement, P&G decided to resume the sales of SK-II products in China within a few weeks.
Second, the SWOT analysis process
(a) Analysis of environmental factors:
1.s (Advantage): SK-II, a high-end skin care product series owned by P&G, is backed by P&G's strong financial and material resources. Although the development of SK-II products is now facing a huge test, P&G's market influence and effective advertising demands, including P&G's positive response to this incident, have provided an important guarantee for SK-II to overcome difficulties and tide over the bottleneck stage. This strongly proves that the sales of other P&G products have not been affected. Let's roughly summarize:
Reputation and external relations: SK-II has entered the China market for seven years and accumulated a good reputation. Before this incident, there were no related complaints. Even in this incident, its advertising spokesperson, China's famous movie star Carina Lau, received a complaint and said nothing. The trial also said it was too difficult. This is inseparable from its strong social background and good foreign relations.
Years of technical experience accumulation: P&G has strong productivity and high requirements for the scientific and technological content of its products. This time, P&G reacted quickly and was able to adjust production quickly. With the deepening of the investigation, the situation is gradually developing in favor of P&G.
Compared with other cosmetics brands in Chinese mainland, SK-II still has great advantages in technical funds and operating mechanism. There is an old saying in China that a thin camel is bigger than a horse.
2.w (disadvantage): In this incident, although P&G responded, it can still feel that it is a giant that is slower than crisis response. Its crisis management system is far from up to standard. P&G has made a series of fatal mistakes in the nature of events, reaction speed, coping strategies and organizational guarantee of crisis management.
Qualitative analysis of the incident: after the incident, P&G immediately looked for a mediator in accordance with international practice, but failed to quickly identify the cause of the incident, which quickly put P&G into a passive situation.
Media coping strategies: SK-II crisis shows that P&G is very short of media relations support. Procter & Gamble is a big buyer in China media market, although there is no direct correlation between media advertisements and media content. However, P&G is fully qualified to communicate with many media, and strive to report the incident as little as possible or reflect the company's views in the report before the relevant departments reach a conclusion. However, there is no trace of P&G control in the report of the storm. Most of the main topics in the media are set by public relations opponents. P&G only responds, which is very passive and unfavorable.
Trust crisis: after the incident, P&G made an unconditional return promise, but consumers in many areas reported that the return channels were not smooth, which was not conducive to the false advertising problems involved in their own incidents. Many consumers have doubts about the integrity of Procter & Gamble. This has greatly damaged the image of a large and well-known company. Procter & Gamble made it clear that it would not bear damages, and many consumers protested against Procter & Gamble's arrogance and prejudice.
3.o (Opportunity): Although SK- II suffered a fatal blow, Procter & Gamble was rarely mentioned in the publicity of SK-II, and some consumers did not associate SK-II with Procter & Gamble. The main opportunities are as follows:
Technology: SK-II is strongly supported by Procter & Gamble. SK-II didn't hurt P&G's foundation in China, so it can quickly adjust its strategy.
Government's response: China government has adopted a certain protective attitude. China government's final statement helped P&G recover to a great extent, which provided official evidence for P&G's self-defense.
Industry crisis: SK-II incident mentioned the safety problem of the cosmetics industry, and said that a small amount of harmful substances was a normal phenomenon in the industry, which triggered the crisis of the cosmetics industry and largely diverted the public's attention. Other competitors cannot be robbed by fire.
Fame: P&G pointed out some problems in quality inspection. Procter & Gamble has aroused widespread concern. To some extent, this is not bad for raising people's awareness. P&G answered many questions from consumers and resold them a few days ago. China is still its largest market, and the share of other products is still high.
4.t (threat): SK-II first attracted people's attention in March this year. Its quality problem is consistent with the theme of consumer rights protection in March. Be besieged and hyped by the media. When the incident intensified, P&G also moved out the support of celebrity spokespersons Sophia Kao and Carina Lau. The unity of stars almost backfired, and the voice of "stars lack credibility" appeared in many media. Procter & Gamble's attitude and statement on this matter was not only taken as evidence of counterattack by Tang Wei, but also made people question the crisis management system of Procter & Gamble Group, and its mainland competitors even seized the handle. Shiseido, Unilever and other companies are eyeing up. The sales of P&G SK-II have suffered a devastating blow, including the products that have recently resumed sales.
(B) the construction of SWOT matrix:
Through the above analysis, the following conclusions are drawn:
1. The biggest impact of this incident on P&G is the discussion on honesty. Most members of the public said that P&G's arrogant attitude made them unhappy.
2. No matter how P&G claims that there is something wrong with the quality inspection, the motive of the incident is not pure, but it is an indisputable fact that cosmetics contain some harmful substances. This also prompted Procter & Gamble to improve its production process.
3. In the process of improvement, attention should be paid to the use of media. Make full use of the media.
Through this incident, P&G should sum up the problems existing in advertisements. Problems involving numbers are likely to lead to arguments about false advertisements. Celebrity endorsement should pay attention to the credibility of the star.
(3) Suggestions on market operation:
1. Admit your mistake first, but promise that it will not affect P&G's sales.
2. Improve the crisis response system. Positive response. Make corresponding compensation for the damage to the interests of consumers. Clear the return channel. Never appear to affect your reputation.
3. Still adhere to the original market positioning and take the high-end route. Don't belittle yourself by making mistakes.
4. Advertising strategy, delete the celebrity endorsement strategy. Establish an honest image and convince the public that P&G still puts consumers first.
5. In the use of media, we can widely use the media to strengthen publicity in TV online magazines. Highlight the improvement advantages of SK-II.
6. The most fundamental thing is to improve the production process and reduce the unqualified components in the products. Improve technical control.