Skii - Crisis Management

2800 Words12 Pages
Introduction In our review of the case, we will first explore the impact of this incident on P&G’s brand image in China and globally. Then, we will look at a firm’s obligations in a crisis situation, and the issues that a firm needs to consider when managing a crisis situation. Next, we will give our recommendations on what actions P&G should have taken when the incident occurred and evaluate if P&G should withdraw SK-II from other markets such as Hong Kong, Taiwan and Japan. Finally, we will end off with a short conclusion about the case. Impact of Incident on P&G’s Brand Image SK-II’s Banned Substances Crisis has definitely negatively impacted the brand image of SK-II as stakeholders lost trust in the quality and the reliability of the products. SK-II was ranked the number two premium skin care brand in China in 2006, indicating that it was highly regarded by the market in China. It is a successful brand under P&G, with its product gaining acceptance and popularity not just in China, but globally. Such safety concerns arising from a prestigious brand like SK-II would be difficult for the community to accept, especially when its product had been identified as a highly-priced specialty product. As a result, the crisis would indirectly cause people to doubt and question the quality of other products under other P&G’s key brands as well, adversely affecting the brand image of P&G as a whole. The crisis also reflected P&G’s incompetent management of critical situations, and their poor assessment of product issues such as safety requirements. To be more specific, it was also largely their management and attitude displayed during the crisis besides the safety issues, which will potentially change the way people perceive P&G to be. In China, it would take a long time for customers to regain their confidence in P&G’s products due

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