How well has P&G implemented Jagers major strategic change?
Jagers strategic change had the following coponents:
- Change in Culture: From a slow and conformist culture to a more speed and innovation based - Change in Processes: Massive changes in incentive compensation and in the areas of budgeting, everything focused on speed - Change in Structure: From a matrix structure to a lesser rigid structure The main area of concern was the slower growth rate, and the problem identified was standard products and processes in Japan as with other subsidiaries. By focusing on these changes, we can say P&G implemented Jagers strategic change well as is evident with the success of SK-II Effectively, P&G successfully becoming less global and more local, focusing on local consumer behavior, whereas leveraging its international marketing, and product experience.
Implementation in China and Europe
The reason for the success in the Japanese market was domestication. Hence, what worked in Japan is not sure to work in other markets. In China, for example, P&G first needed to teach their consumer base about how to use the product, i.e. the category had to be developed first, and then the question of counterfeiting had to be addressed simultaneously. Similarly, in Europe, probably some other features of the product needed to be highlighted, such as fragrance. Going with the ditto same formula it went in Japan was not a good idea, but some market research into the consumer behavior, and domesticating the product, and other Ps of the marketing mix accordingly, will result in a success