SK-II China, Managing Public Relations

By John Roberts, Jennie Tung
2007 | Case No. IB81
SK-II was Procter & Gamble’s (P&G) only high-end skincare brand in China and sales accounted for an estimated 7 percent of SK-II global revenue in 2005. China was also P&G’s fastest-growing market for skincare products and among the top markets in value worldwide. For many years, P&G China enjoyed high revenue and margin growth from SK-II and it was clear that this product could be a star. However, two consecutive public relations (PR) debacles in China in 2005-2006 resulted in a dip in SK-II’s performance. As of 2007, P&G China was still trying to rebuild SK-II’s prestigious brand image and to regain consumers’ trust. This case examines the details of these two PR incidents and how P&G SK-II had handled these two events.
This material is available for download by current Stanford GSB students, faculty, and staff, as well as Stanford University alumni. For inquires, contact the Case Writing Officeopen in new window. Download