Marketing of Neutrogena and Sk Ii in the Hong Kong Market

Culture: SK-II
Brand culture comprises competencies, behaviors, organization, and social fabric elements. The organizational culture directly reflects the brand’s values, which in turn need to continually reinforce organizational culture. Customers who connect with the culture elements of the brand will demonstrate greater loyalty, and the brand will respond by reflecting the norms, behaviors and tenets of the social fabric. In the Hong Kong market, SK-II has developed a culture based on several core feminist principles.
The first is the principle of “changing destiny,” which became a cornerstone of the brand’s advertising campaigns. The “Change Destiny” (????) campaign focused on appealing to women who are independent, creative, and career-driven, rather than following a traditional path of marriage and self-abnegation (Koetse, 2016). Although criticized for being classist, the campaign helped to celebrate female customers who face serious social stigma if they are not married by the age of 25 (Koetse, 2016). In fact, the culture of SK-II draws heavily on the principle of mature women who may or may not be married but who are forward-thinking and unconventional.
The second method by which SK-II has established its culture in the Hong Kong market is through the development of the Skin DNA Concierge position in the Hong Kong market. The Skin DNA Concierge concept aligns with the “Change Destiny” principle because it refers to changing the perceived destiny of DNA in determining skin features or the aging process.
· Competencies: The Skin DNA Concierge position reflects SK-II’s commitment to core competencies, the formal criteria that the organization seeks. Those competencies include understanding of skin care, and how to identify the customer’s needs. At the level of management, SK-II expects employees to embody the core values of the organization in terms of the “change destiny” attitude, so that the brand permeates company culture.
· Behaviors: Employee behaviors go beyond the technical skills and training required for mastering core competencies. The desired behaviour sought in individual employees, from entry to senior executive, will reflect the visionary, forward-thinking, empowering attitude embodied by the message of the brand.
· Structure: Likewise, the organizational structure of SK-II aligns with the principles of the brand and the lifestyle of its target market. Although typical hierarchies and job titles remain integral to the harmonious operations of SK-II, there is significant leeway for creative personnel to participate in the evolution of the brand.
· Social Fabric: Finally, social fabric describes the unwritten, informal communications that permeate the organization and which creates the actual company culture or social atmosphere. At SK-II, the brand needs to remain true to its values supporting independent and progressive women who are self-assured, empowered, and influential.
Culture: Neutrogena
Compared with SK-II, Neutrogena has a weak cultural identity. Although their latest “See What’s Possible” global campaign has penetrated somewhat into the Hong Kong market, Neutrogena’s culture is less established or cohesive versus SK-II (Neff, 2016). The newest campaign is an attempt to catch up with other cosmetics brands by focusing less on the product and more on the social fabric dimensions linked to themes like female empowerment and personal inspiration. Because Neutrogena does not use brand ambassadors, the culture is also not communicated to consumers directly as it is with SK-II and their Skin DNA Concierges. Overall, the Neutrogena brand does not convey or capitalize on culture as successfully as SK-II.
· Competencies refer to the formal criteria that the organization seeks in every individual. Less discerning than SK-II, Neutrogena nevertheless understands that its management team needs to be visionary in order to be competitive. Therefore, competencies include strong communications and public relations skills, mastery of social media, and the ability to change the brand through effective positioning while entering new markets.
· Behavior: Within the organization, behaviour refers to the desired behavior among employees, beyond the technical skills and training. From entry to senior executive, all Neutrogena employees are expected to behave ethically and in accordance with company values reflecting a concern for the environment and a healthy lifestyle.
· Structure: Similarly, the organization’s structure reflects its ethics and dedication to promoting from within, as well as retaining a diverse workforce that participates in group meetings. Communications are multilateral, and employees are empowered and focused on collaboration.
· Social Fabric: Finally, the social fabric of Neutrogena refers to the informal communications and normative structure. The company is American in its social fabric, egalitarian, and individualistic. However, group behavior is also cohesive and adaptable, welcoming of strategies that engender trust and harmony.
Experience: SK-II
Brand experiences comprise the customer, solutions, marketing communications, and environment. Positioning itself as a luxury brand helps SK-II retain its target market focus in the Hong Kong market. SK-II, unlike Neutrogena, is focused on a white collar market and is positioned in department stores and higher end shopping experiences. Having the Skin DNA Concierge also adds to the customer experience, by creating an almost futuristic or sci-fi fantasy about the ways customers can control their own destiny and even their own DNA by making conscious consumer decisions. The themes of empowerment are also embedded into the marketing communications, such as using the stories of successful women in their advertising campaigns. SK-II also has a strong online presence that extends the customer experience, such as the “membership portal” called My Crystal Club and actual SK-II sponsored events such as on Mother’s Day (Koh, 2016).
Experience: Neutrogena
Neutrogena is not a luxury product and aims to a different target demographic. The products are positioned and priced affordably, appealing to a broader market versus SK-II. Unlike SK-II, there is little to no prestige value in the brand, which until recently utilized marketing communications specifically to promote specific products and not to highlight identity or philosophical issues. Neutrogena’s experience domain encompasses themes like being natural, clean, and healthy. The primary solutions that Neutrogena’s branding focuses on include providing consumers with easily accessible and affordable products that meet their primary needs to feel good about their lifestyle and commitment to ethical principles. Overall, SK-II is more successful at wielding the power of experience elements in their branding versus Neutrogena.


References

Koetse, M. (2016). Behind SK-II’s China’s “Change Destiny” Campaign. What’s On Weibo. Retrieved online: http://www.whatsonweibo.com/behind-sk-ii-change-destiny-campaign/
Koh, M. (2016). How SK-II became Asia’s premier beauty brand via word-of-mouth. Retrieved online: https://www.referralcandy.com/blog/skii-marketing-strategy/
Neff, J. 92016). Neutrogena enters female empowerment genre with new global campaign. Advertising Age. Retrieved online: http://adage.com/article/cmo-strategy/neutrogena-joins-female-empowerment-trend-global-effort/302802/
“P&G’s SK-II unveils a new brand philosophy,” (2015). Marketing. Retrieved online: http://www.marketing-interactive.com/pgs-sk-ii-unveils-new-brand-philosophy/