SK-II Crisis Management

by Ashley Hill, Audree Nethercott, Elise Cullen, and Marina Baldry of HNCB Public Relations

June 2013

TABLE OF CONTENTS
Introduction Overview ------------------------------------------------------------------------3 External Environment -------------------------------------------------------3 Issue ----------------------------------------------------------------------------- 4 Situation Analysis ----------------------------------------------------------------------- 5 SWOT Anaylsis ------------------------------------------------------------------------- 6 Core Statement or Opportunity -------------------------------------------------------- 6 Goals -------------------------------------------------------------------------------------7 Public Relations Objectives -------------------------------------------------------------7 Impact Objectives ------------------------------------------------------------7 Output Objectives ------------------------------------------------------------7 Key Publics -----------------------------------------------------------------------------8 Key Intervening Publics ---------------------------------------------------------------11 Strategy ---------------------------------------------------------------------------------16 Tactics ----------------------------------------------------------------------------------17 Interpersonal Communication Tactics ---------------------------------17 Organizational Media Tactics --------------------------------------------18 News Media -------------------------------------------------------------------18 Promotional Media ----------------------------------------------------------18 Evaluation ------------------------------------------------------------------------------20 Appendix -------------------------------------------------------------------------------22 1-9 (Budget 10 -17( Gantt Chart 18 (Communications Confirmation Table) 19 (References)

INTRODUCTION
Overview Procter & Gamble (P&G) entered the mainland Chinese market in 1988 as a Fortune 500 American Multinational Corporation that produced a range of consumer goods such as cosmetic, health, pet and baby care products. Its brand includes CoverGirl, Max Factor and Olay, which combine to produce popular products such as Pantene, Head & Shoulders, CoverGirl makeup, and Pringles, which holds approximately one-fifth of the cosmetics and toiletries market in China. In 1991, P&G acquired the cosmetic brand Max Factor, a former Japanese brand that was first launched in 1980 with a developed, high-priced specialty skin care product called SK-II. By 1999, P&G was distributing SK-II in China initially targeting women traveling to and from Hong Kong, Taiwan, South Korea, and Japan. In 2005, the SK-II brand suffered from an embarrassing lawsuit. A consumer complained of an allergic reaction brought on by the SK-II products. Additionally, the consumer said she purchased the product solely because of a well-known celebrity endorser, who claimed the SK-II reduced wrinkles. Because the advertisement failed to mention the product could reduce wrinkles, P&G was sued for false advertising, although the case was ultimately dismissed. P&G was issued a fine and an embarrassing blow to its brand reputation in China. By 2006 SK-II had grown to have 97 SK-II sales counters all across China. It was used primarily by women to smooth and whiten their skin and involves a 6-8 multi-step regimen. External Environment China has the largest population in the world and one of the fastest growing economies. It has approximately 1.3 billion Chinese citizens, which amount to 560 million consumers. In 1976, after the Maoist period ended, cosmetics became more accepted. The cosmetic industry grew 10.2 percent between 1997 and 2005, when national sales of cosmetics in China reached a US $8.6 billion. By 2007, P&G sales amounted to 18 percent of China!s cosmetics and toiletries market. In China, the government is the highest authority and the Communist Party of China strictly controlled Chinese media, state and military. It holds the majority of the power, therefore does not get challenged by citizens and businesses often, infact it is largely not encouraged. In addition, the relationship between China and Japan is strained due to historical grievances, which has contributed to the mistrust the Chinese government has

with importing Japanese products. Also, leading up to 2006 there was a reduction of Chinese exports to Japan adding even more tension to the situation.1 Issue Sept. 14, 2006, P&G faced a crisis when a state-run agency, the National Quality Inspection Department of the State General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), released test results of SK-II products. The agency that had not originally tested for banned chemicals when it certified SK-II in 1998 announced that nine SK-II skin care products contained chromium and neodymium, chemical elements present in the earth!s crust that exist in some cosmetics, and which may cause skin allergies that can result in rash if it is in larger concentrations. If ingested or inhaled chromium and neodymium have been known to cause upset stomachs and ulcers, respiratory problems, weakened immune systems, kidney and liver damage, alteration of genetic material, lung cancer, and even death. These two chemicals are banned in Chinese products.2 Its Whitening Source Pan-Cake product contained 5.20 and 4.20 mg/kg of chromium and neodymium and the other eight products contained between .40 and .02 mg/kg of neodymium. These levels, although are low are not technically high enough to harm the skin are against Chinese regulations, which state that according to the Hygienic Standard for Cosmetics of the National Standard of People!s Republic of China, and Cosmetic Directive of European Commission, any use of chromium and neodymium as ingredients in cosmetic products is not allowed.3 P&G responded to the AQSIQ!s announcement by denying that SK-II was harmful to users. Stating that the AQSIQ!s findings were incorrect and that the levels of chromium and neodymium in the products were not high enough to cause health worries, however, the company declared that it would communicate with government departments to protect the interests of the customers and that the affected SK-II products could be returned. P&G asked for a re-testing of the products, despite the warnings that all P&G products would be barred from sell if more banned substances were found in SK-II products. This was a problem in China because challenging the Chinese government's claims was unheard of. Sept. 15, 2006, a day after the crisis began, the company outlined four conditions under which consumers could return the questioned SK-II products. These conditions included that the product needed to be one of the nine products, the customer needed to have a history of allergies and proof of this from a doctor, the original receipt of purchase was
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Broda, C., & Weintein, D. (April 2008). Exporting Deflation? Chinese Exports and Japanese Prices. Retrieved from http://www.frnsf.org/publications/economics/papers/2008/wp08-29bk.pdf 2 Chromium. Neodymium. (n.d.). Lenntech, Water Treatment Solutions Elements. Retrieved from www.lenntech.com/periodic/elements/cr.htm 3 Customs and Excise Department. (2006). Customs announces test results on cosmetics samples in Hong Kong [Press release]. Retrieved from http://www.customs.gov.hk/en/publication_press/press/index_id_599.html

required, and that the product must contain at least two-thirds of the original amount. In addition to these conditions, the consumers also needed to sign a King Clause, which states that the SK-II products are not harmful to their health and are not faulty. P&G did not publicly announce a recall in China and on Sept. 21, three additional SK-II products were found to contain chromium and neodymium. By Sept. 22 P&G closed all of the sale booths and stopped all SK-II operations. On Sept. 23 Singapore!s Health Sciences Authority announced that the products in question did not pose safety concerns because the banned substances were only in trace amounts, although this information did nothing to reverse the brand damage in China, but it did reinforces the theory that there were more issues involved than just the safety of the products. As a result, customers, in general, were outraged by the SK-II crisis. P&G repeatedly changed its return policies, and as the days passed, more and more customers became enraged by the process leading to public rallies, which eventually led to P&G no longer accepting SK-II returns, stating it was a matter of employee safety. By the end of 2006, P&G China was largely thought of as arrogant due to the SK-II crisis, which was due to the lack of decisive action on its part. Customers who bought the infected product, but could not get a refund, were furious. This lack of trust in the SK-II brand only added to the tension between Japan and China, and P&G was seen as rebellious for denying the AQSIQ!s results and requesting retest.

SITUATION ANALYSIS
Situation
In China, skincare products are monitored and tested to ensure safety of the people of China. Proctor and Gamble is a foreign company that must abide by the standards of government in order to distribute and sell products in China. A Chinese government agency, AQSIQ, found trace amounts of banned chemical substances and reported it to the media before informing SK-II. This finding, first reported by state-owned media outlets, immediately led to a negative response from consumers. P&G did not accept responsibility and challenged the test results and, ultimately, the Chinese government. P&G issued statements about how customers should go about returning products. Return policies changed multiple times causing mass confusions, public outrage, violence and eventually refusal to

refund customers and the shutdown of all sales counters in mainland China.

SWOT Analysis

Strengths
Top luxury brand in China Unique active ingredient in the products Consumer base has disposable income to buy expensive beauty products Understands the beauty desires of its customer base and offers product appealing to its interests

Weaknesses
Perceived as arrogant by government, consumers and influentials for the way the crisis has been handled so far Return procedures changed and were inconsistent

Opportunities
Other brands have the same trace substances SK-II has a whole bunch of people who want to engage with their brand to return product, it has the ability to control some of the situation (setting, etc) Chinese consumers are highly responsive to brand ambassadors Re-design and standardize labels

Threats
Return procedures changed and were inconsistent so customers might be too jaded to buy from the brand again Fierce competition from other brands Previous scandal involving brand ambassadors Broken trust with consumers who fear the product is unsafe Broken trust with consumers who were unable to return product Relationship with AQSIQ compromised

CORE STATEMENT OR OPPORTUNITY

The Chinese governments allegations that P&G is importing products that can cause allergic reaction and health complications from Japan into China is causing consumers to question and mistrust the SK-II brand and products and affecting sales in a fiercely competitive marketplace.

GOALS
We used strategic planning to define our goals and how to achieve them. Below you can find our approach to managing SK-II!s reputation management crisis. Campaign Goal Repair P&G!s relationship with SK-II target and intervening publics and regain market share and reposition as a safe and high-quality luxury beauty product that is viewed a status symbol. Relationship Management Goals Continue to conduct business in China Repair damaged business relationships with consumers and business partners Sales Goals Recover revenue loss generated from crisis Generate annual sales increase

PUBLIC RELATIONS OBJECTIVES

Gain AQSIQ approval of products Gain approval rating of 40% from customers utilizing refunds/returns Obtain new sales, meet quarterly and annual sales goals
o o o

Re-gain 70% of loss by March 2007 10% revenue increase by September 2007 Obtain new sales from 40% of current customers

Impact Objectives Gain AQSIQ approval of products Host Real woman contest and campaign promoted by bloggers to gain trust and generate positive interest and dialogue about SK-II brand

Output objectives Engage with all customer comments on Weibo account Create and maintain progress report on website Generate 500,000 views on YouTube video Gain approval rating of 40% from customers six months by March 2007 Gain 55% positive comments about Real woman endorsement campaign

KEY PUBLICS AND MESSAGES

After researching we were able to create public profiles for three key publics: consumers, consumers left out of refunds, and those P&G pharmacy chains that sell SK-II products. We also created profiles for five intervening publics: employees of SK-II counters, retail models, Chinese government departments, Chinese state-owned media, and Chinese beauty bloggers. We developed strategies and tactics knowing key intervening publics have a greater ability to influence perception, awareness and, eventually, behavior than our key publics.

KEY PUBLICS
Consumers profile Chinese SK-II customers can be categorized in two major groups: primary and secondary customers. Primary customers are predominantly white-collar workers who have disposable income and are able to afford the higher price of foreign products. The second category is made up of both women and men. These people are often noveaux riche business executives with a formal education. They are in their forties or younger. Consumers often purchase luxury beauty products to complement specific low and midrange products they are familiar with and comfortable using. Self-interests Consumers self-interests include social status. They are prone to purchase products that smooth skin, reduce wrinkles and whiten skin. Influencers These consumers are highly influenced by social status self-interests and often purchase products solely because of celebrity endorsements. Consumers trust these influencers (retail models). They tend to trust the product does what the model claims in ads. Current relationship with the brand This customer is not loyal and expects a good return on their financial investments: they expect quality product for the amount spent on products. Because they are younger, they expect brand interaction that creates ease of use, purchase and return. 8

SK-II!s mis-managed return policy exacerbated the perception crisis SK-II was dealing with. They are frusterated and have become angry with the brand!s constantly changing return policy. Mentioning consumer-focused strategy in its press release, SK-II attempted to manage this relationship; however, the brand failed to hear customers! need to have an easy return policy stating four conditions for product return. The King clause has been highly criticized and further distances SK-II from meeting its consumer!s demands. Messages targeted to consumers Based on the profile insights gained from research, we selected the following messages to target consumers: We are sorry we failed to hear your concerns. You!re a valuable customer. All SK-II products are high-quality and safe If you!re not satisfied with your product, we want you to bring it back and we will match you with another product that meets your needs. You!re beautiful. You deserve the best beauty products. Luxurious SK-II beauty products will keep you looking young and like the retail models. SK-II products are a high-class status indicator. Using SK-II products will brighten skin and reduce wrinkles. Our improved SK-II products will make you look beautiful. Try a complimentary sample of our luxurious product. Messages are designed to make the consumer feel secure in using SK-II!s luxurious beauty care line. They emphasize the public!s interests in being noticed as high-class, beautiful and young. Messages are intended to be perceived as straight-forward and empathetic to the public!s needs and frustrations. Please see Communication Confirmation Table for public-specific strategies and tactics.

Profile of Consumers left out of refunds This is a sub-group of the consumer public. Because of SK-II!s ever-changing return policy, this public missed out on getting a refund for its products. Self-interests The following are self-interests of the customers left out of refunds: safety, gaining a hassel-free refund, communicating their frustrations and anger, communicating how they were wronged by the brand, finding alternative products. Influencers

Both Chineses state-owned media and bloggers influence this public. Customers left out of refunds are also greatly influenced by others in similar situations and brands that offer what SK-II is failing to give. Current relationship with the brand Like the consumer public, this customer is not loyal and expects a good return on their financial investments. They are enraged at being left out of what they feel is their right to return a harmful product. Their expectation is that the customer is right and they demand to be catered to. This public has a high potential to be extremely vocal about their experience with the brand. We recognize this brand as being the most likely to reject the SK-II!s crisis management tactics and refuse to ever positively engage with the brand.

Messages targeted to consumers left out of refunds Based on the profile insights gained from research, we selected the following messages to target consumers: We are so sorry we were unable to give you a refund. Please bring the product you!re unhappy with in so we can refund your purchase. We humbly apologize for keeping your refund from you for so long. We know it!s been hard coming, but we!d like to offer you a complimentary product when you bring your defective product in to return. Because we value your trust and business, bring the product you are dissatisfied with in to any of our sales counters before Oct. 3, for a full refund, no questions asked and no hassels. Our sales representatives are experts. They want to match you with the best product for your beauty needs. Our improved SK-II products will make you look beautiful. Try a complimentary sample of our luxurious product. Messages are designed to accept responsibility to return products customers are unhappy with. They offer incentive to come to the sales counters to have an excellent experience with friendly and empathetic sales representatives. These messages make the customer feel like they are understood and their feelings are validated. The message combined with the situation offers the potential for SK-II to turn a bad experience into a positive or neutral experience. The brand must recognize it may lose revenue by accepting all returns, but it will not isolate customers and keep them from refusing to ever make an SK-II purchase ever again. Please see Communication Confirmation Table for public-specific strategies and tactics.

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Pharmacy chains profile This public is made up of pharmacy stores that sell SK-II products in them. These stores may or may not have issued a recall of SK-II products, but, instead called for a return of the product. This public needs to have a strategic and consistent return policy. Self-interests Maintain satisfied customer base Maintain return customer base Avoid customers making a scene over refunds and SK-II products Conduct business with least negative affect on bottom line Selling similar products to unsatisfied customer regardless if they!re P&G products Influencers Pharmacy chain public influencers include: customers, product vendors, executives, store directors, and department managers. Messages targeted to pharmacy chains We value your partnership. We want to continue to provide your customers with the best beauty products available. SK-II products are safe, quality products. We will provide your health and beauty staff with the training resources and return policy to make this situation as easy as possible. Thank you for your partnership during this time. These messages are meant to establish trust with the brand and to continue a partnership already established on years of mutual benefit. They are messages of reassurance and hope. Please see Communication Confirmation Table for public-specific strategies and tactics.

KEY INTERVENING PUBLICS

Profile of employees of SK-II counters By 2006, SK-II had 97 sales counters across China. There were more than 400 personnel in every tier one city and in most tier two cities. This public is disheartened. In some cases its personal safety has been compromised. This public is fearful of customers, negativity and losing its place in the job market. It has been beaten down and exhausted by the swarm of unhappy customers seeking refunds and is in need of rejuvenation. 11

Self-interests Safety and job security are two of this public!s top two self-interests. They desire a clear and easy to understand return policy so it can be quickly explained to customers. They desire support from management to handle this difficult time. Influencers Incentives, peers, beauty bloggers, customers, and managers all influence SK-II employees. Messages targeted to employees of SK-II counters Please see Communication Confirmation Table for public-specific strategies and tactics. Messages Based on the profile insights gained from research, we selected the following messages to target consumers: We apologize for the stress and chaos of our previous return policies. For the next three months our return policy will be simple. You are important. You are the face of our company. You are valuable. We need your help to earn our customers! trust back. We will give you the support you need to accomplish sales goals. Let us know how we can handle this better. You will be rewarded for meeting sales goals. SK-II!s products are safe and high quality. We sell the most luxurious beauty products in China. Our products are luxurious. We represent the best. We have improved products coming into stores soon We will be offering product demos, health screenings and retail model appearances to help you explain and sell our products. These messages are designed to empathize with the employees who took the brunt of the negativity during the early stages of the crisis. These messages are meant to empower employees and create positive morale. They are intended to excite employees about SK-II!s new products. Please see Communication Confirmation Table for public-specific strategies and tactics.

Retail models profile This public is made up of Hong Kong models, actresses and pop stars: Carina Lau, actress; Sammi Cheng, actress and singer; Stephanie Xiao, actress; Ruby Lin, actress.

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We will strive to maintain professional, mutually beneficial relationships with current retail models. We are seeking new retail models who are trusted Chinese role models. We are also holding a real woman beauty and fashion contest and campaign to find China!s next SK-II model and turn her into a celebrity. Self-interests Advertising contracts, safety, complimentary and hassel-free product endorsements are some of the self-interests of retail models. Influencers Peers, agents and public image are three factors that influence retail models. Messages targeted to retail models Based on the profile insights gained from research, we selected the following messages to target consumers: Because you are an influential icon, your role as a brand ambassador is crucial to SK-II!s success in China. Your influence is valuable to us.

Please see Communication Confirmation Table for public-specific strategies and tactics.

Chinese government departments Ministry of Health (MOH), China Center for Diseases Control (China CDC), Institute for Environmental Health and Related Product Safety; Shanghai Center for Diseases Control (Shanghai CDC), Environmental Health Section; Guangdong Center for Diseases Control (Guangdong CDC), Public Health Research Institute; The National Quality Inspection Department of the State General Admission of Quality Supervision, Inspection and Quarantine (AQSIQ) Self-interests Self interests of the Chinese government departments recognized in this public include: keeping the state authority unchallenged, public health and public policies. Influencers This public is influenced by the government and economy. Messages targeted to Chinese government departments Based on the profile insights gained from research, we selected the following messages to target consumers:

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We apologize for questioning the viability of the test results How can we work together to improve our product safety for Chinese customers?

Messages intend to be humble and position P&G to be able to continue to do business in China. Please see Communication Confirmation Table for public-specific strategies and tactics.

Chinese state-owned media Self-interests Publishing stories Appeasing state regulatory committees Readership Safety of citizens Influencers The state is the supreme authority influencing this kind of media. Messages targeted to Chinese state-owned media Based on the profile insights gained from research, we selected the following messages to target consumers: P&G is working to better its manufacturing process. SK-II products can be returned with our new and easy return policy. SK-II products are safe to use. They won!t affect consumers! health negatively, but they will make them look younger and enhance their beauty. P&G develops and distributes safe products. P&G is honored to be in the Chinese marketplace. Messaging is straightforward and simple. It is designed to be humble without putting the brand in a negative light. Please see Communication Confirmation Table for public-specific strategies and tactics.

Chinese beauty bloggers Beauty bloggers are trend-initiating individuals with cult-like followings in Chinese pop culture. These individuals are highly influential. Self-interests and influencers Some self-interests and influencing factors we recognized are as follows: perks, free test products, gratification, online social status, network preservation, readership, gained

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influence, first, breaking, or exclusive stories; social networks; ease of use; immediate gratification. Messages targeted to Chinese beauty bloggers Based on the profile insights gained from research, we selected the following messages to target consumers: In recognition of your influential status as an opinion leader, we would like to offer this voucher/product to use and in return, blog about your experience. We stand by our quality beauty line and want you to know we!re serious about ensuring we provide you the best quality products that don!t jeopardize your health. We would like to offer you free health testing to ensure your safety after using our products. Please enjoy this free product. Please join us on Dec. 3, when we hold a beauty and fashion show in our top tier one and two cities! Please join us in making a real woman a celebrity! We would like you to try our celebrity retail model!s new promotional line before we release it for sale. We would like to give you access to our celebrity retail model for a 20 minute interview on Dec. 1. These messages are designed to recognize bloggers! status as opinion leaders. Messages are intended to make beauty bloggers feel like they are elite and being offered perks and access to products and stories before anyone else. Beauty bloggers should have a leg up on traditional media. Please see Communication Confirmation Table for public-specific strategies and tactics.

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STRATEGY
We used strategic planning to define our goals make them achievable. Below is a list of strategies we used as guidelines and themes to achieve our objectives. Please see Gannt Charts and Communication Confirmation Table to view public specifications. Ensure research and development create products that fulfill AQSIQ regulations in China Re-brand SK-II in China Inform and persuade mass media that P&G will develop and distribute safe products Establish trust in SK-II brand and products Establish luxury brand positioning through celebrity endorsements Use incentive system to persuade publics to purchase products Educate publics about brand!s commitment to purity, safety and quality ingredients Secure new celebrities to endorse products Secure relationships with current product endorsers Secure Real woman to endorse products Influence target publics with celebrity endorsements to increase sales Persuade publics to interact with SK-II branding Train employees to be positive, encouraging brand ambassadors Implement new return/refund policy Implement customer satisfaction/approval surveys Train employees on new return/refund policy Express gratitude and give recognition to all employees who participated in crisis Express gratitude and give recognition to top sellers of the quarter Enlist the support of employees by offering incentives for encouraging current customers to make purchases when returning PRODUCTS 1-9 Encourage current customers to make purchases when returning products Thank and recognize governmental departments who contributed to successful transition of SK-II product line Beauty testing blog campaign

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TACTICS
Below is a list of tools we deemed necessary to carry out our strategies. We categorized the list into four key sections: interpersonal communication tactics, organizational media tactics, news media tactics and promotional media tactics. Please see Gannt Charts and Communication Confirmation Table to view public specifications. Interpersonal communication tactics Beauty contests, fashion shows: this is to target the females publics to display the luxury and class of the product, emphasize its international origin Product demonstrations: the demonstrations will show the female publics how to use the product and allow women to try the product that may not have had the opportunity to or thought to. This tactic raises awareness around the issue and allows women with a chance to see if they have any special allergies to the product before purchase. Celebrity appearances: Celebrity endorsements have proven useful in selling this product, keeping with that tactic will hopefully produce similar results and aid in improving the brand's image. Celebrity needs to be trusted and demonstrate herself using the products. Question and answer discussions: This will allow consumers to voice their opinions and concerns, while given an opportunity to have their questions answered and concerns addressed. People can also ask questions about the new re-launch product offerings. Communications strategies training informational packet: Before the question and answer discussion, the press releases, conferences or events occur, all participants and advocates of the product will receive packets that will help them speak knowledgeably about the product and answer consumer questions. The employees will know the overall objectives they are striving for and be familiar with the strategies P&G issuing to execute those objectives. Personal refund training informational packet: A packet that focuses on the company's refund policy so that employees can be a more effective public and use consistent practices. This refund policy will be reviewed by everyone in the company in order to sure that it is fair ad stays constant. Testing the policy out on a focus group of consumers would be the ideal way to predict public response. Quarterly sales focus: This will bring people together to reflect on the last quarter's sales results and plan and adjust to increase sales in the upcoming quarter. These focus meetings will have a creative focus and attempt to engage and excite employees. Employee Intranet communications: With a proper Intranet system, employees can communicate and assist one another, as well as use it as a way to share their positive learning experiences with customers.

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Top sales performance incentives: Bonuses will be given annually to employees that project the highest sales results. Throoughout the year, creative and surprise prizes will be awarded to employees demonstrating the most effort and the highest results. Create celebrity talking points Create celebrity contracts

Organizational media tactics Issuing reports or statistics: These reports will be issued to the public, company employees, and will accompany press releases and media kits. Announcing results of polls or surveys: We will display these polls on television commercials and in newspapers in both the U.S. and China. Announcing a new policy or policy change: We want the government, the CDC in China and consumers to see the company's transparency and feel well-informed with any changes made in the factor process or product make up. Announcing a new program, product or service: As P&G builds customer loyalty, consumers will want to hear about other products similar to the one they already love. Brochures: Brochures will tell about the benefits and colorfully display the brand and its elegance. Customers will be enticed to look through and it will make it easy for women to share product info with their friends. Information regarding discontinuance of product for stores to give to customers that are seeking returns Progress report to mass media Update website about problem and statement regarding commitment to consumers Create a Weibo account and deliver educational information regarding the ban of the ingredients in product and return policies Handwritten thank you notes: will be delivered to governmental agencies, AQSIQ and the Chinese centers for disease control apologizing for any difficulties P&G has caused, thanking them for considering their rebranded product, improved product Surveys will measure the campaign's success and the changes in attitudes, awareness and behavior of our publics. These surveys will include: an attitude measurement survey, a perception measurement survey and a behavior measurement survey Messaging on receipt print out: This will remind consumers of the refund policy and help to keep standards as well as company messages consistent.

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News media tactics News release in both English and Chinese: Our public relations practitioners will devise strategic messages about new manufacturing procedures and the improvements to products. Press conference for media: Inviting media to ask questions will allow P&G to reiterate their brand focus and company values, and share excitements about manufacturing improvements and relaunch. Personal appearances on broadcast media: Our intervening publics can aid in sharing their positive feelings for the product. By using exerts, as well as people who have tried the product, P&G can re-spark consumer interest internationally. Progress report sent to mass media: This will help to target our intervening public, the Chinese government and the centers for disease control. Issuing them results will provide them with concrete facts in order to regain trust in the brand. Promotional media tactics Displays and exhibits: Eye-catching displays built in the heart of major cities in China will draw in attention and provide brand ambassadors to relay new product information. News conferences: These will allow for open discussions around the products and its benefits while raising awareness about the changes in manufacturing techniques. Media kits: Media kits will include press releases, recent polls, the AQSIQ approval, a fact sheet about the product and a brochure. Interviews: Interviews with real women who have tried the product will promote the product's safety and benefits. Specialty items: This items will accompany the product and be oriented around luxury and self maintenance. They will be products that demonstrate the company's care for its customers and appreciation.

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EVALUATION
Below are specific measurement criteria and tools we will use to evaluate the successes and failures of our objectives, and, ultimately our public relations campaign. The success of the campaign will be measured by change in quarterly and annual sales projections, approval ratings, awareness surveys, positive or negative AQSIQ approval, number of people that chose to continue buying SK-II products, as well as new customer growth. We will also need the approval to sell the product from and repair the relationships with the Ministry of Health (MOH), China Center for Diseases Control (China CDC), Institute for Environmental Health and Related Product Safety, and all regional CDCs. An important area of measurement will be in media exposure. We will want to assess the proportion of positive versus negative coverage on television and in newspapers, forums, blogs, tweets. We will also measure the number of messages we receive about media stories, the number of Chinese and English news releases (stories) are actually placed in the media. In measurement of production change, we will examine issued quality assessments that provide qualitative results on what has been done to fix the issue and when to expect a fixed products by. Three surveys will be used as tactics to assess changes in awarness, attitudes and purchase behavior. The website will measure likes and give us an idea of awareness of the changes made in production, ban of problem ingredients in product and post the return policy. This will give us an idea of awareness b measuring the number of people who see (and like using social media) the company policy change, restatement of values and return policy. If word passes and likes continue, we will be able to evaluate the number of people who comprehend the message, recalling it later, and deliver it to other over reposts and in discussion forums. Google analytics can also be a tool in measuring the conversation around the campaign!s effort to repair the relationship between SK-11 and its customers. With the creation of a Weibo account Chinese social media account similar to America!s Facebook or Twitter), we will measure attitudes through number of people that recognize the genuine apology and core values of the company after delivering information about the ban of ingredients in product and return policies. The campaign will be considered successful, and the ROI will be demonstrated to the client, if the evaluation determines that much of the awareness on the issue is being received (number of likes); the conversations in American social media, Weibo account, and media coverage are primarily positive; and the quarterly and annual sales projections are increasing. The ROI 20

for the client will be the increase in sales, restored reputation and approval of Chinese government to sell SK-11 in China. At the conclusion of our campaign we will consider whether each objective was met to determine not only the success of each objective, but also the success of the campaign.

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APPENDIX

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