Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    Case Study Solution Brand Management Mainak

    Uploaded by

    Mainak Biswas
    P&G faces several challenges as the market leader in many product categories. First, a scandal or problem with one brand could negatively impact other P&G brands through association. Second, as the market leader mistakes are more publicly scrutinized. Third, lack of price sensitivity has hampered growth as cheaper alternatives emerge. Rivals have gained share through innovation and improved positioning. Going forward, P&G must adapt to changing media consumption and expand its social media presence internationally. It also faces risks of cutthroat competition, lower priced local brands, maintaining brand equity, legal barriers, and limited growth opportunities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Case Study Solution Brand Management Mainak

    Uploaded by

    Mainak Biswas
    2K views3 pages
    P&G faces several challenges as the market leader in many product categories. First, a scandal or problem with one brand could negatively impact other P&G brands through association. Second, as the market leader mistakes are more publicly scrutinized. Third, lack of price sensitivity has hampered growth as cheaper alternatives emerge. Rivals have gained share through innovation and improved positioning. Going forward, P&G must adapt to changing media consumption and expand its social media presence internationally. It also faces risks of cutthroat competition, lower priced local brands, maintaining brand equity, legal barriers, and limited growth opportunities.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    P&G faces several challenges as the market leader in many product categories. First, a scandal or problem with one brand could negatively impact other P&G brands through association. Second, as the market leader mistakes are more publicly scrutinized. Third, lack of price sensitivity has hampered growth as cheaper alternatives emerge. Rivals have gained share through innovation and improved positioning. Going forward, P&G must adapt to changing media consumption and expand its social media presence internationally. It also faces risks of cutthroat competition, lower priced local brands, maintaining brand equity, legal barriers, and limited growth opportunities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views3 pages

    Case Study Solution Brand Management Mainak

    Uploaded by

    Mainak Biswas
    P&G faces several challenges as the market leader in many product categories. First, a scandal or problem with one brand could negatively impact other P&G brands through association. Second, as the market leader mistakes are more publicly scrutinized. Third, lack of price sensitivity has hampered growth as cheaper alternatives emerge. Rivals have gained share through innovation and improved positioning. Going forward, P&G must adapt to changing media consumption and expand its social media presence internationally. It also faces risks of cutthroat competition, lower priced local brands, maintaining brand equity, legal barriers, and limited growth opportunities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3
    At a glance
    Powered by AI
    As a market leader with over 300 brands, P&G faces challenges such as brand dilution, increased competition, and loss of market share if one brand fails. It also struggles with price sensitivity in developing markets.

    As a market leader, P&G faces challenges such as increased dependence on retailers, internal competition between brands, declining profits, and prioritizing market share over profits.

    P&G needs to increase its presence on social media platforms like Facebook, YouTube, Google+, and Chinese sites. It should also offer online shopping, social media marketing, and incentives to engage customers online.

    CASE STUDY SOLUTION

    Q 1) P&G’s impressive portfolio includes some of the strongest brand names in


    the world. What are the some of the challenges and risks associated with being
    the market leader in so many companies ?

    Ans - P&G adopts a multi-brand approach a portfolio of over 300 brands, with 25
    brands making over US$1billion in annual sales in 2012, but it faces many key
    challenges. It uses a multi-brand strategy, there are drawbacks: with this multi-brand
    strategy, one brand could easily affect another through association. A scandal relating
    to another P&G brand could undo all the good customer relationships built by another
    brand with a customer. This is potentially disastrous, because if one or more of P&G’s
    brands erode significantly, their financial status and market positioning will be
    adversely affected.

    As the market leader, consumers pay closer attention to the company as such, mistakes
    committed by the company would usually gain more negative publicity.

    Lack of price sensitivity also hampers the company’s long term growth, since a
    growing middle class might not be willing spend on premium household products
    despite higher disposable incomes, with cheaper local alternatives available.

    Consequently, P&G has lost its customers in developed countries like Europe to
    cheaper and equally capable products made by rivals such as Unilever. As such, rivals
    have gained significant market share with more successful innovations and improved
    their market positioning , threatening P&G’s market leadership. Some of the
    Challenges and risks they are facing are –

    • Increasing retailer dependence.

    • Increasing internal competition within the brand .

    • Declining Profits in FMCG markets.

    • Brand Dilution.
    • Prioritizing Market shares over profits .

    Q 2) With Social Media becoming increasingly important and fewer people


    watching traditional commercials on television, what does P&G need to do
    to maintain its strong brand images ?
    Ans - P&G uses the major social media sites Facebook, Youtube and Twitter. It
    has only a minor presence on other sites such as Pinterest and Google+. Also, none
    of the Chinese sites are used, despite China being a big market for P&G, and that
    the Chinese have no access to the three sites due to government ban. Therefore,
    P&G has to channel more resources towards the other major sites such as Google
    + as Chinese sites in order to achieve enough reach.

    • Marketing tactics using platforms like Facebook, Google etc.

    • Online shopping must be made easier.

    • Social media should manage online word of mouth.

    • Online platform should be manipulated to disseminate information.

    • Extra incentives like coupons, buying points should be given etc.

    Q 3 ) What Risks do u feel P&G will face going forward ?

    Ans – The risks P&G will face going forward are –


    In my opinion, P&G should be aware about its mature products in largely mature
    markets.
    Procter & Gambler’s portfolio is diverse, but filled with products in mature
    categories.

    In addition, the company’s core brands are all category leaders, with material market
    share and impressive sales. Very often the categories in which it operates are
    growing slowly, it at all, leaving market share gains as ten times means of increasing
    revenues. That is a challenge, since the company competes with large and equally
    well-financed companies. Losing market share may be a greater risk than not gaining
    market share, since Just maintaining market can be hard when you are number one
    in a category.

    • Cut throat competition from Nestle, ITC, Hindustan Unilever Limited etc.

    • Relative prices & Performance from unbranded local products.

    • Risk of Brand Equity.

    • Legal Barriers

    • Limited room for expansion & growth.

    You might also like