Answered: Procter & Gamble sells multiple brands…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Transcribed Image Text:Procter & Gamble sells multiple brands often within the same product category (for example, P&G sells Tide, Cheer, Gain, Downy, and Ivory). The most likely explanation as to why P&G maintains separate brands (in the same product category) is because P&G's own research indicates that Offering different brands will eventually A result in competitors leaving the market. Big retailers (such as Wal-Mart, Target, and Amazon) will withhold shelf space unless В the firm develops exclusive brands just for them. P&G's marketing research indicates that there are many laundry detergent market segments and each of those segment is C apparently large enough, and will respond to, marketing efforts to develop a separate brand that will satisfy that segment's needs. Offering different brands in the same category allows P&G to bypass Anti-Trust/ Pro-competition laws.

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