Chapter 14, Problem 1CDQ

Summary Introduction

Case summary:

Company P is a force in the world market place and is the largest advertiser at few $5 billion yearly. The company organizes its numerous products into 4 industry. In order to serve the worldwide markets, Company P decided that it will cut over 100 brands from the portfolio and concentrates on its balance 80 brands that created 95% of the profit of the company.

As Company P continues to streamline its product collection, it concentrates largely on its market and selling operations as a tool to reach the worldwide customers.

To determine: Whether Company P requires to constantly invest money into the advertising when its products had a strong hold in worldwide market place.