Procter & Gamble is the leading CPG (Consumer Packaged Goods) company in the world. Their products are sold around the world and their revenues topped $80 billion in 2014. It is estimated that 98% or more of all American households use at least one (or four or twenty…) P&G products.
Many of their products are leaders in their categories, most notably the iconic Tide detergent, sometimes referred to as the “Rolls-Royce of detergents” because of its prestige and its high price tag.
During the recent North American recession, P&G adopted a revolutionary new strategy detailed in the attached case.
Read the case and answer the following questions in 3-4 paragraphs:
1. We saw in the textbook that brands have value for customers and for the companies that own them. Using this model, how do you think P&G’s strategy during the recession would affect the various types of value that brands provide customers and brand owners?
2. Having read the article, what is your overall opinion of this strategy? Was it a brilliant move during a difficult time, a risky gamble that could end in disaster, or somewhere in between? Explain.
