A. In 700 - 1000 words Final recommendations for Proctor and Gamble in regards to
3) Composition of inputs
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Final Recommendations for Proctor and Gamble:
It is recommended that Proctor and Gamble should reduce the prices of its products so that it does not lose its market share to private label brands and to other competitors. There are several strategies that Proctor and Gamble can adopt. It can lower the prices of its present brands, it can offer discounts on its current brands bringing them close to the prices of competitors, or it can launch new brands that is lower priced. If Proctor and Gamble does not want to dilute the brand equity of its present brands, it should launch new brands that are low priced. For instance, since Tide is currently priced at $18.49 and the equivalent product in the Great Value brand is $10.98, Proctor and Gamble must launch its new brand at $10 or lower.
Currently, as the market has customers that face falling incomes, high rates of inflation, and are actively seeking lower priced products, it is recommended that Proctor and Gamble should launch low priced products to protect its market share. Giving high trade discounts to retailers and wholesalers, or selling its products at a discount does not lower the price at which the products are sold to the final customers. The new Proctor and Gamble products should have different brands and should be priced to compete with private labels and low cost imported products. Most importantly, at a time when unemployment rates are high, discount stores are launching private labels rapidly, and the customers are actively searching ...
Proctor and Gamble is discussed in great detail in this solution.