Case Analysis: Proctor And Gamble

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Proctor &Gamble: A Strategic Management Case Analysis

Has P&G lost its Luster?
First, identification of the strategies used by P&G is relevant to the discussion of its maintenance of its position or its loss of luster. The essence of a differentiation strategy encompasses developing the unique nature of the product or business to attract and retain its customers (Rothaermel, 2015). Procter & Gamble, via information contained in its marketing releases, pursues quality and value in its consumer goods offerings(Proctor & Gamble, 2017). According to P&G, it is directing significant resources towards research and development. Additionally, P&G prioritizes an emphasis on uniqueness of its products. This focus drives pricing and promotion. Among P&G’s product lines, it uses different strategies. P&G uses a primary strategy of market penetration. The firm executes this strategy with the goal of increasing its market share. Through marketing campaigns aimed at increasing consumer awareness of its products, P&G makes comprehensive and beneficial (incentive-laden) agreements with retailers to place its products in prominent locations …show more content…

P&G miscalculated the importance of brand in its customer base and should have taken measures to either heighten brand loyalty or to adjust pricing to meet the customer emphasis on value/price (Rothaermel, 2015). A successful integration strategy requires that trade-offs between differentiation and low-cost be reconciled (Vera, 2016). Although, this is extremely difficult because these two distinct strategic positions require internal value chain activities that are fundamentally different from one another. “Stuck in the middle” would be a bad position for P&G to continue to put themselves in. This would give its competitors a better strategic advantage that P&G may find difficult to

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