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MKT501 Module 3 - Case (Essay Sample)

Questions/Tasks - Write a paper in which you respond to the following: Will P&G's retail stores (brick n' mortar & click n' pick) be successful? Defend your position in terms of whether or not P&G has the expertise to move into this channel of distribution versus its current methods of distributing products and whether or not sales though this channel will cannibalize sales from its current methods of distribution. The Situation P&G is vertically integrating. It is buying specialty stores that sell its products. It is also trying to divest itself of poorly performing acquisitions. Expectations In answering the question make reasonable assumptions, (clearly you won't have the same information available to you as the actual manager, e.g. about competitors, but make some assumptions and follow through in your analysis). You should also bear in mind that a fundamental goal, as with all the cases you build in MKT501, is to stimulate your learning. Your answers should therefore aim to demonstrate that learning. In preparing your CASE3, ensure that you demonstrate your learning of the marketing concepts and frameworks for analysis outlined in the modular learning objectives. In CASE4, what should be P&G's target market(s) for its direct retail operation(s)? Hint, how should its packaging (e.g. size) reflect those target markets? Should its product(s) be priced higher or lower than competitive products? Should it advertise more or less than competitive products? Defend your positions on any and all of the issues you tackle. In other words, in answering the question, ensure that you demonstrate your understanding of channels and factors affecting channel success, as well as your learning from previous modules. Note that this assignment does NOT require you to prepare a detailed essay. Instead use section headings for each of the topics you address in your paper followed by a discussion of that topic. Case-related articles in the popular press McCracken, Jeffrey and Byron, Ellen (2009, October 29). P&G Considers Booting Some Brands. Wall Street Journal Eastern edition (New York, N.Y.). B1. Available via ProQuest on 29 October 2009 at http://proquest(dot)umi(dot)com/pqdweb?did=1888565571 &Fmt=3&clientId=29440&RQT=309&VName=PQD Facing mounting pressure to boost sliding sales and recalibrate his company, P&G CEO Robert McDonald is stepping up the hunt for acquisition and divestiture candidates, people close to the company said. Since assuming the chief executive role in July, Mr. McDonald has been trying to shake-up P&G's slow, process-heavy culture. Holthaus, David (2009, July 17). P&G expands direct retail. Cincinnatti Enquirer Marino, Jonathan (2009, June 22). P&G Makes Another Shaving Buy. Mergers & Acquisitions Report. New York. 22(25). 14. Available via ProQuest on 11 November 2009 at http://proquest(dot)umi(dot)com/pqdweb?did=1756505341 &sid=1&Fmt=3&clientId=29440&RQT=309&VName=PQD Proctor & Gamble has purchased Zirh, a high-end men's shaving accessories maker and distributor. This comes on the heels of P&G's Art of Shaving buy for $60 million; the Miami-based high-end retailer sells razors for as much as $300 apiece. In 2005, P&G made its first major move into the space with its buy of the Gillette and Braun brands. Marino, Jonathan (2009, June 22). Art of Shaving Dealt to P&G. Mergers & Acquisitions Report. New York. 22(23). 15. Available via ProQuest on 11 November 2009 at http://proquest(dot)umi(dot)com/pqdweb?did=1750965261 &sid=1&Fmt=3&clientId=29440&RQT=309&VName=PQD After a two-year stay in Capital Resource Partners' portfolio, the Art of Shaving has been traded up to Proctor & Gamble. The 13-year-old high-end grooming products supplier was sold for about $60 million, less than a month after listed, Missouri consumer company Energizer Holdings, already an owner of personal hygiene products, spent $275 million to buy Edge and Skintimate shave assets from SC Johnson & Son. source..

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(16 October 2010)
MKT501 Module 3 - Case
The P & G company is consolidating partially its marketing groups to put the strategy of retail marketing under similar marketing directors have are to oversee brand stuff, in place of under the group that manages the force of sales. After the introduction of the new system, marketing directors or general managers who are able to find a brand respond better to trade marketing than the consumer marketing will have the capability of shifting more funds in-store. This has to be made for more genuine discipline-agnostic P&G. This paper looks at whether or not P & G has the expertise to move into this distribution channel versus its current methods of product distribution and whether or not sales through this channel will cannibalize current methods of distribution sales.
Handfield et al (2005),Walker (2005), Gunasekaran & Ngai (2004), Chesbrough (2006), Armstrong (2000) and Laursen & Ammon (2006) emphasized that, move will tend to answer the questions that long has dogged markers of packaged goods; as who to control the billions of dollars spent during trade promotion. Mostly, larger percentage of marketing budget and how to ensure these dollars are working in a similar strategic plan as consumer promotion and advertising. Whilst there exist no reason to think that most of the expenses will be channeled to stores, there exist other techniques like direct online, mail and promotion that can be successful. Looking at the P&G past indication that in-store marketing technique is becoming vital, it is probably safe to have it bet in that direction and see some new items in-store for them.
McKellar (2010), Peppers & Rogers (2002), Merritt (2009), Luechtefeld (2008), Corporatewatch (1996), Ailawadi et al (2001), Sun (2003) and Gandossy et al (2004) concludes that, it is important to recognize the nature of goods consumed. Recognition of dual nature of consumer goods complicates all theories in which there is treatment of consumption. If consumption is at the same time the touchstone political economy, which is underwritten by a commercial logistic that puts realization of surplus value at its center, as well as the site that popular pleasures are produced, mostly due to unforeseen uses and giving meanings to products by users in their all time domestic life, which then constructs theoretical consumption model. No company has ever done more in developing and advancing the science art of product positioning as P & G. developing new products successfully that carefully addresses consumer attitudes and wants. Then it is followed that, the Cincinnati-based firm would closely look at the possibilities of the internet, for testing consumer demands for the new products very quick and effectively. For long time, the firm has embraced the internet as a powerful market testing tool. It usually invites consumers online to sample and provide fe...
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