P&G was able to reap huge benefits by standardizing some of its brands in the United States

Product Line Pruning at P&G

P&G was able to reap huge benefits by standardizing some of its brands in the United States

The caselet briefly discusses P&G’s product management and its impact on sales and distribution. It describes P&G’s product line policy in the eighties, which resulted in a complex product line and huge marketing overheads for the company. The caselet describes the pruning process that P&G adopted to tackle this problem and also outlines the benefits that accrued to the company.

Issues:

» Product management in FMCG companies 

Introduction

To sustain and grow in the face of intense competition, traditional brand managers relied more on extending their product lines by adding various sizes, flavors, etc. This was more evident among the multinational companies, which manufactured products to suit the tastes and preferences of people living in different countries. Procter and Gamble (P&G), a multinational consumer company, was one such company that found itself in a similar situation…

Questions for Discussion:

  1. During the eighties, P&G continuously offered a number of products of the same brand, each with slight modifications. Discuss the pros and cons of such line extension under a brand. 

  2. P&G was able to reap huge benefits by standardizing some of its brands in the United States. However, it was unsuccessful in Europe in the case of Fairy. Discuss the reasons that could have contributed to this situation.

 

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