Private label brands are a threat for high value manufacturer’s brands such as “Charmin”!: An investigation of Procter & Gamble’s marketing strategy focusing on ‘pricing’, under critical consideration of consumer buying behaviour and brand loyalty

Miriam Mennen

ian. 2011 · GRIN Verlag

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Master's Thesis from the year 2007 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1.0, University of Sunderland, language: English, abstract: This research project presents the outcomes of a case study analysis of Procter and Gamble’s operations in the disposable paper industry, focussing on consumer buying behaviour, branding and pricing as strategic elements in marketing. The dynamics of the industry, as well as challenges faced by manufacturers towards the growing threat of private label brands will be outlined. Procter & Gamble, founded in 1837 is a global manufacturer of consumer goods operating in more than 80 countries with over 110,000 employees. It started its operation in Germany in1960 and is ranked third in the disposable paper industry regarding market share. After introducing the nature of consumer behaviour, and its linkage to Procter & Gamble’s strategic marketing activities, an extensive literature review will be given. The research topic is put in a conceptual and theoretical context by examining literature about the strategic, the operational dimension relevant to this piece of work. The author defined the appropriate methodology and research design, necessary to achieve the research objectives of this study. Firstly, strategic marketing changes and the dynamics of the disposable paper industry were critically analysed based on secondary data. Secondly, the gathered primary data will be presented and discussed in order to identify consumer buying behaviour concerning a product’s pricing and branding strategy. Thirdly, conclusions were drawn about P & G’s success or failure in the industry, supported by Porter’s five forces model. The development of the company’s ‘value pricing strategy’ will be outlined based on secondary data. Concluding, it can be said that an effective marketing strategy considering high value manufacturer’s brands is crucial for achieving a sustainable competitive position in the marketplace.