Procter & Gamble Market Strategies

Procter and Gamble Pricing Strategies

Zeeshan Sanawar

Indiana Wesleyan University

Procter & Gamble Market Strategies

The recession that started at the end of 2007 lasted till the mid of 2009 and disrupted the economy really bad, several companies ran out of the business and rested modified their strategies to survive. Procter & Gamble Co is one of the biggest manufacturers of household, healthcare, beauty and consumer goods they modified their strategies as needed. In the first quarter of 2009 Procter & Gamble raised the prices although it decreased their sales volume increased overall revenues. The industry analyst concluded Procter & Gamble lose the market shares by increasing the prices. The officials of Procter & Gamble did not take that long to realized and announce to lower the prices where they gained market share and sales volume but decreased the sales revenues that brought a negative effect on the profits. The company also adopted other policies and strategies to increase profitability such as entering new markets and introducing new products with compatible prices (Farnham, 2010).

Price Elasticity of Demand:

Procter & Gamble learned the way to make more revenue by utilizing the elasticity concept. By raising the prices of the products that people do not want to compromise such as diapers and wipes for the babies. They lower the prices of the products like bleach, bottled water, and liquid soap. They utilize their resources to study the market that what product will be sold at the same rate or with a little decrease if price changes, and where it will affect the most this is called Price elasticity of demand (Farnham, 2010).

American economy seemed to be growing after 1940 it gave the power to the middle class to enjoy the wealth and by good quality products. To meet the demand for the more and better product big companies like Procter and Gamble modified their product strategies, they changed their advertisment strategies and target marketing. Procter and Gamble improved their quality of products raised their prices and budget for advertisement to build the trust of the consumer. Procter and Gamble dropped the prices on entry level products and kept the prices unchanged on the more featured, enhanced and beneficial products (Smith, 2010).