P&G Case Study

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P&G 1. Is it important to develop brand equity? Brand equity is the added value endowed on products and services. It may reflected in the way consumers think, feel, and act with the respect to the brand, as well as in the prices, market share, and profitability the brand commands. Developing brand equity is vital as it allows companies to more effectively engage with their customer base in such a way that drives brand loyalty, allowing the business to grow further. For example, P&G is one of the most skillful marketers of customer packaged goods in the world and holds powerful portfolios of trusted brands. It is the leader in 15 of the 21 product categories in which it completes. By increasing brand equity, companies are also able to increase their profits through increased market share. Therefore, it is important to develop brand equity. 2. What are the key factors when considering a brand strategy? A branding strategy categorizes which brand elements a company chooses to apply across the various products it sells. Market size: When the market size for the product category is quite large, a company can follow a product branding strategy provided the sales generated could fund the investment in the brand. Competitive situation: If the competition is low, there may not be a need to create separate brands for each offering. Company resources: It need cost a large number of money to building a brand. Product newness: Companies needs to provide new products. Innovativeness and technology: Innovation such as a new technology has been applied. Zhu yongchong

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