Chapter 9 Marketing Excellence

Procter & Gamble

1. P&G’s impressive portfolio includes some of the strongest brand names in the world. What are
some of the challenges and risks associated with being the market leader in so many categories?
2. With social media becoming increasingly important and fewer people watching traditional commercials on
television, what does P&G need to do to maintain its strong brand images?
3. What risks do you feel P&G will face going forward?

Answers

1. The challenges and risks associated with being the market leader in so many categories are:
 Increasing retailer dependence
 Increasing internal competition within the brand
 Declining profits in FMCG markets
 Brand dilution
 Prioritizing market shares over profits

2. P&G need to do to maintain its strong brand images by

 a marketing tactics, they can use platforms like facebook Ads, Google Ads and more
 Online shopping must be made easier
 Social mesia should manage online word mounth
 Should be extra intensives like coupons, buying points, etc.

3. The risks that P&G will face going forward based on my opinion are:
 They brand will cut throat competition from Nestle, ITC, Hindustan Unilever Limited etc
 Limited room for expansions and growth
 Legal Barriers
 Relative prices and performance from unbranded local product
 Risk of brand equity

McDonald’s

1. What are McDonald’s core brand values? Have these changed over the years?
2. McDonald’s did very well during the recession in the late 2000s. With the economy turning around for the
better, should McDonald’s change its strategy? Why or why not?
3. What risks do you feel McDonald’s will face going forward?

Answers

1. McDonald’s have many brand values and it is changed over the year, During the 1960s and 1970s their
core brand values were quality, service and value, the core brand value are reflected in their product, outlets
and employees. But during McDonald’s aggressively expanded overseas throughout the 1980s by adding
locations throughout Europe, Asia, the Philippines, and Malaysia. This rapid expansion, however, made the
company lost focus and direction, expanding by as many as 2,000 new restaurants a year. New employees
are not trained quickly or well enough, all of which leads to poor customer service and a dirtier restaurant.
They recovered by implementing “Plan to Win” by following the theory of company’s 5 Ps, People,
Product, Promotions, Price and Place. Even after many years McDonald’s try its best to put their core
values in the first place which eventually became their business model.
2. No. because McDonald’s did it well by cheap offerings which attracted customers in times of financial
troubles, and certain changes can be made to existing strategy after in depth study of the current.

3. The risks that McDonald’s will face going forward are

 Life styles changes, the changing life styles also will change the customers taste and need. So,
McDonald’s need to adapt on par with the modern word.
 Health conscious consumers are opting for healthier options in the menu
 Substitute product with increasing competition in fast food sector brought new product such as
pizza which may lure customers.
 New entrants and local fast food chains with cheaper options are a risk for market share.