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In the Early 1990s, Procter & Gamble Marketed Three Brands

Question 96

Multiple Choice

In the early 1990s, Procter & Gamble marketed three brands of toilet paper, Charmin, White Cloud, and Banner. The toilet paper industry is typically described as a low growth industry. In 1993, P&G spent $8.1 million to advertise Charmin and was rewarded with sales of over $312 million. In that same year, it spent nearly $8 million marketing White Cloud, but the toilet paper had disappointing sales of less than $63 million. Banner, with hardly any promotion at all, had $3.6 million in sales. Which of the following statements best describes the role that each should have played in P&G's marketing plan, given what you know about the BCG Portfolio Model?


A) P&G should have built market share for both Charmin and White Cloud and sold Banner.
B) P&G should have devised strategies to hold the market share for Charmin, divested itself of White Cloud, and harvested Banner.
C) P&G should have harvested Charmin and divested itself of Banner and White Cloud.
D) P&G should have harvested Charmin and White Cloud, and built market share for Banner.

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