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. According to the General Electric Portfolio Model, which of the following statements about these three products best describes the situation in 1993?
A) Charmin would be in the red zone, while White Cloud and Banner would be in the green zone.
B) In spite of the difference in sales, both White Cloud and Charmin are in the yellow zone.
C) Due to the low market growth in the toilet paper industry, Charmin is low in business strength.
D) White Cloud and Banner are low in industry attractiveness and in business strength and are in the red zone.
Correct Answer:
Verified
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