Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (a)

4 Pages Posted: 5 Apr 2010 Last revised: 25 May 2018

See all articles by Mark E. Parry

Mark E. Parry

University of Missouri at Kansas City - Department of Organizational Leadership/Marketing

Richard Johnson

affiliation not provided to SSRN

Richard R. Johnson

University of Virginia - Darden School of Business

Yoshinobu Sato

University of Marketing and Distribution Sciences

Abstract

This case is a condensed version of UVA-M-0452. The case describes Procter & Gamble's adoption of value pricing, Wal-Mart's introduction of premium store brands, and the evolution of Wal-Mart's relations with its major vendors. In early 1994, Kimberly-Clark agreed to manufacture private-label training pants for Wal-Mart. Students must decide how Procter & Gamble should respond to Wal-Mart's decision to sell private-label diapers manufactured by Kimberly-Clark.

Excerpt

UVA-M-0654

Rev. May 21, 2018

Procter & Gamble, Private-Label Brands, and The Wal-Mart Partnership (A)

In 1992, Procter and Gamble's (P&G's) largest and most profitable category was disposable diapers, which accounted for 16% of the company's worldwide revenues and over 20% of its profits. However, between 1988 and 1993, P&G's share of the $ 4 billion US disposable-diaper market dropped from over 50% to 38%, due in part to a rise in market share of private-label brands with favorable retailer margins.,

In early 1994, Kimberly-Clark (K-C) began to manufacture private-label training pants for Wal-Mart that appeared comparable to its own Huggies Pull-Ups, but would be priced 20% lower.

Procter & Gamble: The Smale Era

. . .

Keywords: marketing strategy, pricing

Suggested Citation

Parry, Mark E. and Johnson, Richard and Johnson, Richard R. and Sato, Yoshinobu, Procter & Gamble, Private-Label Brands, and the Wal-Mart Partnership (a). Darden Case No. UVA-M-0654, Available at SSRN: https://ssrn.com/abstract=1584110

Mark E. Parry (Contact Author)

University of Missouri at Kansas City - Department of Organizational Leadership/Marketing ( email )

5110 Cherry St.
Kansas City, MO 64110
United States

Richard Johnson

affiliation not provided to SSRN

Richard R. Johnson

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Yoshinobu Sato

University of Marketing and Distribution Sciences ( email )

Kobe 651-2188
Japan

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