Assume that you are a marketing manager for Pantene Shampoo and Conditioner, two of Proctor & Gamble’s star products. Several competitors have recently begun to cut prices to retailers and also to offer more aggressive channel allowances in order to boost sales and market share.
a. What options do you have as a response to the competitive price declines?
b. What are the risks associated with each of the options?
c. Assuming Pantene is the market leader in its category, what response to the price cuts do you recommend?