In a time when private label products are 31% cheaper on average than national brands, many consumers are reconsidering their loyalty to the brands they had come to know and love. Often, they are surprised to find that private label products are not only cheaper, but also of equivalent or even better quality than the national brand. What is a national brand to do?
In this look at the market dynamics surrounding Procter & Gamble, it’s apparent that it is difficult to compete on cost alone. P&G has done very well in differentiating itself and is adding perceived value in ways the private labels cannot. However, I would contend that a look through the customer’s eyes at all “touchpoints” the company has with them reveals there is more to be done to build their business and carry their successes into the future.
Image credit: Deloitte