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Moves' and Countermoves' Analysis: P&G Strategy Colgate's Possible Countermove Overall Impact

P&G's strategy is to file complaints against Colgate's advertising, increase media spending on its own ads, and launch a comparative ad campaign highlighting the effectiveness of its products over Colgate's. Colgate's possible countermoves are to emphasize the effectiveness of its own products to the NAD, hire lawyers to fight P&G's legal actions, and launch its own ad campaign comparing products. The overall impacts would include both brands' reputations being affected, heavy legal costs incurred, decreased revenues and profit margins as attention shifts from expanding product offerings.

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Pranav Patki
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124 views2 pages

Moves' and Countermoves' Analysis: P&G Strategy Colgate's Possible Countermove Overall Impact

P&G's strategy is to file complaints against Colgate's advertising, increase media spending on its own ads, and launch a comparative ad campaign highlighting the effectiveness of its products over Colgate's. Colgate's possible countermoves are to emphasize the effectiveness of its own products to the NAD, hire lawyers to fight P&G's legal actions, and launch its own ad campaign comparing products. The overall impacts would include both brands' reputations being affected, heavy legal costs incurred, decreased revenues and profit margins as attention shifts from expanding product offerings.

Uploaded by

Pranav Patki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Moves’ and Countermoves’ Analysis

vs

P&G Colgate’s Possible Overall


Strategy Countermove Impact

Block Colgate’s advertising • Reemphasize White Strips’ effectiveness to • Colgate could exploit P&G media’s
get favorable response from NAD approach to show them as weak
• File complaint with NAD • Leverage old and establish new media • Brand reputation of both rivals affected
• Demand TV networks to take down Colgate relations • Heavy legal costs incurred by both parties
Advertising • Hire capable counsels to fight P&G legal • Revenues affected
• Sue Colgate under Section 43(a) Lanham suite and ensure new ads restricted • Eye off the ball of expanding product
Act misleading cases below 15% portfolio

Increase in media weights for P&G’s This move will be anticipated and Colgate will Profit margins will decrease and leaves lesser
current Ad campaign be well prepared to do the same room for product portfolio expansion for both

Comparative Advertising campaign to • Colgate’s first move will be to question • If P&G’s quality comparison backfires their
counter Colgate’s P&G’s testing methods to support the brand reputation will be severely impacted
comparison and use Westland’s argument • Vice-versa Colgate’s brand reputation will
• Ad campaign to pit their products be impacted if P&G’s claim turns out to be
effectiveness against P&G’s true
P&G Colgate’s Possible Overall
Strategy Countermove Impact

Colgate wouldn’t care since their product is This will impact P&G more since they are
already priced at $15 against P&G’s $40 operating at lower margins than Colgate.
Drop in Price Increased sales need to compensate for the
decrease in operating margins

Their price at $15 cannot be matched with any Would not have significant impact on Colgate.
Increased use of coupons amount of coupons only P&G catering to a premium segment who can
afford $40 product, won’t really add significant
sales

Colgate will simply again establish the With this new product, if P&G plays its cards
Introduction of new product differentiation between its product and P&G’s right with the value proposition and pricing, it
new one has a real shot at beating Colgate

Colgate will stick to its strength of price point P&G can leverage this channel to not only
Increased association with dentists and advertising to do the talking increase their mind space and thereby sales
but also the question the credibility and
effectiveness of Colgate

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