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Monday, August 20, 2012

Pricing Strategy in a Recession

An Interesting Article on P&G's Pricing Strategy and options in a post recessionary period.    " ... The Wall Street Journal has reported that Procter & Gamble Co.’s new CEO, Robert McDonald, is “slashing prices” and warns of an impending price war in the branded consumer packaged good (CPG) industry.  Yet, Mr. McDonald states, “In my mind there’s not a price war going on.”  Is the Wall Street Journal guilty of hyperbole or is Mr. McDonald blithe to the profit destruction of price cuts?  In this article, I argue in favor of Mr. McDonald and moreover why he might be prescient in taking a sensible pricing strategy shift to meet the post-recession market demands.... " 

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