Question

Procter & Gamble individually brands most of its products. P&G’s detergent line is comprised of a number of brands including Tide, Cheer, Dash, Ivory Snow, Gain, Era, and Bold. Quite possibly, one brand’s sales may be cannibalizing sales from another brand in the same product line and reducing profits across the entire line. P&G may need to reposition one or more brands to reduce cannibalization. This scenario illustrates which of the following situations in which repositioning may be necessary?

Answer 1

Answer:

when brands are insufficiently differentiated from one another  and when sales are insufficient to justify the current position.

Explanation:

Based on the scenario it can be said that this situation brings up two situations in which repositioning may be necessary and those are when brands are insufficiently differentiated from one another  and when sales are insufficient to justify the current position. This is because these two situations indicate that cannibalization may be occurring in which the similar brands are taking up all the market share from these other brands and causing sales to shrink drastically, this leads to the best option being re-positioning in order to save those brands.