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This is the second of a two-case series (602-002-1 and 602-003-1). The Gamble Company, a monopoly from 1975-1984, had not encouraged management to formulate marketing policies for products, prices, channels, and promotion. Thus, management set the price and the final consumers had to accept that price. Promotion was not deemed necessary since there was no competition. The company relied on direct distribution, as it assumed that distribution through wholesalers would increase costs. Due to lack of proper physical distribution facilities, at times the buyers had to travel to company outlets to have access to the products. Hence, the company allowed its products and productive capacity to deteriorate on the assumption that the monopolistic power of the state-owned corporations would continue indefinitely. This case was sponsored by the Indiana University CIBER Case Collection.