Procter & Gamble: The Wal-Mart Partnership (A)

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Case

Reference no. UVA-M-0452

Subject category: Marketing

Authors: Mark E Parry (Darden School of Business, University of Virginia); Yoshinobu Sato (University of Marketing and Distribution Sciences)

Published by: Darden Business Publishing

Originally published in: 1996

Version: 21 May 2018

Revision date: 4-Jun-2018

Length: 18 pages

Data source: Published sources

Topics: Marketing strategy; Pricing; Marketing

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Abstract

In early 1994, Kimberly-Clark agreed to manufacture private-label training pants for Wal-Mart under the ''Atta-Boy!'' and ''Atta-Girl!'' labels. To place this decision in perspective, the case describes Procter & Gamble''s battle with Kimberly-Clark for market share in the disposable-diaper market. The case also describes Procter & Gamble''s adoption of value pricing, as well as Wal-Mart''s introduction of premium store brands. Students must use this information to answer three questions: (1) How should Procter & Gamble respond to the introduction of Huggies Supreme with Velcro fasteners? (2) What should Procter & Gamble do with Luvs disposable diapers, which had been repositioned against private labels with a 16 percent price cut in May 1993? and (3) How should Procter & Gamble respond to Wal-Mart''s decision to sell private-label diapers manufactured by Kimberly-Clark?

Location:

Industry:

Consumer goods

Size:

USD30 billion

Other setting(s):

1994