1. P&G’s impressive portfolio includes some of the strongest brand names in the world.

What are some of the challenges and risks associated with being the market leader in so
many categories?
Procter and Gamble used a multi-brand strategy to fill multiple market positions and reach
consumer’s needs. Though this strategy can help enhance customer loyalty and makes the
company gain more profits, some challenges and risks may arise. This includes:
 Diluted brand is one of the major drawbacks of multi-branding that can reduce brand
efficacy. Being a market leader in so many product categories decreases the customers’
trust level and creates confusion among customers due to insufficient differentiation.
 Internal competition within the brands would increase, maybe on price or non-price
terms.
 Another potential challenge is the brand association, wherein one brand may affect the
good reputation of another brand. This association may also impact the financial status
and market positioning of the brand.
 As for being the market leader, the attention of consumers is on the good image built by
the company, however, any mistake will result in more unfavorable publicity.
 Market leaders also tend to aggressively pursue takeovers of potential competitors,
which can affect their brand value.