It is important to note that every industry faces constant competition from both already established and low-cost new entrant competitors. Cheaper competitors have a long-lasting effect on the price of products and therefore pose a threat to already established competitors. In particular, the established competitors may be forced to lower their product’s prices to meet the market price or venture into the rebranding of their products to increase competitiveness. Proctor & Gamble is no exception in the intense price rivalry surrounding products in the “green” market. The company’s Herbal Essence and Pantene shampoo already have competitive entries from Aveeno, L’Oreal, and Suave among other companies. Since the environment is becoming an essential aspect of the business, P&G’s decision to go “green” is an informed choice. Moreover, it will play a major role in lowering costs, making the company outstanding among the competitors and at the same time rejuvenate its competitiveness ( Solaiman , Osman , & Halim , 2015) .
Equally important, P&G’s entry in the “green” shampoo competition will lead to improved resource efficiency and as a result lowering the company’s input cost while advancing its competitive position. Similarly, it will allow the company to attract new customer particularly those who value the environment and purchase products that will not harm it ( Solaiman , Osman , & Halim , 2015) . Additionally, P&G’s entry in the “green” shampoo will increase profits and enhance customer loyalty. On the other hand, if P&G’s continue to sell traditional products that are harmful to the environment, its relative position in the market is bound to reduce. Consequently, the company’s may lose its competitive capabilities.
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Therefore, for P&G, use of the defensive green strategy will lead the company to realize profits and at the same time respond to the threat posed by competitors in the “green” market ( Ginsberg & Bloom , 2004) . Besides, the strategy entails the company sponsoring environmental friendly events and programs. Therefore, the company will be able to capture both the true blue green and greenback type of consumers simply because the true blue green consumers are proactive in environmental conservation matters. Similarly, greenback consumers are willing to purchase eco-friendly products regardless of the cost ( Ginsberg & Bloom , 2004) .
References
Ginsberg, J. M., & Bloom, P. N. (2004). Choosing the right green marketing strategy. MIT Sloan management review , 46 (1), 79-84.
Solaiman, M., Osman, A., & Halim, M. S. B. A. (2015). Green Marketing: A Marketing Mix Point of View. International Journal of Business and Technopreneurship , 5 (1), 87-98.
