3. In the 1980s Procter & Gamble tried to get into the bleach business. They had a differentiated and superior producta color-safe low-temperature bleach. They created a brand called Vibrant. In this market Clorox was the dominant player. Most Americans use the word Clorox and bleach interchangeably; the brand was the product. Clorox is a cheap product, the households use it for bleaching white textile, disinfecting the floor, bathroom, etc. P&G went to test-market in Portland, Maine.It was far from Clorox's headquarters in California, it was a small market, and they were all set with a couponing and sampling strategy for introducing their product to test it out. P&G's launch plan was: full retail distribution, heavy sampling and couponing, and major TV advertising. All designed to drive high consumer awareness and trial of a new bleach brand and a better bleach product.

Clorox caught wind of this. They launched a preemptive attack to deter entry by P&G. They delivered a gallon of bleach to every household in Portland, Maine and gave consumers a $1 off coupon for the next gallon. So nobody in Portland, Maine, was going to need bleach for several months.

1. What are the possible actions of Procter & Gamble? What are the pros and Cons?

b) Vibrant is an innovative product. Which innovation strategy was chosen by P&G? Assess the strategic choice! (20 points)