Johnny Ch Lok

Micro Economics Solves Johnny Ch Lok

Chapter 7P& G body and skin product demand and supply theory?How would you explain the success of the fairly brand??Can economic changing factor influence consumers choose to buy R& G products?Behavioral economy analysis, P& G does not need to consider whether its skin and health product price is cheaper than its competitors because it had built confidence to consumers to use its skin health products. Otherwise, it ought consider to manufacture more different skin health products to give its traditional and potential consumers who have more skin health product choices. P& G fairly brand which mainly sold low value consumer goods, such a household detergents from bar of soap washing products to sell in UK country supermarkets in the beginning. Then, it innovated to produce liquid soap washing products to sell in UK country supermarkets. Further, it continued to innovate to produce soap products, such as the power of four for price of one, launched this low bulk, high concentration soap product to sell more cost effective to sell in supermarkets, even overseas supermarkets. P& G predicted domestic dishwashing machines instead of liquid of soaps, so it innovated to produce dishwasher cleaning fluid detergents products to let housewives to clean their dishwasher after every family used dishwashers to clean their plates to aim to keep their dishwashers to feel more clean to compare to clean by hand washing. Even, P& G will continue to innovate to produce potential anti-bacterial food washes to satisfy consumers' increasing concern over resides on the surface of fruit and vegetables. In fact, P& G can predict what the new washing products will sell in this washing market, who will be its direct competitors, which are generally similar in form and satisfy customers' needs in a similar way as well as who will be its indirect competitors, which may appear different in form, but satisfy a fundamentally similar need. Such as P& G sold bar soap washing products in the beginning, it aim to satisfy families wash body to feel more clean needs. But, P& G felt it's direct competitors can sell similar bar soap products, so it innovated to produce new liquid soap washing products to raise its washing unique products and was different to its body washing product competitors. On the other hand, P& G also predicted domestic dish washing machines instead of liquid of soaps, so dish washing machines shall be which indirect competitors. Due to housewives can use dish washing machines to wash plates, so who will not use hands to wash plates after eating, it will cause who reduce to use bar or liquid washing soaps to wash their hands. So, P& G innovated to produce dishwasher cleaning fluid detergents products to let housewives to clean their dishwashers after every family used dishwashers to clean their plates to aim to keep their dishwashers to feel more clean to compare to clean by hand washing. Even, P& G will continue to innovate to produce potential anti-bacterial food washes to satisfy consumers' increasing concern over resides on the surface of fruit and vegetables. Hence, P& G had attempt to raise its competitive ability in fruit and vegetables food and dishwasher machines cleaning market instead of bar and liquid soaps human clean market. It seems P& G threats of new entrants and threats of substitute clean products. In fact, P& G considers it soaps or other washing products whether which will cause chemical harmful to human skin or foods or dish washers after consumers have used its washing products. In the absence of that safety relationship of P& G social responsibility, its brand can act as a substitute in managing buyers' exposure to risk. P& G branding simplifies the decision making process by providing a sense of security and consistency of buyers which may be absent outside of a relationship with a washing product supplier.