I would also highlight, that the 'marketing gimmick', because of enhanced effectiveness at 750%, may enable them to pull out some of the costs of their current product (less active ingredient). This may mean the 'marketing gimmick' doesn't cost the consumer anything, i.e. the product stays at the same price, pays OBJ's royalties and increases profitability of that product line.
But hey, since its a 'marketing gimmick' I bet they will increase the cost to consumer, decrease the input costs and make more money. Well that's what i would do if i was P&G - I would be prepared to pay 5% if the net benefit to me was say 10% (on a billion dollar product, that's $100 million increase in profitability and i am pretty sure I would get my bonus that year.....)
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- missing the forest for the trees
missing the forest for the trees, page-37
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