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New Products and Stable Channel Relationships

Procter & Gamble and Walmart are key partners in a shared channel. P&G is one of Walmart’s biggest suppliers, and Walmart provides extremely detailed scanner data about customer purchases of P&G products. Walmart has begun selling its ownbrand of Sam’s Choice laundry detergent in bright orange bottles alongside P&G’s Tide, but for a greatly reduced price. What do you think will be the impact of this new product on what has been a stable channel relationship?

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