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Scenario 3-4 In 2010, Procter & Gamble, the World's Largest Ad Spender

question 22

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Scenario 3-4
In 2010, Procter & Gamble, the world's largest ad spender, teamed up with Walmart and NBC to create a number of prime-time family movies produced by P&G Productions. The films are designed to lure consumers to buy P&G products at Walmart using original family movies and exclusive ad buys. This was not the first time the two major brands teamed up to push family-oriented entertainment-in the late 1990's, both companies were launch members of the Association of National Advertisers' Alliance for Family Entertainment-the organization responsible for getting the WB's Gilmore Girls on the air. The two have each found great success as a result of the moves, with each seeing an increase both in sales and brand favorability scores. Both companies have expressed strong interest in continuing their working partnership down the road, and as long as they continue to encounter favorable results, the relationship will likely remain a positive one.
-(Scenario 3-4) The partnership between P&G and Walmart to create family-oriented movies is a perfect example of

Definitions:

Vertical Merger

The merger of one or more firms engaged in different stages of the production of a particular final good.

Antitrust Cases

Legal disputes focused on stopping or managing businesses that violate competition laws designed to promote market fairness and prevent monopolies.

Herfindahl Index

A measure of market concentration and competition, calculated as the sum of the squares of the market shares of all firms within an industry.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing monopolies.