Backpedaling on my Cheer Volume Comment

Regarding P&G’s plan to go after market share with a price cut on Cheer brand fabric cleaners, I claimed how they need 36% jump in sales revenue and how difficult it would be for them to achieve that given their historical growth. I am not looking at the same numbers their brand managers are looking at. I also based my calculation on the gross margin of 50%. Cheer brand managers may be looking at customer margin and lifetime value of a customer retained over next 5 to 10 years. In such a case it is quite possible that the planned 13% price cut could deliver higher profit than status quo.