..._______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ : Bottom of the Pyramid INTRODUCTION: Global poverty exists today at a startling scale; while the exact numbers are debated, some estimate that four billion people worldwide live on less than two dollars a day.1 According to C.K. Prahalad and Stuart Hart, both Aspen Institute Faculty Pioneer Award recipients, companies should not ignore these traditionally overlooked people, collectively dubbed the “Bottom of the Pyramid,” because of their considerable combined purchasing power.2 Thus, if companies are innovative enough to create or tailor their products to the economic realities and life needs of these people, a significant profit can be won. At the same time, this group’s entry into the market would hopefully better their quality of life and aid in regional economic development. Three well-publicized examples will help illustrate the base-of-the-pyramid concept. First, Grameen Bank was started by Nobel Prize laureate Muhammed Yunus in Bangladesh to offer mini-loans to entrepreneurs who wouldn’t qualify for traditional bank loans based on collateral.3 As of May 2007, over seven million people have borrowed from the Bank with incredibly high levels of repayment.4 Second, PlayPumps is a water pump that runs on the energy...
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...Loreal ideas - customer centric – develop categories together with comsumer - assess the competencies vs strategy of the business (action) - be consecutive in the strategy deployment (pyramid) Moje pomysly: Secure the base (because of high share in sales, important for future growth), use as recruitment/education strategy, Multi- Brand Strategy L’Oréal uses a multi-brand strategy to cover the mass market in China. The best way to describe their diversified brands is that of a pyramid: At the base of the pyramid comprise of L’Oréal Paris, Maybelline Garnier, and Mini-Nurse – all products that target the mass market. Brands such as Vichy, Kerastase, and Matrix make up the middle of this pyramid. These products are sold in pharmacies and hair salons meant for consumers looking for that mid-level quality of products. The very top of that pyramid is reserved strictly for the high-end products such as Lancome, Biotherm, Shu Uemura, and Kiehl’s. These products are sold in retail outlets, high-end department stores, and specialized boutiques. Each level of L’Oréal brand pyramid occupies a certain price area, which meets the needs of Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in China. Now beyond price, L’Oréal products go through different tiers of sales channels including supermarkets, pharmacies, hair salons, department stores, and specialized boutiques. Even L’Oréal brands have their own unique ‘personality’ – L’Oréal...
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...Advanced Topics in International Marketing Compulsory Graduate Graduate school 1 2 st nd 6 ECTS; 36 hours of class work, 126 hours of self-study Prof. Dr. Hemant Merchant hemant.merchant@yahoo.com Marketing, International Marketing; Programme requirements (pre-reading) Consecutive (Evenings & Online) English COURSE ANNOTATION This course is designed to facilitate a more “applied/practical” understanding of contemporary issues facing companies who market (or intend to market) their products/services across national boundaries. The course focuses on real-life challenges that companies encounter in the context of their international marketing function (broadly defined). In general, these challenges relate to identifying, evaluating, and making tradeoffs across national, organizational, and personal contexts. Thus, we will discuss formulation- and implementation-related challenges as well as generate solutions to ‘international marketing’ dilemmas. COURSE LEARNING OUTCOMES Learning Methods: Case discussion; Role plays; Mini-debates; Mini-lectures Assessment methods: Class participation; Case presentation; Final exam CLO1. Understand the international marketing environment; Contemplate and analyze international marketing opportunities. CLO2. Gain an understanding of international marketing effort related to the market entry and marketing mix strategies CLO3. Identify, interpret and evaluate information sources related to multinational marketing with the emphasis on information...
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...college located in Upper Clapton, London in the United Kingdom. It officially opened in September 2002, giving students in Hackney the opportunity to study at a college close to where they live. It provides student courses for the right appropriate level. It provides a-level courses such as chemistry, maths and business. Tesco has a hierarchical structure because it has a lot of layers and a lot of people reporting into more than one person before that information get to the boss. A hierarchical structure has many levels. Each level is controlled by one person. A hierarchical company tends to be a very big company just like Tesco is. In a hierarchy instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be. Strengths of a Hierarchical structure are that there is a close control of workers. Workers in Tesco will know exactly what they have to do so they don't wait around until they are told. This sort of structure allows the workers in Tesco to know precisely what they have to do so they don't hang around until they are told. There is clear authority and responsibility within the organisation that makes sure that everybody knows what they are undertaking and know...
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...MKS0119 Nokia’s Rural Marketing Strategies in India: Reaching Out to the Bottom of Pyramid “The rural consumer is discerning and the rural market is vibrant. At the current rate of growth, it will soon outstrip the urban market. The rural market is not sleeping any longer. We are.”1 – Adi Godrej, Chairman, Godrej Group of Industries To expand its presence, Nokia is planning to launch a new service ‘Nokia Life Tools’ that would provide information on market price, weather, etc., to information-starved farmers. While the idea is not new, the challenge in front of Nokia is to convert the 70 million rural mobile users in using its service, amidst competition from local input dealers and ITC e-Choupal that offers similar services. Rural Marketing in India: Demographics and Economics Out of India’s population of over 1 billion, 70% lives in rural India.2 India consists of 627,000 villages3 with 13% of them having a population of above 2000.4 For the people of rural India, agriculture is the main occupation. Agriculture contributes 17.8% to India’s GDP with about 60% of the workforce employed in the agriculture sector in 2008.5 Since independence, rural India went through a socio-economic transformation due to the various initiatives taken by the ministry of rural development.6 However, till 1990s, the gap between rural and urban development remained wide. With the implementation of minimum support price (the rate at which the government buys the farm produce to prevent farmers from...
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...STERN SCHOOL OF BUSINESS NEW YORK UNIVERSITY Global Marketing Management Spring 2015, UB.0064.001 Professor Eileen Fischer E-mail: efischer@stern.nyu.edu Office: KMC 7-100A; Office Hours: Monday and Wednesday 12:30 -3.00 and by appointment Telephone: 646-591-8760 Teaching Fellow: TBA COURSE OBJECTIVE The purpose of the course is to examine the issues involved in developing a global marketing strategy and the challenges of implementing the marketing mix in individual countries. The course is designed to give students an understanding of: * the strategic issues surrounding global expansion and the strategic options for entering international markets * how to assess market opportunities on both Country macro and market related factors * the global competitive landscape that includes strong local competitors * balancing global and local considerations when developing the marketing mix with a focus on the tactical challenges of adapting to specific market needs * the rapidly changing challenges and opportunities in Emerging Markets My objective is to provide you with useful frameworks, tools and ‘rules of thumb’ which we apply to cases in virtually every class. Many cases will be only one or two pages and they focus on a specific question. Our longer cases will deal with multiple issues and will require the application of frameworks and concepts...
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...Marketing Management Tata Ace Case Study Solution 1. Analyze the Commercial Vehicle Industry at both Global and Indian scenario? Which are the top 5 countries for CV Industry. Indian Scenario- Indian Commercial Vehicle industry can be mainly segmented into * LCV and * M&HCV industry. LCV consist of three wheelers and four wheelers up to 1 ton capacity. Tata, Bajaj, Mahindra, Force motors and Piaggio are the major players of LCV industry. M&HCV consist of four wheelers such as medium sized pickups, single axle and multi axle buses and trucks. Tata, Mahindra & Mahindra, Eicher, Volvo and Swaraj Mazda are major the players of M&HCV industry. Also, two wheelers, passenger cars and SUV’s were also used for freight transport. Non motorized vehicle sector included bullock carts, bicycle rickshaw, horse drawn carriages, and manual pull carts. The size of the non motorized section was large but undocumented. After many successful years, In India commercial vehicle industry is going through a bad patch due to following reasons- • Economic slowdown • Delay in infrastructure facilities i.e.-Roads Medium and high commercial vehicle industry has seen significant slowdown while LCV industry is still experiencing growth. To overcome the slowdown OEMs have started investing in more research in technology, design, innovation, increasing the reach and increasing the standard of aftersales service instead of investing in expansion of output facilities...
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...ITC In Rural India: Case Study By Group X2 Indian context- * 88 % of rural population lived on less than $2/day * NGO’s provided assistance to the poor & voiceless * Foreign investment was discouraged * Great effort was devoted to improve agriculture * Organized sector labour was privileged compared to the poorest people * Government announced rural jobs program to lift 60 million people out of poverty * The IT sector grew rapidly as foreign companies aggressively outsourced services to India * Indian companies rarely competed abroad because of government restrictions * To increase rural presence, HUL started “Project Shakti” which was very successful * ITC launched “e-choupal” to enter into agri-business division & interact directly with the farmers * Retail sales in India was around $250 billion in 2006, which was estimated to rise by 15-18 % by 2016 * Despite widespread poverty, the poor provided significant markets for products like tea, oil, bulb, footwear, bicycles & radios * FMCG accounted for 80% of all Indian consumer spending Opportunities and challenges presented by the India’s rural market Opportunities:- 1. Majority of the Indian population is from rural areas. So in rural market the consumer base is very large. 2. In the category of consumable and durable products, there are lot of products whose rural share is more than that of urban share. This provides a great opportunity for the companies to focus on...
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... Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers in emerging markets on the appropriate direction for R&D strategies. 2 INTRODUCTION Innovations in the emerging economies have attracted more and more attention of practitioners and academics. Many papers have discussed the nature and the scale of the potential market – the bottom of the pyramid (Prahalad & Lieberthal, 1998; Dawar and Chattopadhyay, 2002), how multinational...
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...Marketing Channel Strategies in Rural Emerging Markets Unlocking Business Potential By Benjamin Neuwirth Benjamin Neuwirth, Kellogg School of Management, bneuwirth2012@kellogg.northwestern.edu 1 EXECUTIVE SUMMARY In his landmark book “The Fortune at the Bottom of the Pyramid,” C.K. Prahalad describes the profits that can be earned by selling products to “Bottom of the Pyramid” customers. While there is truth to this, companies face unique challenges when operating in the rural regions of emerging markets where many of these customers live. For example, the consumer population is dispersed over a wide geographic area, transportation infrastructure is often poorly developed, and many consumers have sporadic and extremely low incomes. This paper examines these challenges from a marketing channel perspective. The fundamental question is: How can companies entering into rural emerging markets design a marketing channel strategy that meets the needs of customers and allows for the long-term profitable success of the business? I begin answering this question by examining common challenges that companies operating in this environment face. Each challenge is accompanied by examples of companies that have solved the problem in a unique way. Then, I develop a generalized framework for designing marketing channels in rural emerging markets. Finally, I apply the framework to d.light Design, a company that manufactures and sells solar lanterns in India and Africa and that I worked...
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...g [pic] [pic] SCHOOL OF MANAGEMENT Brand Image of Apple Inc. [pic] BSc in Business and Management Studies [Marketing] TABLE OF CONTENTS[pic] Page ACKNOWLEDGEMENT Executive Summary [pic] Chapter 1: Introduction 1.1 Industry Summary 6 1.2 Company Profile 6 1.3 Brand Personality and Strategy 7 1.4 Line of Flagship Products 8 [pic] Chapter 2: Literature Review and Theoretical Framework 2.1 Literature Review 9 2.2 Corporate Marketing v/s Product Marketing 2.2.1 Corporate Marketing 11 2.2.2 Product Marketing 13 2.3 Definition and Importance of Corporate Image, Reputation & Brand 2.3.1 Corporate Image 14 2.3.2 Corporate Brand 15 2.3.3 Corporate Reputation 15 2.4 Impact of Exogenous Factors on Corporate Image 2.4.1 Effect of Country-of-origin (COO) on Corporate Image 16 2.4.2 Cultural and social influences to Country-of-origin (COO) 17 2.5 Importance of Corporate Communication 2.5.1 Total Corporate Communication Mix 18 2.5.2 Corporate Communication Wheel 19 2.6 Consumer Behavior 2.6.1 Maslow’s Hierarchy of needs 20 2.6.2 Consumer Buying Decision Process 21 2.6.3 Influence of Reference Groups 22 2.6.4 Family Influence on Consumer Behavior...
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...Cambridge Journal of Regions, Economy and Society 2010, 3, 443–457 doi:10.1093/cjres/rsq009 Advance Access publication 1 April 2010 The Tata Nano, the global ‘value’ segment and the implications for the traditional automotive industry regions Peter Wells Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive CF10 3EU, UK, wellspe@cardiff.ac.uk Received on June 30, 2009; accepted on March 4, 2010 Downloaded from cjres.oxfordjournals.org at East China Normal University on May 24, 2011 This paper provides a case study of the Tata Nano, a low-price car designed primarily in and for the Indian market, and its implications for the developed industrial markets. While the Nano is a classic ‘disruptive’ innovation in an Indian context, this paper argues that the car and its emulators have the potential to undermine the viability of the European automotive industry whose business is premised on technological sophistication, premium branding and high price. In an era of greater austerity, the ‘value for money’ segment is the one with global growth potential in emergent markets as well. The paper concludes that policy makers in Europe will need to decide how to react to the rather different vision of automobility offered by the Nano. Keywords: Tata Nano, automotive industry, strategy, regional development, economic policy, price competition JEL Classifications: F01, L11, L52, L62 Introduction In March 2009, the Indian company Tata launched the long-awaited...
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...these positions are illustrated graphically in an organizational chart. The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets). DEVELOPMENT OF THE TRADITIONAL ORGANIZATIONAL STRUCTURE Understanding the historical context from which some of today's dominant organizational structures have developed helps to explain why some structures are the way they are. For instance, why are the old, but still operational steel mills such as U.S. Steel and Bethlehem Steel structured using vertical hierarchies? Why are newer steel mini-mills such as Chaparral Steel structured more horizontally, capitalizing on the innovativeness of their employees? Part of the reason, as this section discusses, is that organizational structure has a certain inertia—the idea borrowed from physics and chemistry that something in motion tends to continue on that same...
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...Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization of any size or complexity, employees' responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart (see Figures 1a and 1b). The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets). There are multiple structural variations that organizations can take on, but there are a few basic principles that apply and a small number of common patterns. The following sections explain these patterns and provide the historical context from which some of them arose. The first section addresses organizational...
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...FUTURE OF FASHION: SUSTAINABILITY THROUGH THE LENS OF THE FASHION INDUSTRY* By: Jennifer Johnson & Gina Wu Companies across all industries are facing the challenges of business sustainability, debating how best to address these risky issues while also embracing their opportunities for competitive advantage. This Teaching Module uses the context of the fashion industry to discuss topics that are shaping the future of all industries. These topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business models and management techniques for the future. Given its enormous reach and connection to important business topics ranging from climate change to social networking, the fashion industry’s...
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