Please Follow the example case and complete the following case study. Please note that all sections must be complete. The key issues section is critical. Look for the terms and concepts that we have learned and apply them to the case. Do not define the key issues. What in the case makes them the key issue?
Consumer behavior is influenced by internal and external factors. One of the external factors that sets real boundaries for consumers is their level of income. Some marketers refer to strategies directed at different income tiers as targeting certain levels of a pyramid. Marketing to the “bottom of the pyramid,” focusing on consumers with very limited financial means, became well-known in 2004 when C. K. Prahalad wrote The Fortune at the Bottom of the Pyramid. He envisioned companies marketing affordable products to the millions of consumers around the world with limited income and unmet needs. He believed that companies could help consumers and be profitable at the same time.
A number of companies have attempted to make this model work. Puriet, an in-home water purification system manufactured by Hindustan Unilever Limited, was developed for low-income consumers and has found success by offering a 6-month installment plan to make the $25 price more manageable. The Nokia 105, introduced by Microsoft, is a $25 basic cell phone with an alarm clock, flashlight, and FM radio. It was priced specifically for low-income consumers and has sold millions of phones since its introduction in 2013.
However bottom of the pyramid strategies are not always as workable as companies would have imagined. The Nokia 5 has struggled to be financially sustainable and has faced challenges as low-income consumers gravitate toward smart phones that are decreasing in cost. Other companies missed the mark because of a lack of research, discovering in the end that consumers could not afford their product or could opt for a cheaper, more local offering. Some companies have been pushed by investors to show profitability in the short-term with their low-income market initiatives, which has been difficult to accomplish. In some instances the only way to make their business model work over the long term is to partner with a nongovernmental organization (NGO) which could help them to gain access to consumers through their established connections within countries.
Let’s consider the possibilities in India, a country with considerable bottom of the pyramid potential. World Bank 2013 data show India’s population at 1.24 billion people and per capita income at $125 a month. The McKinsey Global Institute estimates that 78 percent of the that population fall into the bottom of the pyramid category, with the majority living in rural India. They predict that this market may be worth $1.5 trillion by 2020. The sheer numbers of consumers and the overall potential make this market appealing to marketers, but still the low level of income poses considerable challenges.
For years Procter & Gamble (P&G) has worked to find ways to capture market share of the men’s razor market in India. They felt that there was a significant opportunity to meet the shaving needs of Indian men at the bottom of the pyramid. Unfortunately, early efforts, like their Vector razor, were undermined by a misunderstanding of the shaving process for men in India, many of whom did not have access to running water. More recently, P&G introduced the Gillette Guard. This razor was developed based on 3,000 hours of research over 18 months, some of it conducted in the homes of low-income Indian men. They asked the men about their shaving rituals and observed them in the process of shaving. What P&G found is that they typically shave on the floors of their huts with no electricity, using a bowl of water and no mirror. Their primary objective is to avoid cutting themselves. This research proved to be invaluable in the development of the new razor.
The Gillette Guard was the result of what Alberto Carvalho, vice president, global Gillette, described as a focus on not only producing a razor that would meet the needs of these consumers, but doing it at “ruthless cost.” This meant paying attention to the smallest details, designing a stripped down single blade razor with only four components versus the 25 found in more sophisticated razors. Jim Keighley, associate director for product engineering, says “I can remember talking about changes to this product that were worth a thousandth, or two thousandths of a cent.” In the end they were able to produce a razor that cost one third of the previously introduced Vector. Selling price for the Gillette Guard ended up at 15 rupees (34 cents) and razor blades at 5 rupees (12 cents).
Please follow this guideline:
This assignment is due by midnight on Sunday, at the end of each week. No late assignments will be accepted without advance permission from the instructor.
On every case assignment you must meet the minimum standards for depth and organization. Any case analysis that is under 500 words (not counting title and references) will receive a zero. Each case also must have a minimum of 3 outside references, not counting the textbook.
Below is a Sample Case Analysis. This sample gives you a clear example of how the required case analysis format should be delivered. Follow this format in your analysis.
Do not use the Key Marketing Issues used in the sample case. Each case will have its own set of Key Marketing Issues which you will choose based on the details of the case content and the class reading. Follow this format on all 8 case analyzes.
Sample Case Assignment Analysis Format
MRKT 5000 Online Course
(Instructional notes in red)
(Your name here)
Can Pepsi make Pepsi One the One? (This is a case from a previous edition of the Marketing text – not currently in your text book. This is only a sample analysis to demonstrate analysis format only)
(Each case to be analyzed will be read from the text, with specific questions assigned)
(These are the issues in this particular case – each case will have a different set of Key Issues)
Personal Case Analysis
I learned that Pepsi One was a product created by a modification of an existent product “Pepsi Diet”. The product modification was the sweetener used. A new taste of cola was added to the appeal for a low calorie soft drink. By trying to differentiate Pepsi One from a classic Diet product, PepsiCo shows its innovative style and gain market share from Coca-Cola.
1- Is Pepsi One a new product, a modified product, or a line extension? Explain your answer.
Pepsi One is a new product, line extension and a modified product. Pepsi changed the sweetener to acesulfane potassium (ace K) to create the Pepsi One and tried to be unique by being a low calorie soft drink, which tastes a regular soft drink.
2- In what way is Pepsi One positioned?
Pepsi One was positioned by including characteristics that target market most desires. Understanding the diet aspect of Pepsi One helped attract an unusual market segment for a diet drink: cola-loving males in their 20s and 30s. The product is not made to compete head to head with Diet Pepsi.
3- Over the years, PepsiCo has had a number of product failures. Evaluate PepsiCo management’s decision to introduce Pepsi One?
PepsiCo was launched just after test indicated consumers liked its taste as much as its creators did. In extensive home-use tests, almost 70 percent of Pepsi One tasters reported they would purchase the product again. To differentiate Pepsi One from the horde of diet soft drinks, PepsiCo focused on the product’s taste, which is almost indistinguishable from the taste of sugared soft drinks.
The company that wants to be competitive needs to be innovative and always introduce new products in the market. PepsiCo used line extension of its Diet products to create Pepsi One. Pepsi One is a product modification as well, which was consisted of in changing the sweetener to acesulfane potassium (ace K). This aesthetic modification provided the product differentiation that appealed to customers as product with low calorie that tastes as a regular soft drink. The different product design that included change on the styling never seen before, helped to position the product among the cola-loving males in there 20s and 30s. By being innovative Pepsi One is guaranteeing its position on the soft drinks market, taking some market share from its big rival “Coca-cola.”
(Each analysis must include a minimum of three outside references, not counting the text or references from the case subject directly)
Bramhall, Joe, “Pepsi Inc”, Hoovers, http://www.hoovers.com/xm-holdings/–ID_60656–/free-co-factsheet.xhtml
“Choosing a soft drink”, Soda pop.com Click & Learn: http://www.pepsicity.com/rpsm/edOid/105548/rpem/ccd/lookLearn.do
Deitz, Corey, “Learn the Difference to Make the Best Choice For Yourself”, Your Guide to softdrinks, December 29, 2005, Pepsi and Coke Comparison Chart
Company Profile, “Pepsi, Inc”, February 10, 2006, NAMC Newswire, http://www.newswire.com/companyprofiles/xmsr.html
Insight from Standard & Poor’s, S&P Boosts Pepsi to Strong Buy, BusinessWeek online, February 9, 2006, http://www.businessweek.com/investor/content/feb2006/pi20060209_35961.htm?chan=tc
(Make sure your name is at the top of the paper)
(Remember that any paper with less the 500 words of content – not counting the words from the questions and references – will receive a zero)
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.
At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.
Thesis Writing Service
Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?
Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.
Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.
Coourse Work Writing
Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !
Dissertation Writing Service
High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.