Escolar Documentos
Profissional Documentos
Cultura Documentos
The Concept
Selecting mass marketed product Targeting the segment with low affordability Also targeting value-for-money segment Product of daily consumption Product having a permanent demand Keeping the costs low Minimum amount spent on R&D / High tech soln Minimum cost on packaging No product diversification
Advertisement
Word-of-mouth advertisement Constant product features for easy and sustained recognition Unchanged packaging material No advertisement through any other medium Theme for any moderate advertisement highlights product utility Production concept
A Modern Awakening
C.K.Prahlads advocating the policy Modys Free Eye camps in collaboration with Rotary's and Jaycees brought national level recognition to Dr.Mody Prahlad collected a lot of case studies from all over the world and formed his theory Prahlad called it, "Eradication of Poverty through Profits
What it promotes.
Segmenting the markets into two, the first one paying for the next CSR is incorporated into the marketing strategy rather than to be pursued as a separate strategy Priority and Profitability converge Volume driven business Reduces the role of government, NGOs and other social organisations
A Cost-Conscious Production
Most of the industries like confectionary, coffee, tea, eatables and biscuits are extremely cost-conscious Chinese production progressively reduces the prices so that every segment gets the affordability In the process, income levels go up and employment is generated in rural areas
Requirement
Four billion poor can be the engine of the next round of global trade and prosperity. Serving the Bottom-of-the-Pyramid consumers will demand innovations in technology, products and services, and business models. More important, it will require large firms to work collaboratively with civil society organisations and governments. Market development will also create millions of new entrepreneurs at the grass root level-from women working as distributors and entrepreneurs to village level microenterprise C.K.Prahlad
Mode of Implementation
Innovations in technology Delivery of product & services Collaborative competition Engagement of private sector with social and government organisations Creation of millions of new entrepreneurs at the grass roots levels Creation of distributors at the village level
Overall Impact
Rural masses served Rural savings are mobilised Companies will have stable models Companies will not act against their own interest Companies will not act against the interest of consumers Cost-conscious operations Avoiding wasteful advertisement
Overall Impact
Miniaturising the production units Entrepreneurs at village levels Women entrepreneurs Better services available in the rural areas May reverse the process of migration to urban areas Employment Generation in the rural areas Better environment protection