{"id":23213,"date":"2022-01-06T03:52:11","date_gmt":"2022-01-06T03:52:11","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/consumer-behavior-case-study-7\/"},"modified":"2022-01-06T03:52:11","modified_gmt":"2022-01-06T03:52:11","slug":"consumer-behavior-case-study-7","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/consumer-behavior-case-study-7\/","title":{"rendered":"Consumer behavior case study 7"},"content":{"rendered":"
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\u00a0ASSIGNMENT<\/p>\n

Week 7 Case<\/a><\/h5>\n

Please Follow the example case and complete the following case study.\u00a0 Please note that all sections must be complete.\u00a0 The key issues section is critical.\u00a0 Look for the terms and concepts that we have learned and apply them to the case.\u00a0 Do not define the key issues.\u00a0 What in the case makes them the key issue?\u00a0<\/strong><\/p>\n

Grading Rubric:<\/strong><\/p>\n

    \n
  1. Case Summary 2 points<\/strong><\/li>\n
  2. Key issues 10 points<\/strong><\/li>\n
  3. Personal Analysis 3 points<\/strong><\/li>\n
  4. Case Questions 9 points<\/strong><\/li>\n
  5. Conclusion 2 points<\/strong><\/li>\n<\/ol>\n

    CASE STUDY<\/h2>\n

    SUCCESS AT THE BOTTOM OF THE PYRAMID? P&G\u2019S GILLETTE GUARD SHOWS IT\u2019S POSSIBLE<\/strong><\/h2>\n

    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 \u201cbottom of the pyramid,\u201d focusing on consumers with very limited financial means, \u00adbecame well-known in 2004 when C. K. Prahalad wrote\u00a0<\/strong>The Fortune at the Bottom of the Pyramid<\/strong><\/em>. He envisioned companies\u00a0marketing 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.<\/strong><\/p>\n

    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.<\/strong><\/p>\n

    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.<\/strong><\/p>\n

    Let\u2019s consider the possibilities in India, a country with considerable bottom of the pyramid potential. World Bank 2013 data show India\u2019s population at 1.24 billion people and per \u00adcapita 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 \u00adrural India. They predict that this market may be worth $1.5\u00a0trillion by 2020. The sheer numbers of consumers and the overall \u00adpotential make this market appealing to marketers, but still the low level of income poses considerable challenges.<\/strong><\/p>\n

    For years Procter & Gamble (P&G) has worked to find ways to capture market share of the men\u2019s 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.<\/strong><\/p>\n

    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 \u201cruthless cost.\u201d 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 \u201cI can remember talking about changes to this product that were worth a thousandth, or two thousandths of a cent.\u201d 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).<\/strong><\/p>\n

    DISCUSSION QUESTIONS<\/h2>\n
      \n
    1. CS 12-1Using the \u201c4A\u2019s\u201d framework in\u00a0Figure\u00a012.1<\/a>, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market.<\/li>\n
    2. CS 12-2Are companies targeting the bottom of the pyramid taking advantage of vulnerable consumers with limited resources?<\/li>\n
    3. CS 12-3More than half of U.S. workers earn less than $30,000 a year, barely above the poverty line for a family of five. What would you recommend to a company looking to target the bottom of the pyramid consumers in the United States?<\/li>\n<\/ol>\n

      Please follow this guideline:<\/p>\n

      \u00a0<\/p>\n

      WEEKLY CASE INSTRUCTIONS<\/strong><\/h3>\n

      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.<\/p>\n

      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.<\/p>\n

      Below is a Sample Case Analysis.\u00a0 This sample gives you a clear example of how the required case analysis format should be delivered. Follow this format in your analysis.<\/p>\n

      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.<\/p>\n

      Sample Case Assignment Analysis Format<\/p>\n

      MRKT 5000 Online Course<\/p>\n

      (Instructional notes in red)<\/p>\n

      (Your name here)<\/strong><\/p>\n

      Can Pepsi make Pepsi One the One? (This is a case from a previous edition of the Marketing text \u2013 not currently in your text book. This is only a sample analysis to demonstrate analysis format only)<\/strong><\/p>\n

      CASE SUMMARY:<\/strong><\/h2>\n

      Pepsi One is an innovative product launched in the market by PepsiCo to keep the image of innovation, fast movement, and competitiveness.\u00a0 The case includes the steps of a new-product development process.\u00a0 Emphasizing the launch of the product and the ways that Pepsi One is getting more familiar to the target market.\u00a0\u00a0 Pepsi One is becoming a successful product by getting more market share from the main competitor Coca-Cola.<\/strong><\/h4>\n

      (Each case to be analyzed will be read from the text, with specific questions assigned<\/strong>)<\/p>\n

      KEY MARKETING ISSUES<\/strong><\/h3>\n