ISCUSSION QUESTIONS S 12-1 Using the \"4A\'s\" framework in Figure 12.1, analyze
ID: 417479 • Letter: I
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ISCUSSION QUESTIONS S 12-1 Using the "4A's" framework in Figure 12.1, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market. S 12-2 Are companies targeting the bottom of the pyramid taking advantage of vulnerable consumers with lim- ited resources? 12-3 More 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?Explanation / Answer
12-1) Gillette is known for its premium class razor in the US market with its long-lasting diamond like coating blades, PowerGlide smoothness, ergonomic handles, pivoting precision heads and premium price , but it didnt run successfully in the Indian Market.
Indian market is characterised by low income consumers, who do not consider shaving to be a significant task and look for less timeconsuming and safe way of shaving.
As a result company conducted extensive research in the indian Market and launche Gillette Guard razor for the Indian market.The 4 A's framework analysis is given as :
Affordability : Gillette launched Gillette Guard razor at a price of Rs 15,which is less than 3% of the premium class Gillette razor. The refill cartridge is available for Rs5,which makes the product affordable to Indian consumers.
Acceptability : They made the razor accetable to Indian consumers by laying emphasis on safety and ease of use.Extra blades were eliminated. Single blades where the number of blades cannot be increased. Complexity of design was reduced and made it a simple razor with fewer parts toassemble during manufacturing. easy rinse cartridges which donot require running water to clean, new handle with a better grip, safety comb and hang hole in the handle wasintroduced to make it safer.
Awareness : Traditional advertising campaign featuring Bollywood actors make the product reach tothe end customers and creating wide awareness.
Availability : Wide distribution network with the availability across millions of small local shops making it widely available.
12-2) Most of the companies are targeting bottom of the pyramid consumers who are low income and constitute the largest percentage of the Indian consumers. In India the largest 85% of the individual belong to low or medium income consumers and thus most of the companies are targeting them to earn the maximum sales revenue.
12-3)Companies which are targeting the bottom of the pyramid consumersin the United States have to manufacture a low cost product which are affordable to the low income population. They should make use of low cost marketing strategy also to reach to the end consumers and the product should be avaialble in the local retailshops and not in big retail chains. The companies should focus on reducing cost of production in order to pass on the benefit to the consumers in the form of low price.
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