1. Using the 4As framework in Figure 12.1, analyze the considerations that went into the development of...

1. Using the €œ4A€™s€ framework in Figure 12.1, analyze the considerations that went into the development of the Gillette Guard razor for the Indian market?

Figure 12.1 THE 4 A€™s:

The 4 A€™s of addressing low-income consumers

2. Are companies targeting the bottom of the pyramid taking advantage of vulnerable consumers with limited resources?

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?

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.

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• Promote offerings Reduce packaging size for low price per unit • Maintain operations on zero (or near-zero) working capital • Leverage scale effects through mix of outlets • Form partnerships with public and non- governmental organizations and sourcing network Awareness Tailor offer to market 4 A's Restructure value chain • Focus development on customers • Employ innovative thinking to meet Availability Reduce cost serve Shortem supply chain • Select and support customer needs retailers • Establish local R&D • Devise stocking strategy • Localize sourcing Affordability Acceptability