Ampomah Group is a large Ghanaian consumer products company with origin in Nkawkaw in the Eastern Region. The company primarily specializes in Shampoo, Diapers, Baby food and Cold medicine. Ampomah Group has business operations in over 50 cities in Ghana. The Company has been following the economic trends since 2020 and has found that after the COVID-19 pandemic, low-income households have been growing two times as quickly as other consumer segments. The preliminary report of the recent 2021 Population and Housing Census indicates a further extension of this trend in the next decade. Low income is defined as families with income at the poverty level or below. Ampomah Group has always had a premium product strategy. It sells its products in grocery stores, convenience stores, mass retailers, etc., but its products are always priced at the high-end of their respective categories. It has never targeted the low-income segment before and doesn’t have a low-income strategy, but given the growth of this segment, the Company is considering entering the low-income segment.

The Group CEO has three questions for you as an MBA graduate. You are free to use relevant diagrams/frameworks/figures in supporting your answers to the questions below

a. Should Ampomah Group have a low income strategy and why?

b. If it should have a low income strategy, what tactics should it deploy?

c. What are some of the risks that Ampomah Group may face?

Answer rating: 100% (QA)

Part a Ampomah Group should not have a low income strategy This is because their desire to attract customers by keeping their prices low may end up costing them money in the long run and it will also ... View the full answer