This report basically evaluate how Prof. C. K . Prahalad argues on the theory of Selling to the Bottom of Pyramid could eradicate the economy of the poor and help in poverty in India. Then it elaborates more into details on the bottom of the pyramid and the economy structure. The exhibits shown were some researched done by the World Bank and there are 4 tiers of the pyramid which the most untapped are the Tier 4 which consist of 4 billion of people having the annual capita income at $1500 and lives on with US$ 2 in a day.
Further down the report, we will touch base on the business policy in India, economy at current state in India as well as the social security in India. Next, the company chosen to be elaborate further in context is the CavinKare Pvt. Ltd; who is the first company enters the rural consumers with selling in small packaging for daily necessity like shampoo. The successful product bloom the economy for the rural market – Chik Shampoo.
The product were sold in a very suitable and creative way which will be pack in small sachets as enough for one time usage for the poor at very low price – 50.p per sachet. Reason being is the consumers of rural areas do not need to buy in bulk and the usage for the product is daily basis. The consumer practices daily purchasing compare to the urban consumers.
CavinKare then provided service like wash hair before go home for the boys at schools to advertise the product. And giving a promotion of exchanging empty sachets cover with free shampoo to attract buyers returns business. The advertising strategy is with low cost and it is done with fairly cheap rate with advertising through local cinema & radio. To further penetrate the brand loyalty, CavinKare also organize Haats and Mesal during festive season to get more sales.
In summary, CavinKare is one of the local companies in India which successfully tapped the bottom of pyramid and to build brand loyalty, the company should create more job opportunity...