Management Decision Case1

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MANAGEMENT DECISION CASE

Selling to the Bottom of the Pyramid Marketing Unilever Products in Rural Villages
Around the World - page 49-50

Questions:

1. Is Unilever providing value to their Indian customers? In what ways? Consider the four
types of utility when forming your answer.

Yes, Unilever offers value to its Indian customers through the small size of the Wheel
Cleaner product and the meager price; these play an essential role in valuation. Referring to the
definition of value, it is defined as a percentage of the interest package that the customer receives
from a presentation compared to the costs borne by the customer in obtaining this set of benefits.
Therefore, Unilever offers value to its customers.
Unilever relies on the conversion of raw materials to finished products and is considered an aid
but not unique in the context of BOPM. The time factor is not essential in evaluating the value
since it assumes the availability of the product throughout the year. The use of the ownership
utility is based on the provision of small, low-cost products to keep product ownership possible.
The place is one of the essential tools of assistance in providing the product in the villages where
people live.

2. Considering the competition Unilever is receiving from Procter & Gamble and other
companies, in what creative ways could Unilever change their Wheel detergent product
offering to differentiate it from competitors’ offerings?

The higher the value, the more significant the differentiation between the competitors. When
Unilever cuts its product price as far as possible, I think it will need the focus to raise the quality
of the product with more active ingredients so that it has a competitive advantage over other
companies.

3. What principles should be used to determine if a product is a good fit for a BOPM market?
Are there products that should not be offered to BOPM consumers? Should this issue be
decided by marketers, governments or consumers?

In order to "fit a good BOPM" there are possible principles that can include:
 Conduct marketing research to determine the size and price of the product to suit the
ability of consumers to spend some of their limited resources to obtain it.
 The size of the packaging must be practical and meaningful.
 A method of distribution is available or can be developed to support the organization cost
necessary to maintain unit prices at the appropriate level.
 The product should be produced and packaged in small units, and the product and
distribution costs should be considered in order to reach BOPM consumers at the lowest
possible price.

BOPM products should be considered in terms of whether the product is the appropriate use of
the estimated income. The primary responsibility of the marketer is to provide a product that
delivers value and then delivers that value (product attributes/benefits and costs) in a precise,
clear, and complete manner.

4. Is it ethical for marketers to try to make money off people who are living at a subsistence
level? Should companies only market their products to people in certain income classes?
What factors should a marketer take into consideration when trying to answer these
questions?

Although the world is becoming connected and people living in small villages are familiar
with products in the other world that cannot be reached because of high prices, marketers must
apply a policy of values in marketing their products to BOPM markets and provide their products
in very small quantities that fit estimated income for these people.

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