Chapter Case 5 Synopsis-P&G, Unilever, Panasonic

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Chapter Case Tracey Polson MKTG 3043 Chapter Case 5 Synopsis-P&G, Unilever, Panasonic To remain competitive in today’s economic climate, large companies are expanding into developing international markets. With special emphasis in the emerging markets in China and India, there remains a largely untapped market of global poor who live on less that $ 2 per day. Companies like Proctor & Gamble (P&G), Panasonic and Unilever are working to cut costs to deliver products that are cost effective to these populations. Things like cheaper packaging, simplified designs are driving prices down but, they are not able to penetrate the market. What is working is a comprehensive evaluation of poor consumer demographics. Understanding the needs of the poor consumer has led to the creation of products that not only are affordable to this demographic but will also greatly improve the quality of life. The products being developed not only are necessary for living, the convenience becomes a necessity that the poor would pick over other things. Two products created are Tide Naturals that allows effective cleaning for people that must wash their clothes by hand. Tide is a P&G product and the also sell a $ 43 battery powered, water purification system. The ability to have affordable, clean water in rural, poor areas is life changing and is currently placed in over 3 million Indian homes. The introduction of product demonstrations and door-to-door sales is an effective approach because the poor often respond to relationships and building relationships. This is effective but time consuming. It could potentially take years to see if the approach is marketable. New customers are difficult to build and require just as much handling. In the mean time, companies will have to be satisfied in doing something good for people that desperately need help that could eventually

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