Management Innovation at the Bottom of the Pyramid
Many managers intuitively believe that a premium product is the ideal route to drive revenues. However, as the Danimal case proves, substantial revenues can also be generated in tier 5 communities in which the target market has little disposable income. Tier 5 markets can be defined as those who have income that falls below one thousand five hundred dollars annually. Despite the fact that average purchasing power in this market is comparatively low, the population of this segment is the largest of the markets; therefore the collective purchasing power is extremely high and, for the most part, competition is not as intense as found in other markets.
However, to be successful in this market it requires innovation at every level. There are many challenges that must be overcome to enter such a market. One of the primary challenges results from the lack of infrastructure that can be found in these areas. There is little opportunity to build modern distribution channels to bring the products to market. Danimal overcame the infrastructure challenges in South Africa with an innovative solution. They provided the Daniladies with their own mobile retail operations that consisted of a cart, cooler box, umbrellas, and even promotional materials such as leaflets to help them do their own marketing. As opposed to trying to...
However, to create this distribution network of females, there were also many barriers that had to be overcome. The company targeted entrepreneurial ladies that were self-motivated to be successful. However, despite their desire to succeed, they had very little in the way of training or business skills. Therefore, the company had to create a comprehensive training program that was able to equip the women with the skills necessary to be effective Danimal representatives as well as basically operate their own small business.
Pretorius and Berry created a two-day training program specifically for new recruits to bring them up to speed and prepare them to sell the product basically on their own. The women came up with their own strategies to do so. For example, some of them would go door to door while others would frequent busy areas. By giving the control to the local representative with greater…
The laws of South Africa has been constituted and formed, as a result of the influence from the English laws in procedure. 6. Environmental Concerns Where it has been observed that South Africa is full of resources, on the other hand, it has also come to notice that environmental concerns also loom large as one of the issues that needs grave consideration. Amongst the environmental concerns, air pollution, marine pollution, soil
Almost a third of the government's total revenue emanate from indirect taxes, mainly from value-added taxes (Brand South Africa, Niekerk). 3. privatization -- this process was viewed to create a robust flow of business opportunities in the next many years at a range of 100-150 billion South African Rands (PGI 2012). This is equivalent to U.S.$12-20 billion. There will be estimated and sustained business acquisition opportunities in agribusiness, agriculture and
In 1990, Africa had 2% of the world's telephones, but in 2000 it had only 0.8%. (These data, taken from International Telecommunications Union tables, represent fixed lines, not wireless, and there are now more mobile telephone subscribers in Africa than fixed-line subscribers. 3 Nevertheless, with about 12% of the world's population, Africa is far behind in per capita telephone subscribers.) (Hundley, Anderson, Bikson & Neu, 2003, p. 126) More specifically, even
Direct political involvement and aid, however, has not been as noticeable or as openly accepted in the past decade and a half. Part of this resistance to foreign influence is a direct result of South Africa's long submission to colonial or Europeanized rule, first by the Germanic Afrikaners and subsequently by the British (and the Afrikaners at the same time), and finally by the white government that intermingled European settlers
South Africa The Republic of South Africa as it is officially known is a burgeoning international market for trade and investment. Since the establishment of freedom from apartheid in 1994 the country has seen dramatic political, economic, cultural, and legal changes that have brought it to the forefront of international business. The economic picture of the country is a in a growth phase and will continue to be, if the conditions
South Africa -- Past and Present Rather than a mere struggle between black and white Marina Ottaway suggests that the conflicts in South Africa that hampered the nation's transition from apartheid to a fuller participatory government lay in the factionalism present in all of the representative bodies involved in the negotiations. (Ottaway, 1993) Although Ottaway's text ends before the configuration of the final ruling government body that governs South Africa, many