Deck 10: Case Study P&G Unilever Panasonic: The $2-a-Day Initiative

Question 1

Providing low-cost,simplified versions of familiar products can be impossible to market in some regions,especially in Africa.Which of the following is a probable reason for nonexistent markets?

A) poor channels of distribution
B) inadequate physical infrastructure
C) high tariffs
D) severely impoverished population that don't even use money
E) all of the above

Answer 1

E
In many developing nations,channels of distribution and the physical infrastructure are inadequate.In Africa,the continent's GDP is growing rapidly,and African businesses want to expand.Unfortunately,they face high tariffs,weak infrastructure,and severely impoverished populations.

Question 2

By removing certain chemicals from Tide because it irritated the skin when used by rural villagers who wash clothes by hand,Procter & Gamble did not go along with the trend toward __________.

A) one-size-fits-all design
B) unsafe products for the poor
C) human testing
D) cheaper versions of brand-name products
E) standardized consumer products

Answer 2

E
Standardized consumer products have emerged on a huge scale,as opposed to segmented foreign markets with different products.

Question 3

Marketers are often surprised that the poor reject products that have been made cheaper for their benefit.What explains the failure of P&G and other firms,such as L'Oréal when both used a strategy of "diluting"?

A) The special pricing was not cheap enough.
B) The poor can tell when water has been added.
C) The poor don't see themselves as poor.
D) Poor customers have product aspirations just like other customers.
E) Poor customers have aesthetics about package design too.

Answer 3

D
The firm must not assume that low-income customers will accept lower quality.

Question 4

For multinationals,the primary growth demographic in emerging markets is the very poor.

Question 5

Single- and small-use packaging,such as Unilever deodorant sticks that sell for pennies,are cost-effective for multinationals because __________.

A) of product standardization with free sample packaging used in developed countries
B) the income in many countries in less than $1,000
C) they are easier for rural people to carry and use in the fields
D) the pricing is fair trade
E) all of the above

Question 6

When confronted with a consumer population that can only spend $2 a day-and only a fraction of that is disposable-a marketer is looking at a factor in the __________.

A) gross domestic production
B) average daily salary of the world's poor
C) economic disparity between developed and emerging countries
D) multidomestic strategy
E) external environment

Question 7

Panasonic designs its products for the global poor by simplifying preexisting Japanese market designs.For Panasonic,standardization is way to realize profits in these otherwise unprofitable markets.

Question 8

Product demonstrations,rather than promotions such as coupons,are preferred as market tools in the more isolated,rural regions of emerging countries.

Question 9

Simplifying design and lowering other costs is still a viable way to penetrate the lowest level of the economic pyramid in emerging markets.

Question 10

Procter & Gamble's policy,described as __________ by its CEO,puts patience before a quick return on investment.

A) "time-intensive growth"
B) "fair price-product mix"
C) "purpose-inspired growth"
D) "diluting expectations"
E) none of the above"