Q Case Written Assignments o There are 4 case written assignments. The assignments MUST include a) key summary and problems, - For your summary, do not copy and paste contents from the original case b) applications of key themes in the textbook, specifically relevant to the assigned chapters, into the case, and c) your answers to the questions at the end of each case. Formatting including each component as subheadings is recommended in your case written assignment to have full credits. o These should be no longer than 4 pages, 12 font size, single-spaced not including any tables. Please use MS word format (.doc) and submit your assignments through the blackboard submission system by the deadline date at midnight. Key summary and problems The case for this week has been for the lack of concentration on the segments of the target markets filled with individuals of lower-income groups. For example, farmers have been suggested to be the ones suffering to obtain new technologies because of lack of adequate financial resources to obtain the new technological tools. Branded products related to farming and agriculture can also be impossible for most farmers to buy because of the high pricing for the brand names. The low-income groups of customers have been classified to be bottom of the pyramid because there is not much attention paid to the preferences and desires of such customers. However, some branded companies are present in the global world which cater to low-income groups even after targeting the middle-income and high-income groups of customers. The focus on cost differentiation to become a cost-leader has been taken up as a challenge and a parameter/key-performance indicator for measuring success for business entrepreneurs like the owner of Walmart Inc. This is because low prices can ensure that all sections of the society can become brand-loyal customers of Walmart Inc. Therefore, the low-income groups will never be ostracized from the targeting. positioning and segmenting of Walmart Inc. It is important for branded companies to sometimes become selfless and think about providing benefits to the low-income earning sections of the society like the farmers. Though there can be lower percentages of profits earned by selling branded products to farmers, the efforts made to provide benefits can be of great assistance for farmers. Heavy equipment/equipment run by the use of heavy technology, will have to be provided to individuals of lower-income groups like farmers as had been the case during the ITC project. This is because there will always be some form of encouragement required for the lower-income groups to at least start learning about new technologies. However, the issue is – How long will a company like ITC or any other company be able to volunteer, contribute, invest and train individuals of lower-income groups in the long run? This is because there will always be overhead expenditures incurred by companies. Moreover, there will also be the challenge of training these individuals to learn to use new technologies appropriately. Otherwise, the availability of new technologies for the individuals of lower-income groups might be in vain. Improper training facilities and lack of adequate knowledge about new technologies can also lead to such individuals meeting with accidents. If accidents take place, such individuals will tend to lose faith in new technologies and in volunteering organizations like ITC. Customized and substituted products can be difficult to be manufactured and designed by organizations like ITC for a long period of time. This is because there can be the development of sustainability issues in future. The price of a branded product cannot always be made half the price for individuals of low-income groups. This is because the company would have to bear losses consistently and profit margins would become extremely low. In fact, consistent levels of losses could lead to the company to not be able to manufacture/design and sell products to low-income groups. The obtainment of creative financers can be an issue for the lower-income groups. Fair distribution of technologies and finances can be issues because it might not be possible to reach all the families/homes of lower-income groups. Packaging can also be an issue for the lower-income groups because packages of branded companies might be more costly than packaging of non-branded companies. Applications of key themes in the textbook The concept of multinational market regions can be related to this case because mutual economic benefits received by some countries can be used to assist the lower-income groups (Cateora et al. 2015). Otherwise, it can be difficult to obtain creative financing from business entrepreneurs of different countries because of lack of savings from. The concept of trade barriers can be related to this case also because companies of different countries will never be able to earn additional/unexpected margins of profits without being allowed to perform international trade operations with each other (Cateora et al. 2015). Free trade can be associated with the accumulation of profits and global outreach to lower-income groups in diversified countries (Cateora et al. 2015). This is because business entrepreneurs can go to different countries and find out the conditions of the individuals at the bottom of the pyramid. Economic unions can be beneficial for lower-income groups to ensure that they can be protected from political turmoil/manipulation/exploitation (Cateora et al. 2015). There can be economic assistance provided by forming special groups in case of economic unions. Petitions can be filed by the members of the economic unions to the government. State sovereignty is important for the lower-income groups to obtain equal pay, fair benefits and fair opportunities for employment and obtaining facilities (Cateora et al. 2015). New technologies can definitely be made available for all sections of citizens in countries adhering to state sovereignty. Cultural factors cannot be overlooked by companies while trying to assist lower-income groups in a particular country. This is because there must not be anything offensive in the new technologies which the lower-income groups might hesitate to do. Regional cooperation groups can be important for lower-income groups in case financial assistance might be required for creative financing of substitute products of branded companies (Cateora et al. 2015). There can be volunteers from high-income groups joining regional cooperation groups to benefit companies and lower-income groups. The European Union can ensure that there is fairness in competition of business at all levels allowing new entrants from lower-income groups to participate in the competition/business (Cateora et al. 2015). Market barriers can prevent high-income groups and branded companies to not participate in assisting lower-income groups to obtain products with new technologies (Cateora et al. 2015). This is because there might not be legal allowance for some companies to reduce the prices of their products and/or services. ASEAN can be related to this case because there can be new ways of cooperation, integration and innovation learned from this group of countries (Cateora et al. 2015). This is because the major motive of such groups is to raise the lifestyles of the lower-income groups and maintain an equilibrium/balance among the different income-groups in different countries. Economic policies and Bottom-of-the-Pyramid Markets can also be associated with this case (Cateora et al. 2015). This is because there might be necessities to change economic policies for assisting lower-income groups. Moreover, there has to be concentration on the Bottom-of-the-Pyramid Markets for targeting by companies also. Case Questions: 2. Marketing to the BOP raises a number of issues revolving around the social responsibility of marketing efforts. Write a position paper either pro or con on one of the following: a. Is it exploitation for a company to profit from selling soaps, shampoo, personal computers, and ice cream, and so on, to people with little disposable income? b. Can making loans to customers whose income is less than $100 monthly at interest rates of 20 percent to purchase TVs, cell phones, and other consumer durables be justified?c. One authority argues that squeezing profits from people with little disposable income—and often not enough to eat—is not capitalist exploitation but rather that it stimulates economic growth.