Managers have long understood the reasoning for investing in new products. The argument presented in this post, for starting or increasing promotion efforts in these nations, makes two points that are related. First, a strong world market demands consumers in developing nations-especially China-to spend more, because trade imbalances between the USA and LDCs cannot be kept.
Second, to profit from it and in order to foster consumption in LDCs, marketing expertise in the developed world must refocus. Success will need devising, promoting, and distributing products that and others will overcome constraints that are economical and an understandable unwillingness, respectively to spend rather than save. We propose that lessons may be gleaned from examples involving recent attempts targeting LDCs by a pharmaceutical company (Pfizer) and a food supplement marketer (Procter & Gamble), as well as efforts pioneered in less developed countries themselves (including low-cost private schools and $2,500 cars).
PUBLICATION DATE: September 15, 2010 PRODUCT #: BH405-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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