Daniel Josef M. Aloroy                                                                                            02.26.08

 

ITETHIC                                                                                                                     O0B

 

 

CASE STUDY ON ANNAPURNA SALT

 

 

1. What is the role of NGOs (Non-Governmental Organizations) in BOP markets according to Prahalad?

 

Do you agree with this position?

 

 

 

            The role of the NGO’s is to be a channel between people who ‘have’ and those who ‘doesn’t have’. They bridge the gap so that the poor and needy can receive what they need.

 

 

2. According to Rekha Balu of Fast Company, "poor people ... can become just as discerning about

 

brands as rich customer". Do you agree with this statement? Is this applicable in the Philippines?

 

 

 

            I agree with Rekha Balu’s statement but I would definitely not agree that it is applicable in the Philippines. There are many brands already out in the market but still, most of them are not affordable as to the poor. Usually, classes C, D and E even patronize imitations of original branded products.

 

 

3. What is the nature of the breakthrough of K15 Technology in your own words?

 

 

 

            K15 Technology is about putting potassium and 15 ppm of iodine on salt to prevent the iodine from evaporating from the salt itself under extreme acidic environments such as the human stomach.

 

 

4. What are the issues/difficulties in branding something like salt according to Vishal Dhawan?

 

 

            People wanted the assurance of a quality product most especially to the foods that are hard to differentiate with something like salt. Consumers are looking for a product that would earn their trust.

 

 

 

5. Why is the Annapurna evolution necessary according to Vishal Dhawan?

 

 

 

            “Annapurna needs to give reasons for the market to expand and that has happened. The number of re-launches is not too frequent in this market. The life of a product is usually 18 months. Because the name has remained the same throughout, each launch has had us going back with the strongest, most relevant perspective. We have gained market share each time. Who knows what benefits may be ahead with salt?”

 

 

6. What would the nature of the "differentiator" for Dr. Amitava Pramanik?

 

 

            The nature of the differentiator for Dr. Pramanik would be making a salt that cannot lose its iodine during transportation, storage and cooking.

 

 

 

7. What is the effect of advertising for the marketing strategy for Annapurna with K15?

 

 

            After launching the commercial for Annapurna, they found out that their message was clearly retained to the target group and this is viewed on an average of four times. 

 

8. What are the innovations of HLL with regards to transporting salt?

 

 

 

9. What is Project Shakti and what are its goals?

 

 

            Project Shakti is a “direct-to-customer” marketing strategy that aims to reach the BOP segments for them to gain awareness of the HLL products and its positive health effects            . Its four goals are:

 

Increase their reach to the market

 

Attempt to increase awareness

 

Change attitudes regarding usage of the various product categories

 

Catalyze rural affluence and hence drive growth of the market

 

 

 

10. How would you imagine SANGA, an "e-tailing program for daily ordering and delivery"? If you

 

were its designer how would you describe it?

 

 

 

            If I would desing SANGAM, it would be an e-commerce system which would enable HLL to sell its products through the internet. Consumers from far places would then be able to buy products from them and worry no more about shipping and payment.

 

 

11. Project Shakti caters exclusively to men. There have been requests for men to become

 

Shakit dealers but HLL turned them down. If you were the decision-maker, would you allow

 

men to become Shakti dealers? Why?

 

 

 

            If it has been said in the article that boys’ and men’s training and lifestyle are more fit than the women’s then, why not admit boys and men from being a Shakti dealer? Most of the time, men are also good at conversing and convincing by nature, so definitely there would be no problems employing men to be Shakti dealers.

 

 

12. What is i-Shakti? As an IM student how can you improve i-Shakti?

 

 

            i-shakti is a project giving a computer and an internet access to a Shakti dealer at her home. As an IM student, I could improve i-Shakti by developing a better system for the villagers to be able to view the products that HLL offer. This could be an interactive system that is user-friendly and easy to operate.

 

13. HLL's would-be competitors decided to have a watch-and-wait policy. If you were a

 

would-be competitor for HLL would you decide to get into HLL's market? Why? How?

 

 

 

            Maybe yes. I would decide to enter the market wherein HLL belongs to. I would offer products that are not only rich in iodine but also best eaten with iodized salt, and other foods that would nourish the children from remote areas. These will be offered at a low cost and ensuring quality to the consumers.

 

 

14. Should HLL keep their K15 technology proprietary? Why?

 

 

            Yes, it would be one of their best edges over the competitors and one that will be hard to imitate since it has been done by an expert. It is one aspect that consumers look for in an iodized salt. As people learn on the benefits of K15, they will also continue to buy products such as these.

 

 

 

15. Do you think a program like Project Shakti would succeed in the Philippines? What do you

 

think would be some of the anticipated difficulties?

 

 

            I think a similar Project Shakti would still succeed somehow in the Philipines because most of the BOP here are in the poor-dwellings and in the provinces, where jobs are in most need. Women who are jobless and needs something to earn from may find it a good position. There might be some difficulties, though. These may include not having reliable Shakti dealers here in our country due to some people who wants to be ahead of the another. Also, it has been a trend in out country that when you have a competitor, the other one will try to find all possible ways to put you down and even lead you to your death because of desperation.

 

 

Source: The Fortune At The Bottom Of The Pyramid (Prahalad, 2004)