Agenda for the Class

• Chapter 3 – Motivation & Personality

• Topic 4 – The Fortune At The Bottom Of
Pyramid
• First Marked Update – Project Presentations
Learning Objective 3.4

3.4 To understand the scope of personality and

theories of its development.
Personality

• The inner psychological characteristics (the

specific qualities, attributes, traits, factors,
and mannerisms that distinguish one
individual from other individuals) that both
determine and reflect how we think and act.
Facets of Personality

- Personality reflects individual differences

- Personality is consistent and enduring
- Personality may change
Theories of Personality

• Freudian theory

• Neo-Freudian personality theory

• Trait theory
How Does This Marketing Message Apply the
Notion of the Id?
Learning Objective 3.5

3.5 To understand how innovativeness and

other personality traits influence consumer
behavior.
Innovativeness
Levels of innovativeness
• Global innovativeness—a trait that exists
independent of any product-related context and
represents the “very nature” of consumers’
innovativeness
• Domain-specific innovativeness—a narrowly defined
activity within a specific domain or product category
• Innovative behavior—actions or responses that
indicate early acceptance of change and adoption of
innovations (e.g., being among the first to purchase
new and different products or services).
Other Personality Factors

• Visualizers vs.
Verbalizers
• Materialism
• Ethnocentrism

Is the ad trying to
appeal to visualizers
or verbalizers?
Explain.
Discussion Question

What is the difference between fixated

consumption and compulsive
consumption?
Learning Objective 3.6

3.6 To understand the personification of

products and brands and its strategic
applications.
Brand Personality Framework
Learning Objective 3.7

3.7 To understand self-image and its impact on

consumer behavior.
Consumer behavior researchers have
identified four components of self-image:
• 1. Actual self-image is the way consumers
see themselves;
• 2. Ideal self-image is how consumers would
like to see themselves;
• 3. Social self-image is how consumers feel
others see them; and
• 4. Ideal social self-image is how consumers
would like others to see them.
Discussion Questions

• How are possessions an extension of the

self?
• How do consumers use self-altering
products?
• What are the two types of vanity? How does
vanity shape consumption behavior?
The Fortune At The Bottom Of
Pyramid

Lecture 4
Global Income Distribution
Bottom of the Pyramid – An Opportunity
• Better approach to help the poor
• That involves partnering with them to
innovate and achieve sustainable win-win
scenarios where the poor are actively
engaged and at the same time, the
companies providing products/services to
them are profitable
BOP Market – A Snapshot
1. The BOP Market is Brand-Conscious
2. The BOP Market is connected
3. BOP Consumers Accept Advanced
Technology Readily
Mini Assignment
• Think of all the organizations which are
involved and “collaborating” with BOP
segments. Who do you think is doing the
most effective job? Why?
Project Hope – Insights
• Most consumers do not have the spending power to
purchase a 100 gram bar of Dettol soap for Rs 50.
• ‘Hope’ soap, priced at Rs 25, has a strong citrus fragrance
and can be used for bathing, handwashing, and even to do
the dishes.
• This one-fit-for-all approach has proved extremely effective;
the brand has achieved an 80% market penetration and is
being used by almost 600 households.
• As the brand portfolio does not include some essential
FMCG product categories that the BoP market needs, RB
has collaborated with other organizations to create a basket
comprising sanitary products, personal hygiene solutions
and nutritional consumption items for children and adults.
Profit Generation
• With rising inflation and changing
prioritization, BOP aspirations are changing.
• The gain per consumer is extremely small.
• To progress, companies must visit these
areas (slums) and do something to help
them.
• Prices must be kept low and profits will
become possible only when massive sales
volumes are achieved.
 The most challenging aspect of executing
a BoP campaign
• To change consumer habits – Consumer
Mindset
• Once the product is available, the greatest
challenge is inducing trial. Several international
behavioral studies estimate that it may take up
to 250 to 260 days for new habits to form.
• The answer to executing a successful BoP
campaign lies in creating a sustained, long-term
intervention
• Marketing communications needs to be by
supplemented by in-person product
demonstrations.
Other Challenges in Capturing BOP
1. Resource Management
2. Overheads and Costs
3. Product Proposition
4. Impact on Brand Personality – Brand
Communication
5. Viable and Sustainable Business Model
Case in Point – HBL
• Pakistan has an under-banked population
with less than 10% of the total population
having active bank accounts
• 90% of HBL’s customer base comprises of
masses
• HBL has focused on the masses through two
of its flagship product propositions:
1. HBL Rural Banking
2. HBL Asaan Account
Benefits
• Open your account with as little as Rs. 100
• No minimum account balance requirement
• Simple 1 page account opening form
• Benefit from four free withdrawal transactions from
branches every month
• Maximum account balance up to 500,000
• Unlimited debit, up to Rs. 500,000 per month
• Receive biannual account statements
• Access E-statements, 24 hours a day
• Obtain a free Debit card (Master or UnionPay)
• Cheque book, E-statement, SMS Alerts available
Unilever’s Sustainable Living Plan
• In 2010 Unilever Sustainable Living Plan was
launched internationally, which is the blueprint
for the company’s sustainable business.
• The Plan aims to helping the company decouple
growth from environmental impact while
increasing their positive social impact, driving
profitable growth for brands, saving costs and
fueling innovation
• The plan sits at the DNA of every brand – HOW?
Unilever’s Sustainable Living Plan
1. Improving Health & Well-being
2. Reducing Environmental/ Carbon Footprint
3. Enhancing Livelihoods
Residential Perfect Village Program
• 48,000 villages across Pakistan with more
than 70% of the total population residing in
them
• Adopt 10,000 of these villages and over a
period of next 5 years turn them into “perfect
villages” – HOW?
• Build Emphatic Relationships with them
Guddi Baaji – Empowering Women
• In Pakistan, Unilever took the concept to a new
level, training hundreds of village women as
beauticians, working out of their homes.
• During a three-month program, the women,
called Guddi Bajis, or “good sisters,” learn to
apply makeup, shampoo hair, and provide
other beauty services, as well as how to sell
Unilever products to their customers.
• They charge for their services and earn
commissions on those sales as well as points
toward incentives such as salon tables or
mirrors.
Products and Services for the BOP
• Involvement in BOP markets challenges
assumptions that managers in MNCs have
developed over a long period of time
• A new philosophy of product development
and innovation that reflects the realties of
BOP consumers is needed
Lessons for MNCs from BOP Markets
1. Capital Intensity
2. Sustainable Developments
3. Innovation
Sustainability
• Sustainability is the ability to meet
humanity’s needs without harming future
generations and is now one of the top
agendas for many firms globally.
• The 11 factors used to gauge how
“sustainable” firms are include: energy,
water, CO2, taxes paid, CEO-to-average-
worker-paid, waste productivity, leadership
diversity, innovation capacity, transparency,
among others