Firms targeting high-income consumers are finding their markets becoming increasingly saturated and this has caused a shift in focus to the extensive base of low-income consumers. The opportunity and wealth that is present in the low-income segment has been iterated in numerous instances, yet the challenges to compete in this market are plentiful. To better understand the low-income market and their needs, firms need to develop strong market sensing capabilities that allow them to interpret and develop insights into this market. This report seeks to better understand the adaptive and dynamic nature of these market sensing capabilities and how firms are using these to compete in low-income markets. A qualitative design was followed where 12 senior managers from 11 firms competing in the South African low-income market were interviewed. This was facilitated by a semi-structured in-depth interview method. An inductive and deductive analysis approach was used to interpret the findings against existing models, as well as to discover new themes emerging from the data. The findings included three key themes: the use of mixed method market sensing practices to adapt to the market; improving the capability through continuous sensing, responding and learning; and influencing success by creating an adaptive internal environment. Based on these findings, a framework for competing in low-income markets using market sensing capabilities was constructed. / Dissertation (MBA)--University of Pretoria, 2013. / mngibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

There are commercial imperatives for companies to consider low-income markets for expansion. This research study investigated how firms, who traditionally focused on the upper- and middle-income markets, were adapting to operating in dual markets, an ability termed ‘ambidexterity’. While there is abundant research available on ambidexterity, this construct has not been studied in the context of the low-income market.The primary aim of this study was to explore the tensions that existed for firms exploring the low-income market and how firms went about resolving these tensions. A deductive research approach was followed and 23 managers, representing 14 companies across eight commercial sectors, were interviewed using semi-structured interviews and qualitative research methodology. The data was analysed using content, thematic and narrative analysis techniques.A central finding of this research study was that companies needed committed leaders to help resolve tensions for the firm and create the balance between exploring low-income markets and exploiting the traditional markets. Change management was found to be a critical integration technique to help resolve tensions between the “explore” and “exploit” business units.The outcome of this research adds to the theory base of both low-income markets and ambidexterity. It also provides a decision-making framework for firms who are considering the organisational requirements for the exploration of low-income markets. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This research project investigates the requirements or factors that will influence mcommerce adoption in low-income markets. The framework incorporated awareness, availability, convenience, affordability and acceptability as variables for m-commerce adoption in low-income markets. Mobile commerce is the next step in the evolution of networked computing and is the utilisation of mobile communication for financial gain. In South Africa, the fast rate of mobile technology adoption has created an access footprint for mcommerce across the country. Businesses are adopting m-commerce into their business strategies to tap into these new markets. Recently the potential commercial benefit in low-income markets is being explored by business. In South Africa the low-income market has been characterised by the foundation tier of the economic pyramid. Although this market is seen as extremely price sensitive and has little to no disposable income, the collective potential of it is considerable. The research found that certain aspects of the framework were applicable. Awareness, knowledge and acceptability were seen to have the highest association with m-commerce adoption in the low-income market. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Cost-focused innovation is perceived as the primary approach that Western companies should adopt when entering emerging markets, as their standard approaches are usually unsuitable for these environments. Although many of the principles of cost-focused innovation are relevant to these markets, companies should be weary of blindly copying previous entrants with regard to how they develop products for these markets. Each industry and product set will need to deal with a different set of factors, especially in developing environments that are constantly evolving. The aim of this research study is to gage the prevalence of a cost-focused innovation approach in developing products for emerging markets. A quantitative approach was used in order to determine if there is statistical evidence that confirms that a cost-focused innovation methodology is prevalent in designing products for low income markets. The mobile phone industry was selected for investigation as handset manufacturers have successfully created mobile phones for both developed and developing markets. The major findings were that cost-focused innovation is not significantly prevalent in developing mobile phones for low income markets. Furthermore, there is evidence that suggests that a combination of innovation approaches may be used to counter the traditional trade-offs between price and functionality in order to create low cost, high value products for both developing and developed markets. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Existem diferentes possibilidades para o crescimento das empresas brasileiras, com destaque para a atuação em mercados populares internacionais. Por um lado, existem empresas brasileiras com habilidades, capacidade de gestão e preparadas para atuar nestes mercados e por outro lado existem enormes mercados populares não atendidos plenamente pelas empresas locais ou multinacionais de países desenvolvidos. Neste âmbito configura-se a tese, visando a responder quais são as dimensões estratégicas críticas para a atuação nos mercados populares internacionais e como os conhecimentos adquiridos no mercado brasileiro impactam a atuação das empresas, com o objetivo central de propor um modelo de internacionalização para empresas brasileiras competirem com sucesso nos mercados populares internacionais. O Brasil tem um histórico de baixa participação nos negócios internacionais, embora este número venha crescendo e foi idenitificado um excelente potencial nos mercados populares internacionais, em especial Argentina, China, Colômbia, México, Índia, Chile, Rússia, Peru, Paraguai, Venezuela, Uruguai, África do Sul, Turquia, Irã, Polônia, Argélia, Arábia Saudita, Indonésia, Tailândia e Bolívia. A partir das análises conceituais das estratégias para mercados de bens populares, combinadas às estratégias de internacionalização, foram definidas as variáveis de análise, considerando os motivos para internacionalizar, escolha dos mercados e segmentos atendidos, assim como as dimensões preços, promoção, canais de distribuição, produtos, inovação e tecnologia, formas de entrada nos mercados selecionados e processos de produção e custos. Outra variável importante são os conhecimentos utilizados pelas empresas brasileiras e impacto na atuação internacional. Foi aplicada uma pesquisa exploratório-descritiva, com abordagem metodológica de estudo de casos múltiplos, com utilização de um roteiro para construção de teoria, com elementos de estudo de caso e Grounded theory. Foi feita análise documental de materiais institucionais e informações publicadas na mídia e foi realizado um levantamento junto a fontes primárias, com entrevistas pessoais em profundidade com 14 executivos das empresas brasileiras selecionadas para o estudo: Natura, O Boticário, AmBev, Embraco, Perdigão e Alpargatas (Havaianas). Após as análises dos casos, conclui-se que os motivos para internacionalização nos mercados populares internacionais estão ligados ao aumento das vendas e faturamento, com vistas ao crescimento de longo prazo. As dimensões estratégicas críticas são a gestão e fortalecimento da marca, para que as empresas possam concorrer com os competidores locais; acesso ao mercado local; mix de produtos que contemple a baixa renda, com opções mais simples e baratas de produtos que as empresas já oferecem no Brasil; inovações em processos para redução de curstos; modelo de negócios bem definido e sustentável; valorização das relações de longo prazo com stakeholders dos mercados populares e fortalecimento das estratégias e cultura da empresa, para que ela não tenha a imagem prejudicada ao atender os mercados populares. Foi possível desenvolver um modelo conceitual geral para atuação das empresas brasileiras nos mercados populares internacionais, com base nestas dimensões estratégicas críticas. Outra conclusão é que os conhecimentos desenvolvidos no Brasil são fundamentais para atuação nos mercados populares internacionais: produtos e mix adequado à baixa renda; distribuição e logística eficiente em locais com infra-estrutura precária e grande capilaridade; domínio de processos e redução nos custos de produção. Foram analisadas seis das mais importantes empresas internacionalizadas do Brasil, que poderão orientar o direcionamento de outras empresas brasileiras, ajudando-as a trilhar o sucesso no âmbito internacional, principalmente junto aos mercados internacionais de bens populares, de forma sustentável e bem sucedida. / There are distinct growth possibilities for Brazilian companies, and one of them is to focus mainly the international low income market operation. On one hand, there are Brazilian companies which do have the skills, the managing capacity and are ready to operate in these markets and on the other hand there are huge low income markets not properly attended by local or developed countries? multinational companies. In the light of this context, this theses aims to answer which are the critical strategic dimensions to perform in international low income markets and how the knowledge acquired in Brazilian market affects these companies? performances, with the main purpose of presenting a useful internationalization model to guide the Brazilian companies about how to compete in international low income markets. Historically, Brazil has a lean participation in international trading; this picture is changing and now an excellent potential has been spotted in low income international markets, specially in Argentina, China, Colombia, Mexico, India, Chile, Russia, Peru, Paraguay, Venezuela, Uruguay, South Africa, Turkey, Iran, Poland, Algeria, Saudi Arabia, Indonesia, Thailand and Bolivia. The analysis variables had been defined, considering the motives for internationalization, the markets? choice, attended segments, as well as dimensions such as prices, promotion, distribution channels, products, innovation and technology, the ways to get into the selected markets and production processes and costs. Another important variable to consider is the knowledge used by Brazilian companies and international performance impact. The adopted research has been oriented to exploration and portraying, methodologically approaching multiple cases, building a theory using a script, with case-history elements and Grounded Theory. Documental analysis has been done upon institutional publications and published information, as well as primary sources surveys, by means of directly interviewing 14 managers from the Brazilian selected companies: Natura, O Boticario, AmBev, Embraco, Perdigão and Alpargatas-Havaianas. The cases? analysis showed that the motives for internationalization regarding international low income markets are connected to sales and revenue increasing, aiming long term growing goals. The critical strategic dimensions are: brand administration and strenghtening, providing competitive characteristics, in order to compete with local competitors, local market access, a product mix oriented to low income market, offering plain and cheaper options in comparison to the products already available in Brazil, cost-reducing process innovations, sustainable and well-defined business structure, long term stakeholders relationship valorization, regarding low income markets and strenghtening of the company?s strategy and culture, keeping a good company?s image even seeing it as a low income market oriented company. It has been possible to develop a general conceptual model for Brazilian companies to perform in international low income markets, grounded on these critical strategic dimensions. Another conclusion from this work is that Brazilian developed knowledge is now fundamental to guide the actuation in the international low income markets: products and product mix suitable to low income profile, efficient logistic and distribution structure in regions where it is precarious but capillarity is necessary, full dominion over processes and cost-reduction practices. Six of the most important internationalized companies in Brazil have been focused and analysed, to guide other Brazilian companies in its decision processes, helping them to choose a successful way inside the international environment, mainly regarding the low income international market, in a sustainable and succeeded trajectory.

Existem diferentes possibilidades para o crescimento das empresas brasileiras, com destaque para a atuação em mercados populares internacionais. Por um lado, existem empresas brasileiras com habilidades, capacidade de gestão e preparadas para atuar nestes mercados e por outro lado existem enormes mercados populares não atendidos plenamente pelas empresas locais ou multinacionais de países desenvolvidos. Neste âmbito configura-se a tese, visando a responder quais são as dimensões estratégicas críticas para a atuação nos mercados populares internacionais e como os conhecimentos adquiridos no mercado brasileiro impactam a atuação das empresas, com o objetivo central de propor um modelo de internacionalização para empresas brasileiras competirem com sucesso nos mercados populares internacionais. O Brasil tem um histórico de baixa participação nos negócios internacionais, embora este número venha crescendo e foi idenitificado um excelente potencial nos mercados populares internacionais, em especial Argentina, China, Colômbia, México, Índia, Chile, Rússia, Peru, Paraguai, Venezuela, Uruguai, África do Sul, Turquia, Irã, Polônia, Argélia, Arábia Saudita, Indonésia, Tailândia e Bolívia. A partir das análises conceituais das estratégias para mercados de bens populares, combinadas às estratégias de internacionalização, foram definidas as variáveis de análise, considerando os motivos para internacionalizar, escolha dos mercados e segmentos atendidos, assim como as dimensões preços, promoção, canais de distribuição, produtos, inovação e tecnologia, formas de entrada nos mercados selecionados e processos de produção e custos. Outra variável importante são os conhecimentos utilizados pelas empresas brasileiras e impacto na atuação internacional. Foi aplicada uma pesquisa exploratório-descritiva, com abordagem metodológica de estudo de casos múltiplos, com utilização de um roteiro para construção de teoria, com elementos de estudo de caso e Grounded theory. Foi feita análise documental de materiais institucionais e informações publicadas na mídia e foi realizado um levantamento junto a fontes primárias, com entrevistas pessoais em profundidade com 14 executivos das empresas brasileiras selecionadas para o estudo: Natura, O Boticário, AmBev, Embraco, Perdigão e Alpargatas (Havaianas). Após as análises dos casos, conclui-se que os motivos para internacionalização nos mercados populares internacionais estão ligados ao aumento das vendas e faturamento, com vistas ao crescimento de longo prazo. As dimensões estratégicas críticas são a gestão e fortalecimento da marca, para que as empresas possam concorrer com os competidores locais; acesso ao mercado local; mix de produtos que contemple a baixa renda, com opções mais simples e baratas de produtos que as empresas já oferecem no Brasil; inovações em processos para redução de curstos; modelo de negócios bem definido e sustentável; valorização das relações de longo prazo com stakeholders dos mercados populares e fortalecimento das estratégias e cultura da empresa, para que ela não tenha a imagem prejudicada ao atender os mercados populares. Foi possível desenvolver um modelo conceitual geral para atuação das empresas brasileiras nos mercados populares internacionais, com base nestas dimensões estratégicas críticas. Outra conclusão é que os conhecimentos desenvolvidos no Brasil são fundamentais para atuação nos mercados populares internacionais: produtos e mix adequado à baixa renda; distribuição e logística eficiente em locais com infra-estrutura precária e grande capilaridade; domínio de processos e redução nos custos de produção. Foram analisadas seis das mais importantes empresas internacionalizadas do Brasil, que poderão orientar o direcionamento de outras empresas brasileiras, ajudando-as a trilhar o sucesso no âmbito internacional, principalmente junto aos mercados internacionais de bens populares, de forma sustentável e bem sucedida. / There are distinct growth possibilities for Brazilian companies, and one of them is to focus mainly the international low income market operation. On one hand, there are Brazilian companies which do have the skills, the managing capacity and are ready to operate in these markets and on the other hand there are huge low income markets not properly attended by local or developed countries? multinational companies. In the light of this context, this theses aims to answer which are the critical strategic dimensions to perform in international low income markets and how the knowledge acquired in Brazilian market affects these companies? performances, with the main purpose of presenting a useful internationalization model to guide the Brazilian companies about how to compete in international low income markets. Historically, Brazil has a lean participation in international trading; this picture is changing and now an excellent potential has been spotted in low income international markets, specially in Argentina, China, Colombia, Mexico, India, Chile, Russia, Peru, Paraguay, Venezuela, Uruguay, South Africa, Turkey, Iran, Poland, Algeria, Saudi Arabia, Indonesia, Thailand and Bolivia. The analysis variables had been defined, considering the motives for internationalization, the markets? choice, attended segments, as well as dimensions such as prices, promotion, distribution channels, products, innovation and technology, the ways to get into the selected markets and production processes and costs. Another important variable to consider is the knowledge used by Brazilian companies and international performance impact. The adopted research has been oriented to exploration and portraying, methodologically approaching multiple cases, building a theory using a script, with case-history elements and Grounded Theory. Documental analysis has been done upon institutional publications and published information, as well as primary sources surveys, by means of directly interviewing 14 managers from the Brazilian selected companies: Natura, O Boticario, AmBev, Embraco, Perdigão and Alpargatas-Havaianas. The cases? analysis showed that the motives for internationalization regarding international low income markets are connected to sales and revenue increasing, aiming long term growing goals. The critical strategic dimensions are: brand administration and strenghtening, providing competitive characteristics, in order to compete with local competitors, local market access, a product mix oriented to low income market, offering plain and cheaper options in comparison to the products already available in Brazil, cost-reducing process innovations, sustainable and well-defined business structure, long term stakeholders relationship valorization, regarding low income markets and strenghtening of the company?s strategy and culture, keeping a good company?s image even seeing it as a low income market oriented company. It has been possible to develop a general conceptual model for Brazilian companies to perform in international low income markets, grounded on these critical strategic dimensions. Another conclusion from this work is that Brazilian developed knowledge is now fundamental to guide the actuation in the international low income markets: products and product mix suitable to low income profile, efficient logistic and distribution structure in regions where it is precarious but capillarity is necessary, full dominion over processes and cost-reduction practices. Six of the most important internationalized companies in Brazil have been focused and analysed, to guide other Brazilian companies in its decision processes, helping them to choose a successful way inside the international environment, mainly regarding the low income international market, in a sustainable and succeeded trajectory.

This research study investigates the requirements or factors that will influence the acceptance and impact of mobile phone advertising to the urban Bottom of Pyramid (BoP). The framework incorporated awareness, availability, acceptability and convenience as factors for effective mobile phone advertising. Mobile phones have received unprecedented penetration rates across all markets, including LSM 1-4. This presents companies targeting this market with an excellent advertising medium with which to communicate to consumers. Companies have begun advertising via mobile phone and this research investigates the impact of this advertising, in relation to other more established mediums, as well as the most optimal mobile phone service to be used in delivery of the advertising message. The type of advertising being sent to BoP via mobile phone advertising is analysed, along with the type of advertising the urban BoP market would like to receive and possible differences identified. The research examines the recall of advertising message across various advertising media and comparisons are drawn. The research found that all aspects of the framework were applicable. Convenience and acceptability were seen as the highest drivers for effective mobile phone advertising to the South African urban BoP. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted