Category: Miscellaneous

27 Apr 2024 07:46

Joined:	20/04/2018
Level:	Gold
Points:	55757

Points:	5

Do we really have ice-creams for Rs.2, in any village?

There are times when some Management pundit would have come up with some suggestion for attracting the huge masses of buyers with low per capita incomes. One such brilliant idea was proposed by the late Prof. C.K. Prahalad, who argued that multinational companies should come up with new ideas that can offer an ice-cream for just Re1/, attracting and aiming at what he called as "fortune at the bottom of the pyramid". Implicit in his argument was that the poor buyer would also upgrade to the higher cost offerings of the same company and would also recommend such products to others.

Prof Prahalad, in the early part of this century, had such unique ideas. Today, after allowing for inflation, I recently pointed out to a group of MBA students, can we get one to buy a small ice-cream for just Rs.5/- apiece?

One MBA student immediately raised his hand, pointing out that in his native place, a small town in North Karnataka, there was a local brand of ice-cream, that has a starting prize of just Rs.2/-. This came as a big surprise, and since I do not know that part of the country, I did not continue any conversation further.

Well, do ice-creams sell for just Rs.2/? One might have the extremely localized variety, but do we have ones that are local brands, really?

#778816

27 Apr 2024 11:14

Joined:	02/06/2009
Level:	Diamond
Points:	145594

Points:	5

There are some local brands in Andhra Pradesh and Telangana also which sell ice candies for one rupee and ice creams for two rupees. But how it will be made and what is the quality of the product is not known. Recently I went to my native village which is in the united East Godavari District of Andhra Pradesh. Daily an ice cream vendor used to come to that village and many ladies and children used to purchase candies. My granddaughters used to ask me to purchase for them also. But my son used to get ice creams of standard brands from a nearby vendor. Even in the village also we get both local brands as well as standard brands. But in Hyderabad, I have never seen such stuff.
I am sure such items are available in many states in rural areas. Not only ice creams, but many other cheap items are available in rural India, I think. A lemon soda in Hyderabad costs Rs.20/- but the same is available in rural areas for Rs.10/- only.

drrao
always confident

#778817

27 Apr 2024 11:20

Joined:	10/12/2016
Level:	Diamond
Points:	109183

Points:	5

A very interesting thread by the author and there is more in it from management point of view then simply buying an item for a few rupees.
This is not only icecream but true for many other items. In remote and small places where the concentration of poor people is more, these things can be seen.
I have found while travelling in a remote place that the tea was available for Rs 6 a cup while same we are paying Rs 10 or more in the towns and cities.
In many states in southern India we are getting many snack items at cheaper rates. Even in Navi Mumbai I am getting 2 Idlis and 2 Vada along with Sambhar for Rs 35 and that is quite reasonable. In one place a lady prepares a good quantity of Upma in her house and brings near the bus stand at 9 AM and sells it for Rs 20 per plate and by 11 AM everything is sold.
In a restaurant I pay Rs 70 - 100 for the same quality.
There might be many lessons in it for a MBA but the fact is many items are available from small vendors at cheapest price possible.

Knowledge is power.

#778821

27 Apr 2024 13:24

Joined:	25/11/2014
Level:	Diamond
Points:	43292

Points:	4

What the author has indicated cannot be denied in the Indian context. We need to think of so many factors including the purchasing capacity of the consumers in a local area. The price determinant is influenced by the demand of the people for a product apart from its taste to the customers. The vendor examines the taste of the customers and his capacity to buy an article.
In India, we cannot raise the price of an eatable product arbitrarily but we need to ponder many variables including the taste of the customers, the impact of he health on the consumption of such items and the frequency of purchase of such products.
This theory holds good irrespective of the spot where the same is being sold out.

Do we really have ice-creams for Rs.2, in any village?

About IndiaStudyChannel.com

GENERAL

STUDY ABROAD

EDUCATION