Ceramicas of Costaragua: The Challenges of Selling to Low-Income Citizens, Spanish Version Harvard Case Solution & Analysis

Cerámicas de Costaragua (CC) began making ceramic tile in 1953. The creators were interested in forming a chain that is vertically integrated. Lack of knowledge about the behaviour of low-income consumers was a challenge for CC. Consequently, it sought the support of a societal leader who understood the inhabitants of low-income sectors. A system called "Remodeling your House" was found and the community was actively included. Existing community organizations were responsible for convening and coordinating sales supporters. Two years after the initiative was created, CC grown to other cities and to other regions of city.

Strengthening of the distribution channel with special adjustments for the low income inhabitants generated an increase in demand that caused a midterm sales projection of one million m2 of ceramic tiles per month. Remodeling depends on the vertically incorporated value chain of CC, but mandates a brand new distribution channel that was suitable for the increased sales expectations in this market, to realize this.

PUBLICATION DATE: September 01, 2009 PRODUCT #: SKS114-HCB-SPA

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

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