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Low income product innovation

Author

Listed:
  • Paulo Tromboni de Souza Nascimento
  • Abraham Sin Oih Yu
  • Maria Cecília Sobral

Abstract

At affluent markets, the literature on product development management tells us to aggregate value and technology, to differentiate products and to launch fast. And at the low-income markets? This exploratory research defines a popular product, characterizes and measures their markets in Brazil, and identifies innovation strategies for them. The results suggest that the effective strategic orientation differs from affluent markets. It includes: to enhance the auto service component; to identify and service the key functionalities to the targeted public; to standardize products and increase the production scale; to extend the product life cycle; to use convenient distribution and marketing channels; to build product images that have appeal in the popular market; to offer longer financing horizons with befittingly lower installments. Data came from market researches and general demographic census. General media published stories were used to identify companies and their strategies. And a few case studies allowed the authors a deeper exploration of the relevant themes.

Suggested Citation

  • Paulo Tromboni de Souza Nascimento & Abraham Sin Oih Yu & Maria Cecília Sobral, 2008. "Low income product innovation," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 12(4), pages 907-930.
    • Handle: RePEc:abg:anprac:v:12:y:2008:i:4:633
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