Fortune at the bottom of the pyramid Casas Bahia -case study

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Case study - Casas Bahia

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Fortune at the bottom of the pyramid Casas Bahia -case study

  1. 1. THE FORTUNE AT THE BOTTOM OF THE PYRAMID
  2. 2. Casas Bahia –Case Study Brazilian retail chain which specializes in furniture and home appliances. • Scope & Size of opportunity : In 2002 population in Brazil was 176 million 84% of whom are considered to be at BOP . • Brazil’s population is divided into affluent class and lower income group.
  3. 3. • Who are the customers of Casas Bahia ? ─ Primarily maids,, cleaners, cooks, independent street vendors and construction workers. • Is Casas Bahia have any competition in the retail market of Brazil ? – Yes , His main Competitors are Ponto Frio , Magazine Luiza ,Marabras etc . • What Made him so successful ? – His Unique Business model . Casas Bahia –Case Study
  4. 4. Business Model • Finance SPC Score • It is a client information . • It is either Positive or Negative . Passbook • It allows customer to make small installment payment for the merchandise . • Payment scale varies from 1-15 month . Financed sales • Financed sales is 90% of total sales volume . • 6% are cash & 4% by credit card .
  5. 5. Business Model • Reason for less default rate ? ─ No third party intervention
  6. 6. • What is the Casas Bahia marketing Strategy ? – Company invests around 3% of its revenue on advertisement. – Strategy is to attract customer by announcing on low price on the branded product s. • Media for advertising – Television – Radio – Use of famous singers ,actors and television personalities for promotion . Casas Bahia –Case Study
  7. 7. • Future Challenges – Use credit card by end customers. – Catering to the new market segment . – Competition from increasing large Hyper marts. Casas Bahia –Case Study

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