Gruma tortillas

Bread for all

Mexican tortilla producer Gruma uses its expertise in rolling flour into flat bread to reach new markets in China (wraps) and India (naan).

by Strategy + Business
Last Updated: 23 Jul 2013

This strategy reveals that all countries going through industrialisation share similar needs at each phase as they catch up with the developed countries.

The four phases are as follows: survival, where people want food, shelter and clothing; quality, where a growing middle class seeks better products; convenience, where there is demand for time-saving appliances and processed food; and customisation, where people will spend more money to satisfy individual desires.

Marketers should make sure they are aware of any local differences shaped by politics, law, infrastructure, urbanisation and distribution channels that might suggest that the market is not ready for the new products or services.

Business also needs to gear its products to local needs rather than offer cheaper versions of a product sold to richer nations; for instance, Renault sold a car for under $10,000 with full features to eastern Europe.

The flatbread factor
Alonso Martinez and Ronald Haddock
strategy + business, Spring 2007

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