Case Study

Kaskazi Network Ltd – distributing to the bottom of the pyramid (A)

12 pages
September 2008
Reference: IMD-3-2016

This three part case series deals with the distribution of FMCG (Fast Moving Consumer Goods) to low income areas (slums) in Kenya. In the (A) case, students are introduced to a young African entrepreneur, Mr. Ng’ang’a Wanjohi. Since graduating in 1998, Wanjohi has been involved in four start-ups – none of which has been successful. However, he has learned a lot along the way and is not deterred. He sees an enormous opportunity in the fragmented Kenyan micro retail market, consisting of 100,000 kiosks, primarily in low income areas. This market, which represents 75% of the Kenyan retail market, is “dingy, dirty, smelly and dangerous” and neglected by many FMCG companies. Students are asked to analyze and refine a business plan for product distribution in this market by Bicycle Sales Representatives (BSRs).

Learning Objective

The case series would be suitable for a core marketing course (dealing with the market challenge, and distribution and retail issues in Africa), a course on supply chain (distribution issues in Africa), an entrepreneurship course (dealing with business growth strategies) or a general management course. In all these courses, the case series can be used to illustrate the challenge and complexity of reaching low income customers in developing countries.

Keywords
Supply Chain, Retail
Settings
Kenya
2000-2008
Type
Field Research
Copyright
© 2008
Available Languages
English
Related material
Teaching note, Video
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