Instructions

Read the following scenario and answer the THREE questions that follow.

Dhan, a poor but enterprising 15-year-old, resided in the world’s largest slum in a metropolitan city, along with her widowed mother. The densely packed slum housed about a million people, mostly in rickety one room tenements, connected by labyrinthine lanes and by-lanes. Dhan’s mother worked intermittently as a daily wager in a small savoury factory. For a 15-year-old, Dhan’s life was hectic. She spends two hours every day in fetching water for the household, packing breakfast and lunch for her mother. In addition, she had to prepare supper. On her mother’s insistence, Dhan also attended an evening bridge school run by an NGO. Dhan’s dream was to provide a comfortable life to her mother and take her family out of poverty. Of late, Dhan observed that the customers to a nearby tea-cum-savoury stall (TCS), were mostly the slum dwellers, who thronged the stall for its low prices and lack of alternatives. Further, Dhan gathered that the TCS could not cater to all of its customers, and the owner still made a neat Rs.800 profit per day. Dhan saw that a probable first step towards her family’s economic independence could be to own her own TCS.

Question 45

Dhan with her ingenuity finds a way to scale up her production capacity on her own terms. Though Dhan’s TCS has become the famous “Dhan Dhana Dhan” brand within the slum, it is still unknown to the outside world. Thus, Dhan embarks on the next challenge of creating a market for savouries amongst the masses in the metropolitan region.

From the following, choose the BEST option that will help Dhan to sell her products, at the lowest price, to a maximum number of metropolitan customers?

Solution

Option C is the correct answer as it leverages the existing connection between the slum and the metropolitan region, utilizing slum dwellers who commute daily. Engaging them on a commission basis not only ensures a direct link to potential customers but also keeps the cost low, allowing Dhan to sell her products at competitive prices to a maximum number of metropolitan customers.

Option A: Hiring a celebrity endorser is likely expensive and may not align with Dhan's goal of selling at the lowest price.

Option B: Overwhelming with digital advertisements may incur high costs and might not reach the target audience effectively.

Option D may increase operational costs and may not be as effective in reaching the masses.

Option E may involve high entry barriers and potentially limit the outreach to the masses.


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