Harvard Case - Arcenciel: Bottle Caps for Wheelchairs
"Arcenciel: Bottle Caps for Wheelchairs" Harvard business case study is written by Bettina Bastian, Kim Issa, Sasha Larnaud Mourgues. It deals with the challenges in the field of Marketing. The case study is 10 page(s) long and it was first published on : Jul 19, 2019
At Fern Fort University, we recommend Arcenciel adopt a multi-pronged strategy to achieve sustainable growth and expand their reach. This includes refining their product offering, implementing a robust marketing strategy, and leveraging strategic partnerships to achieve wider market penetration and social impact.
2. Background
Arcenciel, a social enterprise founded by two young entrepreneurs, aims to provide affordable and sustainable wheelchairs using recycled bottle caps. The company faces the challenge of scaling its operations while maintaining its commitment to social responsibility and affordability. The case study highlights the need for Arcenciel to develop a comprehensive strategy to address key challenges such as:
- Limited production capacity: Arcenciel's current manufacturing process is labor-intensive and struggles to meet growing demand.
- Market reach and awareness: The company needs to expand its reach beyond local markets and raise awareness about its innovative product.
- Financial sustainability: Arcenciel requires a sustainable business model to ensure long-term viability and social impact.
3. Analysis of the Case Study
To analyze Arcenciel's situation, we employ a combination of frameworks:
SWOT Analysis:
Strengths:
- Unique and innovative product: Arcenciel's use of recycled bottle caps offers a sustainable and cost-effective solution for wheelchair production.
- Social impact: The company's mission aligns with a growing demand for socially responsible products and initiatives.
- Passionate founders: The entrepreneurs behind Arcenciel are driven by a strong commitment to their cause.
Weaknesses:
- Limited production capacity: The current manual manufacturing process restricts production volume and hinders scalability.
- Lack of brand awareness: Arcenciel needs to increase its visibility and reach to expand its customer base.
- Financial constraints: The company faces challenges securing funding and achieving profitability.
Opportunities:
- Growing demand for affordable wheelchairs: The global market for wheelchairs is expanding, particularly in developing countries.
- Partnerships with NGOs and healthcare institutions: Collaborating with organizations focused on disability inclusion can enhance reach and impact.
- Emerging markets: Arcenciel can target underserved markets with limited access to quality wheelchairs.
Threats:
- Competition from established wheelchair manufacturers: Arcenciel faces competition from established players with larger production capacity and brand recognition.
- Fluctuations in plastic recycling rates: The availability of recycled bottle caps could impact production costs and availability.
- Economic instability: Global economic conditions can affect demand for non-essential products like wheelchairs.
PESTEL Analysis:
- Political: Government policies and regulations regarding disability inclusion and recycling can impact Arcenciel's operations.
- Economic: Economic growth and development in target markets influence demand for wheelchairs.
- Social: Growing awareness of disability rights and inclusivity creates opportunities for Arcenciel.
- Technological: Innovations in wheelchair design and manufacturing processes can offer opportunities for improvement.
- Environmental: The company's commitment to sustainability aligns with global environmental concerns.
- Legal: Regulations regarding product safety and manufacturing processes need to be adhered to.
Marketing Mix (4Ps):
- Product: Arcenciel needs to refine its product offering by introducing variations in wheelchair design and functionality to cater to diverse needs.
- Price: The company should adopt a competitive pricing strategy that balances affordability with profitability. This could involve tiered pricing based on features and functionality.
- Place: Arcenciel needs to expand its distribution channels beyond local markets. This could involve partnerships with NGOs, healthcare providers, and online retailers.
- Promotion: A comprehensive marketing strategy should be implemented, incorporating digital marketing, social media campaigns, and public relations efforts to raise brand awareness and reach target markets.
4. Recommendations
1. Product Development and Innovation:
- Expand Product Line: Introduce variations in wheelchair design, functionality, and size to cater to a wider range of users. This could include foldable wheelchairs for easier transportation, specialized wheelchairs for specific disabilities, and child-sized wheelchairs.
- Improve Manufacturing Process: Invest in semi-automated manufacturing processes to increase production capacity and efficiency. This could involve incorporating machinery for specific tasks while retaining the manual assembly process.
- Focus on Sustainability: Explore alternative materials and manufacturing processes to further enhance the product's sustainability and reduce environmental impact.
2. Marketing Strategy:
- Target Market Segmentation: Identify specific target markets based on age, disability type, income level, and geographic location. This will allow for tailored marketing messages and campaigns.
- Brand Positioning: Position Arcenciel as a socially responsible and innovative company providing affordable and sustainable wheelchairs. Emphasize the company's commitment to accessibility and environmental consciousness.
- Integrated Marketing Communications: Implement a multi-channel marketing strategy that includes:
- Digital Marketing: Utilize social media platforms, search engine optimization (SEO), and online advertising to reach potential customers.
- Content Marketing: Create informative and engaging content about wheelchair accessibility, sustainability, and Arcenciel's mission.
- Public Relations: Engage with media outlets and influencers to generate positive publicity and raise brand awareness.
- Events and Partnerships: Participate in disability awareness events, collaborate with NGOs, and organize workshops to showcase the product and build relationships.
3. Strategic Partnerships:
- Collaborate with NGOs and Healthcare Institutions: Partner with organizations focused on disability inclusion to reach a wider audience and gain access to potential customers.
- Establish Distribution Partnerships: Collaborate with online retailers and medical supply distributors to expand market reach and streamline product distribution.
- Seek Funding and Investment: Explore partnerships with impact investors and philanthropic organizations to secure funding for expansion and product development.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of Arcenciel's strengths, weaknesses, opportunities, and threats. They consider the company's core competencies, external customer needs, competitive landscape, and potential for growth. The recommendations are also aligned with Arcenciel's mission of providing affordable and sustainable wheelchairs while promoting social responsibility.
Attractiveness:
- Increased market share: Expanding the product line and distribution channels will lead to increased market penetration and sales.
- Enhanced brand awareness: Implementing a robust marketing strategy will boost brand visibility and recognition.
- Improved financial sustainability: Increased production capacity, strategic partnerships, and a refined pricing strategy will contribute to long-term financial stability.
Assumptions:
- The demand for affordable and sustainable wheelchairs will continue to grow.
- Arcenciel can secure funding and investment to support its growth plans.
- Strategic partnerships will be mutually beneficial and contribute to the company's success.
6. Conclusion
Arcenciel has the potential to become a leading provider of affordable and sustainable wheelchairs. By implementing the recommended strategies, the company can achieve sustainable growth, expand its market reach, and make a significant social impact.
7. Discussion
Alternatives:
- Focus solely on local markets: This would limit growth potential and restrict the company's social impact.
- Adopt a low-cost manufacturing model: This could compromise product quality and sustainability.
- Rely solely on organic marketing: This would be less effective in reaching a wider audience and building brand awareness.
Risks:
- Competition from established players: Arcenciel needs to differentiate its products and build a strong brand to compete effectively.
- Fluctuations in plastic recycling rates: The company should explore alternative materials and manufacturing processes to mitigate this risk.
- Funding challenges: Securing sufficient funding for growth and innovation is crucial for Arcenciel's success.
Key Assumptions:
- The demand for affordable and sustainable wheelchairs will continue to grow.
- Arcenciel can secure funding and investment to support its growth plans.
- Strategic partnerships will be mutually beneficial and contribute to the company's success.
8. Next Steps
Timeline:
- Year 1: Implement product line expansion, refine manufacturing processes, and launch a comprehensive marketing campaign.
- Year 2: Secure strategic partnerships with NGOs, healthcare institutions, and distributors.
- Year 3: Explore new markets and expand international operations.
Key Milestones:
- Launch of new wheelchair models
- Increase in production capacity
- Successful marketing campaigns
- Establishment of strategic partnerships
- Secure funding and investment
By following these recommendations and taking proactive steps to address potential risks, Arcenciel can achieve its mission of providing affordable and sustainable wheelchairs while creating a lasting social impact.
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Case Description
In 2015, the director of the Lebanese non-governmental organization Arcenciel felt a surge of pride knowing that his organization's bottle caps project had created grassroots awareness of the importance of recycling. In recent years, Arcenciel had grown from an organization that supported people who were disabled and disenfranchised to become the largest recycler in the region. The organization had managed to create a synergy between its engagement on behalf of people who were marginalized and its activities to dispose of garbage in a sustainable and environmentally friendly way. The Lebanese public was encouraged to collect plastic waste; and in exchange for each tonne of collected bottle caps, Arcenciel would donate a wheelchair to a person with a disability who was in need. This initiative engaged thousands of people in joint collection efforts. The director wondered how the trust that Arcenciel had gained through the bottle caps project could be harnessed to bring about political change, and to place environmental and social issues in Lebanon on the national agenda.
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