Business Ethics

& CSR
From Customer-To-Manufacturer to Farm-
To-Customer:
Pinduoduo’s Business Model Transformation
for
Sustainability
 Summary of the case:
A fast-moving consumer goods (FMCG) company sought to enhance its sales
force effectiveness, developing four distinct training programs encompassing
selling approaches, product knowledge, customer service, and negotiation tactics.
With the objective of identifying the most impactful program before widespread
implementation, they conducted an experiment. Thirty-two salespeople were
randomly assigned to four groups, each undergoing a specific training program.
The primary focus was on assessing any significant differences in sales
performance post-training. By analyzing the outcomes of each group, the
company aimed to determine which program yielded the most notable
improvements in sales results. This systematic approach allowed the company to
make informed decisions about the most effective training strategy for
optimizing the sales abilities of its workforce.
 Calculation of sale performance:-

Here are the variance for each group's weekly sales performance (Sales amounts are in Rs. thousands):-
Team 1: 78, 84, 86, 92, 69, 73, 97, 91
Xi = 69, 73, 78, 84, 86, 91, 92, 97
Mean sales (x̄ ):- (78 + 84 + 86 + 92 + 69 + 73 + 97 + 91) / 8
= 83.75
Xi - x̄ = -14.75, -10.75, -5.75, 0.75, 2.25, 7.25, 8.25, 13.25
Sum of (Xi - x̄ )2= 217.56 + 115.56 + 33.06 + 0.562 + 5.06 + 52.56 + 68.06 + 175.56
= 667.982
Variance = Sum of (Xi - x̄ )2 / n-1
= 667.982/ 8-1
= 95.426
 Agenda
About our program Meeting objectives

01 You can describe the topic of

the section here
02 You can describe the topic of
the section here

Project timeline
03 You can describe the topic of
04 Conclusion
You can describe the topic of
the section here the section here
 01
About our
program
You can enter a subtitle here if
you need it
1. What are the drivers of PDD’s business model transformation ?
​Pinduoduo (PDD) is one of the fastest-growing e-commerce platforms in China. PDD
previously provided a wide range of products, including, for example, daily groceries, home
appliances, and other products with low prices. Recently, it has become the largest Chinese
agricultural-focused technology platform. The mission of PDD has been to serve all and benefit all.
Customer-to-Manufacturer Business Model
The initial success of PDD was primarily due to its customer-to-manufacturer (C2M)
business model, which directly connected manufacturers with customers. This business
model can benefit customers by providing products at the lowest price available, while
benefitting manufacturers by matching tailored products with customer requirements, thus
providing a better fit to market demand.
SWOT Analysis of PDD's Business Model Transformation
Strengths
The transformation from C2M to farm-to-customer (F2C) has helped
PDD maintain its competitiveness in price, while also improving its
image and attracting customers from tier 1 and 2 cities.
Weaknesses
The original C2M model led to a negative reputation for product quality
and limited customer reach, posing significant challenges for PDD.
Opportunities
The new F2C model has brought business opportunities to rural areas,
attracted young talent back to their home towns, and enabled PDD to
successfully overcome external challenges during the COVID-19
pandemic by providing next-day grocery delivery service.
Threats
PDD faced threats from negative reputation and limited customer
scope, which could have impacted its sustainability and
competitiveness.
About the project

Venus has a beautiful name and is the second planet

from the Sun. It’s terribly hot and its atmosphere is
extremely poisonous. It’s the second-brightest
natural object in the night sky after the Moon
 Strategic Corporate Social Responsibility (CSR)
Yes, Pinduoduo is engaged in strategic corporate social responsibility (CSR) through its
“Internet+Agriculture” program. By linking customers with small-scale farmers in remote rural areas,
PDD not only creates economic value for these communities, but also contributes to the social
development and well-being of rural areas
PDD’s “Internet+Agriculture” Program

Direct Link to Farmers

The program directly connects customers with small-scale farmers, focusing on selling fresh produce to urban
customers seeking high-quality, healthy products.

Customer-Centric Approach

Focusing on farm-to-customer (F2C) has helped PDD maintain price competitiveness, improve brand image,
and attract urban customers.
 Economic and Social Impact
Rural Development
The transformation has brought business opportunities to rural
areas and attracted young talent back to their home towns.
Pandemic Resilience
PDD's new model enabled it to overcome challenges during the
COVID-19 pandemic by providing next-day grocery delivery,
aligning with the "farm-to-table" trend.
333,000.000

The Sun’s mass compared to Earth’s

 Project schedule
January 2022
Sun. Mon. Tue. Wed. Thu. Fri. Sat.

01 Mars
Despite being red, Mars is
02 03 04 05 06 07 08 a very cold place

09 10 11 12 13 14 15 Mercury
Mercury is the closest
16 17 18 19 20 21 22
planet to the Sun

23 24 25 26 27 28 29 Venus
30 31 Venus is the second planet
from the Sun
 Checklist
Strategy 1 Strategy 2 Strategy 3 Strategy 4

Describe your task 1 here

Describe your task 2 here

Describe your task 3 here

Describe your task 4 here

 Project timeline

Mercury is the Mars is actually a

closest planet to the Venus is the second Saturn is a gas giant cold place. It’s full
Sun planet from the Sun and has several rings of iron oxide dust

Mercury Venus Saturn Mars

01 02 03 04
 KPI dashboard
New customers
75% Mercury is the closest
$28.87
planet to the Sun avg. price per unit

Sales increase
25% Venus is the second
30 days
avg. days on market
planet from the Sun

Market reach
50% Saturn is the ringed
45 shops
planet and a gas giant retailers
 Status report
15% 30%
Mercury Mars
Mercury is the closest Despite being red, Mars
planet to the Sun is a cold place

20% 35%
Venus Saturn
Venus is the second Saturn is the ringed
planet from the Sun planet and a gas giant

Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
 RAID summary

Risks Assumptions
Mercury is the smallest Saturn is the only planet
planet with rings

Issues Dependencies
Mars is actually a cold Neptune is the fourth-
place largest planet
 Where we are Where we want to be
Mercury is the closest planet to Venus has a beautiful name and
the Sun and the smallest one in is the second planet from the Sun
the Solar System
 Upcoming events

Mercury Venus Mars

Mercury is the smallest Venus is the second Mars is actually a very
planet planet from the Sun cold place

Saturn Neptune Jupiter

It's composed of It's the fourth-largest It's a gas giant and the
hydrogen and helium planet of them all biggest planet
Awesome words
A picture is
worth a
thousand
words
Company meeting

Do you know what helps you make your point

clear? Lists like this one:

● They’re simple
● You can organize your ideas clearly
● You’ll never forget to buy milk!

And the most important thing: the audience

won’t miss the point of your presentation
 135,000,000
Big numbers catch your audience’s attention
This is a map!
Neptune
Neptune is the farthest
planet from the Sun

Venus
Venus is the second planet
from the Sun

Mercury
Mercury is the closest
planet to the Sun
 Strategic process
01 02
Initial strategy Operations
Mercury is the smallest Jupiter is the biggest planet
planet of them all of them all

03 04
Financial plan Benefits
Despite being red, Mars is a Saturn is a gas giant and has
very cold place several rings
 A picture always
reinforce the concept

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