The product or service offering does not target the premium customer, but rather, the customer positioned at the base of the pyramid. Customers with lower purchasing power benefit from affordable products. The company generates small profits with each product sold, but benefits from the higher sales numbers that usually come with the scale of the customer base.
How they do it: In the aftermath of the 2008 financial crisis, Walmart introduced banking services, targetting the poor. It provided services to un-banked customers, for instance in form of prepaid credit cards.
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How they do it: In the 1990s, the company introduced Wheel, a laundry detergent specifically developed for the Indian market, containing a lower oil-to-water ratio to make it suitable to hand wash textiles in rivers, as is frequently the custom in India. The product was distributed through local corner shops as well as door-to-door sales representatives .
Learn more about Hindustan Unilever →
How they do it: Denner, with its ”no frills” approach, tries to focus on deliver on the basic needs during grocery shopping. This excludes a complex and nice presentation of goods and a wide choice of products to give the customer the cheapest prices.
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How they do it: IKEA’s products are competitively priced and have a high degree of standardization. This allows also customers with a lower purchasing power to buy at IKEA. In every category there is a budget option as well.
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How they do it: With both its food and non-food offerings, Aldi tries to be price leader, offering the lowest prices for both basic (own brand) products as well as known brands.
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Below, the top industries for the pattern "Target The Poor" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Target The Poor" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
