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: 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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How they do it: HomeBuy targets people who otherwise wouldn’t be able to come up with the equity to purchase a home on their own. By setting the conditions so that only low income citizens can make use of the program, the government ensures that their subsidies go to the right people.
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How they do it: McDonald’s competitive prices make its products attainable to everyone. It’s high degree of standardization and international brand popularity allow the company to offer their products cheap and at a consistent quality.
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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: H&M offers all its products at really low prices. This also includes e.g. formal and business wear, allowing to target a large group of customers with a low purchasing power for clothing.
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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.
