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: Since 2004, Renault and its subsidiary Dacia produce a model called ”Logan”, a small family vehicle targeted at the bottom of the pyramid. To date, it has sold millions of individual units, in countries and regions such as Iran, India, South America, and Eastern Europe. The Logan was designed from the outset as an affordable car, and has many simplified features to keep costs down. It is among the most affordable vehicles available on the market today.
Learn more about Renault →
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.
Learn more about HomeBuy →
How they do it: Procter and Gamble adopts a bottom-of-the-pyramid approach in targetting low-income customers in developing countries. An example are single-use packets of shampoos, sold for a few cents, which are purchased by customers on demand from local stores.
Learn more about Procter & Gamble →
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: 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.
Learn more about IKEA →
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.
