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: 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: 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.
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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: 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.
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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.
