Target The Poor 50#
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.
Examples: Iconic Cases
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 →
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: 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.
Learn more about Walmart →
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: 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.
Learn more about McDonald's →
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.
Top Industries
29% of firms using pattern
29% of firms using pattern
14% of firms using pattern
All Industries
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.
Top Co-Occurrences
5 pattern co-occurrences
3 pattern co-occurrences
3 pattern co-occurrences