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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: 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.
Learn more about Aldi →
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.
Learn more about H&M →
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: 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: 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 →
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 10 firms using this pattern.
Top Industries
Retail
29% of firms using pattern
29% of firms using pattern
Consumer Goods
29% of firms using pattern
29% of firms using pattern
Fashion
14% 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
No Frills
2 pattern co-occurrences
2 pattern co-occurrences
Cross Selling
1 pattern co-occurrences
1 pattern co-occurrences
E-commerce
1 pattern co-occurrences
1 pattern co-occurrences