Targeting the Bottom of the Pyramid

Summary Many big companies tried to target the crumb of the gain but often fail. So many investors and companies aroma that it is to a fault risky. At first, they thought it was the high prices that demotivated the consumers. Then, fewer companies tried to interrupt product that is extremely low in prices but they remedy fail to capture the consumers because they cannot qualify their long-entrenched behaviors by paying for refreshful products and integrating them into their lifestyles. So the next perplexity arises, how to change the behaviors of the consumer? a few(prenominal) companies hand over successfully immix their products into the lifestyle of the bottom of the pyramid. The tonality to the companies success is not to change the peoples lifestyles but to fit products into their lifestyles. So companies like Hindustan Unilever developed a product called Pureit that sells for $43. Then they utilize people over in India to demonstrate the products in local an esthetic houses and deliver them door-to-door. Now, to a greater extent than 3 million Indian homes come Pureit systems. Discussion Questions 1. why are companies such as Siemens, GE, and Procter & group A; run a risk targeting the bottom of the pyramid?

These companies target the bottom of the pyramid( depress ramify merchandise) because they essential to expand their business by diversifying their target foodstuff segment. Very few companies and firms founder successfully penetrate the deject class market because they set high prices for their products. Companies overestimate the rise of the market and end up selling to the middle class, carve up of of the lower clas s. So they decided to create a forward-loo! king low-cost market. Another problem companies face is even if they have the right product with the right price, they cannot persuade the low-income consumers to buy spick-and-span products. So companies learnt that they cannot change the buying behavior of the consumers. Only few companies managed to fit their products into the consumers buying behavior. Basically, companies target lower class markets...If you indigence to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay