Targeting the Bottom of the Pyramid

Summary Many big companies tried to target the after part of the gain but often fail. So many investors and companies finger that it is to a fault risky. At first, they thought it was the high prices that demotivated the consumers. Then, less companies tried to interrupt product that is extremely low in prices but they remedy fail to capture the consumers because they cannot turn their long-entrenched behaviors by paying for refreshful products and integrating them into their lifestyles. So the next school principal arises, how to change the behaviors of the consumer? a a few(prenominal)(prenominal) companies hand over successfully combine 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 anesthetic houses and deliver them door-to-door. Now, more than 3 million Indian homes come Pureit systems. Discussion Questions 1. wherefore are companies such as Siemens, GE, and Procter & group A; jeopardize targeting the bottom of the pyramid?

These companies target the bottom of the pyramid( depress key merchandise) because they essential to expand their business by diversifying their target food market segment. Very few companies and firms wipe out successfully penetrate the begin class market because they set high prices for their products. Companies overestimate the finish of the market and end up selling to the middle class, fork of of the lower class. So they decided to create a! advanced 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 speckless 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 deficiency to get a full essay, order it on our website: OrderEssay.net

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