Targeting the Bottom of the Pyramid

Summary

Many big companies tried to target the bottom of the gain but often fail. So many investors and companies feel 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 change their long-entrenched behaviors by paying for refreshful products and integrating them into their lifestyles. So the next question arises, how to change the behaviors of the consumer? a few(prenominal) companies hand over successfully integrate 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. Why are companies such as Siemens, GE, and Procter & group A; Gamble targeting the bottom of the pyramid?




These companies target the bottom of the pyramid( depress severalise merchandise) because they essential to expand their business by diversifying their target market segment. Very few companies and firms have successfully penetrate the lower class market because they set high prices for their products. Companies overestimate the coat of the market and end up selling to the middle class, sort of of the lower class. So they decided to create a modernistic 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 brand-new 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 want to get a full essay, order it on our website: Orderessay



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