Wednesday, September 16, 2015

Marketing to the Bottom of the Pyramid

 I am trying to write a blog post at least 5 times a week (which seems obviously a minimum, but trust me, a lot of work involved), even though I have a heavy schedule. Which explains the reason why sometimes I am discussing about topics that hit the headlines a long time ago, some times several years. But actually it does not really matter to me. My purpose is not to feed you with the most updated stories (even though I try), as other professional bloggers and newspapers can do so way better than me. 

Nevertheless I discuss about topics and share with you my opinion in ideas, in order to provide you with food for thoughts.

That is the reason why, sometimes, I write about old stories. Today, I wanted to discuss with you about an old story I found on Seth Godin's blog. It is about marketing to the bottom of the pyramid.

Most of mature companies in mature markets are aiming to premium their offer, in order to increase prices. But sometimes it is not possible, especially in fast growing markets, where you have massive markets of households with very few incomes.

there is a 1/3 of the global population 2.5$ a day, which represents 2.5 billion people. That's a $2 280 billion market!

But what really matter in the article, is the gap between the culture of those people and of western people. You can't market your product the same way you would with an American or a European. Package matter less. Point of sales advertizing is not really an alternative. "Impulsive purchase" is not possible.

Moreover, as the video points out, it is not easy to make understand to those people the product they need. They don't have the same access and decision making process when it comes to an innovative product. And having a viral marketing campaign would be of very little help.

So you need to focus on those people, their needs, and determine the best way to explain the product, and find the early adopters that will help in the process of mass adoption.

Very interesting article, a lot of food for thoughts, but necessary in order to feed those very important customers.

The Double Bottom Line from Alex Godin on Vimeo.