Developing Business Strategies for Emerging Markets

Developing Business Strategies for Emerging Markets
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Developing Business Strategies for Emerging Markets
Modifying business models to reach customers at the base-of-the-pyramid
Firms need to modify their business models and appeal to the target audience and reach other customers at the customers of the base-of-the-pyramid. Understanding customer needs, preferences, and expectations are helpful when modifying the business models. Customers at the base of the pyramid want quality products, but the lack of financial resources limits what they can purchase. When modifying the business model, it is necessary to consider what influences purchasing decisions of the targeted customers and the company's strengths and challenges. In doing so, there will be more focus on distributing and marketing products that are right for customers, including those at the base of the pyramid. It is helpful to prioritize sustainability competence to improve sustainability and social performance in economically underdeveloped countries.
Customers at the base of the pyramid are price-sensitive, and it is necessary to introduce innovative consumer products that are affordable and reach the mass market. For instance, companies can sell products in smaller quantities and maintain low-profit margins to appeal to customers. However, the products should be close to whether the target market is as it is not enough to be price competitive as the products should be easily accessible. Considering options such as packaging and what consumers consider as value addition can help remain competitive in the target market (Reynoso & Cabrera, 2019). A well-established retail network and distribution ensure that products are accessible and services to customers at the bottom of the pyramid.
Besides selling in small sizes, it is potentially beneficial to sell products in a bundle, especially when the target market is aware of the marketed products and services. Bottom of the pyramid, customers are low-income and tend to purchase small-sized products. Larger products are more cost-effective for customers, but at the bottom of the pyramid, customers lack the financial means to buy products in bulk or large quantities. Each market has unique needs and demands, and companies should be innovative, allowing them to adapt to changing markets. As such scalable operations, inclusive channels, and creating value for the target customers are essential to remaining competitive.
Businesses should not merely focus on low prices but on the affordability of high-quality products with feasible payment options. Adding features that do not add value to the core product elements increases the costs and reduces the likelihood of the target consumers purchasing the product. Value creation has the potential to improve the needs of various stakeholders while improving profitability (Dembek et al., 2018). Competing based on price alone is not enough, and growth in product supply is associated with lower prices. Thus, modifying the business model requires considering other facts such as availability, access, and awareness with products tailored to meet the target customers' needs. Still, there is a challenge in creating new markets with loyal custom...