Ho 1
Tsung-Yu Ho
TMKTG 480
11 Feb 2019
Bottom of the Pyramid
Marketing to the bottom of the pyramid presents an opportunity for brands to access new
markets and increase their market share. The market segment comprises of 4 billion people who
are categorized as the world’s poor (Simanis). While pursuing this market segment, a majority of
brands have adopted a pricing strategy that allows them to sell products and services at a low
price with small margins. The strategy enables them to sell large volumes to the large market
segment, giving them an opportunity to create profitable enterprises. However, the strategy is
ineffective because it requires a market penetration of over 30 % for a brand to achieve positive
outcomes (Simanis). Consequently, it is necessary to determine whether brands that target the
bottom of the pyramid market segment should embrace sustainable strategies that strive to build
scalable and profitable enterprises.
