Targeting The Bottom of the pyramid

Many companies in recent times faced a state of poverty known at the

bottom of the pyramid, this part is largely untapped. The world's poor
often do not have access to basic products and services. Companies are
increasingly looking down the pyramid for new growth opportunities, as
many companies make their products more affordable simply by offering
smaller package sizes or technical versions Less than current products

For example, Nigeria alone produces about 6 million newborns each

year, a country with double the population, Nigeria's stunning birth rate
is a huge untapped market for Pampers diapers and P & G's best-selling
brand, P & G has therefore invented absorbent diapers with fewer
features to keep costs and prices low in markets such as Nigeria, and to
convince mothers that Pampers deserves some of their scarce spending
Although it is much less expensive, but the diaper is still working at a
high level.

The research and development manager says that it means that the
diaper needs to be priced low, but it must also do what other diapers do
not do. Also this firmcreate an image in customer mind that One
Pampers equals one dry night.” The campaign tells mothers that keeping
babies dry at night helps them to get a good night’s sleep, which in turn
helps them to grow and achieve. So affordable prices, customer
satisfaction and related positioning have increased Pampers sales in
Nigeria and Pampers has become synonymous with diapers.
Pricing strategies in SouthKorea and the factors that
affected the price

In Korea’s export-driven economy, price competitiveness is a key factor.

Korean manufacturers try to purchase lower priced raw materials or
equipment, while also looking for quality.

According to the Korean Act on Consumers, consumer items are

required to be labeled with specifics varying among products

Forexample:

 Denomination, use, ingredients, material quality, performance,

size, price, capacity, permitted number of goods and contents of
services.
 Method of use, matters of caution and warning in use and keeping
 Date of manufacture, quality guarantee period or, in case of goods
such as foods, medicine, which are apt to be altered in the course
of distribution, the validity period of such goods.
 Dimension, location and method of indication, and organization
and method of settlement for any complaint on goods, or any
consumer’s damage due to goods.

Also having a pricing objective isn’t enough. A firm also has to look at a
myriad of other factors before setting its prices. Those factors include:

 Customers

How will buyers respond? Three important factors are whether the
buyers perceive the product offers value, how many buyers there are,
and how sensitive they are to changes in price. In addition to gathering
data on the size of markets

_Price elasticity, or people’s sensitivity to price changes, affects the

demand for products
 Competitors

How competitors price and sell their products will have a

tremendous effect on a firm’s pricing decisions.
The availability of substitute products affects a company’s pricing
decisions as well.

 The Economy and Government Laws and Regulations

The economy also has a tremendous effect on pricing decisions
that factors in the economic environment include interest rates
and unemployment levels. When the economy is weak and many
people are unemployed, companies often lower their prices. In
international markets, currency exchange rates also affect pricing
decisions

 product Costs
The costs of the product including the amount spent on product
development, testing, and packaging required have to be taken
into account when a pricing decision is made. So do the costs
related to promotion and distribution.