SR article

Customer Segments

For whom are we creating value? Who are our most important customers?

We have several main target groups. Firstly, we can sell our product internationally. Abroad, people will be appealed by the fact that our product is sustainable and helping to improve the lives of people in rural villages in India. Many environmentally and socially- oriented customers will want to support this project and since our oil is locally produced and of high quality they will be ready to pay a good price.

 

Another segment group is inside India: local businesses, especially in the tourism or cosmetics industry. Using or selling this unqiue product at their facilities will also improve their own status.

 

Third, we also want to sell the oil to locals in the village, however for a smaller price. The idea here is not to sell it to them as a luxury product but for its purpose, so for the health benefits, which we want to make available to them. As Prahalad and Hart describe in “The fortune at the bottom of the pyramid”, there is a large part of the population that has a small income but that can represent a huge new consumer group. Targeting these groups is beneficial both for the business as well as for the poor that will finally have access to these products. This is why we will also focus on the low-income market, following the example given about India’s detergent company Nirma Ltd. [1]. This strategy can be described as a “Next Generation Bottom of the Pyramid 1.0” strategy, like explained in “The Base of the Pyramid Protocol” by Simanis [2]. By “selling to the poor”, we can address problems of poverty and sustainable development.

 

 

References:

[1] Prahalad C.K. (2002), The fortune at the bottom of the pyramid. Strategy and Business p.5

[2] Simanis - The Base of the Pyramid Protocol

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