Selling to the moneyed masses.
Over the past decade, the distribution of household incomes has shifted so much that a much larger proportion of consumers now earn significantly higher-than-average incomes--while still falling short of being truly rich. As a result, what used to be a no-man's-land for new product introductions has in many categories become an extremely profitable "new middle ground." How can marketers capitalize on this new territory? The key, say the authors, is to rethink the positioning and design of offerings and the ways they can be brought to market. Take, for instance, how Procter & Gamble redefined the positioning map for tooth-whitening solutions. A decade ago, dental centers were popularizing expensive bleaching techniques that put the price of a professionally brightened smile in the 400 dollars range. At the low end, consumers also had the choice of whitening toothpastes that cost anywhere from 2 dollars to 8 dollars. P&G wisely positioned itself between the two ends, successfully targeting the new mass market with its 35 dollars Whitestrips. In product categories where it's clear the middle ground has already been populated, it's important for companies to design or redesign offerings to compete. An example is the Polo shirt. How do you sell a man yet another one after he's bought every color he wants? Add some features, and call it a golf shirt. Here, marketers have introduced designs based on the concept of "occasional use" in order to stand out. Finally, companies wishing to reach the "almost rich" can change how they go to market. Perhaps no mass retailer has made a stronger bid for the mass affluent than Target Stores, which has pioneered a focus the company itself characterizes as upscale discount. The strategy has made Target an everyday shopping phenomenon among well-heeled urbanites and prosperous professionals.
Nunes
Paul F
PF
Accenture's Institute for High Performance Business, Wellesley, Massachusetts, USA.
Johnson
Brian A
BA
Breene
R Timothy S
RT
D003258:Consumer Behavior / Q000191:economics*; D004465:Economic Competition; D005382:Financing, Personal; D006801:Humans; D007182:Income / Q000639:trends; D007221:Industry / Q000191:economics* / Q000458:organization & administration; D040541:Marketing / Q000379:methods*; D011357:Product Line Management / Q000379:methods*; D014100:Toothpastes; D014481:United States
D014100:Toothpastes