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Selling to the moneyed masses
Paul F Nunes1, Brian A Johnson, R Timothy S Breene
1Accenture's Institute for High Performance Business, Wellesley, Massachusetts, USA.
Harvard Business Review
|July 10, 2004
Summary
Marketers can capitalize on the growing "new middle ground" of consumers with higher incomes by rethinking product positioning, design, and market entry strategies. This approach targets the affluent consumer base effectively.
Area of Science:
- Marketing Strategy
- Consumer Behavior
- Market Segmentation
Background:
- Income distribution has shifted, creating a larger segment of consumers with above-average incomes who are not yet wealthy.
- This demographic shift has transformed previously underserved markets into profitable "new middle ground" opportunities.
Purpose of the Study:
- To explore how marketers can effectively target and capitalize on the emerging "new middle ground" consumer segment.
- To provide actionable strategies for product positioning, design, and market entry to reach this growing demographic.
Main Methods:
- Analysis of market trends and consumer income distribution shifts.
- Case study examples illustrating successful strategies in product repositioning and market entry.
Main Results:
- Procter & Gamble successfully targeted the "new middle ground" with Whitestrips by positioning between high-end dental treatments and low-end toothpastes.
- Product redesign, such as transforming polo shirts into "golf shirts" with added features, appeals to "occasional use" needs.
- Target Stores pioneered an "upscale discount" strategy, appealing to the "mass affluent" and becoming a shopping phenomenon.
Conclusions:
- Rethinking product positioning, design, and go-to-market strategies is crucial for marketers to capture the "new middle ground" consumer.
- Innovative approaches in product development and market entry can unlock significant profit potential within this expanding demographic.