Low-Income Market Penetration
Design for cash flow, access and functional value. Evaluate unit economics at the smaller pack size.
Cheat sheet
Design for cash flow, access and functional value. Evaluate unit economics at the smaller pack size.
What to check first
Observe household usage and compare refill, sachet and cooperative buying options.
How to make the call
Pilot along dense routes and check repeat use and packaging waste.
AMA · What is marketing? · further reading for marketing foundations
Indian practice case
Fictional scenario
A Patna cleaning-products maker wants a ₹10 entry pack. Variable pack and fulfilment cost is ₹7.50 and the retailer takes ₹2.
Reveal the step-by-step solution
- Diagnose the problem.
Observe household usage and compare refill, sachet and cooperative buying options.
- Work through the evidence.
The sachet leaves ₹0.50 contribution and needs 60,000 units to cover a ₹30,000 launch cost.
- Recommend and validate.
Pilot along dense routes and check repeat use and packaging waste.
More Indian cases
Interview question
How would you use low-income market penetration to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
The sachet leaves ₹0.50 contribution and needs 60,000 units to cover a ₹30,000 launch cost. Pilot along dense routes and check repeat use and packaging waste.