1. Donna Moulton
International Marketing
MKT-425-A
Professor Mendoza
Writing Assignment #2
Due: 2/29/2016
Segmentation, Targeting and Positioning in Global Marketing Chapter 7
Companies such as Siemens, GE, Nestle and Procter and Gamble target consumers at the
"Bottom of the Pyramid". What does "Bottom of the Pyramid means"?
The Bottom of the pyramid refers to Maslow’s Hierarchy of Needs. The bottom of
Maslow’s pyramid is our most basic need and that is our Physiological needs such as food,
water, and sleep, relevant products would include: medicines, and everyday staple items. This is
the lowest level of the pyramid and when marketing to this level of consumer you are looking at
a consumer that has little to no disposable income and enough income to just about survive. By
targeting this level of the pyramid you are also looking at producing and marketing low cost
products that would fall into the category of a staple item such as food, and basic items to
survive.
If we aim to launch our soft drink to health-conscious consumers in China, are they in the
"Bottom of the Pyramid"?
When we launch our soft drink our consumers in China will not be on the bottom of
Maslow’s Hierarchy of Needs pyramid, in fact they will be somewhere between Ego Needs and
Belongingness. I believe that they will be more in the belongingness need level because this is
the level where you will find products such as clothing, grooming products, clubs, and drinks.
This level of needs includes love, friendship, and acceptance by others. In the Ego Needs level,
we see that the needs that need to be fulfilled here include Prestige, Status, and accomplishment,
products include cars, furniture, credit cards, stores, country clubs and liquors to name a few.
2. The reason I picked these two levels is because our product will be marketed as a health-
conscious soft drink and I believe that being health-conscious falls not only under Maslow’s
Hierarchy of Needs level of belongingness and acceptance of others by choosing a healthy
product but also under Ego Needs because being more health-conscious will fulfill the Ego Need
of Accomplishment by being a healthier individual.
Will companies such as Nestle be your competitor in China when you launch your softdrink
there?. Please, explain.
If Nestle is only targeting the lower level of Maslow’s Hierarchy of Needs pyramid, then
I believe that they will not be a competitor for our product that we will be launching in China. If
Nestle also has products in China targeted to consumers located in higher levels of Maslow’s
Hierarchy of Needs pyramid, then I would say yes then Nestle would be a direct competitor of
our product.
What types of marketing communications may be necessary to launch an innovative soft drink in
China? What changes in consumer attitudes and behavior are required to successfully launching
a soft drink in China?.
When deciding what types of marketing communications that would be necessary to
launch our soft drink product we would have to know who our target market is and where they
reside in China, I believe our consumers would be located in and around major cities so we
would want to pick the best marketing communications for each of the major cities our target
market is in and around. I believe that we would have to have a strong web presence, so utilizing
Chinese social media and popular websites is a most along with advertising via television
commercials on the Chinese television platform. The changes in consumer attitudes and behavior
that are required to have a successful launch would be the need of Chinese consumers wanting a
more health-conscious product, since we are focusing on a product that can also double as a meal
3. replacement product or an after workout drink because of the amount of protein exceeding 20
grams, this product can be targeted toward lower income consumers or consumers of higher
income who workout and are more health-conscious.
Can you describe the different consumer segments (of soft drinks) in China?
The different consumer segments for soft drinks in China include:
Asian specialty drinks: Our product would fall into this category since it is a product with a high
level of protein.
Bottled water
Carbonates
Concentrates
Fruit and vegetable juice
Sports and energy drinks
RTD coffee
RTD tea