Segmenting by lifestyle in low income markets: the case of Peru and Mexico

This paper shows the market strategy of aiming at the highest income population rather than the mass population ignores tremendous opportunities for entrepreneurial growth existing in developing countries, particularly Latin American countries.

Segmenting by lifestyle in low income markets: The case of Mexico and Peru

Rolando Arellano CuevaArellano Investigación de Marketing, Peru

INTRODUCTION

While in the industrialized countries the most important companies seek to attract as much of the mass population, the so-called middle class, as possible, leaving the very high and very low income brackets as “niches” for smaller companies, in developing countries the large organizations aim to meet the demand of the population with the highest income, leaving the mass population out of the picture (see Figure 1). The typical explanation used to justify this choice is...

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