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Case study: Hindustan Lever Limited and marketing to the poorest of the poor

Author

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  • Pia Sabharwal Ahmad
  • Michael E. Gorman
  • Patricia H. Werhane

Abstract

In the 1970s, the early marketing activities of Hindustan-Lever in India tended to focus upon the urban middle class and elite. Meanwhile, an Indian entrepreneur produced and marketed a detergent, Nirma, targeting the poor rural sector. By 1977, Nirma was the second largest volume seller in the country. The paper suggests that the common description of the bottom-of-pyramid market segment as the disorganised sector can have a psychological impact on marketing strategy formulation, over and above the real effects of absent infrastructures. The classic Nirma story helps us to re-frame and re-describe prospects for serving this market segment. For example, it can be a base-camp from which an MNC can launch a very effective attack upon all levels of the pyramid.

Suggested Citation

  • Pia Sabharwal Ahmad & Michael E. Gorman & Patricia H. Werhane, 2004. "Case study: Hindustan Lever Limited and marketing to the poorest of the poor," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 4(5), pages 495-511.
    • Handle: RePEc:ids:ijeima:v:4:y:2004:i:5:p:495-511
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    Citations

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    Cited by:

    1. Surendra Arjoon & Alvaro Turriago-Hoyos & Ulf Thoene, 2018. "Virtuousness and the Common Good as a Conceptual Framework for Harmonizing the Goals of the Individual, Organizations, and the Economy," Journal of Business Ethics, Springer, vol. 147(1), pages 143-163, January.
    2. Varsha Khandker, 2023. "Two decades of the bottom of the pyramid research: identifying the influencers, structure, and the evolution of the concept," Management Review Quarterly, Springer, vol. 73(3), pages 1151-1178, September.
    3. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.

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