An assessment of offering innovation in distribution channels to access low-income segments: A study in Argentina in the category of home cleaning and pesticides

Abstract

Since the birth of the modern economy, it has been observed that its mechanism leads to an aggravation in the disparity of living standards, where the poor develop slowly, and the imbalance grows. However, on these new conditions of society, a system has been built that considers utility as essential to economic progress and competition as the inevitable of the economy. Thus, with competition and inequality, opportunities and business are created. Inside the low-income segment there are consumers, and they can be consumers of any product or service. This research shows the opportunity of Mass Consumption companies to develop a new distribution channel for the Low-Income Segment by selling fragmented products at a low Out of Pocket in Argentina. To have a further knowledge on the subject, an online survey was made that evaluate the key variables of price, distribution, and desire to conclude that by reaching the Bottom of the Pyramid, they not only can get revenues but also be more sustainable and socially responsible by increasing their penetration and offer their products to everyone as they are mass consumption companies.