Mee-Shew Cheung
Associate Professor, Xavier University, USA.
Market Development Strategy and
Global Wellbeing:
Learning from the Low-income Consumer Segment
in Eastern Europe and Central Asia
Today to be truly global for businesses means embracing all the
market segments and every consumer. It is also important to analyze
and forecast the potentially critical markets that will be the key growth
driver in years to come; the business systems and marketing strategies
that will be appropriate for these markets; and what consumers in these
markets are expecting from the business corporations. It requires being
creative and innovative in every aspect of the market development
strategy.
In this paper, we offer our observations and review from both
academic literature and industrial reports to explore the linkages
between market development strategy and global wellbeing. We
examine the current market situation and consumption culture in the
low-income consumer segment in Eastern Europe and Central Asia.
Our discussion centers around the framework of the ‘Eradicating
Poverty Through Profits’ concepts developed by C.K. Prahalad around
private sector approaches to poverty eradication and enhancement of
global wellbeing. Much of the work on this topic, i.e. bottom-of-the-
pyramid business models, has been heavily focused on developments
in China, India, and African nations. We hope to bring to the attention
of business corporations, entrepreneurs and scholars the low-income
consumer segment currently residing in Eastern Europe and Central
Asia. The 24 countries of the region are diverse in terms of size, levels of
economic development, historical background, social and political
structures but nevertheless are tightly related and share similar
characteristics of a common regime. The region offers great marketing
and learning opportunities to multinational corporations who seek to
establish a broader market base and diversify their global profit centers
that would ultimately provide a more sustainable competitive edge,
and at the same time enhance global wellbeing.