The city of Nagar has a population of 10 million,
2 millions amongst whom are rich, 3 million poor
and 5 million belong to the middle class.
Saundarya Cosmetics manufactured and sold
beauty product to the rich class at a premium
price. Its products were very popular with
customers. Many people from the middle and poor
segments of the population aspired to buy these
products but could not afford because of the high
prices. Of late, sales growth has been stagnating
in the rich segment. Which of the following is the
best option for Saundarya Cosmetics to maximize
A.Sell the same products at lower prices to middle
and poor classes.
B.Sell similar products, of different quality
standards with different brand names, to middle
classes and poor classes.
C.Sell its products under different brand names
to middle and poor classes.
D.Continue to target rich only and hope that
today’s middle class would be tomorrow’s rich
E. Target middle class as it is the largest segment
and forget about the rich.