“Low Income Is Hot”

In an article in the September 11 issue of Brandweek, headlined “For Some Marketers, Low Income is Hot,” Constantine Von Hoffman writes: “Marketers have discovered a new and sizeable underserved consumer demographic: the poor.”

For instance, P&G has introduced Bounty Basic and Charmin Basic, for the “price-sensitive” low-income consumer. Prepaid phone and (in particular) debit cards are also aimed at this “large, untapped pool of consumers,” namely the 20 million U.S. houeholds “without a bank account or relaible access to banking services.” Someone with a prepaid card company called Netspend comments: “For a long time companies did not realize that these low- to middle-income people can be profitable.” Participants in this exciting new market include Nascar, Virgin Mobile, and Domino’s Pizza.