Let’s stay neutral first.
In small, low-income habitats, demand is not elastic.
People don’t buy more vegetables just because they are available—or cheaper.
Consumption is capped by:
• household income,
• cooking habits,
• storage ability,
• and daily meal patterns.
Back to Radha.
With 2 extra lauki, her immediate market absorbs it easily.
With 5 extra lauki, something breaks.
Not price.
Capacity to consume.
Her nearest 20 households may already:
• cook lauki once a week,
• not want to store it,
• or simply not need another one.
So even at a lower price, consumption refuses to expand.
👉 Critical insight:
In micro markets, the problem is often not finding buyers—it is hitting a consumption wall.
This is why:
• discounts don’t clear stock,
• awareness doesn’t create appetite,
• and “better marketing” doesn’t help.
The market isn’t failing.
It’s behaving rationally.
What classical marketing misses:
It assumes demand can stretch.
In poor habitats, demand plateaus quickly.
My clear opinion (this deserves emphasis here at IIM):
For tiny and micro enterprises, marketing must be preceded by consumption mapping, not customer profiling.
If Sphere 1 has a daily absorption limit of 2 lauki, producing or harvesting 5 is a planning error, not a marketing failure.
NRLM strategies should ask:
“How much can this habitat actually eat?”
Not:
“How do we sell more?”
