Business Models from Maslow's Pyramid Perspective
"Roti, Kapda, Makan" - FMCG, Clothing and Real Estate, in this era of huge investment and unparalleled valuation and unreasonable churning and burning of employees and money, the traditional business are still strong and growing, because those businesses will never end and are the foundation of human society that each human being needs daily, building business on that will always be profitable.
Let's first understand the Maslow's Hierarchy:
When it came to describing physiological needs, Maslow began developing his theory in the 1950s. He wanted to explain human drives and needs in a way that allowed for an exploration of human creativity and ingenuity, which he believed had been insufficiently described by psychologists before him. He wanted to understand what aspects of a human life contributed to happiness and allowed people to not only survive but thrive. His exploration of physiological needs formed the basis for that exploration.
Maslow's Hierarchy of Needs is a psychological theory developed by Abraham Maslow in the mid-20th century. It outlines a hierarchical model of human needs, suggesting that individuals are motivated to fulfil certain needs in a sequential order. Maslow proposed that as each level of need is satisfied, individuals are motivated to move up to the next level. The hierarchy is often depicted as a pyramid, with the most basic needs at the bottom and higher-order needs at the top.
Maslow's Hierarchy of Needs:
Physiological needs
Safety needs
Love and belongings
Esteem
Self-actualization
Abraham Maslow's Hierarchy of Needs is often presented as a 5-level model, but there are also 6- or 7-level versions. Each level represents a different type of need that people feel and need to be satisfied. The order of the stages varies slightly depending on the theory, but in general the five basic needs are:
Basic or physiological needs: Food, water, shelter, warmth
Safety needs: Security, stability, freedom from fear
Belonging, love: Friends, family, spouse, lover
Self-esteem needs: Achievement, mastery, recognition, respect
Self-actualization: Pursue inner talent, creativity, fulfillment
1. Physiological Needs:
At the bottom of the pyramid are the physiological (or basic) human needs that are required for survival: food, shelter, water, sleep, etc. If these requirements are not met, the body cannot continue to function. Faced with a lack of food, love, and safety, most people would probably consider food to be their most urgent need.
These needs include the most basic physical demands on the body, such as food, water, sleep, and warmth. They are basic biological needs that are required to support life.
1. Food
2. Water
3. Shelter
4. Sleep
5. Air
6. Clothing
Air, Water, Food, Shelter,Clothes: Fundamental necessities for sustaining life.
Business Angle : FMCG, Clothing, Real Esate
Business Perspective:
Food: Agricultural businesses, grocery stores, food processing, and restaurants.
Clothing: Fashion retail, textile manufacturing, and online apparel businesses.
Real Estate: Real estate development, property management, and rental services.
2. Security Needs:
After physiological needs are met, people begin to create and protect secure environments. They seek stability in their jobs, finances and personal environments.
Once physical needs are satisfied, security (sometimes referred to as individual safety) takes precedence. Security and safety needs include personal security, financial security, and health and well-being. These first two levels are important to the physical survival of the person. Once individuals have basic nutrition, shelter, and safety, they seek to fulfill higher-level needs.
After physiological needs are met, individuals seek safety and security.
Business Angle: Comfort, support and security
Healthcare Services: Hospitals, clinics, and healthcare providers.
Pharmaceuticals: Drug manufacturing and research.
Educational Institutions: Schools, universities, and vocational training centers.
Security Services: Companies providing security solutions like home security systems, surveillance cameras, alarm monitoring services, and cybersecurity solutions cater to people's need for physical and digital safety and protection.
Without supportive backbone the all the above businesses could not be able to function, these are the primary backbone that support all the other societal and economical needs:
Transport:
Automotive: Car manufacturing, dealerships, and maintenance services.
Public Transportation: Public transit agencies and related infrastructure development.
Cabs and Rental Cars
Logistics and Transportation: Shipping and logistics of FMCG, Fuels and more.
Technology:
Electronics: Consumer electronics manufacturing and sales.
Software Development: Software companies, app developers, and IT services.
Telecommunications: Telecommunication providers and network infrastructure.
Banking/Finance:
Banking: Commercial banks, investment banks, and credit unions.
Finance: Investment firms, asset management, and financial advisory services.
Insurance: Insurance companies and risk management services.
3. Social Needs
Once these first two levels are satisfied, a person begins to seek social relationship and belonging. He wants to be part of a group and has the need for love and recognition by other people.
The third level of need is social, which include love and belonging; when individuals have taken care of themselves physically, they can address their need to share and connect with others. Deficiencies at this level, on account of neglect, shunning, ostracism, etc., can impact an individual’s ability to form and maintain emotionally significant relationships.
Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group or a small network of family and friends. Other sources of social connection may be professional organizations, clubs, religious groups, social media sites, and so forth. Humans need to love and be loved (sexually and non-sexually) by others. Without these attachments, people can be vulnerable to psychological difficulties such as loneliness, social anxiety, and depression. These conditions, when severe, can impair a person’s ability to address basic physiological needs such as eating and sleeping.
Components:
Friendship and Relationships: Establishing connections with others.
Family: A sense of belonging within a family or social group.
Social Activities: Engaging in social events and group activities.
Business Perspective: Lifestyle and Enjoyment
Luxury Goods:
Fashion Luxury Brands: High-end fashion houses and luxury clothing brands.
Automotive Luxury Brands: Luxury car manufacturers and dealerships.
Consumer Goods: Luxury watches, jewelry, and other premium consumer goods.
Travel and Leisure:
Air Travel: Airlines, airports, and travel agencies.
Hospitality: Hotels, resorts, and accommodation services.
Tourism Services: Tour operators and travel-related services.
Entertainment and Media:
Media Production: Movie studios, TV production, and content creation.
Streaming Services: Video streaming platforms and online entertainment.
Gaming Industry: Video game development, esports, and gaming accessories.
4. Esteem Needs:
People are now trying to build their self-esteem and increase their autonomy. They need recognition by others for their abilities or performance, as well as respect for their opinions and ideas.
The fourth level is **esteem**, which represents the normal human desire to be valued and validated by others, through, for example, the recognition of success or status. This level also includes self-esteem, which refers to the regard and acceptance one has for oneself. Imbalances at this level can result in low self-esteem or an inferiority complex. People suffering from low self-esteem may find that external validation by others—through fame, glory, accolades, etc.—only partially or temporarily fulfills their needs at this level.
Components:
Self-Respect: Achieving a sense of competence and accomplishment.
Recognition: Acknowledgment and appreciation from others.
Status: Gaining a sense of prestige and importance.
Business Angle:
Luxury Brands: Companies like Louis Vuitton, Rolex, Ferrari, and Chanel cater to affluent consumers seeking high-quality, prestigious products and experiences that symbolize success, status, and exclusivity, helping them fulfill their esteem needs.
Career Development: Training and development firms, career coaching services, and online learning platforms offer resources, courses, and guidance to help individuals enhance their skills, advance their careers, and achieve professional success, contributing to their sense of competence and self-worth.
Recognition Programs: Employee recognition platforms, awards ceremonies, and incentive programs implemented by organizations acknowledge and reward employees' achievements, contributions, and performance, boosting their self-esteem and motivation in the workplace.
5. Self-Actualization Needs
With all previous levels satisfied, people begin to search for the meaning of life; what is my purpose? What do I want to achieve in my life? They develop a strong motivation for development and success, and an inner voice that inspires them to reach their full potential.
The fifth level of the pyramid is self-actualization. At this stage, people feel that they have reached their full potential and are doing everything they’re capable of. Self-actualization is rarely a permanent feeling or state. Rather, it refers to the ongoing need for personal growth and discovery that people have throughout their lives. Self-actualization may occur after reaching an important goal or overcoming a particular challenge, and it may be marked by a new sense of self-confidence or contentment.
Business Angle:
Personal Growth: Pursuing one's passions and potential.
Creativity: Engaging in activities that allow for self-expression.
Meaningful Achievements: Accomplishments that contribute to personal fulfillment.
Personal Development: Life coaching services, self-help books, mindfulness apps, and personal development workshops offer guidance, tools, and strategies to help individuals realize their potential, set meaningful goals, and lead fulfilling lives aligned with their values and aspirations.
Creative Industries: Art galleries, design agencies, publishing houses, film production companies, and music studios provide platforms and outlets for creative expression, allowing artists, designers, writers, musicians, and filmmakers to showcase their talents, pursue their artistic visions, and make a meaningful impact through their work.
Businesses from Maslow's Pyramid
Physiological Needs (Basic Needs)
1. Food and Beverage Industry (Restaurants, Food Delivery, etc.)
2. Healthcare Services (Hospitals, Clinics, etc.)
3. Water and Energy Supply (Utilities, Renewable Energy, etc.)
4. Shelter and Real Estate (Construction, Property Management, etc.)
5. Safety and Security Services (Private Security, Alarm Systems, etc.)
Safety Needs (Security and Stability)
1. Insurance Services (Life, Health, Property, etc.)
2. Financial Services (Banking, Investment, etc.)
3. Cybersecurity Solutions (Data Protection, etc.)
4. Home Maintenance and Repair Services (Plumbing, Electrical, etc.)
5. Transportation Services (Taxi, Ride-Sharing, etc.)
Love and Belonging Needs (Social Connections)
1. Social Media Platforms (Facebook, Instagram, etc.)
2. Online Dating Services (Matchmaking, etc.)
3. Event Planning and Management (Weddings, Conferences, etc.)
4. Travel and Tourism Industry (Hotels, Airlines, etc.)
5. Education and Training Services (Online Courses, etc.)
Esteem Needs (Self-Esteem and Recognition)
1. Fashion and Beauty Industry (Clothing, Cosmetics, etc.)
2. Luxury Goods and Services (High-End Products, etc.)
3. Entertainment Industry (Movies, Music, etc.)
4. Sports and Fitness Services (Gyms, Personal Training, etc.)
5. Professional Coaching and Consulting Services (Career, Life, etc.)
Self-Actualization Needs (Personal Growth)
1. Online Education and Learning Platforms (MOOCs, etc.)
2. Personal Development and Wellness Services (Yoga, Meditation, etc.)
3. Creative Industries (Art, Design, Music, etc.)
4. Technology and Software Development (AI, Blockchain, etc.)
5. Sustainable and Eco-Friendly Products and Services (Green Energy, etc.)
Most Demanding Businesses (Combining Multiple Needs)
1. Healthcare Technology (Telemedicine, Health Informatics, etc.)
2. Sustainable Energy Solutions (Solar, Wind, etc.)
3. E-commerce and Digital Payment Platforms
4. Online Education and Training Services
5. Cybersecurity Solutions for Individuals and Businesses
Conclusion:
In examining business models through the lens of Maslow's hierarchy of needs, we uncover a layered framework for developing products and services that align with human motivations. Businesses targeting each level—from physiological needs to self-actualization—cater to diverse customer desires, creating opportunities across the market spectrum. Companies addressing basic needs, such as food, shelter, and security, fulfill the foundational requirements essential for survival and peace of mind. These models emphasize affordability, accessibility, and reliability.
Ultimately, Maslow’s pyramid serves as a strategic guide for businesses to align their offerings with human needs. Those able to design models that resonate across multiple levels can foster deeper customer loyalty and sustained growth. By understanding these motivations, businesses can identify gaps in the market, refine their value propositions, and create meaningful impact across the economic spectrum.
Thanks for reading.