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Published by Sheetal Chandra

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Published by: Sheetal Chandra on Mar 31, 2012
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Sheetal Chandra-15Shipra Gir-19Sarwat Pawar-20
Bop marketing and the new strategies of PepsiCo India
Background of the Information:
In economics, the
bottom of the pyramid
is the largest, but poorestsocio-economic group.Inglobal terms, this is the 2.5 billion people who live on less than $2.50 per day. The phrase
“bottom of the pyramid” is used in particular by
people developing new models of doingbusiness that deliberately target that demographic, often using new technology. This field isalso often referred to as the "
Base of the Pyramid
" or just the "
" To build up the BoP, itsnot enough to provide cheap, necessary, innovative products, but to help develop their futurewhich will provide sustainability. Vittana, for example enables more students to attendsecondary school and obtain a degree that will help increase their income. Slowly but surelywith more and more educated individuals coming out of developing nations, the potential forgrowth and prosperity from within increases dramatically. The premise of the fortune at thebase of the pyramid (BoP) is based on the notion of how to profitably do business with thepoor. But few such endeavours have become sustainable businesses, falling prey to badassumptions, misguided marketing, or poor research.Example, the innovativeOorja stovedesigned by BP as a sustainable, healthy alternative to
smoky wood-burning cooking fires so prevalent in the BoP, integrates the local community intoits business model. The product is sold by local women trained by BP as part of their rural salesnetwork, and provides a sustainable income source both from the sales of new stoves as wellfrom the supply of the healthier smokeless fuel pellets. By incorporating both environmental aswell as economic sustainability into the design of their solution, they offer a holisticallybeneficial solution to the community as well as a profit making strategy for their saleswomenand themselves. (Nonetheless, contextually appropriate design is a must; even the humblestove hasfaced criticismfor the lack of user testing in the field.)
The 5D’s of Bop:
1) Development2) Design
3) Distribution4) Demand5) Dignity
“Using the 5D’s—
development, design, distribution, demand and dignity
can provide aroadmap for a cohesive, human-centered strategy for well-designed products that sell, servicesthat are successful, and programs with low drop-out rates. Observation and user researchconducted to understand your new target audience is critical in establishing the relevant value
propositions.” Simplistic approaches have equated BOP with the “sachet revolution”, the
marketing approach to package shampoo and other items in sachets to make them affordable
to poor people. Pralahad’s approa
ch has also been criticised as being neo-liberal and drivingpoor people into buying useless products and into overspending: the controversy was turning
mainly around “Fair and Lovely” a cosmetic product by Hindustan Lever that supposedly makes
dark skins
brighter. This is indeed a product that is sold in the remotest villages in South Asia…
but whether it eradicates poverty remains to be seen.The market creation approach aims to go beyond just exploiting BOP markets. It isacknowledged that markets do not initially exist for safe water, sanitation, reforestation andmosquito nets. These markets must be created by public investments: the private sector cannot invest in public health or other development domains such as hygiene awareness, malariaprevention or organising small farmers into viable production units. As the purchasing power of poor people is indeed very limited, smart subsidies may be needed to reach the poorest andmost vulnerable groups.
Lehar’s arrival inside the bylanes of 
large urban slums like Santosh Nagar represents just one
part of the $60 billion (global net revenue) PepsiCo’s larger push to build a significant business
catering to the consumers at the bottom-of-the-pyramid (BoP) in India. About three years ago,PepsiCo drew up a new blueprint for long-term growth in India. It spoke of the need forsignificantly widening reach, aiming for the new consuming class across urban and rural India
 and more importantly, creating a whole new set of locally developed products for the masses.
Till then, PepsiCo’s attempts to push deeper into the Indian heartland had entailed introducing
smaller pack sizes of its wafers and smaller glass bottles of Pepsi cola priced at Rs. 5. But
somehow, that didn’t help widen the consumer base for wafers and b
everages. It realised itneeded a completely different approach to serve BoP consumers. It discovered two routes: Its joint venture with Tata Global Beverages to launch affordable health drinks and also completelyreworking the Lehar business model to connect with a wider consumer base.
T scope Test in Packaging
Background of the Information:
The tachistoscopic techniques analyze the individual elements that make up packages. This ismade possible by the T-Scope's brief, precision-timed exposures, which isolate these elements.The packaging technique, which we call "the elemental series," breaks a package into threecomponents:
The first "elemental" viewing shows the packaging graphics/colors, but no product or brandinformation
The second "elemental" viewing adds the product information
The third "elemental" viewing adds brand information, to complete the packageEach of these elements is probed on perception and imagery. There are also mass displaymeasurements where the test package appears with competitive brands in an in-shelf display.These measurements indicate how well a package performs under real conditions.
Example of a research already been conducted:
Infant's toiletry package that led to the
development of the elemental series. In the early days of tachistoscopic testing, a completepackage was shown at a high speed and respondents were asked to draw pictures of what theysaw. The product was a cotton-tipped stick used to clean infants' ears and eyes. The newpackage design had these cotton sticks arranged in a cross-bow fashion.It was found when women drew this design and was unaware of the brand (a leader in infant-care products), they would interpret it as something "poisonous," "dangerous," "to be keptaway from children." Women who drew this design but knew the brand did not have theseassociations.The findings said that brand perception could be a serious impediment to analyzing a newpackage's performance. If respondents knew a new package was for a well-known andrespected manufacturer, problems were unlikely to emerge. Each element in a package wasprojecting something on its own and we should maximize conditions for each element'sassociations. This led to the development of the elemental series, where gradually building apackage shows us how each component contributes to perception, product/brand associationsand attitudinal imagery.A T-scope-test is a number of very short presentations of the product. The packed product ispresented together with other products in the same product group because a T-scope-test hasthe aim to analyse the attention value of the packaging.
A picture of the packaging is made together with other products, as was it a supermarketshelf.

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