Quan Nguyen

Case Analysis 3
Summary
The bottom of the Pyramid is known as BOP consists of four billion
people. They are considered as a poor market segment due to the income of
$2 or less a day. Many firms pay little to no attention to this segment.
However, this segment is young and has been growing as fast as 6% in
recent years. Traditionally, this market segment is not seen as an potential
market but it has changed due to the increasing demand in developing
countries such as Vietnam, India, China...
BOP firms can make profit and bring prosperity to the poor. BOP
marketing involves creative and innovative thinking from marketers.
Case Analysis
To be able to enter this enormous market, multi-national companies
need to make a connection between the formal and informal economies.
They need to obtain embeddedness, to be able to benefit from an advantage
that cannot be imitated by the competitors. The firms must focus on
developing and distributing unique products, services and technologies. They
also need to localize value creation through franchising, local ecosystems of
vendors or suppliers. Furthermore, they need to enable access to goods or
services, financially or physically, as well as the use of unconventional
partnering with governments or groups to bring the necessary capabilities to
the table. There is an increasing number of companies entering this market
segment after realizing the growth potential of it.
To be successful in this potential market, BOP marketing requires
effective distribution, affordable packaging, advanced technology, creative
financing, and creating health benefits. A marketing strategy specifies a
target market, a related marketing mix, and the target consumer. It is the big
picture of a company objective in some markets. In addition, a marketing
strategy can have some different changes, because managers who embrace

the marketing concept realize that they cannot just define their line of
business in terms of the products they produce or sell. They have to think
about the basic consumer needs they serve, how those needs may change in
the future and how they can improve the value they offer to consumers.
Marketing oriented managers are always looking for attractive opportunities.