THE BOP MARKET

A recent working paper by UNICEF on income and inequality data states that
20% of world population enjoys more than 70% of world income. Thus, it is
believed by many that 20% of the population may be classified as affluent class,
whereas the 80% of the world population falls in a category commonly referred
as the Bottom of the Pyramid (BOP).

Dr. C.K. Prahlad proposed the concept of BOP.

SOURCE: C.K Prahalad (2010).The Fortune at the Bottom of the Pyramid.
 BOP (STATUS QUO)
BOP is a group of people who form the base of the economic pyramid of the world (ref: last
slide). The BOP markets are often referred as the invisible markets and the unorganized
markets.

It consists of 4 billion (400 crore) individuals whose annual income lie below $1500
(Rs.75,000). This incudes a population of 2.6 billion (260 crore) which earns less than $2
(Rs.100) a day. This section forms the largest and the poorest socio-economic group in the
world.
Tier 1 of the pyramid depicts the high income group, whose annual incomes lie above $20,000
(Rs.10,00,000). Tier 2-3 indicates the population whose annul per capita income lies between
$1500-$20,000 (Rs.75,000-Rs.10,00,1000).

Tiers 1, 2 and 3 form the top of the pyramid (TOP) and tiers 4 & 5 depict the population whose
annual per capita incomes are $1500 (Rs.75,000) or below constituting the BOP.
CHARACTERISTICS OF THE BOP MARKET

1. Unmet Needs
2. Subsistence Livelihood
3. Poverty Penalty
 CONSUMERS AT BOP

1. Price Sensitive
2. Value-Conscious
3. Brand-Conscious