5) What is the effect on stakeholders at BOP?

• The people at the bottom of pyramid served by BOP marketing

strategies and the use of 4A’s.
• BOP marketing strategies basically focuses on aggregating demand
of consumers who are spread out and have low purchasing power.
• Unlike traditional economic development model, BOP approaches
recast poverty as an economic opportunity for MNCs.
• The 4A’s model consisting of:
a) Availability
b) Acceptability
c) Affordability
d) Awareness
i) Availability
 The barrier of making products reach to consumers was overcome
through means of e-Choupal and Procurement Hubs that helped in a well
established distribution system.
 Later they introduced Choupal Saagars (mini-malls) to sell a wide variety
of goods and services. The Saagars were located on the highway (3-5 miles
outside small towns) and aimed to draw customers from nearby villages
and towns too.

ii) Acceptability
 To make the products or services more acceptable by rural consumers,
Sanchalaks were appointed.
 To build the credibility with villagers, Sanchalaks were appointed among
the villagers only.
 Sanchalaks gave farmers vital inputs about agriculture produce, forecast
and technology. They also promote and sell ITC products .
iii) Affordability
 ITC provided real time price information to farmers and gave them
alternate platform to sell and get better prices for their production.
 As per rural mindset, cost per use is more important than the cost
of the overall product.
 Due to low buying power, they prefer to buy small SKUs at price
points like Rs1, Rs2, Rs5, Rs10.

iv) Awareness
 Sanchalaks played vital role in providing farmers with real time
information related to their produce. Sanchalaks also endorsed ITC
products to farmers who came to them for their services.
 They used traditional advertising platforms like local haats and
melas to promote their products and services.
Introduction
• ITC is one of India foremost private sector companies with a market
capitalization of nearly US $35 billion(as on 30.6.2020).
• I TC was established in India by British American Tobacco(BAT) as
the Imperial Tobacco Company in 1910.
• ITC has a diversified presence in FMCG, Hotels, Packaging,
Paperboards & Specialty Papers and Agri-Business.
• ITC’s world class FMCG brands including Aashirvaad, Sunfeast, Bingo,
B natural, Fiama, Engage, Vivel, Savlon, Mangaldeep etc. have gained
encouraging customer franchise within short span of time.
• ITC’s businesses and value chains create sustainable livelihoods for
more than 6 million people, a majority of whom represent the
poorest in rural India.