MARKETING TO THE BOTTOM OF THE PYRAMID

- Digging diamond is not easy, but it is still worth digging.

What is Bottom of Pyramid?...

In economics, the bottom of the pyramid is the largest, but poorest socio-economic group Current usage refers to the billions people living on less than $2 per day-as defined by Professors C.K. Prahalad and Stuart L. Hart (in 1998 ) About 5 trillion global consumer market: viable market. Large potential market : With increasing competition and saturation of present markets. Profits on large quantities and economies of scale.

Nature of consumers
Unmet needs: Poor sources of livelihood. Usually pay more cash or effort to use services. Eg: Hospitals at far locations. Spending pattern: Differs among countries, cultures and from sector to sector. Buy as and when needed. No stockpiling. Opportunities for both buyers and sellers.

Growing interest and success in BOP markets: examples

Celtel an entrepreneur company operating in Africa went from a start up to a telecom giant. Concept of one network Jaipur Foot (Jaipur, India)- Prosthetics Life buoy Soap - Hindustan Lever Limited ( India) Health

Entering BOP markets require

Innovation: Creativity and technology to meet needs. Lowering purchase barriers: Using effective packaging and other strategies to make it affordable. Localizing value creation: Involving and training local vendors and creating employment opportunities. Support of Government, NGO s or others to enter and make profitable investments. Improvement: Modifying and renovating to provide maximum benefits. Choosing the right sector for the right market in various regions. Understanding impact of culture, regulations, financial factors. Estimating potential demand.