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    Bottom of Pyramid

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    Sagar Damani
    The document discusses the concept of the "Bottom of the Pyramid" or BoP, which refers to the billions of people living on less than $2 per day. It emerged as an important concept in business, driven by Prahalad's work on the fortune available at the bottom of the pyramid. Reaching these low-income consumers profitably presents both opportunities and challenges for companies. The document outlines various principles and strategies for companies to consider when marketing to BoP consumers, such as affordable pricing, innovation, appropriate infrastructure, and continual improvement. It also provides examples of companies that have successfully tapped into the BoP market.

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    Download as PDF, TXT or read online from Scribd

    Bottom of Pyramid

    Uploaded by

    Sagar Damani
    115 views19 pages
    The document discusses the concept of the "Bottom of the Pyramid" or BoP, which refers to the billions of people living on less than $2 per day. It emerged as an important concept in business, driven by Prahalad's work on the fortune available at the bottom of the pyramid. Reaching these low-income consumers profitably presents both opportunities and challenges for companies. The document outlines various principles and strategies for companies to consider when marketing to BoP consumers, such as affordable pricing, innovation, appropriate infrastructure, and continual improvement. It also provides examples of companies that have successfully tapped into the BoP market.

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    Bottom pf pyramid

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    44501630 Bottom of Pyramid Ppt

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    The document discusses the concept of the "Bottom of the Pyramid" or BoP, which refers to the billions of people living on less than $2 per day. It emerged as an important concept in business, driven by Prahalad's work on the fortune available at the bottom of the pyramid. Reaching these low-income consumers profitably presents both opportunities and challenges for companies. The document outlines various principles and strategies for companies to consider when marketing to BoP consumers, such as affordable pricing, innovation, appropriate infrastructure, and continual improvement. It also provides examples of companies that have successfully tapped into the BoP market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    115 views19 pages

    Bottom of Pyramid

    Uploaded by

    Sagar Damani
    The document discusses the concept of the "Bottom of the Pyramid" or BoP, which refers to the billions of people living on less than $2 per day. It emerged as an important concept in business, driven by Prahalad's work on the fortune available at the bottom of the pyramid. Reaching these low-income consumers profitably presents both opportunities and challenges for companies. The document outlines various principles and strategies for companies to consider when marketing to BoP consumers, such as affordable pricing, innovation, appropriate infrastructure, and continual improvement. It also provides examples of companies that have successfully tapped into the BoP market.

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    What is Bottom of Pyramid?.....

    In economics, the bottom of the pyramid is the largest, but poorest socio-economic group It is also often referred to as the "Base of the Pyramid" or just the "BoP"

    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 )

    Fortune At The Bottom Of The Pyramid


    The Bottom of the Pyramid (BOP) has emerged as a dominant concept in business, -Propelled by C.K Prahalads (2005) The Fortune at the
    Bottom of the Pyramid.

    Has the potential to impact the worlds billions of poor peopleas well as the managerial practices of multinational corporations. Important to analyze how large corporations can serve low-income customers profitably.

    An insight into Base of the pyramid


    Bottom of the pyramid consumers are ready to accept the new products. But the question arises? How the marketers go about to meet the need profitably? Therefore here the challenge for the marketers lies in not providing cheap products but also in providing value for money products. The solution to the above stand lies in the 4 Is: Introduction, Infrastructure, Innovation, and Improvement

    Introduction:
    The above concept asks the companies to work at the base to enable bottom of the pyramid consumers to avail the services and products.

    Infrastructure:
    The basic structure of a marketing system should be simple and easily accessible.

    Innovation:
    Product managers have to come up with innovative products because high innovation product may help the bop consumers to think differently and motivate them to high accomplishment

    Improvement:
    Marketers need to modify and renovate their marketing style to enable BOP Consumers to get maximum benefit

    Principles of BOP
    1.Price Performance 2. Innovation: Hybrids 3. Scale of Operations 4. Sustainable Development: Eco-Friendly 5. Identifying Functionality 6. Process Innovation

    7.Deskilling of work 8. Education of Customers 9. Designing for Hostile Infrastructure 10. Interfaces 11. Distribution: Accessing the Customer 12. BOP Markets essentially allows us to challenge the conventional wisdom in delivery of Product

    Uses of bottom of pyramid


    Provides an impetus for a more active involvement of the private sector in building the marketing ecosystem. Help to reconsider and change long helds beliefs assumption and ideologies Provides clues on developing and services for bottom of pyramid consumer.

    Strengths of bottom of the pyramid thinking


    Helps to reconsider and change long held beliefs assumption and idiologies, which are (all based victimand burden thinking): There is money at the bottom of pyramid it is viable market Access of BoP market is not necessarily difficult unconventional approaches such as the Avon ladies approach may work

    The poor are very brand-conscious The BoP market has been connected (mobile phone,TV,internet) BoP consumer are very much towards advanced technology.

    Approaching BOP consumers interests at heart, can lead to significant growth and profits for them. provides a new growth opportunity for the private sector and a forum for innovations It can become integral to the success of the firm - to command senior management attention and sustained resource allocation

    There is significant untapped opportunity for value creation (for BOP consumers, shareholders, and employees) that is latent in the BOP market. These markets have remained "invisible" for too long.

    SUCCESS STORY HUL ..


    HUL - a successful example large corporations profitably tapping BOP markets, HULs success with low-priced candy aimed at the BOP markets.  HUL offered Max in two sizes, at 25 paise and 50 paise . HUL they tend to the success of some companies, and give too much credit to a few innovations, such as the use of small packages.

    BOP customers don't have lump sums to buy 20 ounces of shampoo at one time, Sell single servings of shampoo so the cost structure matches what they can afford.

    COMPETITION FROM CEVIN CARE..


    4-ml sachet of Chik shampoo priced at 50 paise (1.25 cents). The launch was a great success: Chiks market share jumped from 5.61 percent in 1999 to over 23 percent in 2003. It became the largest selling brand in rural markets.

    HUL RESPONSES...
    HUL saw the potential of the market as well as its own vulnerability. Responded by launching 50-paise and one-rupee sachets of its Lux, Clinic Plus and Sunsilk brands. HUL had always viewed rural consumers as a lowmargin, inaccessible segment.

    It was a huge SUCCESS

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