Marketing Strategies at the Bottom

of the Pyramid: Examples From Nestle,

Danone, and Procter & Gamble
The bottom of the pyramid (BoP) refers to markets
that serve some of the poorest individuals on the
planet. Many multinational corporations contend
that they are implementing BoP marketing strategies while selling products targeted to the very poor
in developing countries. There are significant differences across marketing strategies directed at BoP
consumers, from merely adapting an existing product to the development of an innovative product
strategy integrating explicit fair and inclusive growth
at the local community level. It is possible to distinguish mere international marketing strategies from
genuine BoP strategies, as an analysis of three case
studies shows: Nestle operations in the Central and
West African region, and Danone and Procter &
Gamble operations in Egypt. Studying the characteristics of the diverse marketing strategies that these
firms target to BoP consumers leads to a classification of five types of BoP marketing strategies. The
tool presented here will help management understand what a genuine BoP marketing strategy should
be and how to improve current marketing practices
to include BoP corporate social responsibility prinC 2014 Wiley Periodicals, Inc.
ciples.
The concept of bottom of the pyramid (BoP) first
introduced by Prahalad (2004) led to an important stream of research in business circles (Rosa &
Viswanathan, 2007) giving rise to academic literature in areas such as strategy, organizational theory,
entrepreneurship, microfinance, and marketing.
Within each of these areas, BoP research essentially
attempts to identify conditions for success, limitations, and motivations of companies (including
multinational corporations, or MNCs) to engage in

M A R I E L L E A . P AYA U D

BoP strategies. The diffusion of the BoP concept

among business executives also encourages companies to better understand and respond to subsistence
marketplaces and to focus on the 4 billion poorest individuals of the planet, now considered potential consumers. The basic idea is very simple. If
a company offers products at extremely low prices
and manages very low costs, margins may be low
but adequate, and selling enormous quantities of the
products will generate decent profits. Unilever successfully applied this model by selling Wheel brand
detergent to low-income consumers in India. Simanis (2012) argues, however, that because of the high
penetration rate that it requires, this strategy far
from guarantees success, and cites failures experienced by large multinational companies such as
Procter & Gamble and DuPont.
BoP markets are attractive, given the size of the
population in developing countries (for example,
163 million inhabitants in Bangladesh and more
than 75 million in the Democratic Republic of
Congo) and the high percentage of this population
living below the poverty line (about 30 to 70 percent). Moreover, real growth rates in these countries
are mostly between 5 percent and 10 percent per
year, contrasting with growth rates close to zero
in developed countries (see Exhibit 1 on page
52). From a managerial perspective, companies
multinational companies in particularcontend
that they are developing and implementing BoP
strategies. For example, Procter & Gamble,
Unilever, Nestle, and Cemex implement BoP programs including the development of specific products targeted at BoP consumers around the world.

2014 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com)
Global Business and Organizational Excellence DOI: 10.1002/joe.21533 January/February 2014

51

Exhibit 1. Size and Growth of BoP markets

Population
(in billions,
2013)
Bangladesh
Bolivia
Burkina Faso
Congo (D.R.C.)
Ivory Coast
Mexico
Canada
France
Germany
United States

Population
below the
poverty line (%)

BoP markets
163
31.5 (2010)
10.5
49.6 (2010)
18
46.7 (2009)
75.5
71 (2006)
22.4
42 (2006)
116
51.3 (2010)
Developed markets
34.5
9.4 (2008)
66
7.8 (2010)
81
15.5 (2010)
316
15.1 (2010)

2012 GDP
growth
rate (%)
6.1
5.2
8.0
7.1
9.8
3.9
1.8
0
0.8
2.2

Source: CIA, 2013.

The examples given in Exhibit 2 illustrate both the

recent development and the diversity of BoP marketing strategies implemented by major companies
around the world. Product strategies directed at BoP
consumers vary a great deal, and include products
marketed in developed countries that are repackaged to adapt to local conditions. For example,
single-serve packages account for a significant portion of sales for such everyday products as shampoo, cookies, coffee, spices, toothpaste, and cream
in BoP markets, in line with the limited and fluctuating revenues of the target population. This is the
case of the Ariel detergent sold by Procter & Gamble in Egypt. Company Orange markets a telephone

card named Zairin in Mali at a very low price (20

cents). Product strategies range from this basic adaptation of packaging and quantities to very innovative
product strategies. The latter include design, development, and launch of innovations aimed at answering specific needs of BoP consumers (such as adding
specific nutrients in food items) while adapting to
the very limited purchasing power of the target consumers and to specific distribution channels and intermediaries. Unilever in Thailand, Vietnam, and Indonesia implements such a marketing strategy with
its Comfort One Rinse, a product that helps save up
to 20 liters of water each time a person does laundry.
Genuine BoP strategies imply the development of
genuinely new products and services with the formal and planned participation of local communities
in their design, production, and distribution. These
products are designed to dramatically cut consumer
price (by a factor of ten and up to a factor of a hundred), compared to comparable items sold in developed countries. Innovations in product design, distribution methods, employee training, production,
distribution, and delivery create a totally new system, which is the basis of a corporate social responsibility (CSR) initiative and which also becomes
profitable even in the context of low purchasing
power, lack of infrastructures, lack of organization,
and often corruption. For example, Nestle developed in Indonesia its Ideal Dancow milk with iron,
calcium, and proteins. The product is manufactured
locally in East Java and as part of Nestles policy of

Exhibit 2. Products Targeted to BoP Consumers

Company

Product Category

Product Name

Markets

Cemex
Danone
Nestle
Procter & Gamble
Azuri Technologies
Unilever
Tata BP Solar
Orange

Construction/housing
Dairy products
Food
Detergent, soap
Energy
Detergent
Energy
Telecommunications

Patrimonio Hoy
Danimal
PPP (Popularly Positioned Product)
Ariel, Camay
Indigo
Comfort One Rinse
Solar panels
Zairin

Mexico
South Africa
CWAR*
Egypt
Kenya
Vietnam, Indonesia, Brazil
India
Mali

CWAR:

52

Date of Launch
2003
2005
2006
1990
2011
2009
1992
2009

Central and West African regions.

January/February 2014

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Global Business and Organizational Excellence

sharing value, Nestle Indonesia helps more than

30,000 milk farmers who supply the factory with
milk.

Various initiatives directed at BoP consumers are

generally named BoP strategies for the mere reason
that they target the same poor consumer group.
Although many examples are available both in the
academic and managerial literature and BoP strategies are presented on the websites of many companies, there is a lack of definition and an absence
of a general framework enabling the clear understanding of the concept and dimensions of a BoP
marketing strategy. Various initiatives directed at
BoP consumers are generally named BoP strategies
for the mere reason that they target the same poor
consumer group. Confusion also emerges from the
fact that the term BoP is used to designate multiple concepts, such as a country, a population, a
target market, products, strategies, and CSR initiatives. Obviously, all products and associated strategies that target BoP consumers do not correspond to
what Prahalad (2004) designates as a BoP strategy.
There are significant differences in the marketing
strategies directed at BoP consumers, from merely
adapting an existing product to the development of
an innovative product strategy that integrates explicit fair and inclusive growth at the community
level.
The objective of this study is to analyze BoP marketing strategies implemented by companies in developing countries and to propose a clear description and classification of BoP marketing strategies.
The different types identified are contrasted on such
dimensions as their adaptation to the specific needs
of the targeted population, the intensity of the use
of local resources (raw material, staff, and subcontractors), and the integration of the product and
marketing strategies within a comprehensive CSR
initiative.

Global Business and Organizational Excellence

BoP Marketing Strategies: Defining the Concept

Although all BoP products and services target BoP
consumers, there are multiple definitions and measurements of poverty leading to studies focusing
on very different target populations (Kolk, RiveraSantos, & Rufn, in press). Banerjee and Duflo
(2007) refer to a poverty threshold of $1 to $2
per person, per day. This population is estimated to
be about 2.6 billion individuals worldwide (World
Bank, 2011). With such a low income and with a
lack of regularity in the flow of this income, many
consumers can purchase only what they need for the
coming day. In this context, price is obviously an important dimension of BoP marketing strategies.
Low price implies low margins and, therefore, high
volumes to ensure profitability. In such markets, sellers are located in close proximity to consumers with
thousands of retail outlets in the form of corner
stores and with very large numbers of street vendors. High volumes can be reached only if the products are made available to consumers with very low
transaction costs. Therefore, obstacles to reaching
the consumer and to delivering the goods, even in
remote areas with very limited transportation and
distribution infrastructures, need to be understood
and circumvented.
In sum, products targeted to the very poor need to be
affordable and to be made easily available to all. Although these two dimensions (affordability and accessibility) define a product strategy directed at poor
populations, they are insufficient to define and describe a genuine BoP marketing strategy.
If affordability is a necessary feature, a BoP marketing strategy also implies quality and performance.
Prahalad (2004) calls for products and services that
formally take into account the needs, education, and
skills of BoP consumers. A clear identification of
BoP consumers needs, as well as a detailed understanding of their usage situations and constraints, is
essential to a successful BoP product strategy.

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53

London and Hart (2010, p. 154) suggest, The fundamental challenge is to envision life circumstances
and, more specifically, flexible product-usage situations. . . . The effective BoP design allows for the
many different and unanticipated ways in which the
product will be used, depending on situation and
needs. Products need to be adapted to the fulfillment of the needs of BoP consumers, to their living
conditions (such as an absence of refrigeration), to
their skills and level of education (for example, reading ability) and to their culture (habits, values). BoP
consumers also need to be educated to understand
how to use these new products properly. These two
dimensions (adaptation to consumers needs and education) correspond to a BoP consumer orientation.
Finally, beyond market orientation and consumer
orientation, a BoP marketing strategy is also concerned with local development and quality-of-life issues. Along these lines, Payaud and Martinet (2010)
define BoP strategies as being advanced CSR strategies developed by business corporations targeting
very poor segments of populations (earning two dollars a day or less). These corporations develop novel
products and services aiming at the satisfaction of
basic needs while preserving the organization of local communities and caring for their eco-systems.
Therefore, a genuine BoP marketing strategy is a
form of advanced CSR strategy adapted to and implemented in a BoP context. Fighting against extreme poverty, BoP strategies share similarities with
humanitarian aid, since both target very poor populations and aim at improving well-being and quality of life. BoP strategies, however, have a long-term
orientation and include the concept of fair and inclusive growth. Inclusive growthwidely acknowledged as a goal of public and business policies
provides significant resources toward programmes
that [reduce] poverty and [create] employment opportunities, access to essential services especially
for the poor, equality of opportunity, and empowerment through education and skill development
(George, McGahan, & Prabhu, 2012, p. 661). Inclusive growth implies social innovation that tar-

54

January/February 2014

gets BoP populations not only as customers, but

also as employees, suppliers, subcontractors, entrepreneurs, retailers, or spokespersons. Therefore,
a genuine BoP marketing strategy (see Exhibit 3)
comprises:
A marketing strategy directed to the very poor

(with features of affordability and availability),

Consumer orientation (with features of adaptabil-

ity and consumer education), and

Fair and inclusive growth.

Some examples of implementation of marketing

strategies on the different dimensions are described
below.

Fighting against extreme poverty, BoP strategies

share similarities with humanitarian aid, since both
target very poor populations and aim at improving
well-being and quality of life.

Affordability

Low prices are a necessary condition for reaching consumers at the BoP. In Cameroon, Nestles
single-serve dry milk sachets (26 grams) are sold for
30 cents, and the Maggi Tomatoes Bouillon sachet is
sold for 5 cents. In Vietnam, Unilevers single-serve
Sunsilk shampoo costs 3 cents. Low-cost products
are designed, such as the Pepsodent Triple Clean
toothbrush, which was launched in 2012 in India
and priced at 20 cents. The absence of bank accounts
and loans and the absence of savings favor pay as
you go solutions, like the prepaid SIM cards sold
by street vendors or scratch cards used to purchase
electricity.
Availability

Physical accessibility to products is a key challenge

for both consumers and firms at the BoP. For example, 84 percent and 89 percent of roads in Ghana
and Gabon, respectively, are unpaved (CIA, 2013)

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Global Business and Organizational Excellence

Exhibit 3. The Dimensions of a BoP Marketing Strategy

and distances are better evaluated in time than in

miles or kilometers. Physical distribution is a key
to availability of the products for both retailers and
consumers. In Bangladesh, Nestle helps small shopkeepers in remote areas affected by flooding to keep
their businesses. The group uses a boat to deliver its
products to about 200 small outlets located in riverside communities to ensure that their shelves are regularly stocked.

Adaptability

BoP strategies are essentially directed at basic needs

(food, housing, transportation, education, energy,
and health care), and products need to adapt to local constraints. Local conditions such as health deficiencies (such as anemia), household utilities (e.g.,
the absence of electricity and refrigeration), and distribution channels (open market, street hawkers,
and kiosks) imply adaptation in the form of the

Global Business and Organizational Excellence

product (for example, dehydration), in the recipe

(e.g., added iron and iodine) and in the packaging
(single-serve).

Consumer Education

Literacy among BoP consumers is low72 percent

in Egypt and 39 percent in Senegal, for example
(CIA, 2013)and may lead to an inappropriate use
of products. This implies a requirement to inform
consumers about the benefits of the products and
to educate them on how to use them. In Africa,
Maggi brand cooking caravans travel through
Cameroon, the Ivory Coast, and Nigeria, educating people about balanced diets, micronutrient deficiency, and the importance of culinary hygiene.
The program includes interactive cooking demonstrations, womens forums, group discussions, and
presentations on micronutrient fortification.

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55

Fair and Inclusive Growth

Beyond the satisfaction of BoP consumer needs,

the design, development, manufacturing, and distribution of goods should contribute to building an
ecosystem ensuring sustainable development. One
of the objectives of a BoP marketing strategy should
be to support local economic development, favor entrepreneurship, create jobs, train local employees,
and distribute revenues locally. Local communities
should participate in all stages of the value chain
from identifying BoP consumer needs to educating
consumers how to use the products. For example,
Unilever works with the Vietnam Womens Union
to provide poor women in rural areas with credit,
training, and bicycles so they can sell Unilever products. Unilever Vietnam generates 8,000 indirect jobs
through its value chain, and about 60 percent of
the companys raw materials and 100 percent of
its packaging are sourced locally (Unilever Report,
2012).
BoP Marketing Strategies: Three Case Studies
Three case studies of marketing strategies implemented in BoP countries by multinational corporations (Nestle in West Africa, Danone in Egypt,
and Procter & Gamble in Egypt) explore how various products are sold to BoP consumers. Data on
the marketing of more than 60 brands was collected from secondary sources (CSR reports, internal
company reports) and from interviews conducted
with local marketing executives, salespersons, retailers, and consumers. The analyses are detailed
below.
Nestle in Central and West African Regions (CWAR)

In 2006, Nestle developed a holistic and sustainable

approach to business, which addresses the needs of
society while meeting the needs of shareholders. This
approach is named Creating Shared Value (CSV) and
encourages businesses to simultaneously create economic and social value by focusing on the social
issues they can address successfully. Following this
line, Nestle developed a wide range of Popularly Po-

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sitioned Products (PPPs) for low-income consumers

around the world (Nestle Report, 2012).

Local communities should participate in all stages

of the value chainfrom identifying BoP consumer
needs to educating consumers how to use the
products.

PPPs developed in 2009 are high-quality food products that provide nutritional value to low-income
consumers. These products are sold at an affordable price and in appropriate formats to address
the needs of some 3 billion lower-income consumers
worldwide. PPPs include culinary products, beverages, and dairy and confectionery products sold under a number of major global brands, including
Maggi, Nido, and Nescafe. PPPs may be fortified
with micronutrients that help to address the deficiencies (iron, zinc, iodine, and vitamin A) that are most
prevalent among lower-income consumers. For example, to help address iodine deficiency, Nestle developed iodine-enriched Maggi products (bouillons,
seasonings, and noodles) using iodized salt. In Central and West Africa, several million Maggi cubes
were sold in 2011 and more than 90 percent of the
Maggi product range now carries added iodine.
A study of Nestles PPP products in CWAR and
information obtained from the company and its
wholesalers, retailers, and consumers showed that
all the PPPs satisfy four of the five criteria for
BoP products (affordability, availability, adaptability, and consumer education), and that the fifth
dimension (fair and inclusive growth) is actively
sought yet not always fully implemented.
All PPPs are manufactured in single-serve packs.
Sizing and packaging designed around single usage
meets the need of consumers both for affordability and for convenience. Single-serves are adapted
to on-the-go consumption, which is very popular in

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Global Business and Organizational Excellence

Africa. In Cameroon, consumers prefer buying the

Nido powdered milk in 26-gram single-serves because the quantity corresponds exactly to what is
needed for a glass of milk, which avoids overconsumption and waste. Single-serves are also convenient because they avoid problems linked to conservation (humidity, pests, lack of refrigeration).
Single-serves are also adapted to local distribution,
open markets, kiosks, and neighborhood grocery
stores. For example, 71 percent of Nestles revenues
in Cameroon in stock cubes and bouillons (Maggi
brand) come from the open market, 23 percent from
small stores, 5 percent from kiosks, and only 1 percent from supermarkets.
Most Nestle PPPs in CWAR are importedfor example, Cerelac 26-gram powdered milk and Nestle
78-gram sweetened condensed milk. Some PPPs,
however, are produced locally and benefit from
a genuine BoP marketing strategy. For example,
Maggi seasoning cubes are enriched to improve the
health of the population (adaptability) and are sold
at 2 cents per serving, guaranteeing affordability.
Distribution fully covers all channels and particularly open markets, kiosks, and small stores, ensuring availability and proximity to the local population. In Libreville (the capital of Gabon), 1,000 out
of the 3,000 women selling items on the open market carry the Maggi brand, and selling the brand enables them to generate a margin of one dollar for every 100 cubes sold. Consumers are informed about
the benefits of the product and are educated how to
use them through the organization of cooking caravans traveling in villages. Finally, products are manufactured locally (e.g., in Douala, Cameroon, or in
Ogun, Nigeria) using local perishable agricultural
raw materials and cooperating with local subcontractors trained by Nestle (an example of a fair and
inclusive growth).
Danone in Egypt

Danones mission is to bring health through food to

as many people as possible (Danone Report, 2012),
and the company developed many powerful initia-

Global Business and Organizational Excellence

tives to fulfill this mission at the BoP. Bottom of the

Pyramid is the name of a new business model developed by Danone in 2010 and first implemented
in India with a production plant for dairy products.
Products were developed to meet local tastes and
nutritional needs and to reach a price suitable to
the populations buying power. Designed to reach as
many people as possible, the distribution model was
based on consumers habits. Danone developed original governance systems to manage BoP markets,
such as the Danone Ecosystem Fund, which is intended to develop the activities of the value chain
partners that make up Danones ecosystem: farmers, suppliers, subcontractors, transporters, and distributors, as well as territories and local authorities. Danone also founded Danone.Communities,
a mutual fund designed to encourage social business
initiatives and to fight against poverty and malnutrition through innovation (Danone Report, 2012).

Milk consumption in Egypt remains low and under

the consumption level recommended by the World
Health Organization.
In Egypt, the Dan Farm project is a pilot farm created by Danone Egypt and the nongovernmental organization (NGO) Care International and supported
by Danone.Communities. The project is aimed
at improving the dairy production industry by enhancing productivity and milk quality and increasing farmers profits.
Milk consumption in Egypt remains low and under
the consumption level recommended by the World
Health Organization. Local production is underdeveloped because the main producers of milk in Egypt
are subsistence and small farmers who own between
one and two heads of cattle and account for 85 percent of total production. They are not inclined to
develop their production because of decreasing milk
prices and the monopolization of the dairy trade and
profits by local traders.

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57

To address these problems, Danone and Care International decided to collaborate and worked with
local agricultural cooperatives to learn how to improve the situation of local producers. The project
focused on small farmers and milk cattle breeders
in the Nubareya and Beni Suef regions. The idea is
to improve their income by applying better milk production practices to improve milk quantity and quality, while strengthening their position in the milk
value chain. Special focus is paid to women who are
primarily responsible for the care and management
of livestock at the household level.
Specifically, the objectives of this project are to improve small farmers incomes through increasing
milk production and quality, provide them with
feed services, train them in hygienic practices to improve animal health, ensure fairer profit distribution
among the milk value chain, and strengthen the capacity of local institutions to sustain improvement
of milk production and farmers livelihoods.
The cornerstone of the project is the Milk Collection
Center (MCC), where farmers living close by deliver
the milk themselves twice a day. For those who live
further away, collectors gather the milk and deliver it
to the MCC. The MCC checks the milk quality and
gives access to such services as feed, milk quality,
and health management programs.
Two MCCs have already been opened and were collecting five tons of milk per day in 2012. The 2013
objectives are to secure a production of 3,500 tons
and to improve farmers revenues by 25 percent. For
Danone, this project provides access to quality milk
that enables the manufacture of quality dairy products. It also ensures a healthy and sustainable ecosystem around the supply chain (Down to Earth, 2013).
Danone developed a second similar Egyptian project
called Omda-Sahteen. It was put together by
Danone Egypt and Ashoka and was endorsed by the
Danone Ecosystem Fund in July 2011. The idea here
is to ensure a larger distribution of Danone prod-

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ucts, spread better nutritional information, and train

community members in healthful lifestyle skills. This
involves local distributors, sales representatives, local retailers, and local health champions, mainly
women, who are trained and employed to create a
health promotion team, with the support of selected
local retailers.
These projects involving many local partners enable
Danone to change both its supply chain and its distribution system in rural areas of the country. They
ensure the quality of dairy products, distribution of
products, brand awareness, and brand image. Beyond these immediate economic achievements, these
projects also illustrate how the company involves
a range of local actors, such as NGOs, cooperatives, transporters, veterinarians, wholesalers, retailers, salespeople, and spokespersons, thus creating
local ecosystems, which will be the basis of economic development and serve to fight poverty within
local communities. This strategy is aimed more at
integrating impoverished populations into Danones
value chain and at educating producers, retailers,
and consumers, rather than at developing new products targeted to BoP consumers. The projects described are in line with the writings of Prahalad
(2004) and Gupta (2005), who recommend fighting poverty and developing genuine BoP strategies
through the integration of impoverished populations within the procurement, production, and distribution systems.

These projects involving many local partners enable

Danone to change both its supply chain and its distribution system in rural areas of the country.

Procter & Gamble in Egypt

Procter & Gambles sustainability report states very

clear goals and describes various operations aimed
at improved sustainability. Len Sauers, the companys vice president of global sustainability, said,

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Global Business and Organizational Excellence

Our social responsibility efforts continue to grow.

We surpassed our goal of reaching 300 million children in need by 100 million, for over 400 million
children. We have also exceeded our goal of delivering four billion liters of clean water, due to the rapid
expansion of partners and countries where P&G
purification packets can be distributed (Procter &
Gamble Report, 2012),

One billion people in BoP countries do not have

access to clean drinking water, and the CSDW
program provides these people with a water purifying technology developed by P&G and the US
Centers for Disease Control and Prevention.
P&G and its brands develop large-scale operations,
such as Pampers working to end neonatal tetanus. In
partnership with UNICEF, the Pampers One Pack
= One Vaccine program provides vaccines against
maternal and newborn (neonatal) tetanus (MNT)
and in six African countries has been validated by
the World Health Organization as having eliminated
MNT. Through its Point of Market Entry (POME)
programs, Pampers gives free health advice at immunization clinics and hospitals across Nigeria. In India, through a multibrand cause-related marketing
program, P&G has built and supported more than
200 primary schools, and delivers menstrual hygiene
education to girls, helping to keep them from missing school because of inadequate feminine protection.
A massive operation directed at BoP markets is
the P&G Childrens Safe Drinking Water Program
(CSDW). One billion people in BoP countries do
not have access to clean drinking water, and the
CSDW program provides these people with a water purifying technology developed by P&G and the
US Centers for Disease Control and Prevention. This
program provides water purification packets (P&G
Purifier of Water) on a not-for-profit basis. More
than 5 billion liters of purified drinking water dis-

Global Business and Organizational Excellence

tributed in more than 65 countries have prevented

an estimated 200 million days of diarrheal illness
and helped save more than 25,000 lives. P&G announced that it would provide 2 billion liters of
clean drinking water every year by distributing 200
million P&G water purification packets every year
in the developing world (Procter & Gamble Report,
2012).
In Egypt, P&G markets all its major brands, such
as Ariel and Tide (detergents), Camay (soap), Head
& Shoulders (Shampoo), Crest (toothpaste), Gillette
(razors), Always (feminine hygiene), and Pampers
(diapers). These products are often sold in different
pack sizes, including single serves and small packs to
adapt to local purchasing power. Single serves, however, imply a price penalty. For example, Pampers
in ten-unit packs are sold for nine Egyptian pounds
(0.9 EGP per unit) and the single-serve pack is sold
for 1.25 EGP. Whereas the Ariel, Tide, Camay, and
Always brands are manufactured locally, the other
brands are imported.
P&Gs overall marketing strategy is to propose international brands and products to the BoP markets with packaging sizes adapted to local purchasing power and implying a price penalty for BoP
consumers. The product categories concerned imply that the problem of adaptation to local tastes,
consumption habits, and local culture is not as severe as when dealing with food items. Consideration of the environment and inclusion of the communities in local procurement, production, or distribution processes seems less of a priority than in
the case of Danone. Nevertheless, CSR operations
directed at BoP consumers or populations are vivid,
but managed more at the corporate, international,
or national levels rather than at the community level.
A Classification of BoP Marketing Strategies
The case studies reveal that the companies BoP
marketing strategies vary a great deal according
to the five dimensions of affordability, accessibility,

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59

Exhibit 4. Examples of Product Strategies Identified in the Case Studies

Case

Brands

Affordability

Accessibility

Adaptability

Nestle in CWAR

Nescafe
Condensed milk
Maggi cubes
Dairy products
Ariel, Tide, Camay

X
X
X
X
X

X
X
X
X
X

Danone in Egypt
P&G in Egypt

X
X

adaptability, consumer education, and fair and inclusive growth. As Exhibit 4 shows, some marketing strategies fulfill only the dimensions of affordability and accessibility (condensed milk in CWAR;
Ariel, Tide, and Camay in Egypt), while one fulfills
all the dimensions of a genuine BoP marketing strategy (Maggi cubes in CWAR).
Products commercialized on BoP markets may be
global products (Camay), adapted to the local market conditions (fortified or enriched food), or entirely new products designed to meet local basic
needs (P&G Purifier of Water). Distribution may be
directed at modern and organized channels (such as
supermarkets and convenience stores within cities)
or seek to reach the major part of the population, including town neighborhoods and rural areas,
through traditional distribution channels (kiosks
and open markets for Orange phone cards). Packaging may follow established international formats
or may be adapted to local market conditions as
with single-serves. Consumers may be educated on
how to use the product. For example, for its Maggi
Masala-ae-Magic spice sachets enriched with iron,
vitamin A, zinc, and iodine, Nestle ads ran during Indian street dramas and TV programs, and
educational campaigns targeted families and also
sent nutritionists into Dharavi, the worlds largest
slum in Mumbai, India. Finally, the companys strategy may include fair and inclusive growth for local
stakeholders and populations. For example, Nestle
is helping farmers who grow maize in Ghana and
Nigeria through a Grains Quality Improvement
Project.

60

January/February 2014

Consumer
Education

Fair and
Inclusive Growth

X
X

BoP Marketing
Strategy
No
No
Yes
Yes
No

The analysis of current marketing strategies identified through the case studies and additional observations of BoP markets leads to the proposal
of classifying BoP marketing strategies in five categories. This classification enables standard international marketing strategies applied to BoP markets
to be contrasted with genuine BoP marketing strategies (see Exhibit 5).

International Marketing Strategies

International marketing strategies applied to BoP

markets target, at least partially, BoP consumers, but
do not include fair and inclusive growth that enables
well-being and fosters quality of life in local communities. These strategies are of two types:
1. A global marketing strategy where an international standardized product is manufactured in
a BoP country essentially to profit from low production costs, with a standardized product targeted both to BoP and non-BoP consumers.
2. A glocal marketing strategy where the international product is adapted to BoP consumers to
meet criteria of affordability and accessibility.
It may be a single-serve product with standard
ingredients or components. The product is imported or is locally packaged or assembled, but
without adaptation to local needs and without
searching to develop fair and inclusive growth.
The BoP population is essentially seen as BoP
consumers (and possibly as employees for the
manufacturing and distribution processes).

DOI: 10.1002/joe

Global Business and Organizational Excellence

Exhibit 5. International and BoP Marketing Strategies

Marketing
Strategies
Global
Glocal
Local BoP
ConsumerOriented
BoP
Genuine BoP
Depending

Affordability

Accessibility

Adaptability

Consumer
Education

Fair and
Inclusive Growth

Marketing
Strategy Type

No
Yes
Yes
Yes

No
Yes
Yes
Yes

No
No
Yes
Yes

No
No
No
Yes

No
No
No
No

International
International
BoP
BoP

Yes

Yes

Yes

Yes/No*

Yes

BoP

on the product category.

BoP Marketing Strategies

BoP marketing strategies target BoP consumers with

affordable and accessible products or services specifically adapted to their needs. There are three cases,
depending on the level of local integration in terms
of consumer education and of developing fair and
inclusive growth:
1. A local BoP marketing strategy implemented
with a product adapted to the needs of the local population, offering formats that are affordable and convenient to BoP consumers and distributed via modern and traditional distribution
channels in towns and rural areas for maximum
availability and proximity to consumers.
2. A consumer-oriented BoP marketing strategy
with the same characteristics as above, but with
the addition of a strong consumer focus. BoP
consumers often do not know how to use new
products or have difficulties understanding their
consumer benefits. Consumer information and
consumer education is then necessary. This consumer education can be considered as having two
roles. Embedded in the marketing strategy, one
goal is to develop brand awareness, brand image, and consumer purchases through trial and
repeat. However, from a CSR perspective, the
company contributes to the education of the local population (for example, in terms of nutrition
or health care) and to the efficient use of a product, enabling consumers to profit from its benefits
and to avoid waste or misuse.

Global Business and Organizational Excellence

3. A genuine BoP marketing strategy adds the dimension of fair and inclusive growth to the characteristics above. This concerns an adapted or
completely new product, affordable and available for BoP targeted consumers. Consumers
are educated on its use (if necessary), and a series of stakeholders are integrated into the value
chain. These may include raw material producers (such as farmers), subcontractors, packers,
wholesalers, retailers, informants, and a variety of employeesfrom production to sales and
after-sales personnel. The strategy may also involve NGOs, governmental agencies, and local
authorities.

Identifying Genuine BoP Marketing Strategies

Both in the management literature and in corporate communications, there is much confusion
about what constitutes a BoP marketing strategy.
This study enables international and BoP marketing strategies to be compared and contrasted in order to better understand of the differences among
them.
International marketing strategies directed at BoP
consumers imply that products are affordable and
available and that prices, serving sizes, packaging,
and distribution methods are adapted to the target
consumers. In this case, products are not adapted
to the specific needs of the consumers, and corporate marketing goals may be little more than sales

DOI: 10.1002/joe

January/February 2014

61

62

and profits. Considering that BoP populations live in

a cycle of poverty and deprivation that causes cognitive and social vulnerabilities, it may be easy for
some brands to reach BoP consumers with products
that not only provide little benefit but are detrimental to their income or to their well-being. In some
cases, products sold by multinational corporations
claiming to develop BoP marketing strategies might
be harmful. For example, BoP consumers in Chinas
rural areas may spend as much as 46 percent of their
income on tobacco, and 41.8 million Chinese fall
into poverty because of excessive cigarette spending each year (Liu, Rao, Hu, Sun, & Mao, 2006).
In addition, merely increasing consumer choice with
international products may not improve the wellbeing of a BoP population. Even if MNCs develop
CSR programs targeted to BoP populations, the utility of some products (such as carbonated, sugary
drinks) and their contribution to well-being is questionable. BoP consumers may have to make tradeoffs to consume these products that will divert income from more basic needs (Arnold & Valentin,
2013).

Genuine BoP marketing strategies integrate local

communities into the value chain and build an inclusive business model. The product being adapted
to BoP consumer needs will have inherent consumer
benefits in health, nutrition, shelter, water, energy,
or communications. Some benefits may not be understood because of cultural factors and ancestral
habits. In this case, consumer education is a responsibility beyond a means of achieving sales. Immersion into BoP social networks, one-to-one interactions, and strong word-of-mouth effects will lead
to the development of consumer skills and will result in an emphasis on the human dimension in exchanges (Viswanathan, Seth, Gau, & Chaturvedi,
2009). Fair and inclusive growth implies sharing
value and revenues along all the value chain and is
a result of the jobs provided, the raw material utilized, the kind of products developed, the way they
are manufactured and distributed, and the ways in
which resources are used. Within this scope, CSR
has to be understood as being unequivocally beneficial to the BoP communities in which the company
operates.

With no orientation of a marketing strategy toward

satisfying basic BoP consumer needs, without consumer education directed at their wellness, and in
the absence of fair and inclusive growth programs,
CSR may be viewed as a corporate marketing tool
connected with issues of organizational image and
identity. As such, CSR might be a means to achieve
corporate goals rather than social goals directed at
improving the quality of life of BoP populations. In
the words of Prasad & Holzinger (2013, p. 1920):

With no orientation of a marketing strategy toward

satisfying basic BoP consumer needs, without consumer education directed at their wellness, and in
the absence of fair and inclusive growth programs,
CSR may be viewed as a corporate marketing tool
connected with issues of organizational image and
identity.

Corporations may market CSR to further their

own interests in ways that only offer the appearance
of being responsive to the social and environmental
concerns of the communities in which they are situated. Thus, CSR may becomeif it is not already
therea public relations invention with little, if any,
positive effect on social justice.

A genuine BoP marketing strategy is a novel approach, which is not necessarily integrated into the
DNA of MNCs and of business leaders in general.
It implies a new mind-set that may be profitable to
the company through direct operations in the BoP
markets and through the ability to learn from these
unique markets.

January/February 2014

DOI: 10.1002/joe

Global Business and Organizational Excellence

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Global Business and Organizational Excellence

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Marielle A. Payaud, PhD, is an associate professor at the
University of Lyon III (France), within the Lyon Graduate
School of Business (IAE Lyon), and a researcher at the Magellan Research Center, where she focuses on management sciences. Her work has been published in Journal of Business
Ethics, European Journal of Marketing, Management International, Revue Francaise de Gestion, and International Journal of Bank Marketing. She has written several books, including one dealing with BoP strategies, and her research centers
on management and marketing strategies at the bottom of the
pyramid (BoP), sustainable development, and corporate social responsibility (CSR). She earned her doctoral degree in
management from University of Lyon III in France. She can
be reached at marielle.payaud@univ-lyon3.fr.

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