This document discusses C.K. Prahalad's concept of the "Bottom of the Pyramid" (BOP) which refers to the billions of people living on less than $2 per day. It outlines Prahalad's view that the BOP represents a significant untapped market opportunity for multinational corporations. The document describes 12 principles for developing innovative products and services for the BOP, and argues that engaging with the BOP market can create wealth, reduce corruption, and drive social transformation in developing countries. Overall, the document promotes the idea that addressing the needs of the BOP population is both an economic opportunity and a way to improve lives at the base of the socioeconomic pyramid.
This document summarizes strategies for businesses to profitably serve customers at the bottom of the economic pyramid. It discusses C.K. Prahalad's concept of the bottom of the pyramid referring to billions of people living on less than $2 per day. Companies like ICICI Bank and Jaipur Rugs are highlighted for developing innovative and sustainable business models that provide employment, financial services, and products to low-income consumers while also generating profits. The challenges of maintaining a large grassroots workforce and meeting international standards are also noted.
This document provides an overview of a presentation on the Bottom of the Pyramid (BOP) market. It includes sections on the definition and history of BOP, key theorists like C.K. Prahalad and principles of innovation for BOP markets. Examples of products for BOP markets are given. Criticisms of the BOP theory are outlined. The missing link to fully realizing the BOP opportunity is identified as investments in customer education, affordable technology, and distribution channels.
This document discusses bottom of the pyramid (BOP) marketing, which involves selling products and services to the world's poorest people. It defines the BOP as 3.7 billion people earning less than $2 per day. While BOP marketing presents opportunities for growth, it also faces risks and challenges, such as unclear market size, low margins, and distribution difficulties. The document provides guidelines for responsible BOP marketing, including engaging the poor as problem solvers, innovating locally tailored solutions, improving access through distribution, and creating buying power through financing schemes.
The document discusses the bottom of the pyramid (BOP) market, which refers to the largest but poorest socio-economic group of over 4 billion people living on less than $2 per day. It outlines the prevailing myth that the poor cannot afford products and services from developed markets. However, it also discusses the opportunities in BOP markets due to their collective purchasing power and examples of companies that have successfully entered BOP markets through innovations in product design, distribution, and pricing. Specifically, it provides case studies of companies in India like HUL, Nirma, Arvind Mills, and the Khira District Milk Cooperative that have profitably served BOP consumers.
This document summarizes a presentation by Jade Oyateru on marketing to low-income consumers. The presentation discusses how companies like Unilever and Cemex have successfully targeted low-income markets. Cemex issued a "Declaration of Ignorance" to acknowledge they did not know how to reach these consumers. Cemex then launched Patrimonio Hoy, a membership program that provided building materials and loans to low-income home buyers. The program became profitable and has assisted over 350,000 families. The presentation argues that marketing should aspire consumers to higher levels and offer social value, rather than meeting them at their current station. It also profiles social enterprises like Gbemiga and Lat Photo Energy that are
BRAC serves the bottom of the pyramid through various social enterprises and development programs. It targets the "poor" who earn about $2 per day through its microfinance initiatives. BRAC links rural and urban markets to access money flows from the top of the pyramid to subsidize its rural development programs. It understands market segmentation and only provides charity to the "ultra poor" who are too poor for microfinance. BRAC scales its programs through a three step process of becoming effective, efficient, and then expanding operations through training and systems. Efficiency is key to operating sustainably in low-margin markets.
This document discusses C.K. Prahalad's concept of the "Bottom of the Pyramid" (BOP) which refers to the billions of people living on less than $2 per day. It outlines Prahalad's view that the BOP represents a significant untapped market opportunity for multinational corporations. The document describes 12 principles for developing innovative products and services for the BOP, and argues that engaging with the BOP market can create wealth, reduce corruption, and drive social transformation in developing countries. Overall, the document promotes the idea that addressing the needs of the BOP population is both an economic opportunity and a way to improve lives at the base of the socioeconomic pyramid.
This document summarizes strategies for businesses to profitably serve customers at the bottom of the economic pyramid. It discusses C.K. Prahalad's concept of the bottom of the pyramid referring to billions of people living on less than $2 per day. Companies like ICICI Bank and Jaipur Rugs are highlighted for developing innovative and sustainable business models that provide employment, financial services, and products to low-income consumers while also generating profits. The challenges of maintaining a large grassroots workforce and meeting international standards are also noted.
This document provides an overview of a presentation on the Bottom of the Pyramid (BOP) market. It includes sections on the definition and history of BOP, key theorists like C.K. Prahalad and principles of innovation for BOP markets. Examples of products for BOP markets are given. Criticisms of the BOP theory are outlined. The missing link to fully realizing the BOP opportunity is identified as investments in customer education, affordable technology, and distribution channels.
This document discusses bottom of the pyramid (BOP) marketing, which involves selling products and services to the world's poorest people. It defines the BOP as 3.7 billion people earning less than $2 per day. While BOP marketing presents opportunities for growth, it also faces risks and challenges, such as unclear market size, low margins, and distribution difficulties. The document provides guidelines for responsible BOP marketing, including engaging the poor as problem solvers, innovating locally tailored solutions, improving access through distribution, and creating buying power through financing schemes.
The document discusses the bottom of the pyramid (BOP) market, which refers to the largest but poorest socio-economic group of over 4 billion people living on less than $2 per day. It outlines the prevailing myth that the poor cannot afford products and services from developed markets. However, it also discusses the opportunities in BOP markets due to their collective purchasing power and examples of companies that have successfully entered BOP markets through innovations in product design, distribution, and pricing. Specifically, it provides case studies of companies in India like HUL, Nirma, Arvind Mills, and the Khira District Milk Cooperative that have profitably served BOP consumers.
This document summarizes a presentation by Jade Oyateru on marketing to low-income consumers. The presentation discusses how companies like Unilever and Cemex have successfully targeted low-income markets. Cemex issued a "Declaration of Ignorance" to acknowledge they did not know how to reach these consumers. Cemex then launched Patrimonio Hoy, a membership program that provided building materials and loans to low-income home buyers. The program became profitable and has assisted over 350,000 families. The presentation argues that marketing should aspire consumers to higher levels and offer social value, rather than meeting them at their current station. It also profiles social enterprises like Gbemiga and Lat Photo Energy that are
BRAC serves the bottom of the pyramid through various social enterprises and development programs. It targets the "poor" who earn about $2 per day through its microfinance initiatives. BRAC links rural and urban markets to access money flows from the top of the pyramid to subsidize its rural development programs. It understands market segmentation and only provides charity to the "ultra poor" who are too poor for microfinance. BRAC scales its programs through a three step process of becoming effective, efficient, and then expanding operations through training and systems. Efficiency is key to operating sustainably in low-margin markets.
Usually the companies in the richer world and the products which comes to the market are usually focused on Tier 1, 2 & 3 markets. Tier 4 markets i.e Bottom of Pyramid Markets are usually devoid of products. Many Companies like Hindustan Unilever, Aravind Eyecare, Narayan Hrudiyalaya, Jaipur Foot, Eid Parry, Lijjat Papad, ITC Ltd, etc have came up with the products that are specially made for BOP markets. The market volume is very high as more than 4000 million people in the world are below $2 annual per capita income, Even 46% of the Indian population live below the poverty line.......This people cannot afford to the products available for the tier 1,2 & 3 markets as they cannot afford them..... Thus a greater potential occurs at the BOP market.....Catering BOP market doesn't mean catering 'sachets" to them. Making such products which are affordable by these markets...and thus making profits..... Instead enabling them to purchase the product by enhancing the buying power of the consumers..........Reverse Innovation can bring upon the change to the BOP markets.......
Myths and Reality at the Bottom of the PyramidDY Works
5-6 years since the late CK Prahlad sexed up this demographic, Bottom of the Pyramid has been hotly discussed and grossly misrepresented. Here is DMA Yellow Works' view on the subject.
The document discusses the bottom of the pyramid (BOP) market, consisting of 4 billion people living on less than $2 per day. It outlines that there is significant purchasing power and potential for private sector businesses and multinational corporations to profitably serve this population. Specifically, it notes that the BOP market is brand-conscious and open to advanced technologies, and that to be successful companies must create affordable, high-quality products through innovations in areas like packaging, pricing, and distribution models. Overall, the document advocates that multinational corporations can benefit financially and contribute to development by understanding and appropriately tapping into the needs of BOP consumers.
The notion that the Bottom of the Pyramid (BOP) consumers is a segment that is not important for the long-term viability of most of the businesses is no more classified as ‘accepted wisdom’. There is a shift in thinking of MNCs which now are considering BOP consumers as a potential source of revenues as well as drivers of innovation. Targeting the subsistence marketplaces poses various challenges for MNCs, but has favourable outcomes for BOP participants, economy and business organizations. This paper identifies the challenges of launching products targeting BOP markets in India and discusses the implications for consumers, national economy, and companies targeting BOP consumers.
This document discusses strategies for businesses to target markets at the bottom of the pyramid (BOP). It provides examples of companies like ICICI Bank and Mankind Pharma that have successfully targeted BOP markets. ICICI Bank expanded banking access to rural areas through self-help groups and partnerships with microfinance institutions. Mankind Pharma was able to gain significant market share in India by selling affordable generic drugs that were up to 50% cheaper than competitors. The document advocates that with innovative business models and solutions that meet local needs, there is opportunity for profit among low-income consumers at the BOP.
This document discusses marketing strategies for the bottom of the pyramid (BOP), which refers to the poorest two-thirds of the global population living in poverty. It outlines several principles for innovating products and services for the BOP, including making them affordable, accessible, and meeting basic needs. Two common approaches to BOP marketing are the "4As" of creating awareness, access, affordability, and availability, and the "5Ds" of development, design, distribution, demand, and dignity. While there are challenges like limited infrastructure and awareness, targeting the vast BOP market also provides opportunities for growth, innovation, and cost savings. Examples of successful BOP innovations are provided.
C.K. Prahalad is a management guru who developed the concept of serving the "bottom of the pyramid" (BOP), or the world's poorest populations. He argued that multinational companies could profitably target BOP markets through affordable and accessible products and services. Examples of successful BOP innovations include the $200 computer, mobile phones, and health services delivered via technology. Serving BOP markets requires understanding local ecosystems, affordability, and demographic factors to develop appropriate solutions for low-income customers globally.
Guidebook on inclusive innovation for bop markets finalHannaMilme
The document provides an overview of a guide for doing business in emerging markets and at the Base of the Pyramid (BOP). It includes the following sections:
- Structure of the guide and what each section will cover
- An introduction to the BOP, including basic figures on population and income segments, and an overview of the BOP market size and spending
- Challenges and opportunities of the BOP environment for business, including using the BOP as a source of innovation
- Examples of successful business models in sectors like energy, healthcare, food and water/sanitation
- The aim of the guide is to provide tips for Finnish SMEs interested in emerging markets and serving the BOP,
This document discusses economic poverty and the "bottom of the pyramid" (BOP) market. It notes that over 4 billion people live on less than $15,000 per year and represent a latent market for goods and services. While the poor have little income, their total purchasing power is significant. The BOP market provides opportunities for private sector growth and innovation through products tailored to local needs at affordable prices. However, concerns exist that some may take advantage of the poor or focus on creating needs rather than addressing the root causes of poverty.
The Rising Bottom of the Pyramid in India Kimberlee Luce
This document discusses the potential for growth in consumption among India's large lower-income population, known as the "Bottom of the Pyramid" or BoP segment. It notes that over 70% of Indian households earn less than $4,000 annually but are steadily becoming richer. The upper part of the BoP segment in particular seeks out aspirational products and represents a major opportunity for companies. Successful companies catering to this segment offer value, innovate to lower costs and effectively reach customers, while also establishing long-term, trusting relationships.
The Fortune at the Bottom of the PyramidOutline India
The presentation is based on the book “Future At The Bottom Of The Pyramid” by C.K Prahalad and tries to encapsulate his research. It starts off with the notion of how 4-5 billion poor people of the world is unserved by the private sector. Then it addresses the bottom of pyramid (BOP) as a business opportunity and a viable market. It talks about democratizing the commerce and making globalisation benefits reach everybody. The presentation talks about the nature of the BOP market and states some principles that needs to be followed while catering to them. The presentation contains 3 case studies of ITC, HUL and Jaipur Rugs mentioned in the book and tries to explain how they adapted to the BOP market and adjusted their business models to serve the rural India. It also contain slides which tries to incorporate the learnings and takeaways from the book into the OUTLINE India’s business model.
The document discusses the bottom of the pyramid (BOP) population, which comprises over 4 billion people living on less than $2 per day across regions globally. It notes that the BOP represents a significant market opportunity for profitable business, contrary to assumptions, as seen in the example of Hindustan Unilever catering to India's BOP market with affordable products through innovative business models. To successfully serve the BOP, the document advocates designing appropriate products and services, creating awareness, and ensuring availability and affordability.
Bottom of-the-pyramid marketing approach-b.v.raghunnandanSVS College
The document summarizes the bottom-of-the-pyramid marketing strategy, which involves targeting low-income consumers and keeping costs low. It provides examples of successful Indian companies that adopted this strategy like Lijjat Papad and Shahnaz Husain Herbals. The concept promotes segmenting markets into those that can pay for products and those that need assistance, incorporating CSR into marketing. It argues this approach can reduce poverty through profits by creating rural entrepreneurs and jobs.
This document discusses the concept of the "bottom of the pyramid" (BOP), which refers to the 4 billion people living on less than $2 per day. It explores business models for targeting this demographic and debates whether opportunities at the BOP represent a fortune or a mirage for multinational companies. Key points addressed include examples of companies selling affordable products to the poor, challenges in reaching the BOP market, and perspectives on both sides of the debate around its potential.
Bottom Of The Pyramid B24b Business ModelsTim Curtis
The document discusses the potential of a market-based approach to poverty reduction at the "base of the economic pyramid" (BOP), which comprises 4 billion people living on less than $3,000 per year. Traditional top-down development approaches have proven ineffective, so focusing on the BOP as consumers and producers could make markets more inclusive and help meet their needs. Examples show how mobile phones and microfinance have empowered people in developing countries. However, concerns remain about whether this approach alone can address the complex challenges of poverty.
The document discusses the potential of targeting consumers at the bottom of the pyramid (BoP) in developing countries. It outlines some myths around the BoP such as that they cannot afford mainstream products or use new technologies. It also discusses the risk averseness of multinational corporations towards BoP initiatives. Finally, it proposes a business idea to produce affordable footwear made from recycled plastic that could address health, affordability and environmental issues for the BoP.
The document discusses the concept of "fortune at the bottom of the pyramid" which refers to the potential market opportunity among the 4 billion people living in poverty on less than $2 per day. C.K. Prahalad argues that multinational corporations should view this population not as victims to be aided but as potential entrepreneurs and consumers, representing a huge business opportunity if companies develop affordable products and services for them. Serving these impoverished markets requires collaboration between private enterprises, development agencies, local governments, and civil society organizations.
CK Prahalad developed the bottom of the pyramid (BOP) theory which proposes that large corporations can profitably serve the world's poorest populations. The BOP includes 4 billion low-income consumers representing potential opportunities for businesses to meet needs, increase productivity and incomes, and bring more into the formal economy. Prahalad argued that firms must rethink their strategies to develop affordable products tailored to BOP consumers through approaches like small packaging, low margins, and alternative distribution networks. Some companies have found success adopting BOP strategies in sectors like mobile phones, consumer goods, and financial services. However, critics argue it can be very difficult for companies to successfully serve BOP markets without a deep understanding of local consumer behaviors and needs
The document discusses key differences in marketing to low-income customers, also known as "Bottom of the Pyramid" customers. It notes that these customers have low and volatile incomes, limiting their purchasing power. As a result, affordability must be central to serving this segment. Additionally, distribution channels may need to be modified to reach low-income customers effectively. The document also discusses product modifications like smaller sizes, as well as promotional channels suitable for this segment like local forms of promotion.
It then assesses whether low-income customers would be a profitable target for Unilever in Brazil, noting potential problems and rewards. While individual buying power is low, the aggregate power is high. A new challenge is achieving low cost
Talk on 24th May PESIT-Building Businesses in India-a BOP perspectiveDeepak Dev
This document summarizes Deepak Dev's talk on building businesses in and for India. Some key points discussed include:
1) Most new Indian businesses cater to the top of the pyramid (TOP) and leave the vast majority of the population untouched, so businesses should target the bottom of the pyramid (BOP) to access a large untapped market.
2) Successful BOP business models focus on awareness, access, affordability, and availability rather than the traditional marketing concepts. Innovation must occur within the constraints of BOP markets.
3) Examples like GE Healthcare's low-cost ECG machine and modular shelters in Delhi demonstrate how to profitably serve BOP customers through disruptive innovation.
4) Ent
Usually the companies in the richer world and the products which comes to the market are usually focused on Tier 1, 2 & 3 markets. Tier 4 markets i.e Bottom of Pyramid Markets are usually devoid of products. Many Companies like Hindustan Unilever, Aravind Eyecare, Narayan Hrudiyalaya, Jaipur Foot, Eid Parry, Lijjat Papad, ITC Ltd, etc have came up with the products that are specially made for BOP markets. The market volume is very high as more than 4000 million people in the world are below $2 annual per capita income, Even 46% of the Indian population live below the poverty line.......This people cannot afford to the products available for the tier 1,2 & 3 markets as they cannot afford them..... Thus a greater potential occurs at the BOP market.....Catering BOP market doesn't mean catering 'sachets" to them. Making such products which are affordable by these markets...and thus making profits..... Instead enabling them to purchase the product by enhancing the buying power of the consumers..........Reverse Innovation can bring upon the change to the BOP markets.......
Myths and Reality at the Bottom of the PyramidDY Works
5-6 years since the late CK Prahlad sexed up this demographic, Bottom of the Pyramid has been hotly discussed and grossly misrepresented. Here is DMA Yellow Works' view on the subject.
The document discusses the bottom of the pyramid (BOP) market, consisting of 4 billion people living on less than $2 per day. It outlines that there is significant purchasing power and potential for private sector businesses and multinational corporations to profitably serve this population. Specifically, it notes that the BOP market is brand-conscious and open to advanced technologies, and that to be successful companies must create affordable, high-quality products through innovations in areas like packaging, pricing, and distribution models. Overall, the document advocates that multinational corporations can benefit financially and contribute to development by understanding and appropriately tapping into the needs of BOP consumers.
The notion that the Bottom of the Pyramid (BOP) consumers is a segment that is not important for the long-term viability of most of the businesses is no more classified as ‘accepted wisdom’. There is a shift in thinking of MNCs which now are considering BOP consumers as a potential source of revenues as well as drivers of innovation. Targeting the subsistence marketplaces poses various challenges for MNCs, but has favourable outcomes for BOP participants, economy and business organizations. This paper identifies the challenges of launching products targeting BOP markets in India and discusses the implications for consumers, national economy, and companies targeting BOP consumers.
This document discusses strategies for businesses to target markets at the bottom of the pyramid (BOP). It provides examples of companies like ICICI Bank and Mankind Pharma that have successfully targeted BOP markets. ICICI Bank expanded banking access to rural areas through self-help groups and partnerships with microfinance institutions. Mankind Pharma was able to gain significant market share in India by selling affordable generic drugs that were up to 50% cheaper than competitors. The document advocates that with innovative business models and solutions that meet local needs, there is opportunity for profit among low-income consumers at the BOP.
This document discusses marketing strategies for the bottom of the pyramid (BOP), which refers to the poorest two-thirds of the global population living in poverty. It outlines several principles for innovating products and services for the BOP, including making them affordable, accessible, and meeting basic needs. Two common approaches to BOP marketing are the "4As" of creating awareness, access, affordability, and availability, and the "5Ds" of development, design, distribution, demand, and dignity. While there are challenges like limited infrastructure and awareness, targeting the vast BOP market also provides opportunities for growth, innovation, and cost savings. Examples of successful BOP innovations are provided.
C.K. Prahalad is a management guru who developed the concept of serving the "bottom of the pyramid" (BOP), or the world's poorest populations. He argued that multinational companies could profitably target BOP markets through affordable and accessible products and services. Examples of successful BOP innovations include the $200 computer, mobile phones, and health services delivered via technology. Serving BOP markets requires understanding local ecosystems, affordability, and demographic factors to develop appropriate solutions for low-income customers globally.
Guidebook on inclusive innovation for bop markets finalHannaMilme
The document provides an overview of a guide for doing business in emerging markets and at the Base of the Pyramid (BOP). It includes the following sections:
- Structure of the guide and what each section will cover
- An introduction to the BOP, including basic figures on population and income segments, and an overview of the BOP market size and spending
- Challenges and opportunities of the BOP environment for business, including using the BOP as a source of innovation
- Examples of successful business models in sectors like energy, healthcare, food and water/sanitation
- The aim of the guide is to provide tips for Finnish SMEs interested in emerging markets and serving the BOP,
This document discusses economic poverty and the "bottom of the pyramid" (BOP) market. It notes that over 4 billion people live on less than $15,000 per year and represent a latent market for goods and services. While the poor have little income, their total purchasing power is significant. The BOP market provides opportunities for private sector growth and innovation through products tailored to local needs at affordable prices. However, concerns exist that some may take advantage of the poor or focus on creating needs rather than addressing the root causes of poverty.
The Rising Bottom of the Pyramid in India Kimberlee Luce
This document discusses the potential for growth in consumption among India's large lower-income population, known as the "Bottom of the Pyramid" or BoP segment. It notes that over 70% of Indian households earn less than $4,000 annually but are steadily becoming richer. The upper part of the BoP segment in particular seeks out aspirational products and represents a major opportunity for companies. Successful companies catering to this segment offer value, innovate to lower costs and effectively reach customers, while also establishing long-term, trusting relationships.
The Fortune at the Bottom of the PyramidOutline India
The presentation is based on the book “Future At The Bottom Of The Pyramid” by C.K Prahalad and tries to encapsulate his research. It starts off with the notion of how 4-5 billion poor people of the world is unserved by the private sector. Then it addresses the bottom of pyramid (BOP) as a business opportunity and a viable market. It talks about democratizing the commerce and making globalisation benefits reach everybody. The presentation talks about the nature of the BOP market and states some principles that needs to be followed while catering to them. The presentation contains 3 case studies of ITC, HUL and Jaipur Rugs mentioned in the book and tries to explain how they adapted to the BOP market and adjusted their business models to serve the rural India. It also contain slides which tries to incorporate the learnings and takeaways from the book into the OUTLINE India’s business model.
The document discusses the bottom of the pyramid (BOP) population, which comprises over 4 billion people living on less than $2 per day across regions globally. It notes that the BOP represents a significant market opportunity for profitable business, contrary to assumptions, as seen in the example of Hindustan Unilever catering to India's BOP market with affordable products through innovative business models. To successfully serve the BOP, the document advocates designing appropriate products and services, creating awareness, and ensuring availability and affordability.
Bottom of-the-pyramid marketing approach-b.v.raghunnandanSVS College
The document summarizes the bottom-of-the-pyramid marketing strategy, which involves targeting low-income consumers and keeping costs low. It provides examples of successful Indian companies that adopted this strategy like Lijjat Papad and Shahnaz Husain Herbals. The concept promotes segmenting markets into those that can pay for products and those that need assistance, incorporating CSR into marketing. It argues this approach can reduce poverty through profits by creating rural entrepreneurs and jobs.
This document discusses the concept of the "bottom of the pyramid" (BOP), which refers to the 4 billion people living on less than $2 per day. It explores business models for targeting this demographic and debates whether opportunities at the BOP represent a fortune or a mirage for multinational companies. Key points addressed include examples of companies selling affordable products to the poor, challenges in reaching the BOP market, and perspectives on both sides of the debate around its potential.
Bottom Of The Pyramid B24b Business ModelsTim Curtis
The document discusses the potential of a market-based approach to poverty reduction at the "base of the economic pyramid" (BOP), which comprises 4 billion people living on less than $3,000 per year. Traditional top-down development approaches have proven ineffective, so focusing on the BOP as consumers and producers could make markets more inclusive and help meet their needs. Examples show how mobile phones and microfinance have empowered people in developing countries. However, concerns remain about whether this approach alone can address the complex challenges of poverty.
The document discusses the potential of targeting consumers at the bottom of the pyramid (BoP) in developing countries. It outlines some myths around the BoP such as that they cannot afford mainstream products or use new technologies. It also discusses the risk averseness of multinational corporations towards BoP initiatives. Finally, it proposes a business idea to produce affordable footwear made from recycled plastic that could address health, affordability and environmental issues for the BoP.
The document discusses the concept of "fortune at the bottom of the pyramid" which refers to the potential market opportunity among the 4 billion people living in poverty on less than $2 per day. C.K. Prahalad argues that multinational corporations should view this population not as victims to be aided but as potential entrepreneurs and consumers, representing a huge business opportunity if companies develop affordable products and services for them. Serving these impoverished markets requires collaboration between private enterprises, development agencies, local governments, and civil society organizations.
CK Prahalad developed the bottom of the pyramid (BOP) theory which proposes that large corporations can profitably serve the world's poorest populations. The BOP includes 4 billion low-income consumers representing potential opportunities for businesses to meet needs, increase productivity and incomes, and bring more into the formal economy. Prahalad argued that firms must rethink their strategies to develop affordable products tailored to BOP consumers through approaches like small packaging, low margins, and alternative distribution networks. Some companies have found success adopting BOP strategies in sectors like mobile phones, consumer goods, and financial services. However, critics argue it can be very difficult for companies to successfully serve BOP markets without a deep understanding of local consumer behaviors and needs
The document discusses key differences in marketing to low-income customers, also known as "Bottom of the Pyramid" customers. It notes that these customers have low and volatile incomes, limiting their purchasing power. As a result, affordability must be central to serving this segment. Additionally, distribution channels may need to be modified to reach low-income customers effectively. The document also discusses product modifications like smaller sizes, as well as promotional channels suitable for this segment like local forms of promotion.
It then assesses whether low-income customers would be a profitable target for Unilever in Brazil, noting potential problems and rewards. While individual buying power is low, the aggregate power is high. A new challenge is achieving low cost
Talk on 24th May PESIT-Building Businesses in India-a BOP perspectiveDeepak Dev
This document summarizes Deepak Dev's talk on building businesses in and for India. Some key points discussed include:
1) Most new Indian businesses cater to the top of the pyramid (TOP) and leave the vast majority of the population untouched, so businesses should target the bottom of the pyramid (BOP) to access a large untapped market.
2) Successful BOP business models focus on awareness, access, affordability, and availability rather than the traditional marketing concepts. Innovation must occur within the constraints of BOP markets.
3) Examples like GE Healthcare's low-cost ECG machine and modular shelters in Delhi demonstrate how to profitably serve BOP customers through disruptive innovation.
4) Ent
Multinational companies can profitably serve the world's poor by entering emerging markets at the bottom of the economic pyramid. There are large business opportunities in selling affordable, high-quality products and services to the billions of people at the bottom of the pyramid who have significant aggregate buying power. While commonly perceived as not having money to spend, these markets are often underserved and consumers pay much higher prices than wealthier consumers, representing opportunities for companies to profitably offer alternatives. Examples of companies successfully serving bottom of the pyramid markets in a profitable way are provided.
The document discusses the dangers brands face when relying on "cut and paste" marketing plans. It notes that such plans can lead to not understanding customer needs, poor targeting, and consumer burnout. The document provides tips for avoiding cut and paste plans, such as incorporating new media strategically, focusing on innovation, getting outside perspectives on options, and highly targeting campaigns. Specific non-traditional marketing options are also presented, like social media influencer programs and in-pharmacy advertising.
The document discusses the dangers brands face when relying on "cut and paste" marketing plans. It provides examples of brands copying each other's marketing campaigns and outlines five dangers of such an approach, including not understanding customer needs and causing customer burnout. The document then offers six tips to avoid a cut and paste approach, such as incorporating new media strategically, focusing on innovation, and using outside resources to explore new options. Finally, it provides examples of targeting physicians, pharmacists, and social media users with innovative promotional programs.
This document discusses various competitive strategies for market leaders and challengers. It provides examples of how companies in different industries such as fast food, banking, and healthcare have implemented strategies like expanding their customer base, protecting market share through continuous development, and adapting their positioning across a product's lifecycle. The document also discusses strategies for companies during an economic downturn, including increasing value appeals to customers.
This document provides an overview of a lecture on research in marketing public relations (MPR) planning and the future of the field. [1] It discusses how PR integrates with and supports marketing functions by building brands and relationships with consumers. [2] The lecture covers proactive and reactive approaches to MPR and examples of common proactive tactics like product releases, executive statements, and feature articles. [3] It also lists considerations for effective MPR planning and implementation.
Colgate-Palmolive is launching a new precision toothbrush in 1992. The precision toothbrush was designed using infrared motion analysis to track brushing movements and plaque removal. There are two options for positioning the precision toothbrush - as a niche product targeting the premium category or taking a mainstream approach. Niche positioning would allow Colgate to enter the premium category with less risk of damaging sales of its Colgate Plus line, but would contribute less to profits over time. Mainstream positioning could satisfy more demand and increase profits, but risks greater erosion of Colgate Plus sales. The case analyzes how to position, brand, price, and promote the new precision toothbrush in the market.
The document discusses internal entrepreneurship at The Dow Chemical Company through the example of epoxy.com. It describes how Ian Telford successfully pitched and launched epoxy.com in 2000 to sell epoxy resins online, overcoming initial skepticism. Epoxy.com became profitable within a year and continued growing, highlighting lessons about identifying market gaps, building partnerships, and executing ideas effectively within a large organization.
Whirlpool Corporation's vision is for every home everywhere to have their appliances with pride, passion and performance. Their mission is for everyone to passionately create loyal customers for life. Whirlpool is the world's leading manufacturer and marketer of major home appliances, manufacturing in 13 countries and marketing in over 170 countries under major brand names. Whirlpool is also the principal supplier to Sears of many appliances marketed under the Kenmore brand name.
Colgate Palmolive company- the precision toothbrushPOOJA M
Colgate-Palmolive is launching a new precision toothbrush and must decide whether to market it to the mainstream or niche market. The document analyzes the toothbrush market, Colgate's competitors, and evaluates marketing the brush to the mainstream versus niche "super premium" segment. It concludes the niche market is the best strategy since the brush's benefits cater especially to those seeking advanced gum care, it would avoid cannibalizing other Colgate product sales, and niche markets attract fewer competitors.
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Impact of Ads Clutter on SMEs
Case Studies of Pakola and Hico Ice-Cream
This document discusses the marketing perspective of public relations and the partnership between PR and marketing. It emphasizes that PR should develop the core message based on a company's vision, mission, and values, and then both PR and marketing must work together to communicate that message through relevant channels. The document provides examples of how PR activities like public affairs, CSR, and crisis management can benefit from a marketing approach. It also highlights the successful crisis response by Johnson & Johnson to the Tylenol poisoning incident in 1982.
This document is a presentation by Nora Petty to IE Business School about social enterprises in developing countries. It discusses the challenges social enterprises face in developing relevant and affordable products/services for low-income customers in difficult environments. It provides examples like M-PESA in Kenya and Kickstart's irrigation pumps in Africa. The presentation also explains balancing social and business objectives as a double bottom line. Nora's career goal is to leverage her experience in non-profits to launch her own social enterprise providing affordable pharmaceuticals through franchised pharmacies across East Africa.
Disruptive innovation refers to transforming expensive or sophisticated products into simpler, more affordable options accessible to more people. It explains how innovation can change markets by presenting affordable, simple solutions and disrupting existing markets. Disruptive innovation occurs when smaller companies move upmarket and challenge larger incumbents by first targeting less profitable market segments with lower-cost products. Understanding disruptive innovation empowers entrepreneurs to disrupt industries and professionals to strategically avoid disruption.
Colgate-Palmolive is launching a new technologically superior toothbrush called the Precision Toothbrush in a competitive market. It faces challenges in gaining credibility and preventing cannibalization of existing products. The document analyzes positioning the brush as a niche or mainstream product, branding, test results that found the brush more effective but unusual looking, and recommendations such as niche marketing initially, aggressive advertising of its benefits, and free dental checkups to promote the issue it addresses.
Colgate Palmolive Company - The Precision Toothbrush Vignesh Mallya
Colgate-Palmolive is developing a new toothbrush called Colgate Precision and must define its marketing strategy. It is considering either a niche/super premium positioning or a mainstream positioning. A niche strategy would target the emerging super premium market for gum health and is predicted to be more profitable despite generating less revenue. Consumer research found that gum health is a primary concern and consumers are willing to pay more for effective products. A niche positioning is recommended to capitalize on Precision's innovative gum care technology and high quality, though it will reach fewer customers than the mainstream option.