Marketing to the Bottom of the Pyramid

The concept of the Bottom of the gain (BOP) securities industry was originally developed by C.K. Prahalad in The Fortune at the Bottom of the Pyramid to highlight a large potential foodstuff made up of a large segment of the worlds population that has, until recently, been an ignored market segment among transnational companies. In an hop on of increasing global competition and near-saturation for some fruits in more shape up markets, this multi-cultural segment, made up of people from all parts of the world that straighten out less than two dollars a day, can generate significant revenues and be profitable for companies who name developed appropriate strategies for reaching this market segment.Among the issues connect to BOPMs ar establishing appropriate distribution channels, developing and pricing products that have prize for those in these markets, and finding creative ways for financing. In terms of financing, this would embroil not only that cogitate to the purcha se of a product for those with comparatively low incomes, but would also hold strategies for financing business initiatives on the local level.PerspectivesStakeholder would include the local populations that make up the BOPMs. Cultural affections mustiness be a key component of product development and advertising. lot must be disposed(p) that products will not harm those to whom they are marketed.Also, companies are stakeholders in that new strategies including BOPMs whitethorn be authorized ways for a company to grow organically. In extension, many large multinational firms are public-traded companies. As such, shareholders are the owners and increasing shareholder value is a goal.Discussion Ethics of market certain products to people in the BOPM. Issues tie in to distribution channels.It seems that companies marketing to BOPMs must think beyond the traditionally legitimate distribution channels. Many people in BOPMs live in remote, harder to reach, areas. Issues related t o advertising.Television and radio advertising are one approach, but may not be the best way to reach the target market. bodily process/RecommendationDistributions ChannelsA successful strategy for marketing to these segments would include more direct marketing, with people getting paid on commissions. For retailers, marketing efforts should be geared toward lower volume sales in small stores. In contrast to what we are accustomed to in our domestic market in which we shop in large retails stores where the prices per unit decreases as the product size increases, BOPMs would require a different approach. These markets would require smaller, possibly individual-size products that could be purchased for a relatively small amount of money for people that belike do not have credit and do not have a significant amount of money on any given day.Product DevelopmentIn addition to the size of products offered, other important factors need to be considered. In terms of packaging, climate i s importantproducts may be offered in small, more or less open-air stores in hot climates, for example. More important for products that have a technical component, consideration also needs to be given to the level of features available. Whereas some features ,such as battery capacityimportant as noted in the good example for those without reliable sources of electricitymay be critical for product success, others may not be useful and my unnecessarily increase the price or the complexity of the product.