Bottom of the pyramid business

About 4. This large market offers businesses the opportunity to provide customers with first-time access to basic goods and services and to tap into a large base of smallholder farmer suppliers. However, doing business with the base of the pyramid is not easy. Sourcing from many smallholder farmers, for example, can mean high transaction costs, inconsistent quality, and unreliable production volumes.

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Profits at the Bottom of the Pyramid

Business Strategies for the Base of the Pyramid | Michigan Ross

Marketers around the world are discovering that there is a fortune to be made by targeting their efforts at the Bottom Billion or those who are near the lower end of the income pyramid. This means that they can market specific products and brands to these customers who traditionally were served by local brands and other products from the unorganized industry. The term Fortune at the Bottom of the Pyramid has been coined by the noted management expert and author, C K Prahalad, and describes the business opportunity that marketers have if they are smart enough to target this segment. The targeting of brands and products like Sachet Shampoos and Mini Cola bottles appeals to this segment as they usually do not have the capacity to buy bigger sized products as their daily consumption is dictated by the wages that they get. In other words, this segment typically has the means to spend less than a Dollar or Two on each product and considering the vast size of the market in both the developed world and the emerging markets, the potential for profits is enormous. For instance, in India, Unilever markets its brands in mini and micro sizes wherein the product is priced at ten rupees or less and this means that this bottom of the market can afford it.
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Bottom of the pyramid

Until recently, only a few marketing studies have addressed subsistence markets; yet, there are over 4 billion bottom-of-the-pyramid BOP consumers living below less than 1. The present study attempts to bridge the gap in the literature by providing a comprehensive review of the theory and practice addressing the subject of marketing at the bottom of the pyramid, focusing on marketing approaches to BOP consumers that both efficiently sell products to this market and enrich their quality of life. The study suggests that selling products to the bottom of the pyramid may be profitable, but companies must be creative in their approach to formulating marketing strategies in order to engage BOP consumers and earn a profit. This paper focuses on classical portfolio strategies applied to five countries, which are Brazil, Russia, India, China and South Africa.
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Although these top five markets all have in common a substantial consumer base at the bottom of the pyramid , each is unique in terms of BOP consumer spending pattern, market potential and future forecast. In-depth insights into the key BOP markets can help companies and corporations seeking to target low-income consumers achieve long-term success. Nigeria is one of the most important BOP markets, thanks to its large size in both proportional and absolute terms. In , while housing accounted for 9.
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