Essay about Case 3-4
The concept of the Bottom of the Pyramid (BOP) market was originally developed by C.K. Prahalad in “The Fortune at the Bottom of the Pyramid” to highlight a large potential market made up of a large segment of the world’s population that has, until recently, been an ignored market segment among multinational companies. In an age of increasing global competition and near-saturation for some products in more mature markets, this multi-cultural segment, made up of people from all parts of the world that earn less than two dollars a day, can generate significant revenues and be profitable for companies who have developed appropriate strategies for reaching this market …show more content…
Television and radio advertising are one approach, but may not be the best way to reach the target market.
A 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 smaller 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 probably do not have credit and do not have a significant amount of money on any given day.
In addition to the size of products offered, other important factors need to be considered. In terms of packaging, climate is important—products 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 capacity—important as noted in the case for those without reliable sources of electricity—may be critical for product success, others may not be useful and my