...Annie Kim 1. As a junior member of your company’s committee to explore new markets, you have received a memo from the chairperson telling you to be prepared at the next meeting to discuss key questions that need to be addressed if the company decides to look further into the possibility of marketing to the BOP segment. The ultimate goal of this meeting will be to establish a set of general guidelines to use in developing a market strategy for any one of the company’s products to be marketed to the “aspirational poor.” These guidelines need not be company or product specific at this time. In fact, think of the final guideline as a checklist—a series of questions that a company could use as a start in evaluating the potential of a specific BOP market segment for one of its products. * Who is the BOP? * What is the income level of BOP? * What are some goods BOP save up money for? * What are causes of health concerns? * What is the current distribution method for goods? * What is the current method of transportation? * What is the living situation of the average family? * What is the demographic of the BOP? * What is the break up of their expenditure? * What kind of jobs do they have? * What is the age distribution? 2. Marketing to the BOP raises a number of issues revolving around the social responsibility of marketing efforts. Write a position paper either pro or con on one of the following: a. Is it exploitation for a...
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...Mini-Case 3: Marketing to the Bottom of the Pyramid 1. Establish a set of guidelines a. How will the company emphasize the value of their product? i. Low-income consumers have less discretion when it comes to what they can spend their funds on so it is important to promote a product by emphasizing its long term value and cost savings compared to a competitor’s product. b. What are the best media avenues for reaching low-income consumers? ii. Many low-income consumers rely on their mobile devices as their primary connection to the internet in order to save money that would be spent on home internet service. It would be beneficial to create an excellent mobile experience that would entice them to view and buy the products along with other marketing channels. c. How frequently will the product be advertised? iii. Low-income consumers tend to buy things only on an as–needed basis. So, would it be best to advertise frequently? Consider that they also do not usually buy in bulk. d. Where will the product be targeted? iv. Low-income consumers generally live in less than spacious neighborhoods. With the right kind of ad, those that live in neighborhoods within a close proximity to a store carrying the product would be a great place to start because word of mouth may spread easily and since they only shop as-needed the ad would reach them at just the right times. 2. Is it exploitation for a company to profit...
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...Innovating for the bottom of the pyramid 1. Why are companies such as Siemens, GE and Procter and Gamble targeting the “bottom of the pyramid”? These companies are targeting the bottom of the pyramid because this segment represents two-thirds of the world’s population (4 billion people). However, those people live on less than $2 per day and 1.5 billion people have no access to electricity. Companies such as the ones mentioned above have found out that this situation has provided an opportunity to create innovative sources renewable energy. Another reason why they are doing this is because growth in mature markets tends to slow down. Therefore, many global companies are realizing that the ability to serve the needs of the world’s poorest consumers will be critical source of competitive advantage in the near future. These companies see the bottom of the pyramid as a potential market. In fact, they are already developing products and launching products specially designed for this segment. They are segmenting global markets by income and population and targeting millions of poor consumers with innovative products and appropriate positioning strategies. However, they have to understand the importance of skillful global market segmentation and targeting while trying to reach low-income consumers in emerging markets. Rural markets are dispersed and distribution is not well established. One problem is to persuade low-income consumers to change their behaviors by buying new products...
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...____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ : Bottom of the Pyramid INTRODUCTION: Global poverty exists today at a startling scale; while the exact numbers are debated, some estimate that four billion people worldwide live on less than two dollars a day.1 According to C.K. Prahalad and Stuart Hart, both Aspen Institute Faculty Pioneer Award recipients, companies should not ignore these traditionally overlooked people, collectively dubbed the “Bottom of the Pyramid,” because of their considerable combined purchasing power.2 Thus, if companies are innovative enough to create or tailor their products to the economic realities and life needs of these people, a significant profit can be won. At the same time, this group’s entry into the market would hopefully better their quality of life and aid in regional economic development. Three well-publicized examples will help illustrate the base-of-the-pyramid concept. First, Grameen Bank was started by Nobel Prize laureate Muhammed Yunus in Bangladesh to offer mini-loans to entrepreneurs who wouldn’t qualify for traditional bank loans based on collateral.3 As of May 2007, over seven million people have borrowed from the Bank with incredibly high levels of repayment.4 Second...
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...| Case Study 03 Marketing to the Bottom of the Pyramid | MKT3120 International Marketing | Name : Andrea Manampulle Student Id : 10200729 / MAAMD81 Class : Monday 6 p.m. Due Date : 1st October 2010 Answers 1. In evaluating the potential of a BOP market segment there are certain factors that need to be analyzed in order to develop a marketing strategy. The following will be used as a guideline to establish possibility and viability of marketing to the BOP. Market opportunity Being the “poor sector” of the pyramid is there a marketing opportunity? Will people who struggle to survive buy convince goods? In analyzing the market opportunity of the BOP, as the case suggest with major markets being more competitive and profits margins per supplier reducing, organizations are now uncovering the potential of tapping the BOP. The BOP is a group that consists of over 4 billion people, that accounts for ¾ of world’s population. Given the size of the market, profitability is obtained by volume of sale rather than an individual sale. (Rafeek, 2009 March 16) For example the Indian BOP market with its vast size and demand, offers a huge opportunity for companies. Out of the 1.12 billion population, 70% live in rural areas, accounting to more than 700 million people at 6,27,000 villages. India’s rural population comprises of 12% of the world’s population presenting a huge market opportunity. As at 2008, this market has grown at an impressive rate of 25%....
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...ESSAY ONE MAKING CONNECTIONS DRAFT Bottom of the pyramid (BOP) refers to refers to the poorest yet largest economic group in the world as it shows on figure 1. This was a term introduced by http://recyclewashington.files.wordpress.com/2010/05/graphic-world-economic-pyramid-web1.gif?w=510 http://recyclewashington.wordpress.com/category/economics/ These income values are based on the purchasing power in US dollar, and the BOP represents the tier 4 which earns less than $1,500 a year per head. This economic group however represents 4 Billion people which is larger than all other groups combined. Countries that can be referred to as BOPs include countries like Niger which has a GNI per capita of $701 http://hdrstats.undp.org/en/countries/profiles/NER.html or Afghanistan with a GNI per capita of $1000 http://hdrstats.undp.org/en/countries/profiles/AFG.html. There is a high correlation between countries with low GNIs http://hdrstats.undp.org/en/indicators/103606.html and Third world countries http://www.nationsonline.org/oneworld/third_world.htm therefore we are able to identify similarities amongst them whether cultural, environmental or economic. The Bottom of the pyramid strategy is a modern strategy introduced by Coimbatore Krishnarao Prahalad. He believes that that multinational companies not only can make money selling to the world’s poorest, but also that undertaking such efforts is necessary as a way to close the growing gap between rich and poor countries. Key...
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...Economies ------------------------------------------------- Case Brief Evaluation Form Note: You don’t have to answer the guiding questions verbatim, use them to prompt your thinking. You do need to suggest an action/recommendation. See me if you have any questions. For those who want more guidance, see below. 3 = Very Good/Above average 2 = Good 1 = Poor/Below Average Innovation at the Bottom of the Pyramid Impacts Comfort As a common practice in the poor countries, sharing mobile phones allows many of these customers to use their own SIM card and switch it in and out when borrowing a mobile device. However, this may be inconvenient as it is not secured and sometimes costly. Nigel Waller, founder of Movirtu, a British start-up, developed cloud software for people too poor to own their own mobile phone. The cloud phone offers a cheaper, more convenient alternative because it gives individuals who cannot buy a handset their own phone numbers and mobile services. This model presents mutual advantages for both the poor as well as the start-up. In other words, their service is priced for base-of-the-pyramid customers and the mobile network carriers get a piece of the action. This model is a demonstration that innovation can spur ventures that sell services aimed at the poor in a way that creates value at the base of the pyramid as well as to the investors. The business model implemented...
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...Marketing to the Bottom of the Pyramid Until recently, the least important market segment has been the most poor, lower-income individuals and families. According to Professor C.K. Prahalad, the “bottom of the pyramid”, also referred to as the BOP, is made up of nearly 4 billion people who survive on $2 a day or less. Making up approximately a quarter of the world’s population, these four billion people hold $14 trillion in purchasing power and this group is growing each year. In the past, this market segment couldn’t afford to purchase most products and were definitely not looking at the latest and greatest technologies. However, with some markets becoming more and more competitive, potential for making more profit from bottom of the pyramid consumers began to grow. Today, more and more stores such as Wal-Mart specifically cater to low-income families, just as Sears Roebuck had. Companies such a Singer offering payment plans for consumers who purchased their sewing machine led the way in marketing to this group. It seems that as time goes on, the BOP seems to have access to more and more higher end products that they once couldn’t afford. While the process of marketing to the BOP has proven to turn a profit, marketers need to keep in mind the challenges that they face in regards to offering advanced technology, financing, distribution, and packaging. One challenge that many companies faced was being able to create technologically advanced products that could be made affordable...
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...a better business, better relationships, and most importantly it is a practice of making a better life. For example, Apple, as well as for the betterment of the world in all its goods uses recyclable products. Plays an important role in the marketing of the firm. It is like a bridge between corporate responsibility and profitability. For example, a company that produces beverages fewer pesticides, chemicals unnecessary packaging and flavor instead uses natural ingredients that can design a product. To complete the product, the firm has to invest significant money. They will love their new product to consumers based on its new features and buy the product that the company will make the investment. It is also known as the triple bottom line (the customer, the environment and the benefits of Corporate) - this way, business analysts have to keep in mind about Basics of Marketing Marketing is a central building. Marketing and its elements are what every trader should have a clear knowledge. Some people have a promotion or advertising of products marketed as misunderstood. " Marketing, making pricing, delivery , and facilitate relationships with customers satisfactory exchange of goods , services and ideas to promote the process " Customer: what they need is to understand customers and their needs. Then how customer needs and to ensure that the product will buy it is to judge people. Product: The product is developed according to the customer that is the second...
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...Management Dr. Paweł Krzyworzeka 2015/2016 Grades There are two components: Group presentations (10 points) • We are going to discuss six cases (sessions no. 2, 3, 5, 6, 7, 9) • All groups have to read carefully all six cases and be prepared to give an oral presentation (ad-hoc, at least two times during our course) based on assigned questions (see the table below). • Group can earn up to 5 points for a presentation • Groups are fixed and preassigned (see the list) • Do not prepare any PowerPoint presentation, however, you may want to write up your answers in a form of short paper (1-2 pages) Take-home exam (10 points) Session Date Topics Readings 1 17.03.2016 Thursday Introduction • Globalisation • Competitive advantage of nations Additional readings: Davies, H. & Ellis, P., 2000. Porter’s competitive advantage of nations: time for the final judgement? Journal of management studies, 37(8), pp.1189–1214. Dunning, J.H., 1993. Internationalizing Porter’s diamond. MIR: Management International Review, pp.7–15. Porter, M., 1990. The competitive advantage of nations. Harvard Business Review, 68(2), pp.73–93. 2 31.03.2016 Thursday Global value chain • Outsourcing vs offshoring • Global value chain • offshoring • outsourcing • Resource-based view • Transaction costs • Intellectual property infringement Case: Ecco – Global value chain management 1. Describe the competitive environment of ECCO and determine how well ECCO is positioned (vis-a-vis...
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...tree provides sustenance for many species in a tropical rainforest; tapirs, monkeys, ants and other insects, small mammals and birds all rely on the banana tree as part of their diet. As the apex predator in my trophic pyramid I selected the jaguar. The jaguar being an apex predator, as it diets on other animals but was virtually no predators of its own (PBS.org, 2008), exists in a unique position. The jaguar limits the populations of other inhabitants, predators included, thusly maintaining a balance in the tropical rainforest. As the jaguar preys on many species, including predators such as the black caiman and anaconda, neither species’ population is allowed to grow beyond control thus protecting the lower level consumers that black caiman and anaconda prey upon. The amount of energy gained is much greater than the amount of energy lost through the 2nd-4th trophic levels. Energy that is consumed at any tropic level is used through many life processes such as moving, breathing, reproducing and searching for food. A significant portion of the energy is lost before being absorbed into the next level. Scientists estimate that 90% of the energy that enters each level is “lost” (Annenberg Foundation, 2014) If one species was removed from my trophic pyramid many species would be affected. For example, if the anaconda were removed any species that it preys on, such as tapirs, would experience a surge in their population. Whereas any food eaten by tapirs would see a negative impact...
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...| To Study the Effect of CEllphones on the BottOm of the income PyraMID of INdia | Group-8Section-A | | 11/17/2012 | Empirical analysis of the socio economic appreciation brought by mobile phones at the bottom of the pyramid | | Contents S/No | Title | Page No. | | | | 1 | Abstract | 3 | 2 | Introduction | 3-7 | 3 | Research Methodology | 8-9 | 4 | Limitations and Assumptions | 9 | 5 | Conclusion | 9-10 | 6 | References/Bibliographhy | 10 | | | | | | | | To Study the Effect of Cell phones on the Bottom of the Income Pyramid of India Abstract: The aim of our project is to study the effect of mobile phones on the bottom of the income pyramid and assess whether the penetration of these cell phones have empowered them in one way or the other. In other words, the study would analyze whether these mobile phones have been a marginal appreciator in their socio economic transition pushing them above in the hierarchy of the pyramid. The study would comprise several parameters to assess any changes and the output of the survey conducted would be analyzed accordingly on the basis of these parameters. The intention of the project is purely academic in nature. Its outcome would be to facilitate understanding and have a critical and comprehensive opinion on how the mobile phones have helped the masses in terms of the number of ways and the degree of impact. Introduction: 5 b)Establish alternate hypothesis As the name of the...
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...Knowledge is something that is involved in many different things in our life. According to pierce knowledge is essential to build a raft, similar to Descartes associates knowledge with the pyramid. Both of these philosophers agree that in order to complete a task successfully one most have some knowledge. In the case of the pyramid Descartes attributes foundationalism, ideas and also theory. In the case of the raft pierce categorize it as something that needs coherence, action and experience, these are necessities to proceed with the building of a raft. A pyramid is a symbol that could be seeing in many different ways, and also be associated channels of energy. Descartes point out foundationalism as part of the pyramid this is the...
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... Abu Roash Located 5 miles north of Giza, Abu Roash was the site that the first son of Khufu, Djedefre, chose to build his pyramid. Typically, as successor, it was Djedefre's responsibility to attend to the completion of his fathers entombment. It was then time for Djedefre to begin the construction of his own tomb. Because of the present state of the site, some experts believe that this pyramid was never finished. Others contend that extensive quarrying has been done at the site and the pyramid has been effectively dismantled over the ages. Whatever the case, the pyramid itself was unique in several ways. Firstly, the subterranean chamber is more like those of step pyramids, and therefore unlike that of the more modern "true" pyramids. The Great Pyramid The first stop on our tour of the Giza plateau is the Great Pyramid of the 4th Dynasty King, Khufu. It was the first pyramid constructed on the plateau and many consider that it represents the pinnacle of the pyramid age. This pyramid contains ascending chambers and passageways not found in any other pyramids. This is how it appears from the south face. On the bottom right hand side is a special museum which contains a 5000 year old boat which we will also explore in another section. We will also enter this pyramid and explore its unique internal arrangement: Horus Horus - The...
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...Case 3-4 Marketing to the Bottom of the Pyramid Central Issues 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 segment. Among the issues related to BOPMs are establishing appropriate distribution channels, developing and pricing products that have value for those in these markets, and finding creative ways for financing. In terms of financing, this would include not only that related to the purchase of a product for those with relatively low incomes, but would also include strategies for financing business initiatives on the local level. Perspectives Stakeholder would include the local populations that make up the BOPMs. Cultural considerations must be a key component of product development and advertising. Care must be given that products will not harm those to whom they are marketed. Also, companies are stakeholders in that new strategies including...
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