Case Study 3-4 International Marketing

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Case Study 3-4 Marketing to the Bottom of the Pyramid

1. Questions to use as start in evaluating the potential of a specific BOP market segment.
What does the BOP market lack in the specific country?
What are the health issues that plague the area?
Are the BOP communities self sustainable or do they rely on expensive services from outside sources?
What do the BOP value?
What kind of entertainment does the BOP enjoy?
What does the BOP do for extra curricular activities?
How far will the BOP travel to get products they desire?
What form of transportation does the BOP use?
Does the BOP area in mind live in a rural, residential or city area?
How much money does the BOP have to spend on frivolous products?
How many people live in each household?
Do most people cook or eat at home?
What type of jobs do most BOP people do?
How big are the average family of the BOP segment?
Who is in charge of shopping of the BOP segment?

a. No, it is not exploitation for a company to profit from selling soaps, shampoo, personal computers and such to people with little disposable income. Every company is in existence to make a profit (besides non profits) and needs to make a profit to stay afloat. If they can come up with a product that fits the need of an area for a BOP segment and the BOP segment can benefit from it I don't feel that it is exploitation. I feel that they are benefitting the BOP with a product to meet their needs in which they can afford.

b. I feel that a 20% interest loan is a little high for someone in the BOP to repay. They will end up paying a substantial amount of interest before they pay off their principal unless the loan amount was so small that the 20% interest rate is pretty insignificant and they can pay off the loan in a relatively short amount of time.

c. I feel like it can stimulate growth if it helps the BOP segment become more self sustainable and rely on outside...
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