Markieting at Bop
Marketing at the bottom of the pyramid
Submitted by:
Akshay Garg (001)
Akshay Mishra (007)
Keerthi N. (028)
Mreegasha Mondal (034)
Background and Motivation
The Bottom of the Pyramid (BOP) has emerged as one of the dominant ideas in business lately. The phrase “bottom of the pyramid” was used by U.S. president Franklin D. Roosevelt in April 7, 1932. In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. According to the author of the book-‘Fortune at the bottom of the pyramid’ and the famous management Guru C.K Prahalad, almost two-third of the world population which earns less than US$2 per day comprises of the bottom of the pyramid population.
The world economic pyramid
Historically, businesses around the world have been focusing on traditional markets with good spending power. However with increased saturation in this market and in order to sustain growth, the companies started seeking to penetrate into the largely untapped rural markets with new marketing techniques. The proposition of inclusive capitalism thus arose—involving and mobilizing the resources, managerial know-how and technology of the large FMCG firms to co-create solutions to the problems at the bottom of the pyramid—those people that live on less than $2 a day. This way, the firms contribute to poverty eradication and upliftment of the marginalized; in return, they would get fantastic business opportunities like cheaper and easier procurement of inputs and a wider customer base. This creates a win-win situation for both. Hence subsistence markets, when entered and explored correctly, are becoming a constant source of revenue for businesses.
Hindustan Lever Limited (HLL), as HUL was known back then, experimented as early as in 1995 in the refined salt market. Firstly, they aimed at upgrading the 75 per cent unrefined market (BOP consumers) to Annapurna and secondly of converting branded consumers to Annapurna. In 1999, HLL launched Project
Submitted by:
Akshay Garg (001)
Akshay Mishra (007)
Keerthi N. (028)
Mreegasha Mondal (034)
Background and Motivation
The Bottom of the Pyramid (BOP) has emerged as one of the dominant ideas in business lately. The phrase “bottom of the pyramid” was used by U.S. president Franklin D. Roosevelt in April 7, 1932. In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. According to the author of the book-‘Fortune at the bottom of the pyramid’ and the famous management Guru C.K Prahalad, almost two-third of the world population which earns less than US$2 per day comprises of the bottom of the pyramid population.
The world economic pyramid
Historically, businesses around the world have been focusing on traditional markets with good spending power. However with increased saturation in this market and in order to sustain growth, the companies started seeking to penetrate into the largely untapped rural markets with new marketing techniques. The proposition of inclusive capitalism thus arose—involving and mobilizing the resources, managerial know-how and technology of the large FMCG firms to co-create solutions to the problems at the bottom of the pyramid—those people that live on less than $2 a day. This way, the firms contribute to poverty eradication and upliftment of the marginalized; in return, they would get fantastic business opportunities like cheaper and easier procurement of inputs and a wider customer base. This creates a win-win situation for both. Hence subsistence markets, when entered and explored correctly, are becoming a constant source of revenue for businesses.
Hindustan Lever Limited (HLL), as HUL was known back then, experimented as early as in 1995 in the refined salt market. Firstly, they aimed at upgrading the 75 per cent unrefined market (BOP consumers) to Annapurna and secondly of converting branded consumers to Annapurna. In 1999, HLL launched Project