Marketing at the Bottom of the Pyramid

TEAM 7 PGP 1(A)

ASIM AYAZ CHARU BATRA

KARTHIKAYEN B
SUNWINDER PAL SINGH VIGNESH S SUNNY TEOTIA

Bottom of Pyramid What is it ?

In economics, the bottom of the pyramid is the largest, but poorest socio-economic group.
In global terms, this is the 4 billion people who live on less than US$ 2.50 per day. The concept demanded that businesses, governments, and donor agencies stop thinking of the poor as victims and instead start seeing them as resilient and creative entrepreneurs as well as value-demanding consumers.

The World Economic Pyramid

Nature of the BOP market

There is substantial purchasing power with the BOP The BOP markets are accessible

The BOP markets are deeply connected

Critical principles of innovation for BOP Markets

All innovations must focus on conserving resources: eliminate, reduce and recycle.
Most BOP markets are poor in skill. The design of products and services must take in to account the skill levels, poor infrastructure, and difficulty of access for service in remote areas. Focus on price performance

Successful ventures

ITC e-Choupal

The traditional procurement system focussed on mandi. The buyers in mandi aggregated the produce and sold it to firms like ITC for further processing. ITC brought in a system wherein the farmers could check the prices and decide at what price they wanted to sell. The new system efficiencies compared to the traditional mandi system resulted in savings of Rs. 270 per ton for the farmers. ITC also saved Rs. 300 per ton. This is a winwin situation for both the farmer and

Successful ventures

HUL Shakti Amma

HUL created a direct distribution network in hard-to-reach locales. HUL selected entrepreneurial women from these villages and trained them to become distributors, providing education, advice and access to products to their villages. Project Shakti has caught the attention of many within HUL who have recognized the venture as an exciting opportunity to penetrate the rural BOP.

Development as a Social Transformation

The BOP model provides us with a viable and profitable growth market.

The methodologies for innovation at the BOP are different from and more demanding than the traditional approaches, but so is the opportunity for significant profitable growth. As BOP consumers get an opportunity to participate in and benefit from the choices of product and services made available through market mechanisms, the accompanying social and economic transformations can be very rapid.
Examples of ITC e-Choupal and Shakti Amma

A Real Life Case Study

The Aravind Eye Care System: Delivering the most precious gift
Motivated by the vision to eradicate all needless blindness in India, Aravind Eye Care Systems, embarked on a series of innovations to bring world class eye care to the poorest people in rural and urban India.

Their driving mission is sustained by a combination of

Purpose Volume Systematic Approach

Thank You