Bottom of the Pyramid Essay

556 WordsAug 10, 20143 Pages
BOTTOM OF THE PYRAMID Assignment #2 Naveen Kumar Kotteda Central Michigan University – MKT560 07/26/2014 Introduction The main objective of any organization is to make maximum profit. And profit can be calculated as the product of sales and profit margin on a particular product. In the present global world, for any organization the whole global market is the potential market for the company. Currently more than half of the total population is at the bottom of the pyramid. So, if they turn BOM customers into their customers they can gain huge profits. (Saju Jose, 2013) Question # 1 Set of questions that have to be answered before evaluating a potential BOP market. What is the Range of income level of BOP? What transportation method to use? Who is the bottom of the pyramid customers? What kind of jobs they do? What kind of products they use? How much do they save every month? In what quantities the products have to be sold? What kind of style or method they use? Before entering into the bottom of the pyramid market all this factors and questions have to analyzed and studied thoroughly. Question # 2 Answer) Selling soaps, shampoo, personal computers, and ice cream and so on to people with disposable income is a brilliant idea, because by using this marketing technique organization is increasing its selling which in turn increases its profit. And it doesn’t even affect the previous company it just adds up to its sales. Answer) for a normal person who earns $100 a month to buy a television which is twice his monthly wage is difficult, instead if he could the purchase the television in installments, where he could afford. So, taking a loan with 20% is not a big deal to him. And to that the interest that the organization makes is very less

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