Marketing at Bottom of Pyramid Essay

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Marketing Strategy at the Bottom of Pyramid | Conceptual Note | Introduction The distribution of wealth and the capacity to generate incomes in the world can be captured in the form of an economic pyramid. At the top of the pyramid are 75 to 100 million affluent tier 1 consumers with numerous opportunities for generating high levels of income. This is a cosmopolitan group composed of middle and upper income people in developed countries and the few rich elites from the developing world. In the middle of the pyramid, in tiers 2 and 3, are poor consumers in developed nations and the rising middle class in developing countries, the target of MNC's past Emerging market strategies. Whereas, more than four billion people live at the Bottom of Pyramid (BOP) on less than $2 per day. The term BOP is used to designate multiple concepts, such as a country, a population, a target market, products, strategies, and CSR initiatives. Fig.1 – World Economic Pyramid Issues and Opportunities at the BOP The extreme iniquity of wealth distribution reinforces the view that poor can not participate in the global market economy, even though they constitute majority of the population. In fact, given its vast size, the BOP represents a multi-trillion dollar market. The BOP population has little or no formal education and are hard to reach by conventional means of distribution, credit, and communications. The quantity and quality of products and services available at BOP is generally low. Hence, this huge market segment along with its market opportunities has remained invisible to the corporate sector. The failure of modern technology, managerial know-how, and investment capacity to bring about Inclusive Capitalism has resulted into perpetuation of the problem of pervasive global poverty & disenfranchisement. Although NGOs have been working to promote local

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