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| Bottom-of-the-pyramid : C K Prahalad
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| Introduction |
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A term coined by the well known guru, C K Prahalad . Till recently, marketers ignored the people in the lower income groups, because of their low per capita purchasing power. The current thinking is that people at the Bottom-of-the-pyramid comprise a huge market with distinctive characteristics. By understanding these characteristics and tailoring the marketing mix suitably, companies have major opportunities to exploit this market. The Bottom-of-the-pyramid is driven by factors like affordability, access and availability.
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| Affordability. |
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The key to success at the bottom of the pyramid is affordability without sacrificing acceptable levels of quality.
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| Access |
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Distribution patterns for products and services must take into account where the poor live as well as their work patterns. Distribution networks must penetrate deeply into small towns and villages. Most BOP consumers work the full day before they have enough cash to purchase the necessities for that day. Stores that close at 5:00 PM have no relevance to them, as their shopping begins after 7:00 PM. Further, BOP consumers cannot travel great distances. Stores must be easy to reach, often within a short walk. This calls for effective penetration of the distribution network.
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| Availability. |
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Often, BOP consumers make their purchase decision, based on the cash they have on hand at a given point in time. They tend to buy for immediate consumption. Availability is a critical factor in serving BOP consumers.
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