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Strategies To Overcome Challenges In Marketing To The Bottom Of The Pyramid

STRATEGIES TO OVERCOME CHALLENGES IN MARKETING TO THE BOTTOM OF THE PYRAMID
- Digging diamond is not easy, but it is worth digging.

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Submitted for paper presentation at the 6th MMA All India Management Students Convention
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Introduction:
GDP growth of the planet is at 7.74%, of which the developing countries and the Economies in the transition show a significant double digit growth, 16.53 % and 26.64% respectively1. This is an invitation for the marketers to dig out the diamond mine underneath. The diamond mine is the Bottom of the Pyramid.

The benefits of the growing economy are mainly enjoyed by the rich and the upper middle class. In developing countries, particularly in India the rich become richer and the poor become poorer. In today’s world of growing differences between the rich and poor, the bottom of the pyramid plays a major role in deciding the future economy of the globe. Most of the developed markets show a lower growth rate and the corporates are exhausting resources in growing the Tier1 & Tier2 markets. It is time to nurture the bottom of the pyramid (BOP) markets and reap the fruits.

BOP exists because of the people on the upper layers. If a person on the top of the pyramid wants to go up further, why cant the people in the BOP? It would be inappropriate to blame only the people on the top, but reinforcing the collective responsibility of MNC’s, SME’s, Government, NGO’s and the people would be more appropriate. Reaching the BOP is difficult, even establishing a brand to the Tier 1 market is challenging too, because of cut-throat competition. It is time now to search for newer markets, and the market is just here. Incorporations have seen success in launching business models for accessible markets and it is possible to market profitably even to the BOP.

Rural areas are the ones perceived as the deprived markets, but in reality 25 percent of the BOP is distributed in the metros and the other...