Market forces have for long bypassed nearly three billion people—half of the world’s total population—who live on less than $2 a day, or put differently, at the ‘bottom-of-the-pyramid’ (BOP) of society, ostensibly due to their low purchasing power. What seems to have escaped market attention is the huge profit potential that BOP markets represent, given their sheer size. What does it take to reap this huge profit potential? There should be recognition, to start with, that the poor, too, like the middle- and high-income segments, need products and services, and are willing to buy them, if attuned to their needs and made easily accessible at affordable prices. The pioneering forays of a few companies, including those of multinational companies like Unilever (through its Indian subsidiary, Hindustan Lever), followed by several others, have successfully proved this contention, and in the process, shattered the myths surrounding the viability of marketing to BOP populations. Innovative approaches like Social Entrepreneurship, Technological Adaptations and Innovations are, however, required in many situations to build and enhance the capacities of the poor and thereby, their purchasing power and market access. This book provides insights into the nature and characteristics of BOP markets; what serving the BOP means; the challenges that businesses will encounter when venturing into BOP markets; the strategies to effectively counter them; and presents cases on successful ventures into BOP markets.
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