Case Study: Marketing to the Bottom of the Pyramid

Quality of Thought

Student wrote a substantive paper that showed higher levels of cognitive thought following bloom's taxonomy (analysis, synthesis & evaluation).`

 

Descriptors

  Excellent: Exceptional, complete, clear, exceeds performance indicators

  Good: Excellent, complete, meets performance indicators

  Average: Approaching performance indicators, missing some detail, not fully developed

  Fair: Developing competence, vague, weak, needs more detail

  Poor:  Not present

Category

Category Description

Descriptor

Points Awarded/Max. Points

Question 1 (20 pts)

-          Prepares at least 5 key questions for the meeting to help the company better understand whether it should market to the bottom of the pyramid (BOP)

-          Prepares at least 3 guidelines to suggest at the meeting for marketing to the BOP

Question 2

(25 pts)

-       Position paper is at least 500 words long

-       Paper addresses one of the following topics

   Whether it is exploitation to make profit selling to people with limited disposable income

  Making loans with significant interest rates to people who make less than $100/ month to buy cell phones, etc.

  Whether it is exploitation or stimulating growth to squeeze profits from those with limited disposable income.

-       Regardless of topic, students 1) takes a position 2) provides analysis of each side of argument 3) supports their position

 

 

Grammar & Writing Style (5 points)

Student's answers are free of grammatical errors and is written in a manner where a college level reader can grasp the essay's meaning/argument in a single rapid reading. Essay is properly documented (as needed) and follows APA standards.

Total

 

Case Study: Marketing to the Bottom of the Pyramid

Overview

This case study highlights marketing strategies for rapidly increasing market at the bottom of the pyramid (BOP). The term was coined by one of the management specialist of corporate strategy, C. K. Prahalad. He proposed the idea that consumers at this level of the economic pyramid should not be treated as victims but as 'co-creators' to solve their economic problems. It discusses economies of scale for the “absolute poor” that makes up more than 4 billion of the world population, but only earns less than $2 per day. Using a holistic approach, consumers are directly involved with corporations in marketing strategy and product development. The point is to create “low price, low margin and high volume”. It will help to build consumer and corporation partnership through social transformation. BOP framework considers poor people as 'untapped consumers', but have certain drawbacks that do not identify ways to reap out from the poverty trap.

Question no. 1

Question

For business portfolios successfully targeting highly dense urban markets, is it convenient and timely accessible to create distributional channels for highly dispersed rural market?

Analysis

The full-day working patterns of BOP consumers suggest that they purchase their necessities as their shopping begins, after 7:00 P.M. Stores that close at 5:00 P.M. has no relevance with them. Furthermore, stores should be easy to reach with a shorter walk as they cannot travel longer distances.

Question

Rich nations hoard money for convenience. What key marketing strategies we can design to market products that are locally available and highly affordable?

Analysis

Price is a key indicator growth in BOP ...