Base Of The Pyramid

An insight into Base of the pyramid The potential in rural market do exist if the marketers start taking active part on it and innovate various kinds of strategies to uplift the base of the pyramid. Tried solution should not be repeated again because bottom of the pyramid consumers are ready to accept the new products. But the question arises? How the marketers go about to meet the needs profitably? Because these consumers are value seeking consumers equipped with purchasing power parity. Therefore here the challenge for the marketers lies in not providing cheap products but also in providing value for money products. The solution to the above stand lies in the 4 ‘I’s: Introduction, Infrastructure, Innovation, and Improvement Introduction The above concept asks the companies to work at the base to enable bottom of the pyramid consumers to avail the services and products. To justify the point HUL reaches heavily on stockiests, Godrej in the process marketing its products heavily in rural areas through radio. Coca Cola operates in the rural market through its unique way of posters, banners and mobile van advertising. There should be introduction to the new strategy, so the bottom of the pyramid consumers can avail the services and products. Hindustan lever relies heavily on its own company organized by stockists.Godrej consumer products, which is trying to push its soap brands into the interior areas. Uses radio to reach the local people in their language. Coca-Cola uses a combination of TV, Cinema and Radio to reach the rural households. It has also used banners, posters and tapped all the local form of entertainment. Since price is a key advertising stressed its ‘magical price’ point of rs 5 per bottle in all media. Infrastructure: The basic structure of a marketing system should be simple and easily accessible. For example e_chouple model has shown the world as to how a large organization can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalizing markets and increasing the efficiency of an agricultural system. This not only rural communities but also benefited farmers, company share holders as well.

Innovation: 1

The term “innovation” has become the relying cry of every product manager, the pursuit of every design consultant. The high innovation product may help the bop consumers to think differently and motivate them to high accomplishment. India’s ICICI Bank together with engineers at the IIT, Chennai built the first rural ATM to serve micro- savers in remote areas of the subcontinent. It can process small denominations and worn notes that are the main currency in Indian villages, and is priced at only $ 800.

Improvement: Marketers new to modify and renovate their marketing style to enable BOP Consumers to get maximum benefit. For example Electrolux Kelvinator launched a refrigerator that keeps ice frozen for up to six hours after a power failure, Which is an essential feature in a region plunged by blackouts. Proctor Gamble and Calvin care used sachets extensively to increase the off take in the Bop mararkets.They used friendly packages of their qtc cough drops in smaller sizes for BOP market. Instead of regular cartoons of 20, Vicks Cough drops were made available in single stripe. Apparently these have increased the rural off take. These ways to reach Bop consumers are absolutely an eye opener for many corporate in times to come. Its said “To get rich, Sell to the poor”. Source: Fortune at the Bottom of the pyramid by Dr.Prof C.K Prahalad. Marketing below the Bottom of the pyramid by Abhishek Chandra.

2