Marketing in BOP Markets 4
Strategies of marketing to low-income people
Sai Prathyusha Gadaeraju
Central Michigan University – MKT560
There are more than two-thirds of the population that earn less than USD 2000 per annum but have more than $5 trillion worth purchasing power (World Bank Report, 2008). This gives great chance for the companies to earn more profits. These propositions are both economically and socially beneficial. Sugawara (2010) mentioned that BOP is superior to social business in terms of accountability, efficiency, and innovativeness. The studies on Bottom of the Pyramid (BOP) concept, state strong arguments on the feasible markets of the low-income people (C.K Prahalad 2006). In the beginning, there was a problem in entering the market later these studies provided strategies in entering the markets and doing business in these markets. Many non-profitable organizations support the companies in these activities like these help in increasing the standards of the people and this an economic activity along it is socially beneficial. But the intentions of the organizations are doubted by the researchers proved that there is mutual benefit outcomes in these activities (Dahan, Jonathan, Oetzel & Yajizi, 2010).
The low-income people aspects more products with low income. This is the reason why the examples mentioned in the case were successful. The strategies which the companies used are the most successful one. These people expect the rise in income and plan to buy the products which save the money and increase their standard of living. So, marketing of the products plays a huge role in the sales of these products. The company must use these questions in evaluating the potential of the market and the product.
· Is their brand recognized among the people?
· What does the brand offer the people?
· Is the market open?
· Nature of competition
· Brand role in the marketing the products
· Is the product offered at the reasonable price?
· Are the products useful daily bases?
· Type of good?
· Are the products afford itself to the niche market?
In today’s free market customer has the choice to select the products/ services. The manufacturers cannot force the public for their products. Based on Pareto’s ration 80% of the population comprise the low-income earning people. Now-a-days the technology and the utility have a lot of varieties based on the price. So instead of thinking the other...