Bottom of Pyramid

What is Bottom of Pyramid?.....
In economics, the bottom of the pyramid is the largest,

but poorest socio-economic group
It is also often referred to as the "Base of the Pyramid"

or just the "BoP"
current usage refers to the” billions people living on less

than $2 per day”-as defined by Professors C.K. Prahalad
and Stuart L. Hart (in 1998 )
Fortune At The Bottom Of The Pyramid
The Bottom of the Pyramid (BOP) has emerged as a
dominant concept in business,
-Propelled by C.K Prahalad’s (2005) The Fortune at the
Bottom of the Pyramid.
Has the potential to impact the world’s billions of poor

people—as well as the managerial practices of
multinational corporations.
Important to analyze how large corporations can serve

low-income customers profitably.
An insight into Base of the pyramid
Bottom of the pyramid consumers are ready to accept the

new products. But the question arises? How the marketers
go about to meet the need profitably? 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.
Infrastructure:
The basic structure of a marketing system should be
simple and easily accessible.
Innovation:
Product managers have to come up with innovative

products because high innovation product may help
the bop consumers to think differently and motivate
them to high accomplishment
Improvement:
Marketers need to modify and renovate their
marketing style to enable BOP
Consumers to get maximum benefit
Principles of BOP
1.Price Performance
2. Innovation: Hybrids
3. Scale of Operations
4. Sustainable Development: Eco-Friendly
5. Identifying Functionality
6. Process Innovation
7.Deskilling of work
8. Education of Customers
9. Designing for Hostile Infrastructure
10. Interfaces
11. Distribution: Accessing the Customer
12. BOP Markets essentially allows us to

challenge the conventional wisdom in delivery of
Product
Uses of bottom of pyramid
•Provides an impetus for a more active involvement of

the private sector in building the marketing ecosystem.
•Help to reconsider and change long helds beliefs

assumption and ideologies
•Provides clues on developing and services for bottom

of pyramid consumer.
Strengths of bottom of the pyramid thinking
Helps to reconsider and change long held beliefs

assumption and idiologies, which are (all based victim-
and burden thinking):
•There is money at the bottom of pyramid it is viable

market
•Access of BoP market is not necessarily difficult

unconventional approaches such as the Avon ladies
approach may work
•The poor are very brand-conscious
•The BoP market has been connected (mobile

phone,TV,internet)
•BoP consumer are very much towards advanced

technology.
• Approaching BOP consumers’ interests at heart, can
lead to significant growth and profits for them.
• provides a new growth opportunity for the private

sector and a forum for innovations
• It can become integral to the success of the firm - to

command senior management attention and sustained
resource allocation
There is significant untapped opportunity for value
creation (for BOP consumers, shareholders, and
employees) that is latent in the BOP market.
These markets have remained "invisible" for too long.

SUCCESS STORY – HUL …..
HUL - a successful example large corporations profitably

tapping BOP markets,
HUL’s success with low-priced candy aimed at the

BOP markets.
 HUL offered Max in two sizes, at 25 paise and 50

paise .
HUL they tend to the success of some companies, and
give too much credit to a few innovations, such as the use
of small packages.
BOP customers “don't have lump sums to buy 20
ounces of shampoo at one time, Sell single servings of
shampoo so the cost structure matches what they can
afford”.
COMPETITION FROM CEVIN CARE…..
•4-ml sachet of Chik shampoo priced at 50

paise (1.25 cents).
•The launch was a great success:
•Chik’s market share jumped from 5.61

percent in 1999 to over 23 percent in 2003.
• It became the largest selling brand in rural

markets.
HUL RESPONSE’S…...
HUL saw the potential of the market as well as its own
vulnerability.
Responded by launching 50-paise and one-rupee

sachets of its Lux, Clinic Plus and Sunsilk brands.
HUL had always viewed rural consumers as a low-

margin, inaccessible segment.
It was a huge SUCCESS…………

Bottom of Pyramid

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What is the Bottom of the Pyramid?

What is the Bottom of the Pyramid?

What are the principles of BOP?

What are the principles of BOP?

What is Bottom of Pyramid?.....

In economics, the bottom of the pyramid is the largest,

It is also often referred to as the "Base of the Pyramid"

current usage refers to the” billions people living on less

Has the potential to impact the world’s billions of poor

Important to analyze how large corporations can serve

Bottom of the pyramid consumers are ready to accept the

The solution to the above stand lies in the 4 ‘I’s:

The above concept asks the companies to work at the base

Product managers have to come up with innovative

4. Sustainable Development: Eco-Friendly

9. Designing for Hostile Infrastructure

11. Distribution: Accessing the Customer

12. BOP Markets essentially allows us to

•Provides an impetus for a more active involvement of

•Help to reconsider and change long helds beliefs

•Provides clues on developing and services for bottom

Helps to reconsider and change long held beliefs

•There is money at the bottom of pyramid it is viable

•Access of BoP market is not necessarily difficult

•The BoP market has been connected (mobile

•BoP consumer are very much towards advanced

• provides a new growth opportunity for the private

• It can become integral to the success of the firm - to

These markets have remained "invisible" for too long.

HUL - a successful example large corporations profitably

HUL’s success with low-priced candy aimed at the

 HUL offered Max in two sizes, at 25 paise and 50

•4-ml sachet of Chik shampoo priced at 50

•The launch was a great success:

•Chik’s market share jumped from 5.61

• It became the largest selling brand in rural

Responded by launching 50-paise and one-rupee

HUL had always viewed rural consumers as a low-

It was a huge SUCCESS…………

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