In accordance with the issues discussed in the paper thinking about the “bottom of the pyramid” can lead us to create an impossibly low-cost yet a high-quality new and robust business model. A sound marketing strategy directed towards the people at the bottom of the pyramid (BOP) can help the company to provide cheaper products and enhanced access to technology thereby providing the necessitous people with an opportunity to become entrepreneurs and educate them. This can be viewed as a mutual benefit process, given that it will provide the company with a huge market as a source of revenue stream. Alongside giving the company a top-line revenue growth, cost saving and innovations will also influence the existing business models and management practices of the company. But one thing that the management needs to be well aware of is the fact that selling into BOP markets is difficult and the hardest part is to continue the work responsibly and consistently. Being a highly unexplored market, the strategy has to be formulated in such a way that it brings real benefit to the impacted communities as well as the company. However, in order to ensure that, the company should follow important guidelines and lessons from leaders in the industry known to have set examples of successful expansion in the BOP market. Prahalad had coined the term BOP, referring to a population which is largely ignored by the private sector in terms of providing services. As such, the author had identified the market as prospective and it had become the next segment of increased attractiveness for firms. The author highlighted the huge size of the market in terms of its population cover and its elevated purchasing power and thus, many companies identified a prospective opportunity to serve this market and become profitable. Different market segments require different approaches and so does the BOP market as it is a largely unexplored area. Consumers in this category are becoming demanding and sophisticated. Thus, the management has to understand that although producing low cost product is a significant factor which is essential for marketing in this segment, it is not the only expectation that consumers have (Barki and Parente 11–23). Market development approach The primary task that the company needs to initiate is converting of the BOP consumers from unorganized and inefficient to just the opposite. This is a crucial strategy as it will help the company to elate the benefits for the market if the company is allowed to do business with them. The primary requirement is for the consumers and the company to be on the same pathway. Both the consumers and the company need to have a common belief in order to completely align their requirements and objectives. The approach should include a broader perspective ensuring a long term development and sustainability of the concerned parties. In order to convert the BOP consumers into organized and efficient, the management has to ensure the development of a robust infrastructure as the inadequacy of the same leads to inefficiency. Besides that, in order to thrive in the lower income market, the company has to formulate strategies that enhance the buying power of the end consumers (Mardh and Correia “Marketing Mix Strategies towards the Bottom of the Pyramid: a study of the Brazilian market”). This will help the company to convert the purchasing power of the consumers into their profit. In return, they can eradicate poverty by bringing prosperity to the poor. Product innovation and consumer education have to be effectively carried out in order to foster aspiration in the minds of the consumers. Better
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