Wednesday, November 08, 2006

Marketing to the BOP

An excerpt from 'The Fortune at the Bottom of the Pyramid":
The BOP, as a market, will challenge the dominant logic of MNC managers (the beliefs and values that managers serving the developed markets have been socialized with). For example, the basic economics fo the BOP market are based on small unit packages, low margin per unit, high volume, and high return on capital employed. This is differenct from large unit packs, high margin per unit, high volume, and reasonable retun on capital employed. This shift in business economics is the first surprise to most managers.
The BOP market is wide open for companies who are willing to change their marketing and tactical strategies to focus on them. Customers here are willing to spend money on several items that most MNC companies would not at first think possible like, international brand shampoos in single serve sachets. It all comes down to if a company feels this market is worth targeting or not.

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