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The Marketing to Bottom of Pyramid What are the opportunities and challenges of marketing to BoP?
The greatest opportunity for marketing in BoP is the use of technology. Teaching those at the bottom to use technology for marketing of their products as well as selling them at the right time not only benefits the people at the bottom level of the pyramid but also the multinational companies involved in the process. With such technology use, the logistics costs previously incurred by the companies are reduced or even completely eliminated while the people gain more money for their produces. The challenges however include training people on technology use as well as provision of the technological equipment which is fairly expensive (Prahalad 187).
The other opportunity is creation of better health for the BoP. Many people at the bottom die of diseases caused by spread of germs. This is majorly as a result of lack of knowledge and affordability of the cleaning products. If they are taught the importance of good hygiene and constant demonstrations made, they can be able to keep up the hygiene. This paired with making available hygienic products in smaller quantity hence cheaper costs will ensure maximum benefits to both the BoP and the multinational company (Prahalad 175).
In line with the above is ensuring affordable packaging which comprises of small packages of each product which is affordable to the people. They cannot afford spending a lot on one product with big packages but the money can be distributed on several different products with smaller affordable packaging. This is still beneficial to the companies as their customer base will have expanded while they spend less on packaging and its attractiveness. Financing is the greatest challenge in all these opportunities discussed.
Write a position paper and select either of the three or integrate your thoughts on all the three points mentioned together to write the position paper.
The three marketing opportunities mentioned above can be integrated by the multinationals. The integration will reduce the financing which has been established to be the greatest challenge while still serving the purpose of improving the lives of the people, and maximizing the newly discovered and acquired customer base.
Unhealthy people make up the worse type of customers as they are not able to purchase products which means a loss of income for the organizations. Ensuring that the largest population group in the world; the BoP are healthy will mean that their purchase rate will be high and so will the returns to the multinational companies.
The first thing any multinational company aiming to explore the BoP should ensure is teaching the people good hygiene. While they adopt the healthy trait and purchase the hygienic products, a launch of technology teaching should commence. The people will already have been encouraged to better their lives and hence will willingly participate in the technological teaching and use of the distributed technological equipment.
With the BoP taught and enrolled into technology and starting to sell their products directly to the multinational companies, both parties will be benefitting. Lastly is to introduce small packaging for their different products. The people will be having the money to spend on the products not only the basic ones but the others as well as long as they are in small affordable packages. The sales of the companies will be on the increase and some of the finances spent will return via increased profits.
Work Cited
Prahalad, C. K. The Fortune at the Bottom of the Pyramid. Philadelphia: Wharton School Publishing, 2004. Print.