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1 – 10 of over 3000
Article
Publication date: 31 October 2008

Sofie Van den waeyenberg and Luc Hens

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation…

4758

Abstract

Purpose

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation in low‐income countries.

Design/methodology/approach

The paper confronts the literature on the “bottom of the pyramid” with the diffusion of innovations theory in order to identify the country characteristics that call for marketing changes when entering low‐income markets. The authors investigate for one case (the Tata Nano) whether – and how – the company implements changes to respond to these conceptually identified challenges. The case study is systematically analysed and structured according to Kotler's four Ps.

Findings

The case shows that companies can create products with functionality and cost advantage for the poor without compromising on safety and comfort. Creating an innovative distribution system pushes costs and builds trust between the company and the customer.

Research limitations/implications

The study examines one case from the automobile industry. Marketers would benefit from multiple case studies.

Originality/value

The study's originality springs from the confrontation between the bottom of the pyramid and the diffusion of innovations theories. The study is valuable to marketers targeting the bottom of the pyramid. The case study is interesting because the industry (automobile) surprisingly targets a poorer non‐traditional customer base (the upper bottom of the pyramid).

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 31 October 2008

Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending…

12323

Abstract

Purpose

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low‐income consumers.

Design/methodology/approach

The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.

Findings

There is no agreement in the literature about the potential benefits of the BOP approach for both private companies and low‐income consumers. However, further research on characterizing the BOP segment and finding the appropriate business model for attending the BOP can provide some answers to this issue.

Practical implications

The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.

Originality/value

The article presents a thorough analysis of the key elements involved in the BOP initiative: companies' motivations, characterization of the BOP consumers, and the business model to attend the BOP.

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 25 May 2012

Raed Elaydi

The purpose of this paper is to examine the social bottom line in subsistence markets or base of the pyramid. This examination aims to suggest that social strategies for the…

Abstract

Purpose

The purpose of this paper is to examine the social bottom line in subsistence markets or base of the pyramid. This examination aims to suggest that social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact.

Design/methodology/approach

A discussion of the double bottom line is presented. Social strategies are then discussed in terms of impact assessment at the community level and an impact assessment framework is developed reflective of the subsistence marketplace perspective. Implications are discussed in terms of poverty alleviation in subsistence markets and business

Findings

This examination suggests social strategies for the second bottom line should be focused at the community level in measurement, assessment and impact. Focusing social strategies at the community level reframes the role of firms and promotes a business in service of the community approach. Assessing impact at the community level creates a long‐term sustainable focus to business in subsistence markets. This perspective is a more holistic view that incorporates the social, economic and environmental ecology of the community from a multi‐generational perspective that requires entrepreneurs to commit their life's work to developing and servicing the community they live in. Using “And beyond Africa” as a case example of the community‐level social strategy the theory and practice are integrated and the conceptual ideas can be understood as a holistic reflection of the community. Further, examining how social strategies at the community level are understood in terms of the individual and humanity level creates greater awareness of the importance of a social strategy at the community‐level. Suggesting that a social strategy focused on the community level can make the largest impact on all three levels (individual, community and humanity). By considering more than customer impact, a social strategy can look at a business's impact on the community and better understand its impact on humanity. This conclusion changes the role of the entrepreneur and business to be in the service of the community.

Originality/value

This paper develops a community‐level social strategy view to the double‐bottom line in subsistence markets or base of the pyramid.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 6 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 17 April 2009

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

4526

Abstract

Purpose

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Since the term “bottom of the pyramid” was coined, the poor living in low‐ and middle‐income countries have received increasing attention. The bottom of the pyramid attracts multinational companies because of its large population with pending demand, low consumer expectations and slight competition.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Details

Strategic Direction, vol. 25 no. 6
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 31 October 2008

Van R. Wood, Dennis A. Pitta and Frank J. Franzak

This paper aims to contend that four significant ideas must be comprehended, and their connection and interaction understood if successful marketing to the 4 to 5 billion…

9390

Abstract

Purpose

This paper aims to contend that four significant ideas must be comprehended, and their connection and interaction understood if successful marketing to the 4 to 5 billion undeserved bottom of the pyramid (BOP) people in the world, by multinational firms is to be realized. These ideas are: the bottom of the pyramid (BOP) market itself; share of the heart versus consumer animosity; the nature and influence of global “umbrella” brands and responsible marketing as a guiding principle for all firms including those focusing on the BOP. Each of these ideas, in and of itself, represents an important dimension in today's global business environment, but taken together they offer a clearer understanding of how companies, particularly multinational companies, can do well (profit) and do good (improve humanity).

Design/methodology/approach

The paper briefly overviews the BOP literature, highlighting those parts most relevant to this work; expands upon the notion of “share of heart” and its twin components consumer affinity and consumer animosity; delineates the nature and impact of global “umbrella” brands in BOP marketing; synopsizes the notion of “responsible marketing” in the BOP context, and proposes a conceptual scheme of how these ideas are connected, how they interact in today's business world, and how they can lead to ongoing business success.

Findings

Mutlinational firms (MNFs) wishing to successfully pursue BOP markets need to blend their understanding of BOP uniqueness, with a clear understanding of the other three concepts, namely share of heart, gobal umbrella brands and responsible marketing. Tapping the potential of the BOP requires not only radicallly lowered priced products but also consumers with higher income. Marketers must address both parts of the problem since acting on either in isolation will not be effective.

Originality/value

Global umbrella brands of the rich world (BrandAmerica, EuroBrand, BrandNippon, etc.) must also play a part in successful BOP marketing. The future of such global umbrella brands lies to a great degree with BOP markets as these markets are still growing, and thus represent and will continue to represent either enormous partners or enormous rivals. MNFs that truly understand the nature, scope and potential of BOP markets, and act in concert to market responsibly to consumers in such markets, will not only garner the needed share of heart related to long‐term success in such markets, but will see their own global umbrella brand continue to thrive and prosper in the ever evolving global market arena.

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Open Access
Article
Publication date: 14 February 2023

Amber Y. Chang and Yalan Xu

Driving economic development at the bottom of the pyramid (BOP) is an enduring global challenge. While the market-based approach places hope on entrepreneurship as a major impetus…

1599

Abstract

Purpose

Driving economic development at the bottom of the pyramid (BOP) is an enduring global challenge. While the market-based approach places hope on entrepreneurship as a major impetus to drive the underdeveloped economy, the performance of entrepreneurial businesses and their impact on poverty reduction are sometimes below expectations. This paper seeks to examine the factors that may be hindering entrepreneurship within the BOP context. This paper presents preliminary answers and provides research suggestions related to this question.

Design/methodology/approach

In order to identify the reasons behind the underperformance of entrepreneurship at the BOP, a comprehensive literature review was conducted to see what is already known about this puzzle.

Findings

By reviewing extant literature, four clusters of factors were found to shape entrepreneurial activities at BOP: (1) Individual-level factors may be restraining entrepreneurial activities within BOP context, (2) gender inequality at BOP is hindering female entrepreneurship, (3) insufficient institutional support is holding back entrepreneurial activities in BOP and (4) business development initiatives are making multi-faceted impacts on entrepreneurial activities in BOP.

Originality/value

This paper contributes to theory in that it is the first comprehensive review of literature on constraints of entrepreneurship in the context of BOP. In investigating influential factors of entrepreneurial success in the BOP context, the authors recognize four major influential forces that are shaping entrepreneurial processes at the bottom of the pyramid and further propose three directions of future research that are worthy for further exploration.

Details

New England Journal of Entrepreneurship, vol. 26 no. 2
Type: Research Article
ISSN: 2574-8904

Keywords

Article
Publication date: 1 July 2014

George Cairns

This paper aims to critically engage with the premise of development at the “bottom of the pyramid” through consideration of the current and potential future status of the workers…

1127

Abstract

Purpose

This paper aims to critically engage with the premise of development at the “bottom of the pyramid” through consideration of the current and potential future status of the workers who dismantle end-of-life ships in the breaking yards of “less developed countries”, here with specific reference to the dynamic situation in Bangladesh.

Design/methodology/approach

The study applies “critical scenario method” (CSM) to explore different possible and plausible futures for the ship-breaking industry globally and locally.

Findings

The paper argues that the status of the workers in the ship-breaking industry of Bangladesh can be conceptualised as firmly set at the “bottom of the pyramid”, and that, for most if not all, this situation cannot be changed within any industry future without wider, radical change to socioeconomic and political structures both in the country and globally.

Originality/value

This paper offers a contribution to the discourse on consumption at the “bottom of the pyramid” as a development process.

Details

critical perspectives on international business, vol. 10 no. 3
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 20 April 2015

Jaques Angot and Loïc Plé

The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models…

3513

Abstract

Purpose

The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries.

Design/methodology/approach

This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources.

Findings

The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitations and advantages of this transposition are also detailed.

Research limitations/implications

A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries.

Practical implications

Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function.

Originality/value

Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.

Details

Journal of Business Strategy, vol. 36 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 20 October 2020

Constance Dumalanede, Kavita Hamza and Marielle Payaud

This study aims to highlight the processes that private organisations implement to improve access to health care services for low-income communities in Brazil.

Abstract

Purpose

This study aims to highlight the processes that private organisations implement to improve access to health care services for low-income communities in Brazil.

Design/methodology/approach

A qualitative research based on a comparative case study was conducted in São Paulo. A for-profit organisation and a not-for-profit one were compared to scrutinise how they adapt themselves to the social context they are embedded in; while improving their service accessibility.

Findings

Both kinds of organisations have succeeded to reach their goal of improving the access and reducing the time frame of health care services to low-income populations. Their initial business model (BM) makes them face their own challenges that they face with different strategies. It affects their way of communicating, their organisational culture, the patients’ expectations and their level of inclusiveness.

Research limitations/implications

The research is context-dependent because of the specific conditions of the health public system in Brazil. When shaping health care BMs, the national context must be taken into account and the service marketing components should be used to enhance patients’ value co-creation in the health care service delivery process.

Practical implications

The research gives insights to organisations that seek to adapt their BM to improve health-care access to low-income populations.

Social implications

Health-care access plays a key role in improving populations’ living conditions and reach one of the sustainable development goals of the United Nation.

Originality/value

Health care services access at the bottom of the pyramid remains under-studied. The paper brings value by comparing for-profit and non-profit organisations, which have the same social goal of improving health-care access to low-income populations while developing different practices to deal with their own challenges.

Details

Society and Business Review, vol. 15 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 24 February 2021

Wu Zhao, Anqi Wang, Yun Chen and Wei Liu

Entrepreneurial ecosystem is a frontier issue in the field of enterprise strategy and entrepreneurship. As suggested by bottom of the pyramid (BOP) theory, entrepreneurs from base…

1231

Abstract

Purpose

Entrepreneurial ecosystem is a frontier issue in the field of enterprise strategy and entrepreneurship. As suggested by bottom of the pyramid (BOP) theory, entrepreneurs from base of the pyramid can gain the benefits of economic growth by obtaining equal entrepreneurial opportunities with appropriate support and motivation. However, theoretical framework to understand the ecosystem and help the people from the BOP to benefit from ecosystem is under-researched. Based on the investigation of the Taobao ecosystem case study, this paper developed a multi-layer framework to fill in the research gap.

Design/methodology/approach

This research adopts case study methodology for several reasons. First, case study methodology fits the explorative nature of this research to understand “what” and “how” a phenomenon happened (Yin, 2017). Second, case study research design can specify gaps or holes in existing theory with the ultimate goal of advancing theoretical explanations (Ridder, 2016). And third, it can provide researchers with contextual richness (Davison and Martinsons, 2016; Spigel, 2017).

Findings

Based on the literature review of the entrepreneurial ecosystem and the theory of the BOP, the initial framework of the inclusive entrepreneurial ecosystem is proposed. And then, based on the investigation of the Taobao village which is the typical inclusive entrepreneurial ecosystem, this paper explored how the inclusive entrepreneurial ecosystem emerges, develops and realises the co-creation between multiple actors. The emergence of Taobao village entrepreneurial ecosystem is because of the fact that ICT empowers BOP entrepreneurs. The development of entrepreneurial ecosystem presents a point-line-plane diffusion path, and co-creation to enhance inclusive entrepreneurship is realised by interaction and cooperation within social networks and integration of resources. Then, the framework of inclusive entrepreneurial ecosystem is further modified.

Research limitations/implications

The complexity of entrepreneurial ecosystem facing BOP poses a major challenge to its actual operation. Therefore, it is necessary to study the driving factors of inclusive entrepreneurial ecosystems. In particular, ecosystem is a purposeful collaborative network of dynamic interactive systems, which has a set of changing dependencies in a given context. Research is still limited on socioeconomic actors’ interaction with each other in each stage to promote the evolution of entrepreneurial ecosystem. The extent to which they are intentionally designed or organically produced is still unclear, which is recommended for future study in this field.

Practical implications

It provides theoretical understanding on how to successfully form sustainable entrepreneurial ecosystem by integrating BOP entrepreneurs in value chain. The successful experience of Taobao village can provide contributions and implications for the management in practice. On the one hand, this can provide theoretical guidance for other countries and regions to build inclusive entrepreneurship ecosystems and help them to check and fill the gaps and build inclusive entrepreneurship ecosystems based on their local characteristics. On the other hand, this study provides theoretical guidance for solving the problem of poverty at the BOP, transforming the poor from the objects of help to successful entrepreneurs and thus realising regional sustainable development.

Originality/value

The significance of this study is to provide theoretical understanding on how to successfully form entrepreneurial ecosystem by practical investigation of entrepreneurial “habitat” at the BOP.

Details

Chinese Management Studies, vol. 15 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

1 – 10 of over 3000