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Book part
Publication date: 3 December 2018

Wasana Jayawickramarathna, Kaleel Rahman, Rajendra Mulye and Tim Fry

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the…

Abstract

The market-based approach to catering for the poor mainly focusses on companies making profits while helping the poor enhance their lives. This concept presented the possibility of there being a ‘fortune’ to make at the Bottom of the Pyramid (BoP) market that was an opportunity for both businesses and consumers. The notion of the BoP market has been widely studied using urban and rural contexts as distinct classifications; yet many argue that the opportunity does not in fact exist in the rural BoP markets. In this chapter the authors examine the prospects in the rural BoP in Sri Lanka through a qualitative study using insights provided by industry practitioners who operate at the BoP level. Findings show that a large percentage of the income of multinational companies is derived from rural BoP markets. Compared to the urban sector, the rural BoP market indicates relatively higher disposable income and is viewed as an attractive market segment by industry practitioners. The findings also show that rural BoP people have more resources and skills than their urban counterparts, although the former commonly have lower levels of education. Moreover, the youth segment in both the urban and rural BoP markets was found to heavily consume social media. The authors conclude their discussion by providing several key proposals for organisations looking to seize opportunities in this market.

Details

Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

Keywords

Article
Publication date: 8 March 2013

Sivakumar Alur and Jan P.L. Schoormans

Retailers' new product acceptance in base of pyramid (BoP) markets is crucial to marketers in this segment. This paper seeks to develop propositions for research on…

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Abstract

Purpose

Retailers' new product acceptance in base of pyramid (BoP) markets is crucial to marketers in this segment. This paper seeks to develop propositions for research on factors that affect retailers in new product introduction. The propositions also aim to make a distinction between urban and rural BoP markets.

Design/methodology/approach

The paper provides a broad description of India's BoP market (one of the world's largest BoP markets) to better understand context. It uses literature from developed country context to BoP markets to arrive at research propositions for further research.

Findings

The key research propositions derived relate to exogenous and endogenous factors. Exogenous factors relate to store trading area, competitive environment, shopper characteristics and product diversity. The endogenous factors include store atmosphere, assortment and shelf space allocation, price and promotion. The differences across rural and urban BoP markets are highlighted for each proposition.

Practical implications

Understanding differences between rural and urban BoP retailers can help make crucial new product introduction decisions. Considering endogenous and exogenous factors that influence retailer acceptance decisions will make product introduction decisions successful.

Originality/value

BoP literature has been replete with research on marketers and products but less on retailing. This paper addresses that gap. In addition, very few papers make the distinction between urban and rural BoP markets and mostly across countries but not within a country. This paper places the distinction within the country. Finally, explaining how various factors influencing retailing differ in urban and rural contexts and developing propositions is a major original contribution of this paper.

Details

International Journal of Retail & Distribution Management, vol. 41 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Book part
Publication date: 3 December 2018

Mahima Kaura Mathur, Ritu Mehta, Sanjeev Swami and Sanjeev Bhatnagar

The ‘Bottom of the Pyramid’ or BoP represents the population living at the lowest level of the economic or income pyramid across the world (Prahalad, 2002). The BoP

Abstract

The ‘Bottom of the Pyramid’ or BoP represents the population living at the lowest level of the economic or income pyramid across the world (Prahalad, 2002). The BoP approach undoubtedly provides a market-based solution for poverty reduction and facilitates inclusive economic growth. This segment can be classified into two parts, namely, rural BoP and urban BoP. The urban BoP is a more sustainable and viable option for companies to operate in, since it strategically avoids the numerous challenges faced by the rural BoP. Rural BoP is relatively more distant, dispersed, desperately poor, largely illiterate and heterogeneous market (Ireland, 2008). This chapter aims at understanding and characterising the urban BoP market. Further it shares some interesting results of an empirical study conducted to understand the urban BoP consumers of Mumbai city. The study assumes importance as it focusses on the urban BoP as a realistic option to operate in the BoP by removing the dynamic barriers of the rural BoP. Additionally, it provides insight into the urban BoP market and its consumer behaviour.

Details

Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

Keywords

Article
Publication date: 8 June 2012

Tendai Chikweche and Richard Fletcher

The purpose of this paper is to examine qualitative issues involved in conducting research at the base of the pyramid (BOP). The paper reports on the differences between…

3654

Abstract

Purpose

The purpose of this paper is to examine qualitative issues involved in conducting research at the base of the pyramid (BOP). The paper reports on the differences between anticipated issues and the actual issues encountered in the conduct of research at the BOP in Zimbabwe.

Design/methodology/approach

Qualitative data collection methods comprising in‐depth one to one consumer interviews, focus groups, ethnographic observations and case studies were used to conduct the research.

Findings

Findings from the analysis are based on multiple experiences from multiple sites and these suggest that the main themes established from previous studies on cross‐cultural research are also prevalent at the BOP. However, the findings reveal a number of challenges specific to the BOP and suggest that the BOP is not one homogenous market.

Research limitations/implications

The sample used for consumer interviews is small, and confining the focus to the food and personal hygiene sector may limit generalization of findings to a broader population.

Practical implications

The study provides insight on potential procedures and strategies to deal with the challenges of undertaking research at the BOP.

Social implications

The study provides insight on how social networks can be used as a mechanism for facilitating research and overcoming a number of challenges faced by researchers at the BOP.

Originality/value

Research into the BOP is a relatively new area of study in the field of international business. This expands knowledge in the area of challenges faced by researchers conducting research at the BOP by providing both new insights and advancement of previous research by employing empirical qualitative mixed research methods to study consumers and firms since the two have a dyadic relationship.

Details

Qualitative Market Research: An International Journal, vol. 15 no. 3
Type: Research Article
ISSN: 1352-2752

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Article
Publication date: 3 August 2012

Mark Esposito, Amit Kapoor and Sandeep Goyal

The access to high quality, a reliable and affordable basic healthcare service is one of the key challenges facing the rural and semi‐urban population lying at base of the

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Abstract

Purpose

The access to high quality, a reliable and affordable basic healthcare service is one of the key challenges facing the rural and semi‐urban population lying at base of the pyramid (BoP) in India. Realizing this as a social challenge and an economic opportunity (shared value), there has been an emergence of healthcare service providers who have bundled entrepreneurial attitude and passion with available scarce resources to design and implement cost‐effective, reliable and scalable market solutions for the BoP. The purpose of this research paper is to understand the underlying operating principles of these self‐sustainable business models aimed at providing healthcare services to the BoP segment in India.

Design/methodology/approach

The empirical context involves the use of case study research methodology, where the source of data is published case studies and the company websites of four healthcare organizations who have made a socio‐economic difference in the lives of the rural and semi‐urban population lying at the BoP in India.

Findings

The analysis and findings reflect the key operating principles for sustainable healthcare business ventures at the BoP. These include focus on 4A's (accessible, affordable, acceptable and awareness), local engagement, local skills building, learning by experiment, flexible organizational structure, dynamic leadership, technology integration and scalability.

Research limitations/implications

This research study has focused mainly on the published case studies as source of data.

Originality/value

The intent is to understand and bring forth the learning and guiding principles, which act as a catalyst for the future researchers and business ventures engaged in BoP context.

Details

Corporate Governance: The international journal of business in society, vol. 12 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 13 April 2015

Stephen Mezias and Mohamad Fakhreddin

Over the last 15 years, articles about the base of the pyramid (BOP) have begun to appear in scholarly business journals. Although attention was driven initially by claims…

Abstract

Purpose

Over the last 15 years, articles about the base of the pyramid (BOP) have begun to appear in scholarly business journals. Although attention was driven initially by claims that corporations could earn a fortune selling to these consumers, it became clear that this is difficult. The paper aims to discuss these issues.

Design/methodology/approach

To move beyond this difficulty, the authors emphasize the iterative boundary capabilities built by local, for profit enterprises as the key to creating markets at the BOP.

Findings

The authors argue that the evolution of the business models to permit firms to earn profits and have positive social impact requires building iterative boundary capabilities and support this claim by reviewing two cases of community based non-profits.

Research limitations/implications

Future research should demonstrate that the process the authors observed in these two cases applies in other contexts. Scaling social impact will require sharing knowledge about iterative boundary capabilities and developing best practices that can help effective allocation of patient capital to share best practice and guide public policy.

Practical implications

Social entrepreneurs can conceptualize their own enterprises in terms of iterative boundary capabilities. Social investors can use the framework to assess and advise enterprises in which they may or have invested. Policy makers can enact laws and other legal actions to facilitate the formation of iterative boundary capabilities.

Social implications

The authors see the framework as part of a broader move toward business models that pursue both positive social impact and profits.

Originality/value

The authors link a structuring approach with an institutional perspective to enhance business models that pursue profit and create positive social impact in BOP communities.

Details

Journal of Entrepreneurship and Public Policy, vol. 4 no. 1
Type: Research Article
ISSN: 2045-2101

Keywords

Article
Publication date: 1 May 2020

Mahima Mathur, Ritu Mehta and Sanjeev Swami

This paper develops a comprehensive marketing framework that firms could use as a foundation for developing a successful business model that ensures sustainability in BOP markets.

Abstract

Purpose

This paper develops a comprehensive marketing framework that firms could use as a foundation for developing a successful business model that ensures sustainability in BOP markets.

Design/methodology/approach

The study employs a qualitative research approach based on semi-structured in-depth interviews with founders or senior managers of Indian firms who have been successfully operating in the Indian BOP market. The data is then systematically coded and categorized with the help of software to get better insights.

Findings

The findings of the paper indicate that although the traditional 4As of marketing are important, they do not explain the success of firms adequately. Based on the findings of the interviews, we propose an 8A model that comprises the original 4As along with adaptability, assistance, action innovation and accelerating scale.

Practical implications

The proposed 8A framework would be useful for domestic and multi-national firms aiming to make a foray into the Indian BOP market.

Originality/value

The paper contributes to the literature on the BOP market by identifying the factors important for succeeding in the BOP market. It builds on the 4A model to propose 8As marketing framework in the context of BOP markets.

Details

Journal of Advances in Management Research, vol. 17 no. 3
Type: Research Article
ISSN: 0972-7981

Keywords

Content available
Book part
Publication date: 3 December 2018

Abstract

Details

Bottom of the Pyramid Marketing: Making, Shaping and Developing BoP Markets
Type: Book
ISBN: 978-1-78714-556-6

Article
Publication date: 1 December 2020

Rishikesan Parthiban, Saravana Jaikumar, Jayanta Basak and Somprakash Bandyopadhyay

The authors study the effect of access to smartphones on the socio-economic well-being in the case of rural base of the pyramid (BoP) women. While smartphone access may…

Abstract

Purpose

The authors study the effect of access to smartphones on the socio-economic well-being in the case of rural base of the pyramid (BoP) women. While smartphone access may have its benefits, the paper suggests augmenting access with a sociotechnical intermediary (STI) that facilitates training and online community building to enhance the well-being outcomes.

Design/methodology/approach

The authors conducted a survey from three groups of women from rural West Bengal (India) – (1) who do not own smartphones, (2) who have their own smartphones and (3) who receive smartphones and STI support (over two years). The authors evaluate the effect of access to smartphones and STI support on social well-being (including structural social capital and empowerment) and economic well-being (including entrepreneurial intent and subjective economic well-being).

Findings

The analysis results suggest a high relationship between smartphone ownership and higher structural social capital, empowerment (in terms of freedom of movement) and entrepreneurial intent. The authors further find these effects to be enhanced amongst women who received smartphones and support from STI.

Originality/value

The authors attribute this enhanced well-being amongst women with smartphones and STI support to peer-learning and cultivation of virtual role models facilitated by the STI through creation of intra-community online groups. The results have significant policy implications for socio-economic well-being of rural BoP women.

Details

Information Technology & People, vol. 35 no. 1
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 7 September 2015

Prabhat K. Dwivedi

The purpose of this paper is to develop an improvised sustainable health-care model by integrating best practices, innovations and new dimensions to the present public…

Abstract

Purpose

The purpose of this paper is to develop an improvised sustainable health-care model by integrating best practices, innovations and new dimensions to the present public health-care system – National Rural Health Mission (NRHM) – for improving the health status of the bottom of pyramid (BoP) in India.

Design/methodology/approach

The contribution of NRHM in ensuring the availability of health-care services and improving health indicators has been assessed. Some unique proven models of excellent health-care services and innovations have also been considered in designing an improvised health-care model. The empirical context takes the use of case study research methodology. The data have been extracted from various relevant papers, reports and websites.

Findings

Despite substantial augmentation in health infrastructure and human resources, increased local engagement and technology integration, the progress in health indicators during the NRHM has not been fairly better than that before. The present paper provides an improvised model that integrates all the potential stakeholders such as Government, Private health-care services providers, pharmaceutical and insurance companies and BoP community itself to ensuring 5As rather than 4As (Prahalad, 2004) in rural health care.

Research limitations/implications

This study has relied mainly upon the secondary sources of data and some published case studies. The model is a hypothetical framework designed exclusively for rural setups of India.

Practical implications

The study shows the ways and invites all the stakeholders to come forward and build hybrid partnerships not only to develop society but also to develop sustainable BoP markets and earn profits.

Originality/value

The paper brings forth the aspects of achievements and limitations of NRHM in improving BoP health status, and it develops an improvised model to achieve the BoP-health objectives.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 9 no. 3
Type: Research Article
ISSN: 1750-6123

Keywords

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