Demand and Distribution Issues at the Bottom of the Pyramid
Submitted by:
Abhishek Tyagi (UM15187)
Jagannath Prasad Mohanty (UM15205)
Neeraja R Venu (UM15214)
Prerak Jigar Shah (UM15222)
Rajmeet Singh (UM15225)
Soumya Tayal (UM15239)
Suprita Padhee (UM15242)
Bottom of Pyramid (BoP)
India’s rural Bottom of Pyramid (BoP) market, which consists of approximately 700 million people, presents itself as a significant business opportunity with multinational corporations as well as for small and medium manufacturers and producers. While the revenue opportunity in this market has been predicted to be at almost the same levels as that of urban markets, success in this segment has remained more or less elusive, due to the prevalence of several BoP issues
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First of all, marketing managers working on BoP markets need to create awareness about the product or the service. Basically, it comes down to making sure that everyone understands that it is available and knows how to use it. Second, companies should generate access to it. These markets can be difficult to access and this should be overcome. Third, the supply should be affordable for the local people’s wallet. Fourth and last, what is produced should be available. Building a relationship is of paramount importance since markets sometimes do not exist, and companies should see this strategy not as a market development strategy, but as market …show more content…
Just as in the emerging markets anywhere in the world, distribution networks in India too tend to be unique and disjointed, and this has been highlighted by C.K. Prahlad in his book, ‘The Fortune at the Bottom of the Pyramid’. He says that distribution systems that reach the BoP are critical for developing this market and that innovations in distribution are as critical as products and process
The closing case in chapter 1 points us to a shift in the worldwide demographics. When looking at population pyramid, there has been a shift from the traditional pyramid of a country’s age distribution, to pyramids that are starting to look more like diamonds or rectangles. This is caused by lower birth rates and an increase in life expectancy. The change in both birth rates and life expectancy can mainly be attributed to an increase in urbanization and education levels. Further, low birth rates and high life expectancy has also led to a decrease in the country’s population leaving a larger portion of the population over the age of 65.
Warsia, Noor. (Designer). (2013, June 7). The Fulfilment by Amazon distribution model [Web Graphic]. Retrieved from http://www.digitalmarket.asia/2013/06/amazon-flows-into-india-ebay-snaps-a-us50-mln-deal-e-commerce-in-apac-to-get-fillip/
This is necessary as the vast majority of individuals migrating from rural to urban centers has been steadily increasing with the level of economic growth seen within the past twenty years as mentioned earlier. Unfortunately, this situation has further shown the structural issues and inequalities of cities, as most migrants end up having a poor quality of life living in informal settlements as highlight substantially by Boo. As a means of tackling this, however, the Indian government has turned its focus on investing rural regions, developing the agricultural sector. Specifically, Boo mentions that “the prime minister, Manmohan Singh, had come down from Delhi to express his concern for the farmers’ hardships, and the central government’s determination to relieve it” (p. 138). While this is definitely important funds are not being divided justly. For starters, between rural and urban areas almost all investments are being targeting towards rural regions, which is only addressing issues of inequality in one section of the country. Furthermore, across rural areas inequalities of investment are quite often overlooked. Although, “one of the governments hopes was to stop villagers from abandoning their farms and further inundating cities like Mumbai, but Asha’s relatives knew nothing of these celebrated relief programs” (p. 138). Therefore, even though
...sledges and track and roll. Also there are many theories of how it was constructed as Peter James stated that the old theory where Ancient Egyptians built it and manoeuvred 2.5 million of stones and laying one every three minutes is impossible it would take hundreds of thousands of workers to build. Instead he believes they were built inside out and Jean- Pierre Houdin also agrees on that. Houdin believes that the Egyptians used right angled spiral ramps to transport the blocks and build up the pyramid. There are pyramids all around the world they been constructed in a time where there is no communication between these people.
With a population of over 1.2 billion India is sadly at the top of the chain with the largest number of child laborers in the world. India has a poverty rate of twenty five percent with fifty percent of the population being under the age of twenty five years old (Graham). In India agriculture is the norm for working. The United Nation’s Food and Agriculture Organization estimates that seventy percent of child labor in India is in agriculture or related acti...
As a massive provider of consumer goods in India, Hindustan Lever Limited (HLL), is attempting to penetrate the rural markets where there is a massive opportunity for growth. HLL’s current operating sectors are becoming increasingly competitive and crowded. Their best opportunities now lie in developing new markets and rising to the top of that market. They are attempting to do this with a program for developing entrepreneurs, named Shaktis. Met with initial success the program now needs to grow without increasing costs.
is made up of different levels, that displays the most basic needs, at the bottom of the pyramid. As the needs of the consumer become more complex , then it will be placed at the top of the pyramid. According to Maslow’s Hierarchy of needs, the needs at the bottom, are physiological needs, like the need for food, water, sleep and warmth. This therefore can be seen as the most basic needs. It is said that when a person succeeds an important need, it will become a motivator for the next step to try and satisfy the next most important need. This therefore brings us to the next step. The next level, is the need for safety and security that need to be looked at.
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Have you ever seen a pyramid in real life before? One of the pyramids in ancient egypt is 500 feet tall. I picked pyramids because I think they are really fun to learn about.
despite of all the threats some of the multinationals are able to gain success in serving this group of economy which are living their daily lives on a few dollars only. Companies still consider that profits in this market are vague and not consistent. The successful industries in this market include the telecommunications, fast moving consumer goods industry (FMCGs) and medicine industry. These corporations were unable to reduce the costs and prices to serve poor consumers. The research studies have shown that only of the corporations who served poor population were able to establish the business with 100,000 or customers in different regions like Africa and these corporations served 1 million customers in India. For example Procter & Gamble invested the amount of more than $10 million in its pure water brand “PUR” for serving bottom of pyramid market. Eventually the sales were not enough therefore Procter & Gamble has to shift the number of products as charitable items. Sourcing the producers from bottom of pyramid is also not an easy task. Large companies use to integrate small suppliers in their value chains in order to access the bottom of pyramid market (Karamchandani, Kubzansky and Lalwani,
... right people by increasing the awareness about the product, its benefits and drawbacks. This is important for the success of a business.
To attain development, the Government of India has formulated many development strategies without paying adequate attention to the developmental needs of the backward regions. In such a case, the development strategies naturally depend on the market forces to stimulate the developmental process to all part of the country through the trickle down process. But this strategy has not succeeded in many countries including India. Moreover the Indian planners over emphasised the role of big push strategy. But the impact studies showed that the big push strategy in India did not adequately develop the backward regions.
...earch and extension, rural infrastructure, and market access for small farmers. Rural investments have been sorely neglected in recent decades, and now is the time to reverse this trend. Farmers in many developing countries are operating in an environment of inadequate infrastructure like roads, electricity, and communications; poor soils; lack of storage and processing capacity; and little or no access to agricultural technologies that could increase their profits and improve their livelihoods. Recent unrest over food prices in a number of countries may tempt policymakers to put the interests of urban consumers over those of rural people, including farmers, but this approach would be shortsighted and counterproductive. Given the scale of investment needed, aid donors should also expand development assistance to agriculture, rural services, and science and technology.
(Empowerment of rural women The Deterrents and determinants . By- M.P BORAIAN, Concept Publishing Company, New Delhi- 110059 First Published 2008)