Situation: Any effort by huge corporation to tap potentially largest consumer base of bottom of pyramid had proved futile inspite thier best and rigourous attempt.
Problem: Bottom of Pyramid is not exactly a consumer market. Companies are trying to sell product which they expect for free. Example Electricity, water etc is something which they believe is to be given to them freely since its govt obligation to provide basic needs. The bottom of pyramid is not actuaaly a market. The two important characteristics which make a consumer market, a) consumer are conditioned to buy products which are being offered b) Consumers have adapted their budget and behaviour to fit products in their life, are missing in bottom of pyramid
Solution: Companies needs to create new market by inducing lifestyle changes. Companies needs to induce them to pay for product they seemed natural and fit those product in their lifestyle. They need to work closely with the communities for identifying such products and needs. Companies needs to improvise in marketing and provide number of benefits and reasons for consumer to buy their products.
As an enterprenuer, we can help bottom of pyramid by providing products to improve their basic health and meet basic needs. This group cannot spend fortunes on their own health , so we may provide various products that can improve their helath, provide necessary nutrients at resonable price. We need to introduce new products that help improving their own well being at lowest possible cost.
We can adopt combination of following marketing strategies:
– Cause marketing : Giving a cause which both consumer and comapny cares about
– Relatioship marketing : focus on building relationships with their customers instead of always exclusive trying to sell them something
-Diversity Marketing: Develop a customized marketing plan by analyzing different customer segments based on cultural differences including tastes, expectations, beliefs, world views, and specific needs
– Humanistic Marketing: Human needs are “a state of felt deprivation.” They distinguish between physical needs (food, shelter, safety, clothing), social needs (belonging and affection), and individual needs (knowledge, self-expression). Needs are a relatively narrow set of non-cultural states of felt deprivation.