Marketing at the bottom of pyramid: market attractiveness and strategic requirements

Tendai Chikweche

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Innovation and Socioeconomic Development Marketing and Advertising Strategies Business Strategies and Innovation

Abstract

Purpose – The purpose of this paper is to examine the reasons for firms’ continued presence in a difficult bottom of pyramid (BOP) environment, outlining the challenges of establishing a market orientation and required key strategic marketing requirements for effective engagement of this segment. Design/methodology/approach – A mixed research method approach comprising, qualitative research methods approach consisting of case studies and ethnographic observations was used to collect data from two local firms and two MNC subsidiaries that manufacture food and personal hygiene products in Zimbabwe. Findings – Key findings include identification of presence of new and previously cited diverse macro-environmental challenges cited by BOP researchers, confirmation of attraction and viability of the BOP, identification of multiple motivators for continued presence and a strategic framework for effectively serving the market is then proposed. Research limitations/implications – The sample used is small but representative of a majority of the sales of food and personal hygiene products in a developing country and confining the focus to the food and personal hygiene sector may limit generalisation of findings to a broader population. Practical implications – The paper provides managers with insights on identifying key strategic marketing requirements that enhance their engagement of the BOP. Originality/value – Research into the BOP is a relatively new area of study in international business. The majority of studies have focused on Latin America and Asia ignoring the 800 million BOP consumers in Africa. The paper expands knowledge in the area thereby providing new insights on marketing to the BOP. The paper extends the discussion on potential marketing strategies for the BOP beyond the marketing mix discussion, which has been the focal point of previous studies.

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References

2004Case Study Research 2006The Core Competence of the Corporation 1990The Effect of a Market Orientation on Business Profitability 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1993Market Orientation: Antecedents and Consequences 1993Market Orientation: Antecedents and Consequences 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 2008The bottom billion: why the poorest countries are failing and what can be done about it

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