Marketing to the bottom of the pyramid and subsistence markets: A research agenda

Description

The concepts of the Bottom of the Pyramid (BOP) and subsistence markets have attracted substantial academic and managerial attention in recent years. The BOP thesis posits that multinational companies can achieve significant revenues and profitability by designing and implementing marketing programs targeted at individuals occupying the lowest tier of the global economic pyramid. The size of this segment is estimated to range between 2.7 billion and 4 billion people. This paper reviews the academic literature on BOP and subsistence markets and identifies key issues related to marketing to these consumers. The review is based on articles published in peer-reviewed journals as well as case studies from reputed academic institutions. It first examines broad business issues, including the size of the BOP market, motivations for undertaking BOP initiatives, ethical considerations, and institutional linkages. The paper then analyzes specific marketing challenges associated with the BOP segment, such as consumer analysis, firm capabilities, collaborators, competition, and contextual factors. It also addresses issues related to segmentation, positioning, and the design and implementation of marketing programs. Based on this analysis, the paper proposes a research agenda for future work on BOP and subsistence markets.

Publication Date

1-1-2010

DOI

10.11118/actaun201159020009

Keywords

Marketing, Bottom of the pyramid, Subsistence markets, Poor consumers, Literature review, Marketing research agenda

Conference

International Conference: Enterprise and Competitive Environment, 10-11, March, 2011, Mendel University, Brno, Czech Republic

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