The main focus of this chapter is the bottom of the pyramid consumers, assumptions and

implications of the organizations about them, nature of the BOP market, development and
opportunities and benefits for the organizations. Bottom of the pyramid is the largest and
poorest economic group including 4 billion people. Many organizations of the orld
ork to eradicate poverty but it is still the big !uestion of "#
st
century.
There are many organizations build markets at BOP for poverty reduction because large
scale and ide spread entrepreneurship is at the heart of the solution to poverty. $arge
and small business organization has begun to successfully build markets at BOP to
eradicate poverty. Banks, poer and construction companies and chain stores also seek
to understand their choices and create opportunities for poor by offering them choice but
in developing countries these solutions affi% financial burden.
The possibility to begun business in BOP understand ith some assumptions such as the
multinational organizations ignore the poor so they do not share in the globalization and
have no access to their products and services but hen M&'s provide them access to
them it is very beneficial for them because this is a ne market for them and they
generate a huge profits from this market hile poverty alleviation ill become a business
development task shared among the large organizations.,
BOP offers ne opportunities for organizations and BOP markets must become an
important part of the ork of the private sector because they become part of firm(s core
business.
The Poer of )ominant $ogic e%plain that everyone perceive the orld according to
their civilization, ideology and e%perience, *orld Bank, rich countries, &+Os and
+overnment and private sector orks to eradicate poverty according to their on
interests. Private sector as concept e%ploitative of the poor.
There as no confidence voice in public policy for improving market based ecosystem
large firms are controlled by +overnment through license and the focus of public policy
as on distributive ,ustice over ealth government thought its first priority must be
polices that e!ualized ealth distribution. Poverty has no boundaries and most thinking
people knos here they have to go.
Most charitable organizations believe that private sector is greedy and uncaring and
cannot be trusted ith the problem of poverty alleviation. -istorically governments, aid
agencies, &+Os, large firms and the organized business sector all seem to have reached
an agreement that market based solutions cannot lead to poverty reduction and economic
development.

The nature of the BOP market has different characteristics such as there is money at the
BOP market because this market include more than 4 billion peoples and buying poer
of each is less than . " per day it is less than the earning of develop countries but as
compare to population the BOP market include more than /01 people and their
purchasing is more than develop countries they spend their money on different things as
they needed so it is a $atent market for all M&'s and all the business sectors try to serve
in this market to generate profit and valuable consumers.
#
2econdly it is easy to access to BOP mark it is true that access to poor consumers through
media is a difficult ,ob for organizations hich creates problems that they don(t kno
hat is it and ho they use it but technology development reduce this problem in
different countries Mobiles or ireless technology made the organizations able to access
the people living aay from the cities and aare them about the products or services they
offer. 2ome firms also use some alternative ays to aare people about their products
such as 2hakti 3mma45ndia.-$$6hich have knoledge about the people living in a
specific area.
Third characteristic shos that the BOP markets are brand conscious. The BOP is very
brand conscious and purchase valuable products on prices they afford according to their
needs and availability of such products are ma,or problem for large organizations.
7ourthly the Bottom of the pyramid market is connected ith each other through ireless
technology, telephones and P'. They regularly communicate and share their vies and
e%periences ith each other and also connected to the firms from hich they ant to
purchase. They easily take information about prices, !uality etc and share it ith others
through mouth ord communication so poor population play very important role in the
spread of ireless communication technology across the *orld.
7inal characteristic shos that BOP consumers accept advanced technology !uickly and
the more rapidly adopt ne technology because they have nothing to forget and ant
change, facilitative and rela% life. They are more social and like to connected ith others
and take information about the different products and services they ant to purchase or
sold.
The market development is very imperative targeting of poor people as a consumer are
beneficial for both the organizations and consumers.
To create the capacity to consume at the BOP is that offer products is small units and
make them affordable for them because BOP consumers purchase a product hen they
have cash and need it for a day. This approach of small packing is regularly increased
among the organizations such as single serve sachet of 2hampoo, biscuits, ketchup etc.
The other approach is to sell products to innovative schemes such as installments.
'reating the capacity to consume based on three principles 3ffordability, 3ccess and
3vailability.
The involvement of the private sector at the BOP can provide opportunities for the
development of ne products and services various companies and firms introduce novel
products and services for the relief and benefit of consumers such as ne pizza, 3TMs,
financial services, !uality housing, solar and ind poer hich make their lives easy and
rela%.

"
*hen the private organizations starts to target BOP as consumers they get more than
access to products and service they receive dignity of attention and choices from the
private sector more than middle class and rich people because they are more in counting
from them and this revolution bring a ne level of choice for BOP consumers.
Traditionally the large firms and BOP consumers have not trusted each other hich create
problem as the passage of time so private sector firms focus on building trust in the BOP
market beteen themselves and consumers. The default rates are very lo in poor
consumers because they pay on time.
Business in BOP market is beneficial for both the consumers and organizations because
the BOP market is a $atent Market and have great potential for organizations it include 4
to 8 billion people. The organizations hich participate in this market also learn to
innovative.
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