CONSUMER BEHAVIOUR AT

THE BOTTOM OF THE PYRAMID

(B.O.P)

Submitted By : Group 3
Ankit Agrawal
Neha Suri
Sejal Changia
Aatish Mathur
Mohit
Anmol Grover

Introduction
The term Bottom of the Pyramid was coined by C.K. Prahalad in

2005 in his work, The Fortune at the Bottom of the Pyramid .

Population of the world who are extremely poor

and earns less then $2 per day comes under BOP.

Total Population- 7 Billion

BOP Share- 4 Billion (approx 60%)

Some Facts
BOP population are aware of product and service they use and are

brand conscious as well.

Despite income and resource constraints they look after the fulfilment
of higher needs of Maslows Hierarchy once the psychological needs
are fulfilled.
Among Dharavi residents, 85% own TV, 75% own cooker and mixer
grinder, 56% own stove followed by 21% having telephone
connections.
MNCs are now considering BOP as a most profitable segment and
drivers of innovation.

BOP Characteristics
Consumers buy in small quantities due to low disposable income.

They spend more on fundamental needs and personal care products.

Culture plays a major role as this market is governed by rituals,
festivals, harvest seasons etc.
Consumers have very poor brand awareness and thus showcase
different buying behaviour.
India has emerged as one of the largest consumer markets not only
for middle class but also for the bottom of the pyramid segment.
Many fast moving consumer goods companies like HUL, Cavin Care,
ICT, Dabur, Tata, Godrej and Nirma have attempted suitable and
successful marketing strategies:
Limitations:
Poor infrastructure
Poor or no channels of distribution
Lack of legal framework
No access to information

Buying Behaviour
BOP segment has different need and wants being the most powerful

force in the consumer segment.

According to a study, BOP respondents said that increase in income
resulted in more disposable income.
Younger people in the age group of 20-35 have more inclination
towards buying from retail marts.
Low prices and the possibility to find deals and bargains ore the key
buying points for this segment.
Some of the researches highlight the dominance of the husband in
the purchase of products in BOP markets in India, the role of the wife
and children are also very well emphasized in the findings.
Source : 1.

Source: 1. http://www.nmims.edu/NMIMSmanagementreview/pdf/april-may-14/decision-making-process-bottom-of-thepyramid-consumers-surabhi-piyush-and-hari.pdf
.2. International Journal of Retailing & Rural Business Perspectives Volume 1, Number 1, July -September 2012

4 Ps
Companies are modifying their marketing mix to suit the

expectancy and pockets of the bottom of the

pyramid consumers.
Product

Companies have come up with products which are capable of meeting

the untapped demands of the bottom of the pyramid consumers with an
affordable price. Coca-Cola came up with Chota Coke to make soft
drink affordable.
Price
Its difficult to offer smaller packaging at lower prices due to the
additional cost. To overcome this, Nirma adopted backward integration
and produced its raw material as well. It also used simple and cheaper
packaging material.

 Place
Urban bottom of the pyramid consumers have access to retail outlets.

But in rural areas companies like HUL have come up with concepts
like using self-help groups to distribute and market its products. ITC
launched e-chaupal and attempted to capture the rural bottom of the
pyramid segment.
Promotion
The consumers of this segment are not native English speakers or
they hardly know the language. Companies promote their products in
regional dialects to make it easier for the local people. In southern
Indian states, advertisements are made in regional languages with
local movie stars as endorsers so that people can relate with them
easily.

Challenges faced by companies in

understanding Consumer Behaviour at
BOP is due to..
Poor Situation Analysis data
Fragmented market
Complex purchase decision
Difficulty in meeting latent need of customers
Recreating business and pricing models
Understanding political and social actors

Purchase Decision Influencer at BOP

Source: Vishvanathan et al 2010.

Typical Products purchased by BOP

population

Some strategies for influencing Consumer

Behaviour at BOP.
Educate about product or services
Price sensitivity (Eg. Reducing quantity and keeping prices same.)
NGOs Involvement (Eg. Swayam Shiksha by HUL.)
Distribution Channel (Eg. Amul Milk collection)

Resource Allocation (Eg. E-Choupal by ITC)

Brand Experience (Eg. Coca Cola)
Interaction

THANK YOU!!