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Ella Fanfan

on 6 February 2013

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It is exploitation for a company to profit
from selling soaps, people, shampoo,
personal computers and ice cream
and so on, with little disposable income. BOP market is profitable Knowledge
In BOP marketing they have lack of knowledge and backward tools. Increase they knowledge to help our promotion products. Literacy
For example:We have to train farmers to use this. Without these steps, the PCs would never have worked. Pollution

Pollution is the introduction of
contaminants into the
natural environment
that cause adverse change. Check list:

BOP marketing requires advanced technology,infrastructure support must often accompany the technology. Dignity Bottom of the poorest is key in marketing products to them
Far more than the brand name Development Allowing the poor to increase their incomes by providing them opportunities (e.g. Education & employment) How Serving the Poorest Can Bring Rich Rewards In a case, a woman who received a small loan enabled to repay her start-up loan and had not needed to take another one. Show now sells regularly to about 50 homes and even serves as a mini-wholesaler, stocking tiny shops in outlying villages a short bus ride from her own. She sells about 10 000 rupees (US$230) of goods each month, keeps about $26 profit and ploughs the rest back into new stock. While the $26 a month she earns is less than the average $40 monthly income in the area, she now has income, whereas before she had nothing (Stern 2004).

Today about 1300 poor women are selling Unilever’s products in 50 000 villages in 12 states in India and account for about 15 per cent of the company’s rural sales in those states. Overall, rural markets account for about 30 per cent of the company’s revenue (Johnson & Nhon 2005). Fixed Rate LoanVs Floating rate loans 1. Fixed rate loan advantage is that it can avoid the risk of a rise in interest rates
2. In the common market interest rates expected, interest rate risk increase abruptly, under the background of fixed interest rate loans became avoid risk good tools
3. Enterprise can also through the interest rate swap (swap) to realize the conversion, this is our country at present the most simple application of fixed interest rate and floating interest rate swap between Personal durable consumer goods loan means a loan bank to the borrower, used for the payment of the purchase of durable RMB loan
Personal consumer durables loans loan period normally in half a year to two years, the longest do not exceed three years. At the same time must provide loan bank approved property mortgage, pledge or the third person that way as loan guarantee conditions; In accordance with the loan interest rate stipulated by the people's bank lending rates over the same period with class execution generally, there is no interest rate preferential. -----Fixed interest rate loans What is mean loan? Ethical consideration
We need consideration produce product whether at the touch of ethical. We have violate ethic, morality and bring bad effects to local society if our product. Adaptation of marketing mix
It is include:price, product,
promotion, and place
Purchasing power
Purchasing power is important index
for entry new markets Bottom of pyramid International marketing
Case study of BOP

Yaqian Li 16354823
Mengzhe He 16550470
Jeanette Fung 17315386
XinRan Ma 17045337 Squeezing profits from people Greatest demand for products and services (economy)
Understanding the society’s structure and culture
Targeting particular socio-demographics to exploit needs and wants
most industry and companies establish R&D to satisfy this need in the market Distribution How the bottom of the pyramid has access to the products and services
Satisfy their demands and make their lives comfortable Demand Finding location(s) or creating a need for the product/service to allow for continuous development and profit. Design Focuses on the design industry of products
Design products focuses on the bottom of the pyramid (so that they can be able to afford them) Five D’s of BOP marketing Five major ways of enabling the poor become financially independent
Dignity Example In other example, one major corporation, Nestle, has begun to target the China by creating and developing their brand with 29 new ice cream flavors (Madden 2005). There market dominance and reputation within other countries allows them to flood the market with extremely low priced ice cream, from 12 cents up to 72 cents (Madden 2005). This in turn creates jobs for the poor demographic and allows them to keep the ice cream at incredibly low prices whilst maintaining the minimum standard for their brand name. Due to China’s vast population and Nestlé’s unique product line the demand is sustained, and if viewed from a financial prospective considering it is aim at the poorer communities, the sales margins are expected to account for as much as 24 per cent of the company’s total rural profits within the next few years (Madden 2005). Entering markets Recognizing potential development of a market or niche
Utilizing reputation and assists from different regions of the company
Targeting particular socio-demographic to establish and maintain reputation and profit
Catering to local population to establish trust Alleviate poverty Governments and companies should focus on the poor as producers rather than consumers
Implications and provide sustainable developments
Designing market-specific products
Venture capital for SMEs and private enterprises
Business and community collaboration BOP Bottom of the Pyramid
Base of the Pyramid (economics)
Balance of Payments (accounting & finance), this accrues from the imports and exports - records of all monetary transactions between a country and the rest of the world. Question 2C
One authority argues that squeezing profits from people with little disposable income – and often not enough to eat – is not capitalist exploitation but, rather, stimulates economic growth. Effective distribution

Choose an adequate areas

Establish the network of tiny shop(eg ; milk bar) Advance technology

Build a communicate stage
Understanding each other
Research Reduce cost
Setting the factory in developing countries

Reduce wages
Reduce raw material
Simplify package How BOP market make profit
Three measures:

reduce cost
advance technology
effective distribution Q1: The ultimate goal of this meeting will be to establish a set of general guidelines to use in developing a market strategy for PC kiosks and mobile phone products to 'aspirational poor'. And make guideline as a cheklist to evaluating the potential of a specific BOP market. Directly buy mobile phone Through loan to get iphnor BOP Introduction
Ajami, R. & Goddiard, J., 2006, International Business: Theory and Practice, M.E. Sharpe, Armonk, New York

Hennessey, H., Jeannel, J. & Gillespice, K., 2010, Global Marketing, Cengage Learning, Stamford, Connecticut

Hohnson, K & Nhon, X 2005,’ Selling to the poor: There is a Suprisingly Lucrative Market in Targeting Low-income Consumers’, Time, April 2005

Kacou, E., 2010, Entrepreneurial Solutions for Prosperity in BOP Markets, Pearson Prentice Hall, New Jersey

Kreham, W., 2010, Meltdown: Money, Debt and Wealth of Nations, Volume 4, COMER Publications, Ontario, Canada

Madden 2005, ‘Nestle Hits Mainland with Cheap Ice Cream’, Advertising Age, 7 March 2005

Prahalad, C.K 2004, “The Fortune at the Bottom of the Pyramid”, Philadelphia: Wharton School Publishing

Stern, S 2004, ‘How Serving the poorest Can Bring Rich Rewards’, Management Today, August 2004

Tendai Chikweche, Richard Fletcher, (2012),"Revisiting the marketing mix at the bottom of pyramid (BOP): from theoretical considerations to practical realities", Journal of Consumer Marketing, Vol. 29 Iss: 7 pp. 507 - 520

Pitta, D., Guesalaga, R and Marshall, P. (2008) “The quest for the fortune at the bottom of the pyramid: potential and challenges”. Journal of Consumer Marketing
25/7 393–401

Wood, V., Pitta, D.and Franzak, F. (2008) “Successful marketing by multinational firms to the bottom of the pyramid: connecting share of heart, global “umbrella brands”, and responsible marketing”. Journal of Consumer Marketing 25/7 (2008) 419–429
Reference List
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