Marketing to the Bottom of the pyramid Case Study

Marketing to the Bottom of the pyramid - Case Study Example In accordance with the issues discussed in the paper thinking about the â€Å"bottom of the pyramid† can lead us to create an impossibly low-cost yet a high-quality new and robust business model. A sound marketing strategy directed towards the people at the bottom of the pyramid (BOP) can help the company to provide cheaper products and enhanced access to technology thereby providing the necessitous people with an opportunity to become entrepreneurs and educate them. This can be viewed as a mutual benefit process, given that it will provide the company with a huge market as a source of revenue stream. Alongside giving the company a top-line revenue growth, cost saving and innovations will also influence the existing business models and management practices of the company. But one thing that the management needs to be well aware of is the fact that selling into BOP markets is difficult and the hardest part is to continue the work responsibly and consistently. Being a highly une xplored market, the strategy has to be formulated in such a way that it brings real benefit to the impacted communities as well as the company. However, in order to ensure that, the company should follow important guidelines and lessons from leaders in the industry known to have set examples of successful expansion in the BOP market. Prahalad had coined the term BOP, referring to a population which is largely ignored by the private sector in terms of providing services. As such, the author had identified the market as prospective and it had become the next segment of increased attractiveness for firms. The author highlighted the huge size of the market in terms of its population cover and its elevated purchasing power and thus, many companies identified a prospective opportunity to serve this market and become profitable. Different market segments require different approaches and so does the BOP market as it is a largely unexplored area. Consumers in this category are becoming deman ding and sophisticated. Thus, the management has to understand that although producing low cost product is a significant factor which is essential for marketing in this segment, it is not the only expectation that consumers have (Barki and Parente 11–23). Market development approach The primary task that the company needs to initiate is converting of the BOP consumers from unorganized and inefficient to just the opposite. This is a crucial strategy as it will help the company to elate the benefits for the market if the company is allowed to do business with them. The primary requirement is for the consumers and the company to be on the same pathway. Both the consumers and the company need to have a common belief in order to completely align their requirements and objectives. The approach should include a broader perspective ensuring a long term development and sustainability of the concerned parties. In order to convert the BOP consumers into organized and efficient, the mana gement has to ensure the development of a robust infrastructure as the inadequacy of the same leads to inefficiency. Besides that, in order to thrive in the lower income market, the company has to formulate strategies that enhance the buying power of the end consumers (Mardh and Correia â€Å"Marketing Mix Strategies towards the Bottom of the Pyramid: a study of the Brazilian market†). This will help the company to convert the purchasing power of the consumers into their profit. In return, they can eradicate poverty by bringing prosperity to the poor. Product innovation and consumer education have to be effectively carried out in order to foster aspiration in the minds of the consumers. Better

Reading assignment Example | Topics and Well Written Essays - 1000 words

Reading - Assignment Example Raustilia and Sprigman discount statistical provisions by proponents of Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) who are poignant that the US economy forfeits at least 200 billion dollars and 750,000 US job vacancies every year. Raustilia and Sprigman argue that there is no lucidity in these figures, since the job vacancy figures double the number of employees who got enrolled in the filming industry in 2010. Raustilia and Sprigman also quote Tim Lee who argues that it is not unusual for statistics to be punctuated with estimations, double and triple counting. The same duo continues that at times, piracy can substitute for legitimate transactions, and may therefore not be bad. The same also contend that piracy may also trigger the saving of more money, and the economic relevance of increased savings may not be sidestepped (Raustilia and Sprigman, 1). However, on a personal standpoint, the opinions that Raustilia and Sprigman advance seem less plausible, logically and e thically sound, as shall be seen in the discussion that ensue forthwith. In the first place, piracy in itself is a crime, being a form of copyright infringement. This is because, like any other form of piracy, P2P file sharing program infringes copyright laws by copying and distributing a recording company and an artiste’s work without the consent of both. In this light, the Copyright Act of 1909 exists and is in force, even though more strictness is attributed to written work. Conversely, had piracy been attributed as a less injurious crime or as a tolerable and beneficial undertaking as Raustilia and Sprigman opine, then there would be no need of forming institutions and agencies which guard against piracy. Of particular concern is the Recording Industry Association of America (RIAA) as a powerful lobby group which represents the recording industry and favors stricter laws and heavier punishments for those who pirate music. RIAA is poignant that since 2002, music revenue ha s plummeted by 7% as the sales of CDs receded from 882 million to 803 million units. RIAA is also specific that the information immediately above showed that three times as more CDs were shared via P2P than the CDs that had been bought. It is obvious that this trend must have cost music producers and artistes. Furthermore, Gorski points out that doing away with the provisions and enforcement of Title 17 of Sections 501 and 506 of the United States Code is bound to create a very confused and lawless situation which may override the gains that Raustilia and Sprigman taut as reasons that legitimize music piracy. Title 17 of Sections 501 and 506 of the United States Code states that it is illegal to create copies of another person’s creative work. It is at this point that gives the federal law the mandate to protect artistes from unlawful and unauthorized reproduction, distribution and transmission of copyrighted material. It is against this backdrop that several people and compa nies have in times past been subjected to legal suits because of music piracy through the use of P2P file sharing. The same has also led to five year jail terms and an imposition of fines totaling 250,000 US dollars (Gorski, 161). As if all the above is not enough, the No Electronic Theft Law (NET Act) prescribes copyright violations which