SME MARKETING
Marketing To The Bottom Of The Pyramid
By Valerie Ambetsa Sigana
Have you ever tried to listen to a story by someone who is bubbling with excitement ? Once you get past their animated movements , ‘ slow down ’ are probably the first words you will say . Well , that is how I feel about this article . There is so much learning and aha moments in my recent experience that I my bursting to share . All this , from my deeper understanding of marketing to the bottom of the pyramid .
The Bottom of the Pyramid is a gold mine . When was the last time you took a walk in a lower income area ? The vibrant colours from lines of kiosks , sachets hanging at the front , posters and buntings sharing brand promises , branded walls - it ’ s a marketer ’ s paradise . Multinationals are consistently thinking of strategies to infiltrate this mass market and make profits by solving market needs .
In my experience , many marketing agencies and indeed middle-income businesses , shy away from this market . It comes with challenges - from language and communication , safety concerns , ability to meet steep revenue goals , logistics and infrastructure and so much more .
This market often requires volume sales and consumer demand may be inadequate due to extensive competition and alternatives . There may be an additional need to invest in a social mission thus securing the buy-in of the target market .
Over the years , I ’ ve found this space to be very exciting when executing a marketing strategy , which is possible if you understand how to approach the target and covert them . Although I have been fortunate to successfully execute marketing strategies to this market , I ’ ve consistently felt there is so much more that could be done - something was missing .
Richard Branson famously said , ‘ You don ’ t learn to walk by following rules . You learn by doing , and by falling over .’ I think of these words and realise they aptly describe marketers . Even so , there is value in understanding the theory that guides your actions . This article offers theoretical insights for practical application to succeed within BoP markets .
What Immediately Comes to Mind when you think Bottom of the Pyramid ?
The perception of this market
“ I prefer to use the term underserved as it opens opportunity for solutions . Underserved markets have potential for growth and appreciation . The implication is that something needs to be done to meet their needs , excite them , and engage them just as would be done with a middle or high-income customer .“ often affects the ability for brands to succeed through marketing and promotions . There is significant power in the words in use describing this market segment .
Low-income is a factual term , referring to individuals who earn a certain amount of income each day , week , or month . This term includes other perceptions that centre around lack of ability within the target market . From a marketing viewpoint , low income implies simplicity of activities to ensure ROI , a customer with limited expectations for engagement , and even a question of quality appreciation ( especially in gifting items ).
I prefer to use the term underserved as it opens opportunity for solutions . Underserved markets have potential for growth and appreciation . The implication is that something needs to be done to meet their needs , excite them , and engage them just as would be done with a middle or high-income customer . This term allows for paying attention to detail and truly breaking down activities that ‘ serve ’ this target market . Furthermore , it allows the conversation to move away from benefiting from economy of scale sales , to exploring ways to improve quality of life .
It Takes Time and Money
Delving into the market at the bottom of the pyramid requires a heavy capital investment , but this investment should not focus on the core marketing activity . Yes , you may discover that there is demand for your product after market
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