Bottom of the pyramid--represented with the acronym BOP in finance--denotes those at the lowest rung of the ladder in terms of financial capability.
This classification has its origin in ancient times but today, it has been rebranded. Many of today's mega rich utilized this knowledge in serving more people while amassing their wealth.
In sales and marketing, a triangle is used to calibrate the general population. This triangle is divided into three equal parts. The bottom represents the poorest, the middle- semi affluent while the topmost is the affluent respectively. Those at the bottom segment accounts for over 60% of world population. These people can hardly afford most essential goods and services that money can buy.
Going by the rule of numbers, there are more people to take care of at the bottom than at the middle and top of the triangle. Unfortunately these people are not considered by many businesses. Those who have them at heart are counting their fortunes and still growing.
Here are some reasons why an entrepreneur must take those at BOP seriously-
They lack a lot and may live in remote villages, any product or service that gets to them are bought at a price higher than the normal ruling price.
You do not need a sophisticated marketing and setting up of a wonderful branch in their locality to serve them.
Few enterprising people of these areas could easily be co-opted in your service delivery as they have fewer things to do in such areas. Also, they are appreciative of any good thing that identifies with their area.
They need products and services in smaller packages than those in bulk. Bulk breakers are known to have sold more quantities with higher revenue accruing to them.
However, to get these populations served strategic distribution of goods and services are embarked upon. The most functional is sending out promotional messages in the areas vernacular. Reaching then in their own language reveals that more sales emanate from them more than middle or top bracket of the triangle.
In the remote and semi-urban areas where majority of these people lives lay a more economically vibrant client base whose thirst for improved services are not attended to. On the other hand, the urban centres are over saturated while the hinterland begs for attention.
Identifying and offering goods and services to those at this level remains an access route to unquantifiable positive cash flow and a swift way of humanitarian services.
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