Bottom of the Pyramid (BOP) -

 

Bottom of the Pyramid (BOP),

Bottom of the pyramid (BOP), also referred to as the base of the pyramid, an abstract term referring to the lowest two-thirds of the global human pyramid, a group of over four billion people living in extreme poverty.

Social Marketing vs BOP

Social marketing's purpose is to achieve clear behavioral objectives for the benefit of society. Social media, for example, may enable people to stop smoking in public places, or lead individuals to drive at or below speed limits posted. Social marketing encourages the well-being of society by motivating society to stop demerit goods (smoking in public areas) or by promoting merit goods (following speed limitations). Whereas BOP is a business-related marketing technique where businesses concentrate on the bottom of the human pyramid, i.e. concentrating on the disadvantaged and getting up such a commodity that the consumer wants at an inexpensive rate that is very small.

Differences:

The primary goal in social marketing is "Economic Good." In addition, the core goal of the BOP marketing is "financial good." Although social marketing incorporates social policy as well as commercial marketing to the full, BOP marketing is little to do with the social benefits they deliver.

Similarities:

To generate meaningful social impact, non-profit organizations and government agencies are embracing social marketing. Companies in effect inspire people to take steps and make money for the companies. In both cases, advertisers are seeking to learn about people's lives, and what motivates them. And marketing strategies are developed in both instances; the target audience is researched and segmented, marketing ads are planned, conventional, digital and mobile campaigns are developed, and tools are chosen to determine marketing plan effectiveness.

Examples of BOP:

1) Godrej & Boyce launched the affordable ChotuKool refrigerator, it was one of the finest examples of 'disruptive creativity' at work. The idea of allowing a new generation of buyers to access a product at an affordable price that suits their needs & desires.

Disruptive innovation is a mechanism by which a product or service is aimed at the bottom of the market, going up the market and then being able to compete with existing rivals.

2) Hindustan Unilever Ltd., India's largest home & personal care marketer, reports performance on the bottom line. The recipe: self-help groups (led by Shaktiammas), low-priced packaging (selling shampoos and detergents in sachets for Rs 1), altering commodity prices and its new initiative called KhushiyonkiDoli, a "media-dark" villages drive.

Customer insights on this segment have helped us develop innovative products and scale up businesses. "Project Shakti, Pureit water purifier and Wheel detergent as examples of how HUL used such insights to create viable products and services." BoP segment is an significant part of HUL's sector, as it covers a large part of India's population. ."Yet, there's little clarity on how much such initiatives contribute to HUL's bottom line.