This paper analysed the viability of Prahalad’s Bottom of the Pyramid (BOP) proposition within the South Africa context as a mechanism to eradicate/minimize poverty by ensuring a joint collaborative effort by government, NGOs, large domestic firms, multinational corporations (MNCs) as well as the poverty stricken citizens themselves. It conceptualized the BOP proposition and, having reviewed statistics on the extent of poverty globally and in South African in particular, confirmed that the BOP is a lucrative market in the South African context. From the paper, it is evident that the BOP proposition, if effectively implemented, has the potential to reduce poverty in South Africa and increase the profits of MNCs. It then reviewed Prahalad’s twelve Principles of Innovation and strategically divided these into six differentiation and six low-cost strategies. The paper concludes by articulating creative strategies (based on Prahalad’s 12 principles of innovation) for active participation and competitive advantage at the bottom of the pyramid, which are vividly presented in a model for strategic partners especially multinational corporations (MNCs) to adopt when expanding their scale of operations to incorporate the BOP market.
Bottom of the pyramid (BOP) consumers are not just basing their purchase decisions on price and affordability but on the value derived from good-quality brands. Hence, this study assesses the brand-consciousness of South African BOP consumers in terms of brand awareness, differentiation, recognition, loyalty, trust and preferences for leading brands. The aim is to understand the brand consciousness of the South African BOP market so that suitable brand management strategies may be formulated to profitably serve the needs of this market. The population (2 556 422 elements) included BOP consumers living in relative poverty within the rural areas of South Africa from which a sample of 600 subjects was drawn using area sampling. Data was collected using a self-development questionnaire whose psychometric properties were statistically assessed and analyzed using descriptive and inferential statistics. The findings reflect that there is a high degree of brand awareness amongst BOP consumers, the majority of BOP consumers are able to easily differentiate between the various brands based on the brands’ logos, design and/or coloring, a significant segment displays brand loyalty which alters when price becomes a factor for consideration and BOP consumers lack trust where new brands are concerned and prefer good quality brands. Furthermore, BOP consumers’ brand consciousness and purchase decisions are influenced by education and income respectively. It can also be concluded that the majority of South African BOP consumers are brand-conscious; hence, brands play an influential role in their consumer decision-making process. Beneficial recommendations are presented for business organizations.
The bottom of the pyramid (BOP) proposition espouses the use of ‘single-serve’ or ‘sachet’ packaging in order to enhance affordability, encourage consumption and offer an assortment of good-quality products to BOP consumers. This study assesses the influence of packaging (in relation to size and price of different quantities) on South African BOP consumers’ purchase decisions. The study analyses whether or not these consumers have a tendency to purchase smaller quantities of products as opposed to making bulk purchases. This study further investigates the impact that packaging criteria (storage, convenience of purchase, prices of different package sizes and reusability of packaging) have on consumers’ decision-making. The aim is to uncover South African BOP consumers’ perceptions of packaging as a decision-making influencer in order to formulate appropriate strategies that businesses can adopt in order to lucratively serve this market. Using area sampling, a sample of 600 BOP consumers living in relative poverty within the rural areas of South Africa was drawn. Data was collected using a self-developed questionnaire whose psychometric properties were statistically analyzed using descriptive and inferential statistics. The study’s results reveal that although South African BOP consumers view small quantities of products as convenient and easy to store, the majority have an inclination to purchase large quantities instead of smaller package sizes. South African BOP consumers are also enticed to purchase products that are packaged in reusable containers, thereby, enabling the containers to be re-used after the consumption of the contents. Practical recommendations are articulated for business organizations.
The bottom of the pyramid (BOP) proposition espouses the use of ‘single-serve’ or ‘sachet’ packaging in order to enhance affordability, encourage consumption and offer an assortment of good-quality products to BOP consumers. This study assesses the influence of packaging (in relation to size and price of different quantities) on South African BOP consumers’ purchase decisions. The study analyses whether or not these consumers have a tendency to purchase smaller quantities of products as opposed to making bulk purchases. This study further investigates the impact that packaging criteria (storage, convenience of purchase, prices of different package sizes and reusability of packaging) have on consumers’ decision-making. The aim is to uncover South African BOP consumers’ perceptions of packaging as a decision-making influencer in order to formulate appropriate strategies that businesses can adopt in order to lucratively serve this market. Using area sampling, a sample of 600 BOP consumers living in relative poverty within the rural areas of South Africa was drawn. Data was collected using a self-developed questionnaire whose psychometric properties were statistically analyzed using descriptive and inferential statistics. The study’s results reveal that although South African BOP consumers view small quantities of products as convenient and easy to store, the majority have an inclination to purchase large quantities instead of smaller package sizes. South African BOP consumers are also enticed to purchase products that are packaged in reusable containers, thereby, enabling the containers to be re-used after the consumption of the contents. Practical recommendations are articulated for business organizations.
Bottom of the pyramid (BOP) consumers are not just basing their purchase decisions on price and affordability but on the value derived from good-quality brands. Hence, this study assesses the brand-consciousness of South African BOP consumers in terms of brand awareness, differentiation, recognition, loyalty, trust and preferences for leading brands. The aim is to understand the brand consciousness of the South African BOP market so that suitable brand management strategies may be formulated to profitably serve the needs of this market. The population (2 556 422 elements) included BOP consumers living in relative poverty within the rural areas of South Africa from which a sample of 600 subjects was drawn using area sampling. Data was collected using a self-development questionnaire whose psychometric properties were statistically assessed and analyzed using descriptive and inferential statistics. The findings reflect that there is a high degree of brand awareness amongst BOP consumers, the majority of BOP consumers are able to easily differentiate between the various brands based on the brands’ logos, design and/or coloring, a significant segment displays brand loyalty which alters when price becomes a factor for consideration and BOP consumers lack trust where new brands are concerned and prefer good quality brands. Furthermore, BOP consumers’ brand consciousness and purchase decisions are influenced by education and income respectively. It can also be concluded that the majority of South African BOP consumers are brand-conscious; hence, brands play an influential role in their consumer decision-making process. Beneficial recommendations are presented for business organizations.
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