149
To grasp a sense of how substantial the BoP market is from a financial perspective
and to better understand the breakdown of market potential per sector, the
International Finance Corporation (IFC) and World Resources Institute (WRI)
shared the results of a key study on the BoP in 2007. The study revealed that the
total consumer market size of the BoP, which remained largely untapped by companies at the moment, was valued at a staggering $5 trillion. The study placed the total
value of the BoP market for food products in sub-Saharan Africa at $215 billion.
This constitutes a huge new market potential for food-producing companies and
farmer organizations targeting the African market.
At the same time, most BoP consumers are a part of the same group as the
821 million people who are undernourished globally.
2
Therefore, targeting lowincome food consumers makes sense not only from a business perspective but also
from a developmental perspective. Undernourishment should not be tackled purely
by developmental interventions, such as food aid, but by using market-driven
approaches that build upon viewing this vast group of 821 million as BoP consumers. These consumers, as Prahalad stated, are the “aspiring poor” – a group of consumers with very little to spend but highly aspirational in their purchasing decisions,
making them also highly critical consumers.
6.2.2 Marketing Toward the BoP
As we described above, the BoP is quite a different consumer segment compared to
others and therefore requires a different approach – a different type of marketing.
Typically, in marketing, the 4Ps (product, price, place, promotion) approach is used.
Instead, at 2SCALE we use the 4As (acceptability, affordability, awareness, availability) to cater to the different challenges and opportunities companies face in marketing their products to the BoP. The 4As approach also provides a better base for
analyzing the unique challenges that BoP consumers themselves face when, for
instance, making purchasing decisions. Altogether, the 4As approach provides an
opportunity for a more in-depth and consumer-centric analysis of what it means to
market products with and for the BoP. To have a successful marketing approach for
the BoP, all four dimensions must be taken into consideration:
• Acceptability: Ensuring that the product is accepted by the end consumer. It
requires an in-depth understanding of the consumer’s needs, dominant behaviors, and customs.
• Affordability: Offering products at a price point that meets the purchasing power
of the BoP. Interestingly, it has been proven that consumers at the BoP are willing
to pay a slightly higher price for nutritious foods, if they understand the products’ benefits.
3
2 2018 FAO The State of Food Security and Nutrition in the World: http://www.fao.org/state-offood-security-nutrition/en
3 Hystra: http://hystra.com/marketing-nutrition, pages 17 and following.
6 Innovating at Marketing and Distributing Nutritious Foods at the Base…
To grasp a sense of how substantial the BoP market is from a financial perspective
and to better understand the breakdown of market potential per sector, the
International Finance Corporation (IFC) and World Resources Institute (WRI)
shared the results of a key study on the BoP in 2007. The study revealed that the
total consumer market size of the BoP, which remained largely untapped by companies at the moment, was valued at a staggering $5 trillion. The study placed the total
value of the BoP market for food products in sub-Saharan Africa at $215 billion.
This constitutes a huge new market potential for food-producing companies and
farmer organizations targeting the African market.
At the same time, most BoP consumers are a part of the same group as the
821 million people who are undernourished globally.
2
Therefore, targeting lowincome food consumers makes sense not only from a business perspective but also
from a developmental perspective. Undernourishment should not be tackled purely
by developmental interventions, such as food aid, but by using market-driven
approaches that build upon viewing this vast group of 821 million as BoP consumers. These consumers, as Prahalad stated, are the “aspiring poor” – a group of consumers with very little to spend but highly aspirational in their purchasing decisions,
making them also highly critical consumers.
6.2.2 Marketing Toward the BoP
As we described above, the BoP is quite a different consumer segment compared to
others and therefore requires a different approach – a different type of marketing.
Typically, in marketing, the 4Ps (product, price, place, promotion) approach is used.
Instead, at 2SCALE we use the 4As (acceptability, affordability, awareness, availability) to cater to the different challenges and opportunities companies face in marketing their products to the BoP. The 4As approach also provides a better base for
analyzing the unique challenges that BoP consumers themselves face when, for
instance, making purchasing decisions. Altogether, the 4As approach provides an
opportunity for a more in-depth and consumer-centric analysis of what it means to
market products with and for the BoP. To have a successful marketing approach for
the BoP, all four dimensions must be taken into consideration:
• Acceptability: Ensuring that the product is accepted by the end consumer. It
requires an in-depth understanding of the consumer’s needs, dominant behaviors, and customs.
• Affordability: Offering products at a price point that meets the purchasing power
of the BoP. Interestingly, it has been proven that consumers at the BoP are willing
to pay a slightly higher price for nutritious foods, if they understand the products’ benefits.
3
2 2018 FAO The State of Food Security and Nutrition in the World: http://www.fao.org/state-offood-security-nutrition/en
3 Hystra: http://hystra.com/marketing-nutrition, pages 17 and following.
6 Innovating at Marketing and Distributing Nutritious Foods at the Base…