150
• Awareness: Making sure consumers know about the product and its benefits. In
the process of creating awareness, it is key to identify any trusted channels.
• Availability: Making the product available to the BoP by building specific distribution channels, often requiring an innovative approach to reach remote and
more informally organized BoP markets.
The 4As are better suited for the position in which BoP consumers find themselves. Oftentimes they are located in areas farther from typical markets or commercial centers than other market segments. Therefore, availability is important. As
the BoP is also less connected to “mainstream” media than other consumer segments, companies need to take extra steps to promote their products to BoP consumers. In addition, BoP consumers have relatively lower purchasing power, so
affordability is even more important to them than to other consumer segments.
In relative terms, food represents for BoP consumers a much larger share of their
expenditure compared to other consumer segments – i.e., in Nigeria BoP households spend over 70% of their disposable income on food and beverages.
4
Lastly,
companies will need to ensure that their products and services fit with the perceptions, traditions, and aspirations of BoP consumers, and these can often be quite
different from other consumer segments. Business champions will have to make a
greater effort, or take a different approach, in their marketing and communication to
ensure that BoP consumers also accept the product.
Even though the BoP market might be more difficult to reach and requires dedicated effort, it also holds great potential. BoP marketing and distribution strategies
provide business opportunities to companies as well as an opportunity to improve
the food and nutrition security of an important population segment. BoP consumers
are usually not perceived or targeted as potential consumers. Companies often do
not perceive this market segment as an opportunity for generating profit due to their
relatively low purchasing power. On top of the huge untapped economic potential,
there is also a major development opportunity in providing nutritious food products
to BoP consumers.
6.2.3 BoP Marketing and Distribution Within the Context
of 2SCALE
A common driver across all 2SCALE activities is the market, providing either supply chains with thousands of smallholder farmers as end buyers or food product
value chains targeting rural and urban food consumers. Value chain development
with specific attention to BoP consumers also must be market driven to be successful. An important distinction is that the market opportunity offered by the BoP is not
always (fully) recognized by value chain actors. Many of 2SCALE’s partners have
4 https://blog.euromonitor.com/2017/03/top-5-bottom-pyramid-markets-diverse-spending-patterns-future-potential.html
N. van Dijk et al.
• Awareness: Making sure consumers know about the product and its benefits. In
the process of creating awareness, it is key to identify any trusted channels.
• Availability: Making the product available to the BoP by building specific distribution channels, often requiring an innovative approach to reach remote and
more informally organized BoP markets.
The 4As are better suited for the position in which BoP consumers find themselves. Oftentimes they are located in areas farther from typical markets or commercial centers than other market segments. Therefore, availability is important. As
the BoP is also less connected to “mainstream” media than other consumer segments, companies need to take extra steps to promote their products to BoP consumers. In addition, BoP consumers have relatively lower purchasing power, so
affordability is even more important to them than to other consumer segments.
In relative terms, food represents for BoP consumers a much larger share of their
expenditure compared to other consumer segments – i.e., in Nigeria BoP households spend over 70% of their disposable income on food and beverages.
4
Lastly,
companies will need to ensure that their products and services fit with the perceptions, traditions, and aspirations of BoP consumers, and these can often be quite
different from other consumer segments. Business champions will have to make a
greater effort, or take a different approach, in their marketing and communication to
ensure that BoP consumers also accept the product.
Even though the BoP market might be more difficult to reach and requires dedicated effort, it also holds great potential. BoP marketing and distribution strategies
provide business opportunities to companies as well as an opportunity to improve
the food and nutrition security of an important population segment. BoP consumers
are usually not perceived or targeted as potential consumers. Companies often do
not perceive this market segment as an opportunity for generating profit due to their
relatively low purchasing power. On top of the huge untapped economic potential,
there is also a major development opportunity in providing nutritious food products
to BoP consumers.
6.2.3 BoP Marketing and Distribution Within the Context
of 2SCALE
A common driver across all 2SCALE activities is the market, providing either supply chains with thousands of smallholder farmers as end buyers or food product
value chains targeting rural and urban food consumers. Value chain development
with specific attention to BoP consumers also must be market driven to be successful. An important distinction is that the market opportunity offered by the BoP is not
always (fully) recognized by value chain actors. Many of 2SCALE’s partners have
4 https://blog.euromonitor.com/2017/03/top-5-bottom-pyramid-markets-diverse-spending-patterns-future-potential.html
N. van Dijk et al.