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Article
Publication date: 31 October 2008

Sofie Van den waeyenberg and Luc Hens

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation…

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Abstract

Purpose

The purpose of this study is to examine which changes companies need to implement in their transactional marketing strategy to sell to the poor when launching a product innovation in low‐income countries.

Design/methodology/approach

The paper confronts the literature on the “bottom of the pyramid” with the diffusion of innovations theory in order to identify the country characteristics that call for marketing changes when entering low‐income markets. The authors investigate for one case (the Tata Nano) whether – and how – the company implements changes to respond to these conceptually identified challenges. The case study is systematically analysed and structured according to Kotler's four Ps.

Findings

The case shows that companies can create products with functionality and cost advantage for the poor without compromising on safety and comfort. Creating an innovative distribution system pushes costs and builds trust between the company and the customer.

Research limitations/implications

The study examines one case from the automobile industry. Marketers would benefit from multiple case studies.

Originality/value

The study's originality springs from the confrontation between the bottom of the pyramid and the diffusion of innovations theories. The study is valuable to marketers targeting the bottom of the pyramid. The case study is interesting because the industry (automobile) surprisingly targets a poorer non‐traditional customer base (the upper bottom of the pyramid).

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 17 April 2009

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

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Abstract

Purpose

The purpose of this paper is to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Since the term “bottom of the pyramid” was coined, the poor living in low‐ and middle‐income countries have received increasing attention. The bottom of the pyramid attracts multinational companies because of its large population with pending demand, low consumer expectations and slight competition.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Details

Strategic Direction, vol. 25 no. 6
Type: Research Article
ISSN: 0258-0543

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Article
Publication date: 14 September 2015

Raja Usman Khalid, Stefan Seuring, Philip Beske, Anna Land, Sadaat Ali Yawar and Ralf Wagner

The aim of this paper is to analyze which sustainable supply chain management (SSCM) arguments are addressed in the base of the pyramid (BoP)-related research. BoP projects…

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Abstract

Purpose

The aim of this paper is to analyze which sustainable supply chain management (SSCM) arguments are addressed in the base of the pyramid (BoP)-related research. BoP projects address how companies contribute to fulfilling the needs of the poorest populations; increasingly, academics are applying theory to explain these projects. The need for integrating the BoP population into value-adding activities is widely acknowledged, but this is not yet reflected in supply chain management (SCM)-related concepts. The links to SSCM are frequently mentioned but in a scattered manner.

Design/methodology/approach

The paper presents a structured literature review of BoP papers published between 2000 and 2014 in peer-reviewed, English-speaking journals available on Web of Science. A content analysis of BoP papers is conducted based on SSCM constructs from the framework presented by Beske and Seuring (2014).

Findings

The frequencies of SSCM constructs identified in the BoP papers indicate the prevalence of SSCM arguments in the BoP discourse. Technological integration emerges as the core SSCM practice frequently identified and is contingent with a number of other practices. Further, SSCM practices including long-term relationship development, partner development, joint development, enhanced communication, learning, stakeholder management and innovation have regularly been referred to and are considered important by respective BoP scholars. The contingency analysis shows significant correlations among various pairs of categories and allows us to point to major lines of related arguments.

Research limitations/implications

The paper offers insights into the potential links between the SSCM and BoP research streams and sets ground for further theoretical exploration of the subject. Limitations are the uptake of one particular conceptual framework, the selection of BoP papers for the review process and the interpretation of the frequency and contingency analysis. The paper offers a foundation for developing a research stream where BoP-related issues are integrated into research on (S)SCM.

Practical implications

SCM has many practical applications, which help to establish and improve supply chain design and operations. This would benefit BoP projects and should improve their practical outcomes. The relevance of technological integration seems straightforward, but needs a lot of effort to be implemented in each single project.

Social implications

BoP-related research has gained increasing attention in recent years and should help drive the global sustainable development agenda further in the respective geographic locations. Establishing capable supply chains that deliver sustainable outcomes will be at the core of such projects. This paper highlights fundamental practices for firms targeting BoP markets with an effort to alleviate poverty.

Originality/value

The paper applies SSCM theory to analyze BoP issues and thereby interlinks the two research streams. Until now, research amalgamating the two concepts has been disconnected. Therefore, by providing an overview of existing publications, more focus for future studies is created, which is valuable and necessary for advancing both fields. Additionally, assessing BoP-type projects in low-income countries will allow the SSCM agenda to look beyond what is so far typically researched.

Details

Supply Chain Management: An International Journal, vol. 20 no. 6
Type: Research Article
ISSN: 1359-8546

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