bottom of the pyramid(Bop)

bottom of the pyramid

1. Welcome To Our Presentation Topic Bottom Of The Pyramid Course Name: development economics Course Code: 210 Prepared By Md. Sifat Hasan

2. Name Roll 1. Md.Sifat Hasan 14132622 7. Maminur Rahman 141326 08 3. Md.Badrul Alam 14132613 4. Mahmudul Hasan 14132614 5. MD. Al-Amin 14132615 6. Md.Rasel Mia 14132612 7. Maminur Rahman 14132607 8. Shafiqul Islam 14132620 9. Md. Zafor Ikbal 14132619 10. Saddam Hossain 14132616 11. Afsana Siddika Moni 14132627 12. Afruza Akter Sumi 14132640 13. Md.Iqbal Hossain 14132643 14. Masum Rana 14132646 Profile Of The Members

3. BOTTOM OF THE PYRAMID More than $20,000 $ 1500~ $20,000 $ 1500~ $20,000 Less than $1,500 Less than $1,500 Tier 1 Tier2 Tier 3 Tier 4 Tier 5

4. The Bop Theory And Poverty Poverty can be alleviated through financially profitable activity Gradual expansion of the concept beyond attention to basic needs such as nutrition Per capita income at or below $1,500 or $2,000 per annum

5. History Of Bottom Of The Pyramid “Bottom of the pyramid” was first used by U.S. President in his April 7, 1932 radio address, the forgotten man Current usage refers to the billions of people living on less than $2 per day, as first defined in 1998 by professors C.K. Prahalad and Stuart L. Hart Expanded in The Fortune at the Bottom of the Pyramid by Prahalad in 2004 Capitalism at the Crossroads by Hart in 2005.

6. Prahalad View On Bottom Of The Pyramid Businesses, governments, and donor agencies stop thinking of the poor as victims. Bop mass are resilient and creative entrepreneurs as well as value-demanding consumers. Tremendous benefits to multi-national companies in bop market The poor of today are the middle class of tomorrow.

7. Twelve Principles Of Innovation For Bop Markets Focus On Price Performance Of Products And Services Innovation Requires Hybrid Solutions BOP Markets Are Large The Developed Markets Are Accustomed To Resource Wastage Product Development Must Start From A Deep Understanding Of Functionality, Not Just Form Process Innovations Are Just As Critical In BOP Markets As Product Innovations

8. Twelve Principles Of Innovation For Bop Markets 7. Deskilling Work Is Critical. 8. Education Of Customers On Product Usage Is Key 9. Products Must Work In Hostile Environments 10. Research On Interfaces Is Critical Given The Nature Of The Consumer Population 11. Innovations Must Reach The Consumer 12. Paradoxically, The Feature And Function Evolution In BOP Markets Can Be Very Rapid

9. The Nature Of The Bop Market There Is Money at the BOP Access to BOP Markets The BOP Markets Are Brand-Conscious The BOP Market Is Connected BOP Consumers Accept Advanced Technology Readily

10. Philosophy For Developing Products And Services For The Bop 1. the basic economics of the BOP market are based on small unit packages, low margin per unit, high volume, high return on capital employed 2. Social innovation: Creating products for those at the bottom of the pyramid 3. ‘It’s not just about making products cheaper’

11. Products For The Bottom Of The Pyramid Before After Whitening Creams Fair & Lovely Fair & Handsome Fair & Lovely Multi Expert

12. Products For The Bottom Of The Pyramid Poverty and Alcohol Microcredit Market-specific products Innovation in the BOP Venture capital Brand in the Bottom of the Pyramid Market

13. Bop: A Global Opportunity Engaging the BOP Traditional approach Business models Local growth opportunities Large population base is one indicator of the size of the market opportunity at the BOP Per-capita income isn’t considered

14. Fortune Or Mirage At The Bottom Of The Pyramid Fortune at the BOP Market size is $13 to $15 trillion. Much ‘untapped’ purchasing power. Profit margins in BOP markets are high. Often buy ‘luxury’ items. Reduce prices without reducing quality. Mirage of a Fortune BOP market size is $3 trillion. little ‘untapped’ purchasing power. not so profitable. little room for luxuries. Reduce price, reduce quality.

15. Are The Poor Poor ? poor countries are poor because they lack resources aid from rich countries to the governments of the poor countries for specific projects (typically infrastructure) would reduce poverty , investments in education and health care might have the largest multipliers per dollar of investment in economic development The record of aid and loans from the various donor countries and the World Bank, International Monetary Fund, and other institutions is at best mixed

16. Criticism Of The Bop Weaknesses of the BOP Theory The Negative Aspects of the BOP theory Target Market Affordability Financing Lower Prices or raise income The poor as Producers

17. Known Problems And Known Solutions, What Is The Missing Link? The missing link is the need for- Investments in the education of customers, Technology to develop that solution into an affordable product, The distribution channels to make it widely available. Health care for bop market needs to be increased

18. Final Thoughts Narrowing the global gap between rich and poor, it means Lifting billions of people out of poverty and desperation; It also means averting the social decay, political chaos, and so on. Economic miracles do not happen out of the blue; they are based on education miracles. Free basic education and affordable technical education for the poor through public-private partnerships. Creating a win-win situations between bop & top by removing disparity.