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We've been treating series of question on our site about "How To Make Bottom Of The Pyramid Marketing (Markets For Poor) Work in Nigeria" and we'll need input from you all.

In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the 2.5 billion people who live on less than $2.50 per day.[1] The phrase “bottom of the pyramid” is used in particular by people developing new models of doing business that deliberately target that demographic, often using new technology. This field is also often referred to as the "Base of the Pyramid" or just the "BoP".

If this topic is new to you, do well to go through our articles first.


Marketing to the Poor
Question: May God continue to bless your works for the impactful response to my request for hints, on what to do in order for Nigerians to give a little to change the lives of the rural poor. It was quite rewarding to me personally and my organisation generally. I’m back with another related question – What is the place of marketing towards alleviating the plight of the poor? – Geraldine Kumba.

For the benefit of other readers, Mrs. Geraldine Kumba works for a humanitarian/developmental organisation that has helping the poor in Nigeria as a major objective. Her earlier query and my response to a related issue are conveyed in an earlier article entitled, Promotion for Nigerians to give a little to change lives. Request for it, if you are interested or visit the business section of “Iroyin” (Nigerian online news/other purposes portal).
more... http://www.iroy.in/how-to-market-to-the-poor/

Marketing to the Poor (2)
Most often the supply chain components of what comprise product creation process, especially in agro-based activities, tend to be very long and with many intermediaries. This tends to limit amount of payments to small holders in most initiatives aimed to benefit the poor (e.g. farmers, traders, processors, and consumers). Enhanced value chain, in any production-to-consumption process, can be put in place to reduce poverty through addressing issues of constraints and opportunities faced by farmers, producers, processors, traders, and other businesses at points along a given value chain. Effective value chain management is relevant in pro-poor development. more.... http://www.iroy.in/marketing-to-the-poor/

Markets for Poor and Research Institutes
Question: I have been following your articles on the fast growing concept reflective of “Markets for poor”, as initially propagated by C.K. Prahalad and associates, in their new approach to marketing tagged “Bottom of the pyramid” (BoP). So much is taking place on this subject presently in countries of south/south-east Asia, South America, and even southern Africa, by way of product innovation and business models. In Nigeria, we seem to be in the dark about this subject, despite obvious poverty around. I hope it will not be much of a burden on you if I enquire about the relevance of the more than 100 research institutes here, in this regard – Fred Amadi

Present growing interest, globally, from the realization that issues related to the yet-to-be-tapped global four billion consumer market living on US$ 2 dollars per day at the “Bottom of the pyramid” (BoP), makes me wonder if Nigeria is in any way affected by this new wave. Though recent presence, here, of some international development organisations, in BoP marketing, are giving one cause to waver. more.... http://www.iroy.in/markets-for-poor-and-research-institutes/

Making Bottom of the Pyramid Marketing Work in Nigeria
Question: I have been following closely your interesting articles on the concept of “Bottom of the pyramid” marketing or markets for poor, which seems relatively unknown in Nigeria, despite the glaring huge opportunities in the country for it to strive. What do you suggest could be done to make it gain grounds in Nigeria? – David Jatto

As markets for poor or Bottom of the pyramid (BoP) marketing is gaining so much grounds, in terms of adaptation to various business models and successful applications in benefiting communities, I am quite convinced about its success in Nigeria. This is more so when there is a clarion call for all hands to be on deck towards poverty alleviation in the country.

With more than 50 percent of Nigeria’s citizens living under $1.5 per day (the globally accepted poverty line), in spite of being the 7th largest exporter of crude oil in the world; and over 80 million Nigerians known to be living in the rural areas (with an obvious majority classified as poor); then the urban poor forming a significant part of the 13.41 percent of the country’s urban population; these are pointers for us all to have cause to look in the direction of imbibing whatever it takes to adopt BoP in Nigeria. more... http://www.iroy.in/making-bottom-of-the-pyramid-marketing-work-in-nigeria/

Making Bottom of the Pyramid Marketing Work in Nigeria (Part 2)
In consonance with what I have been propagating all this while, a recent report of the National Bureau of Statistics (NBS) has it that about 113 million of the estimated 160 million Nigerians live in poverty – under $1 per day. Among so much contained therein, the North East and North West geo-political zones of the country recorded the highest poverty rates with 77.7 percent and 76.3 percent respectively, while 90% of the population of Sokoto state was classified as poor. Going by the activities of Boko Haram (the Islamic terrorist group) in mainly these areas, one can easily decipher the link between level of poverty and insecurity.

This, and incidence of insecurity in many other parts of Nigeria, comprise a major reason why the government should not rest on it oars towards stemming this embarrassing upsurge in poverty level, while the country’s economy is growing. My ‘preaching’ on giving attention to markets for poor (M4P) or Bottom of the pyramid (BoP) marketing is indeed very relevant at this time. more... http://www.iroy.in/making-bottom-of-the-pyramid-marketing-work/

Poverty Alleviation as a Business
Question: Having gone through many of your articles, in the newspapers and online, on this new concept of BoP marketing and markets for poor, can I therefore assume that BoP is poverty alleviation as a business, with another name? – Niyi Obasa

Considering the Bottom of the pyramid (BoP) marketing having bearing on markets for poor, being made up of business models which benefit likely initiators (the multinational companies or small private sector enterprises) and the poor (sometimes customer, through having a micro-enterprise), it is clear that ‘business’ is right at the centre of this aspect of alleviating poverty. Indeed, it’s a win-win situation for all parties – The initiators of the related business models benefit from achieving positive impacts (through products, services or technologies offerings), as the poor (the rural small farmer, in most cases) earns incomes that help him out of the $1 per day category.

Those readers who require catching up on what BoP is all about should call for these titles, in my series of related articles: “Marketing to the poor” (1&2); “Markets for poor and research institutes”; “Making bottom of the pyramid marketing work in Nigeria (1 & 2). Online adaptations, in the business section of “Iroyin” (www.iron.in ) will also suffice. more.... http://www.iroy.in/poverty-alleviation-as-a-business/

Changing Lives through Products in New Markets for Poor
Question: Still on Bottom (or Base) of the pyramid marketing, are products in this regard different from those we all know about? Are they specifically fashioned for this new market, to change the lives of the poor? – Margret Ibezim

What works for the Bottom (or Base) of the pyramid (BoP) marketing or markets for poor, as regards products, services or technologies being introduced, is reflective of creating a market where the poor operates to earn a living, and not await humanitarian donations. In this piece, ‘product’ will be applied interchangeably with services or technologies, for consistency, as the essence is the application of these in livelihood enhancement of the poor. Product designs for this new market should be created around customer need, often involving manufacturing from local materials, cheap and affordable to the poor. In other words, within the BoP marketing concept, products must be useful to the poor and allow them to get out of the poverty trap. Products for BoP can evolve from the agriculture, housing, consumer goods, and financial services sectors.

I am a strong advocate of introducing these products for the improvement of the lot of the poor through genuinely strengthening his economic position (through creation of opportunities to raise his incomes and improve his livelihoods), rather than handouts in the form of humanitarian gestures or even corporate social responsibility (CSR). What remains vital to me is the creation of “purchasing power for the poor” with bearing on the development of products, services and technologies aimed at the poor. more.... http://www.iroy.in/changing-lives-through-products-in-new-markets-for-poor/

Any Nigeria’s Self-Exclusion from Inclusive Markets?
Question: I now realize that your elucidation about issues on bottom of the pyramid (BoP), markets for poor, are encapsulated in UNDP’s coined concept – Inclusive Markets. I am wondering where Nigeria fits into this wonderful concept that helps bring people out of poverty. What’s your view on my impression that the country seems to be distracted, and appear to be excluding itself from this, instead of giving desired attention to this approach? – Fred Ewurujapkor

I had similar concern about Nigeria being conspicuously out of the global picture, after going through several publications. It was glaring that related activities were focused more on countries in south and south-east Asia (with India and its 600 million poor standing out); then South America. Within Africa, South Africa provides platforms for related business models, as well as some other countries in southern Africa. There is hardly any thing Nigerian-related, as business models application, in publications and other materials on this subject.

The closest to Nigeria, going by ‘my probe’, is Ghana, with two multinational companies (MNC) introducing a consumer durable product by one, and then a healthcare product by another. All applying BoP business models to impact on the Ghanaian poor. Even a major mobile phone service provider in Nigeria, had a very significant presence in applying its technology to BoP enterprise in Ghana in 2007. I am wondering why the same (or any other) has not been replicated in Nigeria.

http://www.iroy.in/any-nigerias-self-exclusion-from-inclusive-markets/

Time for Nigeria’s Private Sector to Get into BOP
Question: Going by the well known predicaments of the private sector in Nigeria, in line with your propagation thus far (about Bottom of the pyramid or BoP, markets for poor or inclusive market), is it not time for this sector to adopt what’s happening elsewhere – Evolving business models that suit this concept, as respite? Please assist with education on what an interested entrepreneur should expect – M. Ibrahim

As a way of helping out, a typical Nigerian entrepreneur should consider what is contained here, as hints towards venturing into Bottom of the pyramid (BoP) marketing, markets for poor or inclusive business, from a Nigerian perspective. No time is more auspicious than now for the private sector here to get into this area which is fast gaining ground globally. The following is an excerpt of my much earlier piece in the series of articles aimed at trying to raise awareness about how doing business with the poor can be good for poor people and also good for business through this concept, titled, “Making bottom of the pyramid marketing work in Nigeria”:
http://www.iroy.in/bottom-of-the-pyramid/

Time for Nigeria’s Private Sector to Get into BoP (2)

Question: Going by the well known predicaments of the private sector in Nigeria, in line with your propagation thus far [about Bottom of the pyramid (BoP), markets for poor or inclusive market], is it not time for this sector to adopt what’s happening elsewhere – Evolving business models that suit this concept, as respite? Please assist with education on what an interested entrepreneur should expect – M. Ibrahim

In continuation with hints on what intending private sector operators must uphold in the last piece, such must realise that to make marketing system work for both the rural and urban poor in Nigeria, the government and non-profit organisations, should be involved to whatever extent, to facilitate this.

Any private sector concern around contemplating getting into Bottom of the pyramid (BoP), markets for poor or inclusive market must not fail to recognize, and uphold, the following as phases of business development, in order to operate successfully in this terrain: Identify opportunities; analyze the market; find solutions; develop the product; secure funding; engage partners; leverage local capabilities; test the model; understand the impact; adapt the model; expand locally; and transfer to other environments.

Opportunities in the BoP market are vast, and so are the obstacles. It is evident that rural villages and urban slums are challenging environments for doing business. Systems rarely exist for collecting and delivering goods and providing services. Vital market infrastructure is limited or nonexistent. Without working financial systems, the poor inhabit a cash economy. Lack of reliable police and legal systems makes all market actors find it an uphill task or even impossible to enforce contracts. Always bear in mind that business with the poor will not be business as usual. A major obstacle is the lack of information about the poor, such as on goods and services they require; how much is affordable to them, the type of goods they could produce and also services the poor could provide.
http://www.iroy.in/time-for-nigerias-private-sector-to-get-into-bop/