Marketing And Bop Analysis Essay Example

align="justify">Is it exploitation for a company to profit from selling soaps, shampoo, personal computers, and ice cream, and so on, to people with little disposable income? B. Can making loans to customers whose income is less than $100 monthly at interest rates of 20 percent to purchase TV's, cell phones, and other consumer durables be justified? C. One authority argues that squeezing profits from people with little disposable income-and often not enough to eat- is not capitalist exploitation but rather that it timeless economic growth.

In this day of age, it pays dividends to have a highly active and involved market. If you take a step back, and look at the characteristics of the developed nations of the world and compare them to those of the third world or developing countries, many differences can be noted. However, one reoccurring trend is that of the absence of a strong, diverse, international and active marketplace in many of the poorer countries. The places of business found in these areas tend to operate on a local system with transactions taking place between natives and sometimes even forgoing currency to rater.

Slowly, many large companies and firms are taking note of these markets. These BOP (bottom of the pyramid) markets are ripe with opportunity for those willing to take the risk. Many people see this as capitalist exploitation, but in reality, it The extension of a company or firm into a BOP market means investing large amounts of time and capital into the project. These firms want to turn a profit and through cautious investing, will try and insure that. With investments come points of contact, the construction of

a physical, tangible storefront, a service escape.

With the installation of these comes the need of staffing, people to operate the stores, sell the product and carry the company message. Just like in India with Milliner. Several locals were given an opportunity to leave the life they were living behind for any opportunity at better existence. Now 1300 women are selling Milliner products in in those states. Many individuals tend to harbor xenophobic traits or a fear of change. In reality when if they could take a more logical approach, the benefits of foreign investment would far outweigh their fears. More and more people are realizing this and slowly re opening up to the idea.

The Vietnamese are an example. At this moment, Vietnam has more than 100,000 independent sales representatives working for Milliner to push their products into the remote BOP markets. Such a large force of human capital could never have been employed if it wasn't for the targeting of these markets. An argument may be brought up that their purchasing power is not strong enough or maybe that they are being exploited. However, in reality, foreign investment allows for growth and progress that these areas would never of been a part of it wasn't for these large companies and firms help.