Chapter 8 Bottom of the Pyramid Marketing: Examples from Selected Nigerian Companies

Abstract The predominance of certain adverse factors has historically de-motivated firms seeking to enter into the bottom-of-the-pyramid (BoP) markets due to the perception that BoP markets are impoverished and therefore unable to afford their products. However, Prahalad’s seminal study on BoP markets as potential sources of wealth may have influenced the mindset of marketers around the world to view the demographic at the BoP as prodigious product markets waiting to be mined. This chapter, therefore, explores how some multinational corporations (MNCs) may have successfully implemented BoP marketing in Nigeria against the backdrop of diffusion of innovation (DoI) theory. The DoI theory tries to explain how and why new ideas, product, structures, or phenomena (innovations), spread across users and social systems. It posits among other things that there are at least five conditions that define the rate of adoption of an innovation, including relative advantage, compatibility, complexity, trialability, and observability. The authors find in the context of case companies, MTN Communications, Promasidor (Cowbell), and Dufil Prima Foods (Indomie) Nigeria that these elements contribute to building a viable explanation for the wide adoption of their products in the Nigerian BoP markets. Regarding the economic viability of BoP markets, the authors find that MNCs may have to embrace a commitment to long-term profitability, focus on economies of scale as a basis for competitiveness, and realize that in BoP markets, defining a marketing model is a continuous process.