Part 2: Business Leaders Marketing to Bottom of the Pyramid Consumers in Nigeria

DBA Doctoral StudyOral Defense Part 2

Business Leaders Marketing to Bottom of the Pyramid Consumers in Nigeria

Presented by Chantell Beaty

2

Doctoral Study Committee • Chair: Dr. Beverly Muhammad

• 2nd Committee Member: Dr. Cheryl McMahan

• URR: Dr. Neil Mathur

• Program Director: Dr. Freda Turner

Thank You!


3

Hook: More than half of the world’s population, 4.5 billion people, comprise the bottom of the world economic pyramid, known to business leaders as the bottom of the pyramid (BOP), yet business leaders leave this $5 trillion market of potential consumers untapped for products and services on the account of failing to see BOP markets as profitable for business (Prahalad, 2012).

Anchor: Nigeria, with a total population of over 177.47 million people, the largest population in Sub-Saharan Africa, and accounting for 19% of Africa’s total population (World Bank, 2013), has a large portion of this untapped BOP market with 94 million potential consumers (World Bank, 2015b).

The general business problem is business leaders who ignore selling to emerging economies are missing potential profits from BOP consumers.

The specific business problem is that some business leaders fail to market to BOP consumers in Nigeria in order to maintain a profit.


Problem Statement

4


Purpose of the Study

The purpose of this qualitative multiple-case study was to explore how some business leaders market to BOP consumers in Nigeria and maintain a profit.

The targeted population consisted of owners of businesses in the South Central region of the United States (U.S.) who experienced a profit marketing to BOP consumers in Nigeria.

The implications for positive social change included the potential for business leaders to (a) increase and sustain profits in business organizations (b) use best practices to market-based approaches, and (c) address unmet needs of BOP consumers such as in the case of Nigeria. Business leaders’ addressing unmet needs of BOP markets, such as in Nigeria, increases welfare, productivity, and income, enabling BOP households to find their own routes out of poverty.

5


Presentation of Findings: Interview Questions

• How do you market to BOP consumers in Nigeria and maintain a profit?• How much of a profit margin in terms of percentage do you gain from your consumers and does brand matter? • What type of access do your consumers have to your business and does this have an effect on your profits?• How do the use of technology and wireless communication affect your profit margin? • Would you like to elaborate more on the topic of this interview?

6


Presentation of Findings: Themes The business owners stated that they,

maintained low-profit margins marketing essential items to the BOP in Nigeria,

maintained high profit margins marketing to the non-BOP in Nigeria,

marketed scaled-down products to the BOP in Nigeria,

built relationships with BOP in Nigeria, and

educated BOP in Nigeria on business products and services.

7


Presentation of Findings:

Relation to Literature and Conceptual Framework

Literature:

Profit vs Corporate Social Responsibility

Conceptual Framework:

there is a potential for profit at the BOP,

there is ready access to BOP markets,

the BOP markets are brand-conscious,

the BOP markets are critical factors in worldwide wireless growth, and

BOP consumers accept advanced technology readily (Prahalad, 2005, 2014).

8


Such effective BOP business marketing practices were:

the scale-down of products,

the creation of markets versus serving markets,

financial inclusion in terms of microfinance,

innovation in terms of entrepreneurship, and

innovation in terms of mobile telephony.

Application to Professional Practice

9


Job Opportunities

Entrepreneurship Opportunities

Dignity

Implications for Social Change

10


Based on the research and findings of this study, my recommendations for action are for :

business leaders to practice inclusive marketing in Nigeria,

BOP scholars to undertake qualitative research in Nigeria, and

government and non-government agencies to consider the nation of Nigeria and not just the BOP of Nigeria for poverty alleviation.

The result and findings of this study contribute to the growth of business and profits and create positive social change. I recommend that the following leaders may benefit rom the finings of this study:

Entrepreneurs

Company Leaders

Nonprofit Managers

Community Development Professionals

Government and Non Government Agencies

Recommendations for Action

11


I recommend:

qualitative cross-cultural research in inclusive marketing to Nigeria,

qualitative cross-cultural research on the governments of Nigeria, and

qualitative cross-cultural research on alleviating poverty in Nigeria.

Business leaders who have researched information on inclusive marketing in Nigeria, the governments of Nigeria, and poverty alleviation in Nigeria, attain profitable market-based approaches to market to consumers in Nigeria.

Recommendations for Further Study

12

The End of Final Oral DefenseThank you

• Dr. Muhammad • Dr. McMahan• Dr. Mathur• Dr. Turner

I would now like to invite your questions


13

References

• Prahalad, C. K. (2005). The fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River, NJ: Wharton School Publishing.

• Prahalad, C.K. (2014). The fortune at the bottom of the pyramid: Eradicating poverty through profits. (Revised and Updated 5th Anniversary Editions). Upper Saddle River, NJ: Prentice Hall

• Prahalad, C. K. (2012). Bottom of the pyramid as a source of breakthrough innovations. Journal of Product Innovation Management, 29, 6-12. doi:10.1111/j.1540-5885.2011.00874.x

• World Bank. (2013). 50 things you didn’t know about Africa. Retrieved from http://www.worldbank.org/en/region/afr/publication/50-things-you-didn-t-know-about-africa-2012-13

• World Bank. (2015b). Global consumption database [Customer cross-tabulation of data]. Retrieved from http://datatopics.worldbank.org/consumption
