Revisiting the marketing mix at the bottom of pyramid (BOP): from theoretical considerations to practical realities Tendai Chikweche and Richard Fletcher University of Western Sydney, Sydney, Australia Abstract Purpose – The purpose of this paper is to argue that firms need to reconsider application of the conventional marketing mix at the bottom of pyramid (BOP) because variables exist that impact differently on the interaction between firms and consumers at the BOP. Design/methodology/approach – A mixture of qualitative data collection methods was used comprising multiple case studies using in-depth, one- to-one interviews and ethnographic observations. Findings – Key findings include the identification of social networks as an intervening variable for firms to consider when implementing the marketing mix at the BOP and the need for continuous consultative interaction between firms and customers which is facilitated by social networks. Research limitations/implications – Firms in the sample used for research were confined to those in the fast-moving consumer goods (FMCG) sector. The research was also restricted to Zimbabwe. Generalisation could be enhanced by using a larger sample of firms drawn from different product and service categories that catered for the BOP in a number of different countries. Practical implications – Findings from the study provide practical insights for marketing managers to consider when developing a marketing mix to serve the BOP. Primarily, managers could implement a variety of strategies to enhance the way they engage with customers in the BOP market. Social implications – The study provides insights into how firms can improve livelihoods of those at the BOP by providing employment and business opportunities through their partnerships with social networks. Originality/value – The paper expands research agenda of the relatively new area of the BOP. By focusing on a BOP market in Africa, the research expands existing knowledge beyond previous areas of focus in Asia and Latin America. Keywords Bottom of pyramid, Marketing mix, Case studies, Consumer behaviour Paper type Research paper An executive summary for managers and executive readers can be found at the end of this article. Introduction Over the years the focus of business marketing has been on identifying and segmenting markets that have consumers with a capacity to consume, who can pay a sustainable price for the product, who have access to the product and support structures which enhance purchase and who also respond to traditional integrated marketing communications. This is the business model that has shaped the business of multi- nationals (MNCs) and small to medium size enterprises (SMEs) in the developed world and in many developing countries. However the advent of globalization in the mid-1990s has seen the emergence of a counter scholarly argument which disputes the traditional model (Prahalad, 2005; Prahalad and Hart, 2002). This alternative proposes an additional area for focus centered on the existence of a large body of consumers whose annual income on a purchasing power parity basis is less than US$1,500 per year and numbers 4 billion. This group is variously referred to as the Bottom of the Pyramid (BOP) or the Base of the Pyramid (BOP). Advocates of catering to this market argue that the challenges in serving it do not just lie in the literal numbers of people in the market but in the distinct challenges of re- inventing western models of doing business to fit the local needs and requirements of this vast market (Prahalad and Hart, 2002; Mahajan and Banga, 2005; Viswanathan et al., 2008). The BOP market is not one huge homogeneous entity, but is made up of different segments which have different needs and system requirements. Companies need to understand these so as to adapt their business models to facilitate effective engagement with those at the BOP. There are a number of unique features that characterise the BOP which pose distinct challenges for international marketers. These are the younger age demographic, gender discrimination, the nature of BOP rural and urban locations, dwelling sizes, degree of uncertainty and turbulence in the environment, the nature and adequacy of infrastructure and the extent of the informal economy (Mahajan and Banga, 2005). Conducting business in BOP markets provides both local and international firms with unique challenges (Austin, 1990). Countries where those at the BOP are most likely to reside are more likely to be subject to turbulent change and those at the BOP are least likely to be able to do anything to influence the consequences of such turbulence, protect their interests or seek legal remedy. The World Bank, International Monetary Fund (IMF) and the United Nations Conference The current issue and full text archive of this journal is available at www.emeraldinsight.com/0736-3761.htm Journal of Consumer Marketing 29/7 (2012) 507–520 q Emerald Group Publishing Limited [ISSN 0736-3761] [DOI 10.1108/07363761211275018] 507