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Abstract:
The biggest population of the world is found at the bottom within the economic pyramid with the market potential apparent in this segment promising. Whilst most fast moving consumer goods (FCMGs) firms have in years past been reluctant to invest in this market, recent studies reveal untapped or under-tapped opportunities at the bottom of the pyramid (BOP) market segment that are increasingly shifting the attitudes of these firms making them ever willing to invest in this market segment. This paper thence assesses the influence of affordability on the sale of FMCGs at the BOP and the resultant profitability on the selling firms. Particularly, the paper explores how the affordability strategies of reducing profit margins, using affordable packaging materials, encouraging retailers to repack products, investing in cheap technology, maintaining competitive prices, packaging in small and affordable units and production en masse impact sale of FMCGs at the BOP and consequently the profitability of FMCG firms with results showing that all the strategies, save for encouraging retailers to repack products, positively impact the sale of FMCGs at the BOP.
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