The Hunters: Moonsong Chapter Three

Bonnie fluffed her red curls as she hurried across Dalcrest's great lawn. It was so pretty here. Little flagstone paths bordered the lawn, leading off to the various dorms and classroom buildings. Brightly colored flowers – petunias, impatiens, daisies – were growing everywhere, by the sides of the path and in front of the buildings. The human scenery was pretty awesome, too, Bonnie thought, surreptitiously eyeing a bronzed guy lying on a toWellnear the edge of the lawn. Not surreptitiously enough, though – the guy lifted his shaggy dark head and winked at her. Bonnie giggled and walked faster, her cheeks warm. Honestly, shouldn't he be unpacking or setting up his room or something? Not just lying around half naked and winking at passing girls like a big †¦ flirt. The bag of stuff Bonnie had bought in the campus bookstore clinked gently in her hand. Of course, she hadn't been able to buy books yet, as they wouldn't sign up for classes until the next day, but it turned out the bookstore sold everything. She'd gotten some great stuff: a Dalcrest mug, a teddy bear wearing its own cute little Dalcrest T-shirt, and a few things that would come in handy, like an efficiently organized shower caddy and a col ection of pens in every color of the rainbow. She had to admit she was pretty excited about starting col ege. Bonnie shifted the bag to her left hand and flexed the cramping fingers of her right. Excited or not, al this stuff she'd bought was heavy. But she needed it. This was her plan: she was going to become a new person at col ege. Not entirely new; she liked herself fine, for the most part. But she was going to become more of a leader, more mature, the kind of person who people said, â€Å"Ask Bonnie,† or â€Å"Trust Bonnie,† rather than, â€Å"Oh, Bonnie,† which was completely different. She was determined to step out of the shadows of Meredith and Elena. They were both terrific, of course, her absolute best friends, but they didn't even realize how terrifyingly in charge they were al the time. Bonnie wanted to become a terrific, ful y in-charge person in her own right. Plus maybe she'd meet a real y special guy. That would be nice. Bonnie couldn't actual y blame Meredith or Elena for the fact that al the way through high school, she'd had plenty of dates but no serious boyfriends. But the simple fact was that, even if everyone thought you were cute, if your two closest friends were gorgeous and smart and powerful, the kind of guy who was looking to fal in love might find you a little bit †¦ fluffy †¦ in comparison. She had to admit, though, that she was relieved that she and Meredith and Elena were al living together. She might not want to be stuck in their shadows, but they were stil her best friends. And, after al †¦ Thud. Someone crashed into Bonnie's side and she lost her train of thought completely. She staggered backward. A large male body lurched into her again, briefly crushing her face against his chest, and she tripped, fal ing against someone else's side. There were guys al around her, shoving one another back and forth, joking around and arguing, paying no attention to her as she was jostled among them, until a strong hand suddenly steadied her in the midst of the turmoil. By the time she found her feet, they were moving off again, five or six male bodies swiping and shoving at one another, not stopping to apologize, as if they hadn't even noticed her as anything more than an inanimate obstacle in their path. Except for one of them. Bonnie found herself staring at a worn blue T-shirt and a slim torso with Well-muscled arms. She straightened up and smoothed her hair, and the hand gripping her arm let go. â€Å"Are you al right?† a low voice asked. I'd be better if you hadn't almost knocked me down, Bonnie was about to say snippily. She was out of breath, and her bag was heavy, and this guy and his friends seriously needed to watch where they were going. Then she looked up, and her eyes met his. Wow. The guy was gorgeous. His eyes were a clear, true blue, the blue of the sky at dawn on a summer morning. His features were sharply cut, the eyebrows arched, the cheekbones high, but his mouth was soft and sensual. And she'd never seen hair quite that color before, except on the youngest kids, that pure white-blond that made her think of tropical beaches under a summer sky†¦ â€Å"Are you okay?† he repeated more loudly, a frown of concern crinkling his perfect forehead. God. Bonnie could feel herself blushing right up to the roots of her hair. She had just been staring at him with her mouth open. â€Å"I'm fine,† she said, trying to pul herself together. â€Å"I guess I wasn't watching where I was going.† He grinned, and a tiny zing! shot right through Bonnie. His smile was gorgeous, too, and it lit up his whole face. â€Å"That's nice of you to say,† he said, â€Å"but I think maybe we should have been watching where we were going instead of shoving each other al over the path. My friends sometimes get a little †¦ rowdy.† He glanced past her, and Bonnie looked back over her shoulder. His friends had stopped and were waiting for him farther down the path. As Bonnie watched, one of them, a tal dark guy, smacked another on the back of the head, and a moment later they were scuffling and shoving again. â€Å"Yeah, I can see that,† said Bonnie, and the gorgeous white-blond guy laughed. His rich laugh made Bonnie smile, too, and pul ed her attention back to those eyes. â€Å"Anyway, please accept my apology,† he said. â€Å"I'm real y sorry.† He held out his hand. â€Å"My name's Zander.† His grip was nice and firm, his hand large and warm around hers. Bonnie felt herself blushing again, and she tossed her red curls back and stuck her chin bravely in the air. She wasn't going to act al flustered. So what if he was gorgeous? She was friends – sort of, anyway – with Damon. She ought to be immune to gorgeous guys by now. â€Å"I'm Bonnie,† she said, smiling up at him. â€Å"This is my first day here. Are you a freshman, too?† â€Å"Bonnie,† he said thoughtful y, drawing her name out a little like he was tasting it. â€Å"No, I've been here for a while.† â€Å"Zander†¦ Zander,† the guys down the path began chanting, their voices getting faster and louder as they repeated it. â€Å"Zander†¦ Zander†¦ Zander.† Zander winced, his attention slipping back toward his friends. â€Å"I'm sorry, Bonnie, I've got to run,† he said. â€Å"We've got sort of a†¦Ã¢â‚¬  He paused. â€Å"†¦ club thing going on. But, like I said, I'm real y sorry we almost knocked you over. I hope I'l see you again soon, okay?† He squeezed her hand once more, gave her a lingering smile, and walked away, picking up speed as he got closer to his friends. Bonnie watched him rejoin the group of guys. Just before they turned past a dorm, Zander looked back at her, flashed that gorgeous smile, and waved. Bonnie raised her hand to wave back, accidental y clunking the heavy bag against her side as he turned away. Amazing, she thought, remembering the color of his eyes. I might be falling in love. Matt leaned against the wobbly pile of suitcases he'd stacked by the entrance to his dorm room. â€Å"Darn it,† he said as he jiggled the key in the door's lock. Had they even given him the right key? â€Å"Hey,† a voice said behind him, and Matt jerked, tumbling a suitcase down onto the floor. â€Å"Whoops, sorry about that. Are you Matt?† â€Å"Yeah,† Matt said, giving the key one last twist and, just like that, the door final y opened. He turned, smiling. â€Å"Are you Christopher?† The school had told him his roommate's name and that he was on the footbal team, too, but the two of them hadn't gotten in touch. Christopher looked okay. He was a big guy with a linebacker build, friendly smile, and short sandy hair that he scrubbed at with one hand as he stepped back to make way for the cheerful middle-aged couple fol owing him. â€Å"Hi there, you must be Matt,† said the woman, who was carrying a rol ed-up rug and a Dalcrest pennant. â€Å"I'm Jennifer, Christopher's mom, and this is Mark, his dad. It's so nice to meet you. Are your folks here?† â€Å"Uh, no, I just drove up by myself,† Matt said. â€Å"My hometown, Fel ‘s Church, isn't too far from here.† He grabbed his suitcases and lugged them into the room, hurrying to get out of Christopher's family's way. Their room was pretty smal . There was a bunk bed along one wal , a narrow space in the middle of the room, and two desks and dressers crammed side by side on the other wal . The girls and Stefan were no doubt living in luxury, but it hadn't seemed quite right to let Stefan use his Power to get Matt a good housing assignment. It was bad enough that Matt took someone else's slot as a student and someone else's space on the footbal team. Stefan had talked him into doing just that. â€Å"Look, Matt,† he'd said, his green eyes serious. â€Å"I understand how you feel. I don't like influencing people to get what I want either. But the fact is, we need to stay together. With the lines of Power that run through this whole part of the country, we have to be on our guard. We're the only ones who know.† Matt had to agree, when Stefan put it like that. He'd turned down the plush dorm room Stefan had offered to arrange for him, though, and taken what the housing office assigned him. He had to hang on to at least a shred of his honor. Plus if he was in the same dorm as the others, it would have been hard to say no to rooming with Stefan. He liked Stefan fine, but the idea of living with him, of watching him with Elena, the girl Matt had lost and stil loved despite al that had happened, was too much. And it would be fun to meet new people, to expand his horizons a bit after spending his whole life in Fel ‘s Church. But the room was awful y smal . And Christopher seemed to have a ton of stuff. He and his parents went up and down the stairs, hauling in a sound system, a little refrigerator, a TV, a Wii. Matt shoved his own three suitcases into the corner and helped them bring it al in. â€Å"We'l share the fridge and the entertainment stuff, of course,† Christopher told him, glancing at Matt's bags, which clearly contained nothing but clothes and maybe some sheets and towels. â€Å"If we can figure out where to put it al .† Christopher's mom was prowling around the room, directing his dad on where to move things. â€Å"Great, thanks – † Matt started to say, but Christopher's dad, having final y managed to wedge the TV on top of one of the dressers, turned to look at Matt. â€Å"Hey,† he said. â€Å"It just hit me – if you're from Fel ‘s Church, you guys were the state champions last year. You must be some player. What position do you play?† â€Å"Uh, thanks,† Matt said. â€Å"I play quarterback.† â€Å"First string?† Christopher's dad asked him. Matt blushed. â€Å"Yeah.† Now they were al staring at him. â€Å"Wow,† Christopher said. â€Å"No offense, man, but why are you going to Dalcrest? I mean, I'm excited just to play col ege bal , but you could have gone, like, Division One.† Matt shrugged uncomfortably. â€Å"Um, I had to stay close to home.† Christopher opened his mouth to say something else, but his mother gave a tiny shake of her head and he closed it again. Great, Matt thought. They probably thought he had family problems. He had to admit it warmed him a little, though, to be with people who acknowledged what he'd given up. The girls and Stefan didn't real y understand footbal . Even though Stefan had played on their high school team with him, his mind-set was stil very much that of the Renaissance European aristocrat: sports were enjoyable pastimes that kept the body fit. Stefan didn't real y care. But Christopher and his family – they got what it meant for Matt to pass up the chance of playing for a top-ranked col ege footbal team. â€Å"So,† Christopher said, a little too suddenly, as if he'd been trying to think of a way to change the subject, â€Å"which bed do you want? I don't care whether I take top or bottom.† They al looked over at the bunk beds, and that's when Matt saw it for the first time. It must have arrived while he was downstairs helping with Christopher's luggage. A cream-colored envelope sat on the bottom bunk, made of a fancy thick paper stock like a wedding invitation. On the front was written in cal igraphy â€Å"Matthew Honeycutt.† â€Å"What's that, dear?† Christopher's mom asked curiously. Matt shrugged, but he was beginning to feel a thrum of excitement in his chest. He'd heard something about invitations certain people at Dalcrest received, ones that just mysteriously appeared, but he'd always thought they were a myth. Flipping the envelope over, he saw a blue wax seal bearing the impression of an ornate letter V. Huh. After gazing at the envelope for a second, he folded it and slipped it into his back pocket. If it was what he thought it was, he was supposed to open it alone. â€Å"I guess that's fate tel ing us the bottom bunk's yours,† Christopher said amiably. â€Å"Yeah,† Matt said distractedly, his heart pounding hard. â€Å"Excuse me for a minute, okay?† He ducked out into the hal , took a deep breath, and opened the envelope. Inside was more thick fancy paper with cal igraphy on it and a narrow piece of black fabric. He read: Fortis Aeturnus For generations, the best and brightest of Dalcrest College have been chosen to join the Vitale Society. This year, you have been selected. Should you wish to accept this honor and become one of us, come tomorrow night at eight o'clock to the main campus gate. You must be blindfolded and dressed as befits a serious occasion. Tell no one. The little pulse of excitement in Matt's chest increased until he could hear his heart pounding in his ears. He sank down along the wal and took a deep breath. He'd heard stories about the Vitale Society. The handful of Well-known actors, famous writers, and great Civil War general that Dalcrest counted among their alumni were al rumored to have been members. To belong to the legendary society was supposed to ensure your success, to link you to an incredible secret network that would help you throughout your life. More than that, there was talk of mysterious deeds, of secrets revealed only to members. And they were supposed to have amazing parties. But they were just gossip, the stories of the Vitale Society, and no one ever straight-out admitted to belonging to it. Matt always figured the secret society was a myth. The col ege itself so vehemently denied any knowledge of the Vitale Society that Matt suspected the admissions people might have made the whole thing up, trying to make the col ege seem a little more exclusive and mysterious than it real y was. But here – he looked down at the creamy paper clutched in his hands – was evidence that al the stories might be true. It could be a joke, he supposed, a trick someone was playing on a few of the freshmen. It didn't feel like a joke, though. The seal, the wax, the expensive paper; it seemed like a lot of effort to go to if the invitation wasn't genuine. The most exclusive, most secret society at Dalcrest was real. And they wanted him.

Bottom of the Pyramid

The quest for the fortune at the bottom of the pyramid: potential and challenges Dennis A. Pitta The University of Baltimore, Baltimore, Maryland, USA, and Rodrigo Guesalaga and Pablo Marshall ? Ponti? cia Universidad Catolica de Chile, Santiago, Chile Abstract Purpose – The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be pro? table and help alleviate poverty by attending low-income consumers. Design/methodology/approach – The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.Findings – There is no agreement in the literature about the potential bene? ts of the BOP approach for both private companies and low-income consumers. However, further research on characterizing the BOP segment and ? nding the appropriate business model for attending the BOP can provide some answers to this issue. Practical implications – The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.Originality/value – The article presents a thorough analysis of the key elements involved in the BOP initiative: companies’ motivations, characterization of the BOP consumers, and the business model to attend the BOP. Keywords Private sector organizations, Emerging markets, Consumers, Poverty, Disadvantaged groups Paper type Research paper underpin the concept, and refutes its basic premises. Instead of a market of untapped potential, this literature stream sees a ? nancial desert that BOP principles may harm more than help. The BOP may be a less a source of signi? cant pro? ts than a source of serious losses.Karnani’s analysis posits that the poor may want the same products as the rich do but by virtue of being poor, they cannot afford them. The poor spend most of their income on food, cl othing, and fuel. For the poor, the mathematics are clear: buying a branded product reduces the funds they must devote to survival. In contrast, Karnani suggests that raising income will alleviate their poverty, provide cost effective products to other consumers, and allow the formerly poor to consume more. Raising their incomes may require that they become producers with stable jobs and wages. Both viewpoints concentrate on the poor but draw different onclusions about how to alleviate their poverty. The two positions also differ in the nature and proper role of industry and government. In light of the differences, the argument would bene? t from empirical data that tests the underlying premises of each viewpoint. Verifying the premises would allow further logical analysis of implications and applications of the concept. In fact, the need for clari? cation is recognized. In the next section, the authors provide some foundations for the most traditional and still dominant approach to market, i. e. the focus on the â€Å"top of the pyramid† (TOP).The rest of the article focuses on the â€Å"bottom of the pyramid† (BOP); it explores Prahalad’s proposition and the opposing viewpoint, reviews key aspects of the BOP initiative – companies’ motivation; the BOP business model; the role of micro? nance; and the key participants – and proposes some implications and challenges for marketing theory and practice, and ? nally some implications for marketers. An executive summary for managers and executive readers can be found at the end of this issue. Introduction The bottom of the pyramid (BOP) approach to earning corporate pro? ts has gained considerable attention in the arketing literature. It has awakened managers to the potential of serving an unserved market and alleviating the level of global poverty while still earning a pro? t. However, the BOP proposition, while clear, appealing, and enlightening has not been accepted in a n unquali? ed manner. One branch of the BOP literature puts forth the elements of the BOP proposition and supports its ? ndings with numerous case studies (Prahalad, 2004). Those studies portray the poor as motivated by similar desires as the rich. They want quality products and any company that can supply those products at he right price will gain their business. Some of the case studies show the strategies for reducing the effective price of products through packaging and developing lower cost sizes. Prahalad and others describe the untapped potential of the BOP, and list strategies that companies may use to tap that potential. An opposing branch of the literature (Karnani, 2007a; Martinez and Carbonell, 2007) analyzes the nature of the BOP market, the applicability of the case studies that The current issue and full text archive of this journal is available at www. emeraldinsight. com/0736-3761. htm Journal of Consumer Marketing 5/7 (2008) 393– 401 q Emerald Group Publishi ng Limited [ISSN 0736-3761] [DOI 10. 1108/07363760810915608] 393 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 The â€Å"top of the pyramid† customers, and labeled them as Platinum or Gold. In contrast, those with lower to very low LCV’s earn the value labels, Iron and Lead. They point out that a single Gold or Platinum customer may have a Lifetime Customer Value, many times higher than that of someone in the Iron or Lead tier. Speci? ally, one Platinum customer may be worth more than â€Å"tons† of those labeled as Lead. Conceptually, identifying value and potential pro? t deriving from the top of the pyramid is straightforward and represents traditional organization goals. Companies can use standard market segmentation and product differentiation to satisfy these tiers. Dealing with these customers requires profess ionalism, but the normal market research processes, product development, channels of distribution, promotion, and credit functions should result in success. Thus, Zeithaml and her coauthors showed companies how to use their tried and trusted arketing approaches to maximize effectiveness and pro? tability. The key is to serve those customers most likely to generate pro? ts instead of losses. The justi? cation is clear: companies have limited resources and should concentrate their efforts where the returns will be the highest. They demonstrated the value at the top of the pyramid (TOP) and shared strategies for serving those customers while discouraging or even â€Å"? ring† the lower, money-losing tiers. For pro? t seeking companies, the customer pyramid approach is appropriate and allows them the best chances to survive in typically competitive markets.Not surprisingly, the â€Å"top of the pyramid† (TOP) approach is at the heart of Western business practice. Tradition ally, businesses require a set of four conditions to operate successfully in a market segment. The segment must be identi? able, measurable, substantial, and accessible. In Western economies, business and communication infrastructures are developed suf? ciently to meet all of the criteria for most segments. Arguably, while all four conditions are important, the substantial and accessible elements are the more important. For a pro? t-making ? rm, the segment must be large enough to generate pro? s. If that condition is satis? ed, it is critical that consumers in the segment be reachable by communications media to receive promotional messages. In addition, they must be physically accessible to distribution alternatives. From a pro? t perspective, companies concentrate on those areas in which they can be effective, namely segments that meet all four requirements. Serving the TOP inevitably means a focus on pro? ts instead of revenues, and pro? ts are central to Western business. In pra ctice, over time, numerous Western companies have ceded market share or entire markets to others when the pro? ts eclined. One prime example is the computer memory chip market. Memory chips were once produced exclusively in the US and Europe. As Asian competitors entered the market, they cut prices at the expense of pro? ts. Their goal was to make chips; the US ? rms wanted to make pro? ts. Consequently, US ? rms abandoned the marketplace and searched for targets that were more pro? table. European and US companies still make chips. Their dominance of the microprocessor markets is the result of the strategic quest for pro? tability. However, European or US players do not dominate the huge market for memory chips.To be accurate, the US companies’ actions are not driven solely by the desire to earn pro? ts. Their organization, corporate culture, and internal processes require economies of scale, which demand exploiting the richest target markets. In many cases, successful compa nies have evolved into ef? cient machines whose foundation is high structural cost. Thus targeting the most lucrative segments is vital for continued success. Pro? t, in its simplest form, is the surplus of revenue over costs. If companies can drive costs low enough, it is conceivable that prices might be low enough for the poor to fford and high enough to generate a pro? t. However, earning a pro? t with such customers today takes enormous effort. More important, companies that exist today may be unable to drive costs low enough to succeed. In fact, costs are only one part of the equation. The underlying problem is that companies are ill equipped to serve the poorest customers. They don’t really know what the poor want and don’t know what bene? ts they seek in products and services. In addition, companies may not know what mix of product bene? ts, price, quality, promotion, and distribution works best for this segment.However, the focus on pro? ts has led to success. Recognizing the importance of pro? ts, Zeithaml and her colleagues have worked on the customer pyramid concept (Zeithaml et al. , 2001). Without using the term, they focused explicitly on the â€Å"top of the pyramid,† those consumers with the highest lifetime customer value (LCV). By dividing the customer pyramid into four sections called customer pro? tability tiers, they identi? ed the â€Å"best,† most pro? table The â€Å"bottom of the pyramid† approach Prahalad’s proposition In the book The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Pro? ts, C.K. Prahalad (2004), provided that initial conceptualization that had been missing in marketing thought. His book succeeded in planting the perception that consumers with low levels of income could be pro? table customers. He painted a picture of the double bottom line: social goals combined with the business objective, pro? t (Harjula, 2005). Coincidently, he appealed to the best motives among those at the top of the pyramid. By citing examples of successful attempts to empower the poor and share in global wealth, he kindled the imagination of those who want the world to be a better place. This is an ppealing proposition: â€Å"low-income markets present a prodigious opportunity for the world’s wealthiest companies – to seek their fortunes and bring prosperity to the aspiring poor† (Prahalad and Hart, 2002). Prahalad’s proposition is an invitation to company executives, politicians, managers of non-pro? t organizations, and ordinary citizens, to view poverty as something that might be alleviated rather than inevitable. He presents a wellreasoned conceptual view – supported with case study data – of how companies might mine pro? ts from the lowest economic strata (Hart, 2005; Prahalad, 2004). Much of the reatment centers on the nature and scope of pro? ts and the collective wealth of consumers at the bottom of the pyramid (B OP). The main thesis of Prahalad’s work rests on the idea that the potential growth for many multinational (MNC) and medium sized companies does not rest on the small highincome market in the developing world. Instead, its source is the mass low-income people that are joining the market for the ? rst time. This idea goes against the following 394 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo MarshallVolume 25  · Number 7  · 2008  · 393 –401 assumptions, which, according to Prahalad, most MNC’s make: it is not pro? table for them to attend the BOP due to their high cost structure; the low-income segment cannot afford the products and services they sell; and only developed markets value innovation and will pay for new technology. These arguments imply that governments and nongovernmental organizations (NGO’s) should take care of the low-income segment. According to Pra halad, marketers who believe that the BOP is a valuable unserved market also believe that even the poor can be good customers.Despite their low level of income, they are discerning consumers who want value and are well aware of the value brands favored by more af? uent consumers. This school of thought recognizes the obstacle that low income creates. It postulates that if companies take the correct steps and devote suf? cient resources to satisfying the needs of the BOP, they can overcome barriers to consumption. This view rests on Prahalad’s calculations of the immense size of the global BOP, in his view, a $1. 3 trillion dollar market. Prahalad recognizes that serving the low-income sector requires a commercial strategy in response to the needs of hose people; to succeed, other players have to get involved – mainly local and central government, ? nancial institutions, and NGOs. He proposes four key elements to thrive in the low-income market: 1 creating buying power; 2 shaping aspirations through product innovation and consumer education; 3 improving access through better distribution and communication systems; and 4 tailoring local solutions. opportunities and poverty eradication through pro? ts may set unrealistic expectations for business executives (McFalls, 2007). Second, the traditional timelines for achieving social goods versus pro? s differ (Harjula, 2005). Businesses may use a ? ve-year horizon as their benchmark for returns. In contrast, social goals like reducing smoking and other unhealthy lifestyle behaviors may take generations. Thus, rather than viewing the poor primarily as consumers, this group suggest a focus on this segment as producers, i. e. potential entrepreneurs that can improve their economic situation by increasing their income level. Companies must be willing to invest time, resources and training to insure that the producers create products with some barriers to entry and a reasonable level of productivity.They need to do so to avoid the trap of producing commodities that are easy to duplicate and, thereby, keep the poor, poor. Otherwise, alleviating poverty becomes very unlikely. Reconciling the two opposing viewpoints It is clear from the previous discussion that ? ndings in the literature about the nature, scope, and value of the BOP proposition are mixed. More research is needed on this topic to gain an accurate view of the presence and extent of opportunities at the bottom of the pyramid. The following sections examine some key elements of the BOP initiative that have been, acknowledged in the literature; speci? ally, the ? rms’ motivations to attend the BOP market, the characterization of the BOP consumers, and the BOP business model. The latter element focuses on three major issues: the role of micro? nance, the importance of establishing alliances among different actors (e. g. for-pro? t ? rms, NGOs, governments), and how for-pro? t companies need to adapt their marketing mix to attend the BOP pro? tably. The opposing viewpoint The second literature thread emerged years later in the discussion and represents a thoughtful attempt to verify the bottom of the pyramid (BOP) concept.It questions the ease with which companies may tap the BOP and whether pro? ts exist there at all (Karnani, 2007a). First, this group dismisses the published calculations about the size of the BOP and its wealth. They describe the economic size of the BOP as considerably smaller than Prahalad’s estimate and cite the inherent subsistence problem: the poor spend 80 percent of their income on food, clothing, and fuel. There is hardly anything left to spend after that (Karnani, 2007b). Second, they argue that it is very unlikely that companies will be able to attend the BOP market pro? tably.In fact, the costs of serving this segment can be very high. BOP customers are usually much dispersed geographically; they are very heterogeneous, which reduces the opportunities for obtainin g signi? cant economies of scale; and their individual transactions usually represent a low amount of money. In addition, consumers at the BOP are very price sensitive, which, again, makes pro? tability a dif? cult goal to achieve. Those factors show that the ideal that both pro? ts and social good can result from serving the BOP is questionable. First, each goal has different motivations, demands, and echanisms to satisfy and they can be contradictory. The differences between business realities and development imperatives are not easy to reconcile. Some recent case study work suggests that the early language around the inclusive capitalism idea that emphasizes unlimited business Firms’ motivation to attend the BOP market A comprehensive examination of the BOP approach requires ?rst an understanding of why for-pro? t companies engage in such an initiative. The literature suggests two main motivations that companies have to attend the BOP market: 1 they can convert this segmen t’s purchasing power into ro? ts; and 2 they can bring prosperity to the poor, and thus alleviate poverty. ? For example, in the 1970s, Nestle was able to contribute to social progress while developing a competitive advantage and making pro? ts in Moga, a district in India. With the purpose ? of establishing local and diverse sources of milk, Nestle built many refrigerated diaries and then sent its trucks to collect product while providing ? nancing, nutritional supplements, and assistance and training to the farmers. With this action, ? Nestle increased its milk production and the suppliers’ roductivity, improved the quality of the product and ? processes, and increased the penetration of other Nestle products in the region. In turn, farmers raised their standard ? of living; Nestle was able to pay higher prices, and farmers were then able to obtain credit. A second case illustrates how a focus on the BOP can be an important strategic goal, with two dimensions: pro? t ability and corporate social responsibility. Masisa is a leading company in the production and trade of wood boards for furniture and interior architecture in Latin America. It has 395The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 established the goal of generating 15 percent of the revenues from inclusive businesses, i. e. the bottom of the pyramid, before 2012. Under their de? nition, inclusive businesses must be pro? table, and socially/environmentally responsible. They expect to help improve the standard of living for low-income people by facilitating their participation in the value chain as suppliers, distributors, or other element of the hannel, and by providing them with access to products and services that can help them improve their socio-economic condition. cooperatively owned items like a television, a telephone, an electric g enerator, medical services, or even something to help make products for sale. Managing that sum for the common good presents a major dilemma: community welfare versus individual choice. People in the BOP would need a high sense of community involvement and consumer education to make responsible choices. A non-pro? t community action organization or a socially conscious business would be very helpful in marshalling cooperation.However, too many of the poor make poor choices like spending money on tobacco instead of food for their children. Even if this optimistic level of potential purchasing power exists, harnessing it for pro? t will be extremely dif? cult. One further concern questions this premise. Traditionally, serving the poor was the role of charities, not for pro? t, and other non-governmental organizations. Much of the excitement that the BOP proposition has generated stems from the inclusion of pro? t making companies in the process. The thought is that pro? t will be a po werful goad toward achieving success.Pro? t is clearly an incentive but beyond the cases cited in Prahalad’s work, there is little proof that companies can make the shift. More empirical data would aid the process of developing purchasing power. Purchasing power and pro? tability Karnani (2007a) notes that BOP concept rests on a fuzzy de? nition of the target market. It is dif? cult to ? nd an article in the BOP literature that does not cite the now popular ?gure: four billion. Four billion originally referred to those people who primarily live in developing countries and whose annual per capital income is under US$1,500 per annum.Some of the literature takes as an article of faith that the BOP exists and earns that level of income. The perception is that individually the consumers are poor but together they represent massive purchasing power. However, authors de? ne the BOP income level using several standards, which obscures its true nature. For example, Hammond et al. (200 7) consider the bottom of the pyramid as composed of people with per capita incomes below $3,000 in local purchasing power. Prahalad (2004) states that there are more than four billion people with per capita income below $2 per day at purchasing power parity (PPP) rates ($750 per year).This is a signi? cant reduction in previous estimates: four billion people with per capita income below $1,500 per year ($4 per day) (Prahalad and Hart, 2002), or four billion people with per capita income below $2,000 per year ($6 per day) (Prahalad and Hammond, 2002). Other contemporary sources like the World Bank estimated the number at 2. 7 billion, in 2001. However, other researchers characterize the World Bank projection as an overestimation, with some experts estimating the poor at 600 million (The Economist, 2004). The differences range from four billion to 600 million, a large enough gap to cause oncern. The three reported income levels range from $2-6 per day. The $2 per day criterion is con sistent with previous literature in development economics. It is important to understand that how to alleviate poverty depends on the de? nition of poverty. Using the $2 per day ? gure presents different challenges than the higher levels: people who earn less than $2 per day have very different needs and priorities than people who earn $4-6 per day. Adopting the higher poverty line obscures these differences (Karnani, 2007b) and overestimates the potential at the BOP.In principle, it is clear that collectively the mass of poor customers do hold wealth. However, an additional problem is that they do not hold it in the right concentrations. If one considers a hypothetical example, the nature of the wealth at the BOP may become a bit clearer. If a village of 1,000 adults earns an average of US$750 per year (the $2 per day ? gure), the gross earnings of the village are signi? cant. However, the question becomes how much remains after satisfying the necessities. Even if an impressive 10 percent of income remains per household, that translates into $0. 0 per day. It is dif? cult to perceive how such small sums might generate pro? ts. Collectively, the village may have $200 per day in â€Å"disposable income. † That might translate into community- Poverty alleviation and prosperity to the poor From a social responsibility perspective, there are distinct differences between a market-based approach to poverty reduction and approaches that are more traditional. Traditional approaches often focus on the very poor, proceeding from the assumption that they are unable to help themselves and thus need charity or public assistance.In contrast, a market-based approach starts from the recognition that being poor does not eliminate commerce and market processes: virtually all poor households trade cash or labor to meet a signi? cant part of their basic needs. The latter approach is the one for-pro? t companies have embraced to pursue the BOP initiative. The argument regar ding poverty is that the poor face undeveloped distribution outlets and must pay monopoly prices for the goods they desire. In addition, they are unable to afford the standard quantities and qualities of products offered to richer consumers. This is consistent withHammond et al. (2007), who describe people at the BOP as having signi? cant unmet needs, and being dependent on informal or subsistence livelihoods. They are vulnerable, poorly integrated to the formal economy, and impacted by a BOP penalty under which they pay higher prices for basic goods and services than wealthier consumers. Successful attempts to bring quality products to the poor at affordable prices would overcome the high price of poor distribution (Martinez and Carbonell, 2007). In that sense, it would increase their purchasing power by bringing previously unaffordable goods within their budgets.However, the $2 per day income limit is a signi? cant obstacle and may make this goal impossible to attain. There is som e hope in alleviating poverty but it is more in line with Karnani’s vision of the poor as producers who are able to boost their income suf? ciently to rise above the bottom of the BOP. The very recent example of ITC Limited outlined the distribution based economic problems faced by poor farmers in India. There are many factors that affect the ? ow of goods and services in and out of rural areas, and thus reduce the rural population’s income and quality of life 96 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 (Vachani and Smith, 2008). While the major source of problems was the poor transportation infrastructure, other factors operate to keep disadvantaged groups like poor Indian farmers in poverty. Buyers bully them into accepting â€Å"buyers’ prices. † Moreover, farmers are ignorant of their rights and the m arket value of their crops. In addition, they pay monopoly prices for the items they need.These factors act to keep them at a disadvantage and unable to earn the proper income from their efforts. By addressing farmers’ lack of information about the current value of their crops, the best seed to use for high yields, proper farming practice, and alternative outlets for their crops, ITC increased their welfare. To accomplish this, ITC set up a parallel distribution system, which led to increases in farmers’ income and consumption. The effort started at the grassroots with ITC hiring agents already in the ? eld and rewarding them for improvements in farmer welfare and consumption.The company placed computers with satellite based internet connections in each village and taught farmers to use them to assess current crop pricing. ITC guaranteed to match or exceed the prices offered by others. In addition, ITC provided products farmers needed like seed at a discount from the e xisting retailers. There was signi? cant â€Å"missionary† education aimed at allaying the farmer’s fears of exploitation. After a few farmers tried the system, more of them signed on. The result was increased income, higher satisfaction, more independence, and lower cost to purchase supplies.The example is encouraging and demonstrates the commitment and stamina organizations need to operate at the BOP. ITC set up a private distribution network that was more closely associated with a cooperative than the typical channel. Farmers and grassroots agents who knew their needs very well cooperated to operate the channel and share in its economic bene? ts. In essence, ITC adopted Karnani’s model of buying from BOP producers to raise their level of income developing them into pro? table customers. Can companies really generate pro? ts and alleviate poverty at the BOP? This example seems to show that they can.It also shows the extent to which companies will have to re-en gineer their approaches and operations to succeed. There is some data on the changes in the size of the BOP that aid in forecasting the future. Chen and Ravallion (2007) report a decline in the proportion of people living under the poverty line in the developing world over the period 19812004. That represents a reduction of about 0. 8 percent points per year over the period. Separate from the numbers, the question remains, â€Å"Who are BOP customers? † Current demographic labels such as â€Å"blue-collar’ or working-class,† fail to capture the extreme level of poverty.As marketers gain more experience with the BOP, it is possible that other useful differentiations may emerge based on speci? c variables, such as behavioral or psychographic. The global distribution of BOP customers adds another factor to consider: culture. The cultures of Latin America, Asia, and Africa differ widely. It is logical that differences in culture will affect future attempts to unders tand the needs of the BOP segments. In general, D’Andrea et al. (2004) ? nd that consumers at the BOP spend a higher portion of their income on consumer goods (50 to 75 percent), as compared to wealthier segments (around 35 percent).These authors also ? nd that, due to their limited and unstable cash ? ow, lowincome consumers tend to shop daily and spend small amounts of money each time. Then too, they are reluctant to buy in places that are located far away from their homes. The ? ndings show that â€Å"stay at home† mothers make most of the purchases and family spending decisions; by doing this, they ful? ll roles as wife, mother, and household manager. Companies currently devote resources to listening to the voice of the customer and are con? dent in their efforts with currently serviced segments. A change of focus to the BOP ill require new techniques, and freedom from â€Å"accepted knowledge. † The BOP is so radically different that companies will have to ignore what they know as â€Å"truths† that may not apply anymore. Faulty new product development eradicates the potential for pro? t and unfamiliar product development (NPD) territory increases the risks of failure. Firms can increase their NPD success rates by integrating consumers into the process as boundary spanning team members instead of mere respondents to surveys. Thus, product development will bene? t from the input of customers at the lowest levels of income (Pitta and Franzak, 1997).However, that initiative will be supremely different from current successes. A good example of how companies, NGOs, governments, and other institutions can collaborate in this aspect is the formation of BOP learning laboratories (McFalls, 2007). The laboratories were designed to investigate the complex factors that interact at the BOP as well as opportunities for both sustainable and human development. More initiatives like this one are needed, as well as research on the characteristic s of the BOP consumers. Characterization of BOP consumers A fundamental requirement to attend the BOP market uccessfully is to know deeply the characteristics of the people in this segment. Some academic studies and reports from NGOs have contributed re? ning the understanding of the BOP: how many they are, where they are located, what their income level is, and what some of their characteristics in terms of needs and habits are. According to Hammond et al. (2007), the BOP is concentrated in four regional areas: Africa, Asia, Eastern Europe and Latin America and the Caribbean. 12. 3 percent of the BOP lives in Africa, 72. 2 percent in Asia, 6. 4 percent in Eastern Europe and the remaining 9. 1 percent lives in LatinAmerica and the Caribbean. Rural areas dominate most BOP markets in Africa and Asia while urban areas dominate most in Eastern Europe and Latin America and the Caribbean. Estimates of the size of the BOP in US dollars or buying power approximate $1. 3 trillion. The Asia m arket has a buying power of $742 billion, Latin America market is $229 billion, the Eastern Europe market $135 billion and Africa $120. The BOP business model In spite of the opposing viewpoints in the literature regarding the extent to which there is a business opportunity at the BOP, there is agreement that serving the low-income sector ro? tably requires a different business model (Chesbrough et al. , 2006; Prahalad and Hart, 2002). Prahalad and Hart (2002) state â€Å"doing business with the world’s four billion poorest people – two thirds of the world’s population – will require radical innovations in technology and business models†. Moreover, the market at the BOP requires a 397 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 combination of low cost, good quality, sustainability, and pro? ability (P rahalad and Hart, 2002). As a result, for-pro? t ? rms need to understand how the BOP segment differs from upper tiers, and adapt the marketing approach to meet the characteristics of consumers at the bottom. Prahalad’s concentration on the bottom of the pyramid requires a sea change in a company’s approach to business. Attempts to reap pro? ts from the BOP using current marketing techniques will fail. Failure will result because the products are too expensive or complicated, are not available in small enough quantities or sizes, or are simply not what the poor want. The BOP is not low hanging fruit.It is a market with potential, and achieving that potential will require costly effort and innovative strategies (Seelos and Mair, 2007). Even with a completely new management approach, evidence suggests that pro? ts at the bottom of the pyramid may be elusive (Karnani, 2007a). The literature suggest that the three most critical aspects in developing a new business model to serve the BOP are the access to credit, the establishment of alliances, and the adaptation of the marketing mix. The following subsections address these issues. still in its early stage in countries like Brazil, Mexico, and Argentina.Most of the banks that have participated in micro? nance are large commercial banks in search of new and attractive markets. The main reasons for commercial banks to attend the BOP have been: . the strong competition among large banks; . the evidence by NGOs supporting the BOP initiative; . the social responsibility dimension; . the opportunity to diversify their business operation; and . the possibility of working together with other institutions, like NGOs and governments. According to Westley (2007), by the end of 2005, there were 30 commercial banks in Latin America oriented to the microentrepreneurs.The establishment of alliances There is recognition that serving the BOP requires the involvement of multiple players, including private companies, go vernments, nongovernmental organizations (NGOs), ?nancial institutions, and other organizations – e. g. communities – (Prahalad and Hart, 2002). By infusing the pro? t motive into value creation, the hope is that private companies will take the leading role in serving the BOP and, thus, the purpose of alleviating poverty will more likely succeed. Prahalad and Hart (2002) suggest that, among private companies, multinational corporations (MNC) with extensive ? ancial resources are in the best position to lead the process of selling to the poor. However, MNC’s have built-in weaknesses that limit their potential for success with these consumers. They are simply too large, too rigid and too far from the customer to be effective. Instead of the top down approach that MNC’s represent (McFalls, 2007; Harjula, 2005), a bottom up process is necessary (Karnani, 2007a). Changing perspectives from top down to bottom up is so complicated that if MNC’s are to be involved, they may have to create ? exible subsidiaries free from the corporate structure, processes, culture, and assumptions.ITC has succeeded using that model and has done so at the grassroots level. Therefore, more research is needed to ? nd out under which circumstances MNC’s or other types of private company should lead the BOP initiative. This line of reasoning is consistent with D’Andrea et al. (2004) who, in the context of retailing in Latin America, suggest that smallscale independent supermarkets and traditional stores are more likely to reach emerging consumers than MNC’s. Likewise, NGOs have been critical in the development of the business model infrastructure in several successful cases of for-pro? t ? rms serving the BOP.For-pro? ts have created sustainability for the technology used (Chesbrough et al. , 2006); NGO’s, understand people’s needs. In addition, NGO’s are closer to people at the BOP, and are better prepared to educ ate them. For example, in Uganda, Africa, the NGO Infectious Disease Institute in Kampala collaborated with P? zer by educating people about the causes of AIDS, and how to prevent and combat it. This facilitated P? zer’s initiative to provide these people access to drugs that combat HIV/AIDS (Chesbrough et al. , 2006). Lastly, the public sector has an important role in developing the BOP proposition.The focus is changing from traditional governmental assistance delivery, to different ways of creating a sustainable environment for aiding the BOP. For example, Micro? nance Microloans are well known and originally seemed like the answer to self-suf? ciency. The concept that a poor consumer could gain a small loan and become a producer contributing to family income and independence is tantalizing. There is evidence that microloans have succeeded in aiding the bottom of the pyramid. There is also evidence that many of the would-be entrepreneurs failed to capitalize on such credit. They got deeper into debt (Karnani, 2007a).Some authors point out that the entrepreneurial skill that can lead to success is rare. Most individuals would rather have a guaranteed income rather than assume the risk that entrepreneurship entails. This adds to the argument that if businesses can create jobs and boost the poor’s income, then consumption will follow. Those businesses may not be able to obtain outside ? nancing. The BOP segments are not able to generate suf? cient pro? ts to justify a high cost of capital. To reduce the cost of capital, perhaps collaboration with funding sources like the World Bank or other NGO will be necessary.With ?nancial aid, companies trying for the BOP market may be able to succeed. The creation of buying power is one of the key elements that allow low-income segments to reach product and services. Formal commercial credit has been unavailable to this market and the cost of accessing and getting ? nancial services in the informal ? nancial market is enormous. Since the pioneering initiative of Grameen Bank, in the mid of the 1970’s, several ? nancial institutions have been very successful in offering ? nancial services to low-income people who were not traditionally served by the formal bank system.Programs for microcredit have characteristics that are speci? c and different from those of the traditional banking sectors. These differences include property and corporate governance of the institutions, characteristics of the consumers, the technology used to manage credit, and the characteristics of the product and service. The growth of the microcredit market has been heterogeneous across countries. For example, in Latin America, the micro? nance industry has had a signi? cant ? growth in countries like Peru, Bolivia and El Salvador but it is 398 The quest for the fortune at the bottom of the pyramidJournal of Consumer Marketing Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2 008  · 393 –401 the provision of funding and training to entrepreneurs is a way governments can support consumers and producers at the BOP. Another example is engineering supportive tax structures that promote private sector investment in BOP initiatives. distribution makes the poor poorer. Today, with escalating global fuel costs adding to the cost of transportation, the poor face an increasingly rigorous future. The lack of infrastructure serving rural areas also increases prices.For example, in Chile, consumer goods prices in the remote North and South of the country are 20-25 percent higher than the more highly populated central zone of Santiago and Valparaiso (Ferreira and Litch? eld, 1999). The idea of closeness in distribution channels for consumers at the BOP is very important. This means, for example, having stores that are both geographically close and affectively close. In other words, emotional proximity is also very important. A good example is Banco Estado, a stateowned commercial bank, which consumers consider the â€Å"closest† to the BOP segment.The reasons are its extensive distribution, its perception of being adaptive to people’s needs, its ? exibility, and its position as affectively close. In the context of retailing, D’Andrea et al. (2004) show that the development of personal relationships with the stores’ personnel has a positive effect on consumers’ self-esteem and well-being. Pricing for the bottom of the pyramid is, of course, also very critical. The challenge here is twofold. On the one hand, there is the issue of affordability: prices need to be affordable to BOP consumers. Ramaswamy and Schiphorst (2000) emonstrate the challenges in companies trying to serve the poor. In order to achieve affordability, they must reduce the costs of production and simplify the products. On the other hand, ? exibility in payments is also very important. Providing options of how and when low-income consume rs can pay for their products and services constitutes both a challenge and a source of competitive advantage to private companies. To do this, private companies may need the assistance of commercial banks and NGOs as key partners. Some marketing theorists (Karnani, 2007b) view the BOP as a collection of producers rather than consumers.Therefore, innovative payment models, which allow BOP consumers to pay using a marketing exchange model would increase their ability to pay for the things they consume. The ? Nestle milk agricultural exchange model cited above comes to ? mind. In that model, Nestle actually paid farmers for their milk at attractive prices. They could use the money to buy seed at equally attractive prices. It is a small step to consider a more traditional barter system. As long as the barter system offered fair pricing it would present a win-win situation that would help sustain the arrangement. The marketing mixIt is no surprise that serving different market segments may require different marketing mixes. Therefore, for-pro? t ? rms need to understand how the BOP segment differs from upper tiers, and adapt the marketing approach to meet the characteristics of these consumers. Since affordability is at the heart of serving the BOP, product modi? cation will help lower the price and improve affordability. The parallel strategy, reducing product size works in higher customer tiers but has limited usefulness at the lowest levels. In India, unit-use reduced size cachets of shampoo do promote consumption but are not the answer.The higher cost of packaging erodes pro? ts, and the resulting discarded packaging adds to pollution. The problem remains that the customer still has to allocate scarce income to the shampoo. One answer is to create a bare-bones product with fewer product features that the poor can afford. One example, Nirma detergent made in India, highlights a â€Å"poorer† product that is affordable. A single entrepreneur created Nirma to compete with Hindustan Lever’s market leading detergent, Surf. Surf gained market share because it is an excellent product. It has numerous additives that make it effective yet gentle to humans.Its cost was signi? cant. In fact, Nirma does not contain many of the ingredients and safeguards of its rival. It works but can cause blisters on the skin (Ahmad and Mead, 2004). Despite its harshness, the poor embraced it because they could afford it. The implication is that â€Å"research must also seek to adapt foreign solutions to local needs† (Prahalad and Hart, 2002). Evidence shows that consumers at the BOP care about branded products, because leading brands are a guarantee of product quality, which is particularly important to this segment because â€Å"the ? ancial loss from an underperforming product is greater for people with limited incomes† (D’Andrea et al. , 2004, p. 6). However, emerging consumers are not very loyal to speci? c brand names, altho ugh they do not experiment with unknown brands. In practice, they switch among a few known brands (D’Andrea et al. , 2004). D’Andrea and colleagues also argue that low-income consumers prefer products in small sizes, even if the perunit cost is higher, because of their income and space constraints. Moreover, too many varieties of products can harm emerging consumers’ purchasing experience. They may eel tempted to buy things they don’t need or can’t afford, which can produce a feeling of inferiority or frustration (D’Andrea et al. , 2004). Marketers also need to revisit distribution channels also to attend the BOP market effectively. Vachani and Smith’s (2008) recent work dealing with inclusive distribution has merit as a model for success. In essence, their examples infused a social action philosophy into a business model. One of their focal companies, ITC, demonstrated the vision necessary to discern pro? ts in the future and the det ermination to invest in a new distribution channel as a in-win proposition. Undoubtedly, the high cost of Conclusions and challenges for marketing theory and practice While the picture is not completely clear, the bottom of the pyramid may offer opportunities to create value for both the poor and companies. Early promises of a fortune seem to have been overstated. The degree of wealth present among the poor is much lower than ? rst reported. In addition, that wealth is too fragmented to be tapped under the current business models. It now appears that the basic concept overestimates the role that BOP consumers can play in contributing to company pro? ts.There is still no agreement in the literature about how bene? cial selling to the BOP can be for private companies, or for alleviating poverty. However, there are several elements of the BOP proposition that have been identi? ed as critical to 399 The quest for the fortune at the bottom of the pyramid Journal of Consumer Marketing Den nis A. Pitta, Rodrigo Guesalaga and Pablo Marshall Volume 25  · Number 7  · 2008  · 393 –401 succeed. First, an accurate characterization of the low-income sector – both as consumers and as producers – is required to understand their needs, perceptions, and behavior, which in urn will help companies to design a better business approach. Second, it is important to recognize that serving the BOP market requires a different business model, one incorporating access to microcredit, the establishment of alliances of collaboration among different types of institutions, and the adaptation of the marketing mix. â€Å"Until companies better understand the needs of emerging consumers and adapt their business models to serve them more ef? ciently and effectively, their growth will be limited† (D’Andrea et al. , 2004, p. 3). It is well known that BOP markets involve managing ubstantial challenges in technical and economic infrastructure, education, ? nanc ial resources, and cultural differences. As participants from the economic sectors progress, a number of questions need to be addressed. Gardetti (2005) articulated them clearly. They include: â€Å"How can a company turn its strategy at the BOP into a competitive advantage? What kind of business model will work? How can it build trust in the informal economy? What kind of education do business schools need? How does new technology integrate? How can we develop the educational/ social infrastructure? Moreover, from the viewpoint of egulatory and policy formulation, if entering the markets at the base of the pyramid is a sound choice for both development and business, what does it take to turn this into a reality? † Scholarly research, as well as practitioners’ participation in BOP initiatives, can provide some answers to clarify the true nature and scope of the fortune at the bottom of the pyramid. example in India showed its value in distribution and in customer relat ionship management. It will be equally valuable in research, product development, pricing, and promotion. Fourth, pricing is of paramount importance in serving the oor. In a for-pro? t enterprise, consumers must pay for the cost of serving them. Microcredit is one potential solution. It may be a limited solution, useful only to consumers with the skills necessary to manage it. However, innovative exchange models may offer even those without ? nancial management skills a chance to improve their condition. Fifth, given the economies of the BOP, it is likely that if pro? ts come, they will come later rather than sooner. Organizations need to choose a long-term involvement in order to avoid disappointment and a ? nancially ruinous midterm decision to exit.Finally, marketers should understand that some products are simply not suited for the poorest of the poor. Some products of dubious value to this segment, like Armani handbags, or even cheap counterfeits, will have no place at the BOP. More importantly, some products and services related to health care will always be simply too expensive. Altruistic surgeons may care for uniquely disadvantaged patients by donating their time but they are only one part of a surgical team. Even if the hospital and every member of the team donate facilities, their time, and the resources to save a atient, that model is not sustainable as a for-pro? t venture. Similarly, the cost of a ten-day supply of a life-saving antibiotic cannot be reduced realistically using the â€Å"smaller package size† option. The implication would be either reduced daily doses or fewer full strength doses. Both are likely to breed drug resistant organisms and thereby threaten the life of the patient and society. To remedy this situation, other players like governments and NGO’s will be important. Many marketers must realize that collaborating with them is important. To be effective, the collaboration must be proactive.Marketers wishing to ser ve the BOP, who recognize the importance of alliances with others, should seek out relationships with both government and NGO’s. Early and persistent outreach will be valuable in alerting all of the players to each other’s strengths and in creating an accurate picture of the challenges. Politically, coalitions of organizations with different fundamental objectives are prone to misunderstanding. Often their terminology is similar but the meaning is different. Alternatively, their objectives may be so totally different that they are fundamentally foreign to one another.If the goal is poverty eradication at a pro? t, all the players must collaborate. The goal may be so dif? cult and achieving effective teamwork is essential. Implications for marketers In general, if pro? t-seeking companies plan to serve the BOP, numerous factors will have to change. First, marketers will have to approach the BOP in a novel manner different from any they used in their prior successes. The BOP is mostly unknown territory. They may have to reinvent themselves or create divisions with substantial independence. If the old segmentation rules that worked at the TOP no longer apply, either will the product development, sales, pricing, distribution policies, and management. In addition, the pro? t objectives and revenue goals will have to be changed. Those who are not prepared to address the sea change in marketing approach should avoid entering this market. Second, simply modifying products and selling them is a path to failure. Success will depend on knowing the BOP intimately. Currently the BOP is terra incognita in terms of segments and their needs. To succeed, marketers must be able to differentiate different income segments and their value. Within the various BOP de? itions, there are three apparent segments, â€Å"under $2 per day†, â€Å"$4 per day†, and â€Å"$6 per day†. The needs and incomes of the segments seem to differ enough to indicate t hat they be treated differently. Marketers need to know which ones to serve and how to serve those successfully. Third, in order to understand the voice of the BOP consumer, companies need grass roots sources of intelligence. Collaborating effectively with agents â€Å"on the ground† who have direct contact with relevant BOP segments is vital. Moreover, companies must train those agents to seek ? information that will help serve those customers.The Nestle References Ahmad, P. S. and Mead, J. (2004), Hindustan Lever Limited and Project Sting , Darden Business Publishing, Charlottesville, VA. Chen, S. and Ravaillon, M. (2007), â€Å"Absolute poverty measures for the developing world, 1981-2004†, Policy Research Working Paper 4211, World Bank, April. 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(2000), â€Å"Human resource management, trade unions and empowerment: two cases from India†, The International Journal of Human Resource Management, Vol. 11 No. 4, pp. 664-80. Seelos, C. and Mair, J. (2007), â€Å"Pro? table bus iness models and market creation in the context of deep poverty: a strategic view†, Academy of Management Perspectives, November, pp. 49-63. Vachani, S. and Smith, N. C. (2008), â€Å"Socially responsible distribution: distribution strategies for reaching the bottom of the pyramid†, California Management Review, Vol. 50 No. 2, Winter, pp. 52-84. Westley (2007), Commercial Banks in Micro? nance: BestPractices and Guidelines for Project Design, Monitoring, and Evaluation, IADB, MSM – 138. Zeithaml, V. A. , Rust, R. T. and Lemon, K. (2001), â€Å"The customer pyramid: creating and serving pro? table customers†, California Management Review, Vol. 43 No. 4, Summer, pp. 118-34. Further reading Anderson, S. N. (1994), â€Å"Unions/management create collaborative culture†, Communication World, Vol. 4 No. 1. Corresponding author Dennis A. Pitta can be contacted at: [email  protected] edu To purchase reprints of this article please e-mail: [email  protect ed] com Or visit our web site for further details: www. emeraldinsight. com/reprints 401

Comparison of The Crucible and After Liverpool Essay

For this assignment I am going to be comparing two plays both of which I have studied and preformed. The first play, which I studied, was the crucible by Arthur Miller and After Liverpool by James Saunders. Each of the two plays are naturalistic but are set in two very different times. The Crucible is set in Salem Massachusetts in 1642 and After Liverpool is set in the 70’s. The two are quite contrary in how they were set out first of all After Liverpool was made up of 23 small scenes some only having a few lines some having quite a few but most of them were short. The main things used in the setting for each scene are very basic. The scene was made up of a coffee table, a few chairs and a sofa. It os so basic as everyone has these things and this type of thing could happen to anyone of us at any time. This produces the effect that relationships are similar and that in this performance the only thing that maters is the relationship between the actors whereas on the other hand The Crucible is quite different. This is made up of four long acts. This uses lots of sophisticated props for example detailed furniture and crockery. This is all needed to set the time in which the crucible is set. Whereas in After Liverpool the setting is not irrelevant but is not as important. After Liverpool was made up of two characters of not much significance and a series of duologues bar one. After Liverpool is about the lack of communication that can develop over time. The short scenes in this piece are somewhat symbolic to the nature of relationships today. The speed and the fact that long term relationships are not as common. Also most of them are based on sexual attraction, which is now an important thing when looking for a partner. The crucible has many different characters and each of the characters are described and are of quite significance. Compared to After Liverpool where there is no description of the characters. There is no description of characters as it is irrelevant of who you are in this piece as all people are involved or could be involved in a relationship. The crucible is based on a true story and some of the characters were real people. The crucible is an allegory and was written as Arthur Miller wanted to express his views but couldn’t so he uses The Crucible as an allegory to do so. Miller wanted to express his views about the McCarthy communist hunts in America. What he was saying was that if America is so great and believes in freedom why is it that you were killed or exiled for believing in a contrary government to Americas own. Also The Crucibles main theme was mass hysteria and the community being ruled by the church and religion. After Liverpool also uses symbolism in the apples by this is mean is that the apple is representing the forbidden apple from the story of Adam and Eve. Both of theses plays are similar as both are about gaining power in a relationship in the crucible Abigail gains power over John Proctor leading to his death. After Liverpool this is about relationships and communication between couples. It is preformed entirely in chronological order with no flash backs unlike The Crucible tells you about past events. In After Liverpool each scene is wholly about the couples relationship and the communication or lack of the couples lack any past and never refer to the future. The Crucible is very detailed in its explanation of characters, which gives you an idea when performing of how to play each character. In After Liverpool there is no indication and it is entirely down to the person performing the piece. So it is an indication of how the performer sees the scene happening and maybe an indication on how they view relationships. The fact After Liverpool is written like this is also symbolic in that everyone can be in a relationship that is why the characters are labelled M and W. The reason they are labelled M and W is that it can represent anyone, which is rue as anyone can be in a relationship. The scenes did not have to be in any order this is also symbolic that the relationships in the play do not get anywhere they always end up asking the same questions. They had no specific chronological order as everything was happening in the present. Having looked at both plays it has given me an insight of two very effective ways of portraying relationships both of them very different from each other. I preferred performing After Liverpool as I could use my own drama skills to play each character, which I think is a lot better, and I enjoyed it more. Also I found it easier to understand, as it used more modern language, which was easier to learn.

Introduction to HRM in Canada Essay Example | Topics and Well Written Essays - 3000 words

Introduction to HRM in Canada - Essay Example Human resource management is a science that involves the all-inclusive approach that is relevant to the setting up of an adequate and advantageous workplace culture and environment. This paper seeks to analyze the human resource management practice in Canada in a comprehensive context. It particularly places intense focus on Canada’s public service sector as a case study. Human resource Management The general practice of human resource management is usually defined in two broad approaches. From one approach, it can refer to the procedure of supervising individuals in an elaborate and prearranged method (Ronald, 2007:69). These courses of actions include staffing procedures, the effective keeping of employees, the determining of various remuneration processes, and the handling of exits and new entries regarding workers in a venture (Ronald, 2007:89). Another approach to the human resource practice defines it as the act of linking employees to the top management in a company (Ro bert, 2011:83). This approach puts intense focus to the traditional purposes and expected results of the human resource sector in any company. This approach gives the department the responsibility of monitoring all issues that are relevant with the workers in a venture. ... t enjoys a strategic position that greatly influences the resultant perception and behavior of its target market, customers, and the overall business turnover. The business’ human resource arm exerts much focus on the successful selecting, training, and adequately rewarding of top-tier talent. It also supports transparent dialogue, group work, and cooperation. In addition, the department takes steps to discourage bad performances, or any actions from the employees that can potentially derail the company’s long-term objectives in the process of realizing short-term benefits (Ronald, 2007:157). Human resource management methods in Canada’s public service sector The successful administration of human resource departments in all companies and sectors is crucial to the effectiveness of the Public Service of Canada. In addition, it is also vital for the overall qualities of services given by the Canadian administration. The office that houses the Chief Human Resources Officer (O.C.H.R.O.) is the headquarters of proficiency for human resources administration in Canada’s public service. It is accountable for formulating the wide range of strategy directions and ethics that effectively guide all administrations in all institutions on how to enact their principal responsibility that is the efficient monitoring of workers in their ventures or organizations. The office carries out its principal mandate through three main avenues (Hessing, 2005:79). 1. Monitoring and coverage on People supervision This happens through the use of the Management Accountability structure and the Public Service Employee survey. The Management Accountability structure The office monitors and reports on employee management through its Management Accountability structure (M.A.F.), and its public

Gender Inequality in the Workforce Essay Example | Topics and Well Written Essays - 1250 words

Gender Inequality in the Workforce - Essay Example This essay "Gender Inequality in the Workforce" outlines the gender stereotypes that may occur in the workplace and the reasons for it. Any preconception about a social group without any logical and reasonable evidence can be categorized as stereotypes. They also play a role in discrimination is work places. Both of these issues persist in work places today. This is mainly because of the diversity in the organizations. Today companies hire a diverse group of employees from different cultures and different genders. Because of this diversity issues like stereotypes and sexism come up regularly in organizations. Managers and employees working in the organization are also human beings and they also come from society. The influences on them cause them to think females as inferior. The idea that females are not equal to men is the root of discrimination in organizations. The mindset of the society is that women are not equal. There are specific roles which women are expected to perform in their lives and any change in those roles is not taken well by the society. Women working like men in offices are seen as changing their roles by the society. The manifestation of sexism and stereotype in organizations is in many forms. Firstly gender bias plays a role in recruitment. There are jobs that are considered more suitable for females and some jobs are considered more appropriate for males. Positions like typists and sectaries are suitable for women so these jobs are mostly given to women. This is a form of sexism and stereotyping. ... Before them they were considered unimportant to such an extent that their say in elections was not deemed important. Women are fighting with the same attitude even today in work places. The idea of female emancipation is not easy to digest for the society as a whole. Also people learn these attitudes at a very early age through social interactions. Managers and employees working in the organization are also human beings and they also come from society. The influences on them cause them to think females as inferior. The idea that females are not equal to men is the root of discrimination in organizations. The mindset of the society is that women are not equal. There are specific roles which women are expected to perform in their lives and any change in those roles is not taken well by the society. Women working like men in offices are seen as changing their roles by the society. The manifestation of sexism and stereotype in organizations is in many forms. Firstly gender bias plays a r ole in recruitment. There are jobs that are considered more suitable for females and some jobs are considered more appropriate for males. Positions like typists and sectaries are suitable for women so these jobs are mostly given to women. This is a form of sexism and stereotyping. Women are considered to have specific traits that suit these positions and that are why they are hired in these positions. There also other forms of sexism and stereotypes. Women face problem in acquiring top management positions in firms. This is because women are not seen as having authoritative nature. They are considered inferior to men and that is why they face discriminations in promotions. Another form of sexism is in daily activities of the company. In offices women face

The Great Gatsby by F. Scott Fitzgerald Essay Example | Topics and Well Written Essays - 500 words

The Great Gatsby by F. Scott Fitzgerald - Essay Example Daisy is Nick's cousin, Tom's wife, and the woman that Gatsby loves. She had promised to wait for Jay Gatsby until the end of the war, but after meeting Tom Buchanan and comparing his extreme wealth to Gatsby's poverty, she broke her promise. Daisy uses her frailty as an excuse for her extreme immaturity. A brutal, hulking man, Tom Buchanan is a former Yale football player who, like Daisy, comes from an immensely wealthy Midwestern family. His racism and sexism are symptomatic of his deep insecurity about his elevated social position. Tom is a vicious bully, physically menacing both his wife and his mistress. He is a thoroughgoing hypocrite as well: though he condemns his wife for her infidelity, he has no qualms about carrying on an affair himself. Daisy's longtime friend, Jordan Baker is a professional golfer who cheated in order to win her first tournament. Jordan is extremely cynical, with a masculine, icy demeanor that Nick initially finds compelling. The two become briefly involved, but Jordan rejects him on the grounds that he is as corrupt and decadent as she is. An earthy, vital, and voluptuous woman, Myrtle is desperate to improve her life. She shares a loveless marriage with George Wilson, a man who runs a shabby garage.

Study skills Essay Example | Topics and Well Written Essays - 750 words

Study skills - Essay Example It is, quite literally, a case of survival of the fittest (Moore, 2010, pp. 19-28). The most organized, the most efficient, and the best rounded will be the ones coming out on top. Never have study skills been more important than when students are in university. Most of the time, students that get admission in a university are those that have, for the most part, been good at organizing their time, keeping up with their study assignments, and on top of their quizzes and tests (Roberts, 2006, pp. 23-25). Furthermore, good university students are those that possess the adequate skills of prioritizing; students that can juggle their academics with their extracurricular activities and jobs tend to do well. This skill is especially important in university because when a student comes from a school and is presented with ten-fold the opportunities on a university campus, temptations and the urge to participate in many activities and sports can cause the students to fall into the trap where they have more on their plate than they can handle. It becomes important then for students to recognize which extracurricular activities to choose to engage in, keeping in mind the real reason they are in university: to study (Moore, 2010, pp. 19-28). A good student will use their skills of prioritizing to analyze their workload and then decide what non-academic activities to participate in. In this way, never in their time at university will they feel overwhelmed by the demands of their extracurricular activities. Another personal skill that is important in university is that of being efficient and productive. Students should not waste their time on ‘useless’ pass times and should use their free hours as productively as possible. Keeping on top of their homework, their papers and not waiting until the deadline are always the signs of a good student (Floyd, 2007, pp. 49-55). Another study skill one must strive to have is that of studying and keeping up with the coursework on a

Management Accounting Essay Example | Topics and Well Written Essays - 1000 words - 3

Management Accounting - Essay Example The facts discussed above give rise to the importance of employing an accounting method which takes into account the full costs of operation. Consequently, full cost accounting allows managers to give an appropriate cost to the companys products and services to include a fair share of overheads to each unit produced. This paper will take a look at the presently used costing methods in business organizations namely traditional and activity based costing. The next section will discuss how cost accounting was traditionally conducted. Next, it will focus on the recently recognized activity based costing and how it is utilized. Lastly, this report will compare the two methods and apply them to real world examples to asses their relative efficiency. Traditionally, all costs were orinally fixed. In fact, cost comes from a Latin word which means â€Å"to stand.† However, developments were made as managers recognized the efficiency of categorizing costs into either fixed or variable. As we now know, fixed costs refer to administrative expenses which remain â€Å"fixed† in either busy or slack seasons. On the other hand, variable costs are those which significantly varies with the number of output produced and are dependent on business productivity. Variable costs are those which naturally â€Å"rise† or â€Å"fall† with business activity (Cost Accounting 2006). Traditional costing is one of the simplest way of costing products and services. In this system, it is assumed that costs are directly associated with the volume of production as a single cost is given to all products and services. Hence, this costing method presupposes that as the level of production goes up, so does cost. Traditional costing essentially uses unit-based costing which alloates manufacturing overhead based on the unit of products manufactured (ABC Concepts 2000). Accordingly, the traditional approach to

Comparative business cultures Assignment Example | Topics and Well Written Essays - 2500 words

Comparative business cultures - Assignment Example (Mansfield & Pevehouse, 2000) A multicultural organization consists mainly of 6 key features namely pluralism, structural incorporation, complete amalgamation of unofficial networks, elimination of discrimination and prejudice, equivalent recognition of organizational objectives with all the diverse teams and nominal amount of inter-team conflicts (Cox, 1991). Learned behavior and their consequences been shared or transmitted via those members of the society. (Linton, 1954) Certain companies have created an organizational architecture and model of business behavior which seems innovative in its design and is unparalleled in business (Cole 1995). The purpose of the study is to ensure that the contribution of human behavior is towards the organizational growth which enables to achieve greater efficiency. (Scholte, 2005) Malaysian culture of business is quite different than other Asian countries like china, India, japan etc. (Beeson, 2000) Features of Multicultural Organization: In the following paragraph we are going to discuss about all the six features of a multicultural organization – Pluralism  refers to the mixed group of members in an organization and it also means taking proper measures to involve all the employees entirely that are different in terms of the central group dominating the organization.. There are a number of options for practicing acculturation within the organization, among which the most well-known being: 1. An unilateral procedure by which members of the minority culture take on the values and norms of the principal group within the workplace (this is called assimilation); 2. A course of action by which both majority and minority members of different cultural backgrounds accept some customs and rules of the other group (this is known as pluralism); 3. A state of affairs where there is modest scope of variation from each of the culturally different groups (this situation is referred to as cultural separatism). 4. Diversity trainin g—managerial endeavor to inform and instruct administration and employee about diversity’s advantages to the organization (Kreitz, 2007) The concept of acculturation on the other hand is related to the cultural (customs and attitudes) characteristic of amalgamation of the diverse teams, as contrasting to simply make themselves physically available in the same setting (Buenker & Ratner, 2005, pp.18-20). Full structural integration:  An organization generally comprises of people from various backgrounds and different locations. This involves dealing out with educational specializations and the variations in expertise and treating those evenly all through the organization. Full integration of informal networks:  integration in informal networks in a multicultural organization is fostered through supervising and mentoring programs, particular social occasions and sustaining the cultural groups for the minorities. This element focuses on the stages of enclosure of the m inority-culture employees in lunch/dinner gatherings, athletic and golf outings, and social associations conducted and repeated by organizational managers. It also takes into account the facets of counseling and several other informal developmental aspects within organizations. (Taggart & McDermott 1993) Absence of Prejudice: Any kind of prejudice or bias is

The Atlas. Microsoft Corporation Essay Example | Topics and Well Written Essays - 1250 words

The Atlas. Microsoft Corporation - Essay Example ..8 Executive Summary: Microsoft Corporation has been an iconic company in the field of Information technology. Microsoft is recognized as a company that has revolutionized the computer market world over. The company has been listed in the Forbes 500 companies in various occasions. The company has been steered towards steady growth by its competent management. The CEO of the company Steven Ballmer is considered as a competent chairperson who has been able to help Microsoft grow further in terms of revenue and expansion. The company has been able to hold its market share in operating system market and expand its market in other ventures like Entertainment and devices. The company has substantial potential to grow even further. A brief history of the company: It was the 1975 issue of Popular Electronics that featured the computer product Altair 8800 of MITS (Micro Instrumentation and Telemetry Systems). It was one of the co-founder of Microsoft Paul Allen who observed that they can dev elop a basic programmer for MITS that can act as an interpreter. Bill gates the other prominent co-founder of Microsoft and Paul Allen developed the basic interpreter for Altair, which was a success. This gave Microsoft a clear direction and on April 04, 1977 Microsoft Inc. was established. The company has ever since a huge growth in the field of software development and internet revolution. The company currently deals with product range Windows operating system, Server and tools, online service division and Entertainment. A brief biography of the current CEO: Steven Ballmer was appointed as CEO of Microsoft in January 2000. He has been with Microsoft since 1980. Ballmer has been heading various divisions in Microsoft ever since. The main divisions that were under Ballmer include Operating Systems Division, Operations and sales and Support. In the year 2011 Ballmer’s total wealth estimate was calculated to be US$ 14.5 billion. He has been ranked 46 on the Forbes list of billi onaires in 2010 issue. Ballmer is acknowledged in the business circuit for his over enthusiastic behavior during business meet. His flamboyant way of conducting himself during conferences sets him apart from other CEOs. Market analysis: The main Industrial market that Microsoft deals with is IT industry. The main products offered by Microsoft are software programs and operating system. Microsoft acknowledges the importance of Research and Development in the IT industry and is always developing new operating systems and softwares to gain competitive advantage. Markets in which the company competes: The company mainly deals with software programming. The company has expanded its domain in many sectors in IT market. Windows operating systems, server and tools, online service operations, business division and Entertainment devices section. The client division of the Microsoft deals with designing the flagship product of Microsoft Windows operating system. The server division produces pr oducts line like Windows Server 2008 R2, Microsoft Visual studio, Microsoft SQL and Microsoft Silverlight. The company also develops software required for business process management, Microsoft BizTalk software. The online services include search engines Bing and MSN. In business division the company deals with Microsoft office package mainly designed to cater the need of office documentation and communication. The latest package is Microsoft 2010. In entertainment and devices section the company de

Business Law Essay Example | Topics and Well Written Essays - 2250 words - 1

Business Law - Essay Example This Corporate Compliance Plan version is particularly developed for the officers and directors of Riordan Manufacturing to make them aware of the existence of laws that regulate certain acts and that violation thereof not only exposes the company to fines and penalties but makes them liable for fines and/or imprisonment as well. In addition, any violation of these laws will also merit them severe sanction by the company like termination, depending on the severity of the act. This Compliance Plan also reminds the officers and directors that it is the company policy to abide by the laws of the land. A Compliance Officer is designated by the company for the purpose of ensuring that all the provisions of this Compliance Plan are implemented and supervised efficiently and rigorously. The Compliance Officer shall have the following duties and functions: Periodically review the efficacy and efficiency of this Compliance Plan and proposes changes, amendments and new measures that will enhance, improve and ensure that Riordan Manufacturing maintains corporate policies that are ethically and legally sound and correct; To perform such other duties necessary and relevant to the implementation and supervision of the Compliance Plan and for such purpose, engage the aid of subordinates, if necessary, to facilitate such implementation and supervision. An ALTERNATIVE DISPUTE RESOLUTION is any means of settling differences extra-judicially – that is without or before resorting to court actions. The term can include within its ambit anything and everything that seeks to settle conflicts between parties like negotiation, mediation, conciliation, arbitration or even mini-trials approximating that of formal judicial court trials. In the hope of resolving intra-agency and inter-agency between and among officers or directors of Riordan Manufacturing