AYESHA SHAIKH: C.K.

Prahalad defined the Bottom of

the Pyramid (BoP) as people earning less than $1,500 a
year. How would you define BoP within the context of
Pakistan?
FAHD ASHRAF: Reckitt Benckiser (RB) defines BoP as those
underprivileged consumers who have reduced purchasing power
in terms of value, but in terms of absolute numbers, constitute
the largest proportion of Pakistans population. According to the
Government of Pakistans poverty measurement statistics,
approximately 60 million people live below the poverty line and
essentially this is the BoP population segment for Pakistan.
AS: Prahalads book The Fortune at the Bottom of the
Pyramid was published in 2004 and the idea of tapping into
this massive market potential immediately gained traction
with brands across the world. Why has it taken more than a
decade for BoP Marketing to reach Pakistan?
FA: BoP has been a talking point in brand circles for quite some
time, but on-ground initiatives have taken off only recently and
this has been triggered by the changing technological landscape,
which has made BoP consumers accessible to brands,
particularly those living in remote areas. Technology,
particularly cellular technology, has created an enabling
environment. The speed with which cell phone penetration has
increased among BoP consumers has opened up avenues for
businesses to reach out to them. Previously, communication
media was limited to a few terrestrial channels, like PTV, print
and radio and there was no way to directly interact and engage
with the largest population segment of the country. Now, there
are almost 40 to 50 million cell phone subscribers and SMS
marketing has become an important outreach tool. As more
people switch to smartphones (Google has projected that by
2018, the cost of an average smartphone in Pakistan will come
down to Rs 500) and have access to 3G, the possibilities of BoP
will increase. Small shops in remote villages today stock bread,
eggs, milk and cell phones.
AS: How has RB brought BoP to Pakistan?
FA: RB launched the first pilot under Project Hope last year in
Dhori village near Sargodha. The initiative was aimed at
creating awareness and developing products and services
specifically tailored to the low-income BoP consumer. To
improve the projects effectiveness, we collaborated with Save
the Children and Plan International (an international NGO
specialising in healthcare solutions) as well as government
organisations. Our goal is realising the ideal of Sehatmand
Gharanay, Khushal Pakistan.
AS: Is the scope limited to image-building campaigns or
have there been changes in product formulations as well?
FA: BoP Marketing starts with educating consumers and
creating an aspiration for an improved quality of life. However,
product adoption will not take off unless poor households have
access to affordable solutions. This is why RB started with
awareness drives about the benefits of handwashing. However,
most of these consumers do not have the spending power to
purchase a 100 gram bar of Dettol soap for Rs 50. This is why
we have created a new, affordable, multipurpose Hope soap
specifically for this market. It is priced at Rs 25, has a strong
citrus fragrance and can be used for bathing, handwashing, and
even to do the dishes. This one-fit-for-all approach has proved
extremely effective; the brand has achieved an 80% market
penetration and is being used by almost 600 households.
However, this is not where RBs role ends. As our brand
portfolio does not include some essential FMCG product
categories that the BoP market needs, we have collaborated with
other organisations to create a basket comprising sanitary
products, personal hygiene solutions and nutritional
consumption items for children and adults. Our R&D teams are
working towards developing a powder that decomposes waste,
destroys bacteria and germs, and completely masks odour. Since
sanitary facilities are severely lacking across Pakistan, bringing
this product to market will go a long way in reducing the
incidence and mortality rates associated with diarrhoea.

BoP Marketing starts with educating consumers and

creating an aspiration for an improved quality of life.
However, product adoption will not take off unless
underprivileged households have access to affordable
solutions

AS: How has the community responded to Project Hope?

FA: When Project Hope started off, there was a lot of resistance
from the local community because decades-old beliefs and
behaviours were being challenged, particularly when we began
involving women from Dhori to help spread the message. Plan
International provided education about the features and benefits
of the products we were bringing to the village, and provided
sales training to the women as well. In a conservative social
setup, recruiting local women turned out to be a winning stroke
and helped us reach a wider audience. The way the system
works is that RB is responsible for delivering the products to the
village, after which the women sales team takes over and goes
door-to-door telling others about the benefits of these products.
Not only has Project Hope brought brands such as National
Foods, Peak Freans, Shan and Shield to Dhori, it has also
created employment for local women who earn stipends and
sales commissions, which in turn has increased their purchasing
power.
AS: From a business standpoint, is profit generation a core
objective of BoP marketing campaigns?
FA: Yes, but we need to be patient. There is a reason why they
are underprivileged. With rising inflation and changing
prioritisation, their aspirations are changing. The gain per
consumer is extremely small. The market is saturated and
competitive, so there is no other way for companies to progress
unless they visit these areas and do something to help them.
Prices must be kept low and profits will become possible only
when massive sales volumes are achieved.
AS: What is the most challenging aspect of executing a BoP
campaign?
FA: To change consumer habits; although managing the
logistics of distribution to ensure that the BoP consumer has
access to brands is a costly undertaking as well. However, once
the product is available, the greatest challenge is inducing trial.
Several international behavioural studies estimate that it may
take up to 250 to 260 days for new habits to form. The answer to
executing a successful BoP campaign lies in creating a
sustained, long-term intervention. I do not think that bombarding
people with marketing communications produces the desired
behavioural change unless it is supplemented by in-person
product demonstrations.
AS: What has the post-campaign evaluation revealed about
the effectiveness of Project Hope?
FA: It has been an unprecedented success. The figures compiled
for the last six months show a 23% reduction in diarrhoeal
incidences and a five percent increase in five times a day
handwashing. These results have encouraged us to scale up the
project, and our target is reaching five million households in the
next five years. However, there are financial as well as logistical
limitations that will have to be overcome if Project Hope is to be
implemented nationwide. The uncertain security situation, lack
of adequate infrastructure, inconsistent government policies, and
deeply ingrained cultural taboos are the major obstacles
restricting the widespread implementation of BoP marketing in
Pakistan.

According to the Pakistan Tea Association (PTA), total

consumption is estimated at 200,000 tonnes, with a 50:50 split
between branded and unbranded tea. The tea category consists
of leaf and dust variants; leaf dominates the cities, while dust
owns the rural market primarily due to the karak (punch) each
cup is said to deliver, and the PTA estimates that approximately
30,000 tonnes of dust tea is consumed, of which 10,000 tonnes
is the unbranded loose tea available at most dhabas in the rural
areas. In terms of brands, the dust market is more or less a
duopoly between Pearl Dust (Unilever) and Mezban (Tapal),
both of which are premium priced brands. According to
Khurram Koraishy, GM Marketing, Tapal, Mezban is the market
leader, accounting for a 90% market share.

Tapals Chenak falls into the lower end of the dust market. The
brand was launched in 1986, focusing specifically on the Thar
region in Sindh. Until 2006 advertising was restricted to BTL
activities and then in 2006, Chenak came out with a TVC and
positioned itself against Unilevers Red Rose (now defunct) with
the theme: Himmat walon ji chanh.

Colloquially, chenaks are the metal containers used to pour tea

in the dhabas. The name is said to have struck a chord with the
target audience, due to its association with their customary tea
drinking habits.

Koraishy classifies dust tea as the poor mans tea and price is
an important consideration, as most users are daily wage
earners. Faiza Ziaullah, Brand Officer, Tapal Tea, further adds
that dust is approximately 20% cheaper than leaf. Also, it
diffuses quickly and is stronger, so you use less tea and it lasts
longer.

Currently Chenak sells for Rs 108 and Rs 54 for the 190 and 95
gramme packs respectively.

In November 2013, the brand repositioned itself with a new

TVC (produced by IAL Saatchi & Saatchi) that brought in an
aspirational angle. Until the launch of this TVC, the split
between ATL and BTL media remained at a constant 20:80 ratio;
this has changed to 50:50, with the TVC aired on PTVs regional
channels, Sindh TV and Kook.
Moving away from the notion of Chenak as a mere source of
refreshment, the brand positioned itself as a means to celebrate
the homecoming of the men in the family after a long days
search for work. To give an authentic flavour to the campaign,
Chenaks team went into Thar to experience a real taste of the
life there and the social norms of the region. Avoiding the stark
realities of desert life, the campaign focuses on the preparations
for the homecoming, with women colourfully dressed preparing
tea in the time honoured way.

Whether the shift to a more aspirational positioning and a

heavier tilt towards television will translate into sales is too early
to call, especially given the realities of the harsh climate and
poor living conditions in the region where people travel miles to
access bare necessities such as water and where televisions tend
to be a luxury. However, according to Ziaullah, people in Thar
live in a communal system with shared televisions.

Despite the repositioning, Chenaks packaging remains the

same, a decision, says Koraishy, that was based on feedback
from retailers in rural Sindh, who emphasised that given that the
target audience is largely illiterate, Chenaks distinct saffron
packaging is its USP; in their view even a slight modification
would raise doubts about the brands authenticity (counterfeits
are a very common phenomenon).

Koraishy and Ziaullah are optimistic about further growth given

the increasing number of rural consumers opting for branded
dust tea. At the moment, the new campaign has succeeded in
creating a buzz on social media, with some people questioning
the aspirational positioning of a low end brand aimed at
audiences with no easy access to TV; others have been
impressed by the quality of cinematography in the commercial.
Clearly, and at least for the moment, Chenaks campaign is set to
be a talking point and not only in the deserts and dunes of Thar.
Economic forces are factors that influence the success and
direction of the economy and the firms that operate in the
economy, often determining the competitiveness of the
macro-environment. Depending on whether you look to
specific business environments or to the economy at large,
there are several factors that influence how successful or
how competitive a firm is.
For example, the state of the economy is an important
economic force in determining how a firm operates. A firm
wouldn't operate as successfully during a recession or
depression as it would during a period of growth. The
fluctuations in the business cycle often plays a critical role
in the direction of a firm. Demographic aspects such as
labor shortages and unemployment can also be considered
an economic force, as low unemployment equates to better
economic output. Government monetary and fiscal
policies, including price controls, raising or lowering
interest rates and handling of inflation is also an
important economic force, as certain changes in policy can
have monumental impact on the economic situation.
So really I would categorize economic factors into three
groups: state of the economy, demographics, and policy.
Different definitions, categorizations, and studies will offer
different analysis and input into the types of and
importance of economic forces, but this is a general
overview of economic forces.
Economic forces are the factors that help to determine
the competitiveness of the environment in which the firm
operates. These factors include: Unemployment level.
Inflation rate. Fiscal policies.

Cultural and social forces. ... Examines all learned

behaviors, including social, linguistic,and family
behaviors.CultureCulture. Encompasses the entire
heritage of a society transmitted orally,via literature, or in
any other form. Includes all traditions, morals,habits,
religion, art, and language.
Demographic factors are personal characteristics are
used to collect and evaluate data on people in a given
population. Typical factors include age, gender, marital
status, race, education, income and occupation.
The Citizen Armed Force Geographical Unit, variously
called Citizens Armed Forces Geographical Unit, Civilian
Armed Forces Geographical Unit and commonly referred
to by its acronym CAFGU (pronounced "kahf-goo") is an
irregular auxiliary force of the Armed Forces of the
Philippines.
What is Geographic Segmentation?

Geographic segmentation is when a business divides its

market on the basis of geography. There are several ways
that a market can be geographically segmented. You can
divide your market by geographical areas, such as by city,
county, state, region, (like the West Coast), country, or
international region, (like Asia). You can also divide the
market into rural, suburban, and urban market segments.
And, you can segment a market by climate or total
population in each area.

Advantages of Geographic Segmentation

So what are the advantages of geographic segmentation?

Let's looks at some.

It's an effective approach for companies with large

national or international markets because different
consumers in different regions have different needs,
wants, and cultural characteristics that can be
specifically targeted.

It can also be an effective approach for small

businesses with limited budgets. They can focus on
their defined area and not expend needless marketing
 dollars on approaches ill-suited for their target
geographic segment.

It works well in different areas of population density.

Consumers in an urban environment often have
different needs and wants than people in suburban
and rural environments. There are even cultural
differences between these three areas.

It's relatively easy to break your market down to

geographic segment

Parties, personalities, pressure groups that strongly

influence the economic and political stability of a country
through their actions and pronouncements
Political forces concern the influence of political parties,
leaders and pressure groups such as civil society
organization and trade unions. These forces negotiate or
dictate policies that may change the course of business in
your industry. Escalation of rivalry between political parties
may result in disastrous outcomes. For example, the
partial shutdown of federal government services in
October 2013 was occasioned by endless partisan feuds
between Democrats and Republicans and had negative
effects in countless industries across the country. This
shows that political forces portend far reaching
implications on your business..