Bottom of the pyramid (BOP) defined

The “bottom of the pyramid” (BOP), a phrase popularized by C. K. Prahalad, describes an overlooked market opportunity: the billions of people at or below the poverty line who may be viable consumers. This observation is sparking a shift in India's healthcare industry as public and private players innovate to deliver healthcare to this large market. How large? India's BOP market is valued at $18 billion and estimated to be at least 330 million people (and perhaps as many as 485 million).

Prahalad's thesis that the BOP is a viable market is rooted in a few fundamental principles. First, this population should be treated with respect: individuals should be considered entrepreneurs and customers rather than dependents on charity. Second, these individuals should be involved in the process of co-creation. Solutions for the BOP will often require companies to collaborate with consumers in order to truly appreciate their local needs. Finally, this market requires true innovation and not simply modifications of existing business models. New technologies, new ways of marketing, and new processes are all needed to create fresh products targeted for the BOP population. Though it may be challenging to implement Prahalad's principles, his thesis provides a road map for gaining access to millions of new consumers.