The Income and Expenditure Pattern of Families at the Bottom of the Pyramid

2013 
The total population of India in the year 2012 was 1.22 billion, of which, as per the World Development Report 2012, 76% of the Indian population lived at the Bottom of the Pyramid (BOP). The increasing role of social enterprises and the focus on inclusive growth make it important to understand the consumer behaviour of the lower-income households in India. The findings provide significant guides to consumer companies targeting the "bottom of the pyramid" and social entrepreneurs developing products and services that are priority needs of the more than 76% percent of the population that belong to these income groups.Zainudeen, Iqbal and Samarajiva (2010) indicate that families at the BOP have a typical kind of income and expense pattern. These patterns vary, based on rural and urban locations. This opens up a whole new world of opportunity for modern day businesses. According to C.K. Prahlad, people at the BOP are resilient and creative entrepreneurs and also conscious consumers. A huge segment which is approximately 76% of the population is full of needs and waiting for someone to convert them to desire. This paper talks about the people who are living at the Bottom of the pyramid (BOP). The paper tries to understand the income and expense pattern of families at the BOP in urban locales especially in the slums and posh vicinities of Ahmedabad city. It attempts to find out through primary research if the BOP pattern that exists elsewhere also emerges in Ahmedabad. The paper also highlights various types of business opportunities that are available to Self Managed groups at BOP. The findings of this paper will also reflect upon various business opportunities for the MNCs.
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