Challenges for marketing mix's adaptation: a successful implementation of 4 Ps for the BOP on EMs

Abstract

The purpose of this paper is to examine, if and how the Marketing Mix (especially 4 Ps) has to be adapted to the Emerging Markets (EMs) in order to target the segment of the Bottom-of-the-Pyramid (BOP) effectively. Nowadays, traditional developed markets become more and more saturated. That is why Multinational Enterprises (MNEs) have started to search new trade outlets in EMs due to gain the market share and customer's segments for their future growth. This paper reflects the need to examine whether - and how - the company implements changes to respond to these challenges. The survey is focused on the case of Nestle successful acting on the EM (Brazil). This study was systematically analyzed and structured according to the 4 Ps. The findings have been confronted in order to identify changes in the Marketing Mix targeting the low-income segment in EMs. The results show that companies have to adapt the 4 Ps in an innovative manner, creating highly functional and innovative products, developing a cost advantage for the poor without compromising on the quality of product, finding a new way of distribution, becoming socially engaged and locally accepted.