C K Prahalad's proposition that there is enormous potential to be tapped by selling relevant products to those at the bottom of the economic ladder has received mixed reactions. Much of the controversy is about the numerical accuracy as to how many are at the `bottom of the pyramid' and what their total spending power is. However, the experience of some well-known companies in India and abroad shows that the `bottom of the pyramid' concept is in principle quite practicable and offers beneficial outcome for all concerned. The idea is all the more relevant during periods of economic downturn.

It has been more than four years since the world renowned management guru C K Prahalad's famous but somewhat controversial tome The Fortune at the Bottom of the Pyramid was published.Through this book, he put forward a path-breaking theory that business organizations could collaborate with low income groups to eradicate poverty, and in the process make reasonable profits: a `win-win' situation for both parties.While this book elicited mixed reactions from economists and management experts worldwide, one cannot deny the fact that Prahalad's most noteworthy contribution through this publication has been drawing the attention of global business leaders to the tremendous potential offered by the Bottom of the Pyramid (BOP) market waiting to be tapped.

This article attempts to critically discuss the present relevance of Prahalad's theory to business organizations the world over and the experiences of some world class organizations that have adopted Prahalad's ideas for marketing their goods and services to the BOP segment. The BOP market comprises approximately 4 billion people across the globe with an annual per capita income of less than $1500 (Refer Exhibit 1), with a combined purchasing power of $13 tn (on PPP, i.e., Purchasing Power Parity basis). This market, hitherto shunned by the Multinational Corporations (MNCs), offers tremendous business opportunities and is too substantial to be ignored by any business organization.

A different and an innovative approach is required for the companies to market their products in this segment instead of replicating the strategies that work for developed markets. According to Prahalad, "The strength of these innovative approaches, as you will come to appreciate, is that they tend to create opportunities for the poor by offering them choices and encouraging self-esteem".

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