Global Marketing Report: Fonterra's Approach to the B.O.P. Market

This report provides an executive summary and in-depth analysis of Fonterra's global marketing strategies, specifically focusing on the Bottom of the Pyramid (B.O.P.) market. It begins with an introduction to global marketing and the context of Fonterra, a New Zealand dairy company. The report identifies key questions Fonterra should consider when entering the B.O.P. market, such as market selection, competition, product suitability, and pricing strategies. A critical assessment evaluates the potential benefits of targeting the B.O.P., including increased profits and market expansion. The report then offers detailed recommendations for Fonterra's marketing mix, including product development, pricing, distribution, and promotion strategies tailored to the B.O.P. Finally, it addresses potential challenges Fonterra may face in this market, emphasizing the importance of research and adaptability. The report concludes that entering the B.O.P. market presents a significant opportunity for Fonterra, provided the company strategically aligns its marketing techniques to succeed.

RUNNING HEAD: GLOBAL MARKETING
Global marketing

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Executive summary
The discussion summarizes on the title ‘Global marketing’ with respect to ‘Fonterra’. The first
section provides information about the Fonterra and list of possible questions that will help the
company in establishing its footprints in the B.O.P. market. The second section provides critical
examination of choosing the B.O.P. market with respect to Fonterra. Additionally, it provides
suggestions for Fonterra with respect to its marketing mix. Lastly, it comprises of the challenges
that Fonterra may face for opting the bottom of the pyramid.

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Contents
Introduction......................................................................................................................................2
Initial requirements..........................................................................................................................2
Critical assessment...........................................................................................................................2
Recommendations............................................................................................................................3
Challenges........................................................................................................................................3
Conclusion.......................................................................................................................................3

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Introduction
The discussion is prepared on the title ‘Global marketing’. It is a process involving the
adjustments of marketing strategies of a company to adapt to the condition of the international
market (Gillespie , 2015). The key aim of the discussion is to pour light on the global marketing
concept of ‘Fonterra’. Additionally, it will provide an opportunity to upgrade the knowledge
based on managerial concepts by applying them to a real-life company.
Initial requirements
Fonterra is a New Zealand based dairy company. It is one of the largest companies in the field of
dairy products (Wit & Meyer, 2010). Following is the list of possible questions that need to be
considered by Fonterra for assessing the potential of a B.O.P.
 Which market should we opt to enter?
 How much competition is prevailing in the industry? Who are the main competitors?
 What degree of durability does the market offer?
 What are the essential adjustments needed to survive in the industry?
 Will the products benefit the B.O.P.?
 What price should be set?
 What type of product should be offered to B.O.P.?
 What affect will the product have on B.O.P.?
 What marketing strategies are required for product promotion?
 What kind of payment options should be offered (Realini & Mehta , 2015)?
Critical assessment
It is assumed that it will not be considered as exploitation for Fonterra if it stat availing profits
from selling soaps, shampoo, personal computer and ice cream to people with little disposable
income. This is because in the global market, international companies receive less attention from
customers with low disposable income. Thus, the international firms gave less attention in
marketing to the B.O.P. as these cannot afford the product/service. It is assessed that by
marketing to the B.O.P. can provide dual benefits to the company. Firstly, it will help the
company in raising more profits. Secondly, it will help in enhancing the opportunity for Fonterra

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by tapping into the B.O.P. market. It is analyzed that poor people attain high desire to purchase
some of these products. Hence, Fonterra should focus on B.O.P. market as well (Singh , 2018).
Recommendations
In order to market the product to B.O.P., Fonterra should use alter some of its marketing
strategies with respect to Product, Price, Place and Promotion. It is analyzed that Fonterra should
develop products in low quantities. This will enable the company to charge products at low price.
Additionally, this will assist the company n gathering the attention of large masses. However,
Fonterra should only market-specific products like soap, shampoo and ice cream. This is
because; these products can be availed by the B.O.P. In order to sell the products to B.O.P.
customers, Fonterra must choose affordable pricing. In respect of Place, Fonterra should opt for
small shops to offer its products. This is because purchasing in large departmental stores will
make the B.O.P. customers hesitate to buy products (Singh , 2018).
Lastly, Fonterra should choose media like hoardings and pamphlets to promote its products. This
is because marketing through digital and social media will not prove effective as all the B.O.P.
customers do not have access to such platforms. Additionally, promotion should be done in
regional languages to makes it easy for the B.O.P customer to understand. This is because
customers operating in B.O.P attain low literacy levels and poor media reach (Dalglish &
Tonelli, 2016).
Challenges
It is assessed that Fonterra may face challenges while marketing to the B.O.P. It may encounter
a challenge to recognize the uniqueness of this sector. It will face difficulty in developing low
budget strategies to gather the attention of large masses. However, these challenges can be
reduced to a possible extent if proper research is conducted. Thus, Fonterra must not hesitate to
accept challenges emerging from the customers operating at the bottom of the pyramid (Realini
& Mehta , 2015).
Conclusion
The above discussion concludes that choosing the B.O.P. market is a great step for Fonterra, as it
will help the company in generating more customers. However, it is analyzed that Fonterra may

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face economic challenges with B.O.P. Despite being a multinational organization, Fonterra
should invest appropriately to match the level of possible returns. In order to develop efficient
profit, Fonterra should wisely choose its marketing techniques to succeed in the B.O.P. market.

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BIBLIOGRAPHY
Singh , , 2018. Bottom of the Pyramid Marketing: Making, Shaping and Developing BOP
Markets. Emerald Group Publishing.
Dalglish , & Tonelli, , 2016. Entrepreneurship at the Bottom of the Pyramid. Abingdon :
Routledge.
Gillespie , , 2015. Global Marketing. Routledge.
Realini, & Mehta , K., 2015. Financial Inclusion at the Bottom of the Pyramid. FriesenPress.
Wit, d. & Meyer, , 2010. Strategy: Process, Content, Context : an International Perspective.
Cengage Learning EMEA.