Market barriers in the Bottom of the Pyramid : case studies in Tanzania and Kenya

Abstract: A majority of the world’s population can be classified as Bottom of the Pyramid (BoP), which means that they earn less than USD 3,000 per year. In addition, it is estimated that 12 % of the worlds BoP population live in Africa. Due to the vast economic growth in Africa - which will boost the African consumers income level -we have decided to write a dissertation that regards the African BoP consumers.The purpose of this dissertation is to investigate iffive BoP market barriers exist in the African countries Tanzania and Kenya. In order to answer the research question, we conducted interviews with two different companies established in the Tanzanian respectively Kenyan BoP market. It was possible to answer the research question through the primary data collected during these interviews.Our main findings from the empirical analysis indicated that four out of five market barriers in the Tanzanian and Kenyan BoP markets are accepted, and that both of the companies had to adapt to the different barriers. In addition, Company A and Company B also find solutions to these accepted market barriers in their respective BoP markets.This dissertation will be of value since Africa’s economy is steadily growing, which will attract more companies in the near future. Furthermore, research in how toovercome market barriers in order to establish successful business in low-income markets will also be valuable.