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Bop final after reading
 

Bop final after reading

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  • http://www.yionline.org/images/pdf/ckp_speech.pdf

Bop final after reading Bop final after reading Presentation Transcript

  • BOTTOM OF THE PYRAMID
    2 sides of coins
    - Jonty Mohta
  • 2
    Signs of Emerging BOP
    • e Choupal:
    • HLL-Annapurna
    • The Arvind Eye Care System
  • 3
    Framework for Sustainable Development
  • 4
    Some Guidelines to Innovate at BOP
    • Requirement for a New Price-Performance Envelope
    • Technology for Product & Process Innovations
    • Conserving Resources: Eliminate – Reduce – Recycle
    • Educating the People
  • And The Journey Has Just Begun…
    5
  • THE PYRAMID HAS A FALSE BOTTOM
  • POVERTY LINE
  • FACTS
  • LIVING ON LESS THAN $ 1 A DAY
    • East Asia & Pacific 214m
    • Europe & C Asia 10m
    • Latin America & Caribbean 47m
    • Middle East & N. Asia 5m
    • S Asia 437m
    • Sub Saharan Africa 303m
    • Total 1016m
    Source: World Development Indicators
  • FACTS
  • A MYTH
    “4 Billion people in the world survive on less than $ 2 a day”
    -PROF.C.K.Prahalad
  • PRAHALAD’s PROPOSITIONS
    • Significant purchasing power at the BOP.
    • Selling to the poor.
    • Role of MNC’s.
    • Population
    4 billion v/s 2.7 billion
    • Market size
    $ 13 trillion v/s $ 1.2trillions
    PRAHALAD v/s CRITICS
  • LOOPHOLES IN PRAHALAD’s CASE STUDIES
    • CasasBahia
    • Amul Ice Cream
    • Jaipur Foot
    • ArvindEye Hospital
    • AIDS Drugs
    • Escort Heart Hospital
  • “The poor are producers and not the Consumers.”
  • SOCIAL FACTOR
    • Do poor have enough money to meet their basic requirements of life?
    Source: World Development Indicators
  • THE CASE OF COKE COLA INDIA
    • No profits from BOP
    • 91% percent of the profit comes from middle class
    • Introduced Rs.5 bottle INTEGRATED AT THE BOP
    • 200ml at Rs.5 was too much for rural world.
    • Company ended up with a reported loss of Rs. 250crores
    • Does corruption hurt poor as consumers?
    • Are poor capable enough of making intelligent choices?
    • Sachets priced at Re1 for 8 ml.
    • Increase in volume share from 28% to 32%
    • Profits rose by only 0.5%
    • Company has to rely on premium brands for profits
    The Case of Clinic Shampoo Sachets
  • CONTEMPORARY EXAMPLES
    • I.T.C
    • Amul
  • It’s true….
    BUT
    BUT
    BUT
    BUT
  • SOLUTION
    • Raise the income of the poor
    • Micro finance
    • Job creation
    • Create efficient markets
    • Efficient role of government
  • CONCLUSION
  • THANK YOU