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Bop final after reading

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Bop final after reading

  1. 1. BOTTOM OF THE PYRAMID<br />2 sides of coins<br />- Jonty Mohta<br />
  2. 2. 2<br />Signs of Emerging BOP <br /><ul><li>e Choupal:
  3. 3. HLL-Annapurna
  4. 4. The Arvind Eye Care System</li></li></ul><li>3<br />Framework for Sustainable Development<br />
  5. 5. 4<br /> Some Guidelines to Innovate at BOP<br /><ul><li> Requirement for a New Price-Performance Envelope
  6. 6. Technology for Product & Process Innovations
  7. 7. Conserving Resources: Eliminate – Reduce – Recycle
  8. 8. Educating the People</li></li></ul><li>And The Journey Has Just Begun…<br />5<br />
  9. 9. THE PYRAMID HAS A FALSE BOTTOM<br />
  10. 10. POVERTY LINE<br />
  11. 11. FACTS<br />
  12. 12. LIVING ON LESS THAN $ 1 A DAY<br /><ul><li>East Asia & Pacific 214m
  13. 13. Europe & C Asia 10m
  14. 14. Latin America & Caribbean 47m
  15. 15. Middle East & N. Asia 5m
  16. 16. S Asia 437m
  17. 17. Sub Saharan Africa 303m
  18. 18. Total 1016m</li></ul>Source: World Development Indicators<br />
  19. 19. FACTS<br />
  20. 20. A MYTH<br />“4 Billion people in the world survive on less than $ 2 a day”<br />-PROF.C.K.Prahalad<br />
  21. 21. PRAHALAD’s PROPOSITIONS<br /><ul><li>Significant purchasing power at the BOP.
  22. 22. Selling to the poor.
  23. 23. Role of MNC’s.</li></li></ul><li><ul><li>Population </li></ul> 4 billion v/s 2.7 billion<br /><ul><li>Market size</li></ul> $ 13 trillion v/s $ 1.2trillions<br />PRAHALAD v/s CRITICS<br />
  24. 24. LOOPHOLES IN PRAHALAD’s CASE STUDIES<br /><ul><li>CasasBahia
  25. 25. Amul Ice Cream
  26. 26. Jaipur Foot
  27. 27. ArvindEye Hospital
  28. 28. AIDS Drugs
  29. 29. Escort Heart Hospital</li></li></ul><li>“The poor are producers and not the Consumers.”<br />
  30. 30. SOCIAL FACTOR<br />
  31. 31. <ul><li>Do poor have enough money to meet their basic requirements of life?</li></ul>Source: World Development Indicators<br />
  32. 32. THE CASE OF COKE COLA INDIA<br /><ul><li>No profits from BOP
  33. 33. 91% percent of the profit comes from middle class
  34. 34. Introduced Rs.5 bottle INTEGRATED AT THE BOP
  35. 35. 200ml at Rs.5 was too much for rural world.
  36. 36. Company ended up with a reported loss of Rs. 250crores</li></li></ul><li><ul><li>Does corruption hurt poor as consumers?
  37. 37. Are poor capable enough of making intelligent choices?</li></li></ul><li><ul><li>Sachets priced at Re1 for 8 ml.
  38. 38. Increase in volume share from 28% to 32%
  39. 39. Profits rose by only 0.5%
  40. 40. Company has to rely on premium brands for profits</li></ul>The Case of Clinic Shampoo Sachets<br />
  41. 41. CONTEMPORARY EXAMPLES<br /><ul><li> I.T.C
  42. 42. Amul</li></li></ul><li>It’s true….<br />BUT<br />BUT<br />BUT<br />BUT<br />
  43. 43. SOLUTION<br /><ul><li>Raise the income of the poor
  44. 44. Micro finance
  45. 45. Job creation
  46. 46. Create efficient markets
  47. 47. Efficient role of government</li></li></ul><li>CONCLUSION<br />
  48. 48. THANK YOU<br />

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