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Bottom of the Pyramid Analysis
The document discusses the concept of the 'Bottom of the Pyramid' (BoP) market, highlighting its vast potential with billions of aspiring consumers in developing nations. It explores various misconceptions about the poor and details their significant unmet needs, as well as the market opportunities across different sectors such as healthcare, water, and energy. Strategies for businesses to engage the BoP market include localizing products, enhancing access to goods and services, and capitalizing on microcredit and digitization.
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Bottom of the Pyramid Analysis
- 1. YOLOR team GROUP11 BOTTOM OF THE PYRAMID
- 2. “ The realsource of market promise is not the wealthy few in the developing world, or even the merging middle-income consumers; It is the billions of aspiring poor who are joining the YOLOR team ” market economy for the first time. C.K. Prahalad
- 3.
- 4. YOLOR team 14thCENTURY 3
- 5. YOLOR team PRESENTDATE 4
- 6. TOP $20,000 80MILLION MIDDLE YOLOR team PRESENT DATE 5 BOTTOM $15,000 1600 MILLION $3,000 4000 MILLION
- 7. TOP MIDDLE YOLORteam $3,000 4000 MILLION 6 BOTTOM
- 8. TOP MIDDLE YOLORteam $3,000 4000 MILLION 7 BASE
- 9. BOP CHARACTERIZATION SECTORMARKETS STRATEGIES BANGLADESH YOLOR team
- 10. “ The termwas coined by the management guru to describe the Poor and the underserved section of the market. The BOP market in India is about $1.205 trillion, in PPP terms, makes up 84.8% of the total $1.42 trillion YOLOR team National household market. ” C.K. Prahalad
- 11. team YOLOR BOP 8 COSMPOLITON MIDDLE AND UPPER INCOME DEVELOPING ELITESTOP$20,00080 MILLION
- 12. team YOLOR BOP 9 POOR CUSTOMERS RISING MIDDLE CLASS DEVELOPING DEVELOPINGMIDDLE$15,0001600 MILLION
- 13. team 4000 MILLION YOLOR BOP 10 HALF OF THE WORLD LEAST DEVELOPED DEVELOPING$3,000 BOTTOM AGGREGATE POWER OF $5 TRILLION
- 14. BOTTOM teamYOLOR BOP 11 DIVIDED 6 PARTS
- 15. 2,500 – 3,000 2,000 – 2,5000 1,500 – 2,0000 1,000 – 1,500 YteaOmLOR BOP 12 500 – 1,000 500 ASIA $3,470 BILLION
- 16. 2,500 – 3,000 2,000 – 2,5000 1,500 – 2,0000 1,000 – 1,500 YteaOmLOR BOP 13 500 – 1,000 500 EASTERN EUROPE $458 BILLION
- 17. 2,500 – 3,000 2,000 – 2,5000 1,500 – 2,0000 1,000 – 1,500 YteaOmLOR BOP 14 500 – 1,000 500 LATIN AMERICA $509 BILLION
- 18. 2,500 – 3,000 2,000 – 2,5000 1,500 – 2,0000 1,000 – 1,500 YteaOmLOR BOP 15 500 – 1,000 500 AFRICA $429 BILLION
- 19.
- 20. YOteaLmOR BOP 16 REALITY #1 THE POOR HAVE NO MONEY MISCONCEPTIONS
- 21. YOteaLmOR BOP 17 REALITY #1 LITTLE MONEY IS STILL MONEY
- 22. YteaOmLOR BOP 18 MISCONCEPTIONS #2 THE POOR CAN NOT USE ADVANCED TECHNOLOGIES
- 23. YteaOmLOR BOP 19 REALITY #2
- 24. YtOeamLOR BOP 20 MISCONCEPTIONS #3 THE POOR BUY CHEAP PRODUCTS
- 25. YtOeamLOR BOP 21 #3 THE POOR BUY FUNCTIONAL GOODS SERVICES REALITY
- 26. BOP CHARACTERIZATION SECTORMARKETS STRATEGIES BANGLADESH YOLOR team
- 27. CHARECTERIZATION YOteaLmOR 22 SIGNIFICANT UNMET DEMANDS MAJORITY BANK ACCOUNT ACCESS TO FINANCIAL SERVICES MANYLIVE WITHOUT ACCESS TO SANITATION ELECTRICITY
- 28. CHARECTERIZATION YOteaLmOR 23 DEPENDENCE ON INFORMAL LIVELIHOOD SUBSISTENCE LACK ACCESS TO PROPER MARKET EXPLOITED ON MIDDLEMEN VULNERABLE TO WEATHER
- 29. CHARECTERIZATION YOteaLmOR 24 PROBLEMS OF BEING IN A BOP PAYS MORE THAN WEALTHEIR NATIONS LOW QUALITY LOAN SHARKS EXUBERENT INTERESTS
- 30. CHARACTERIZATION YOteaLmOR 25 DEMOGRAPHIC OF AN AVERAGE BOP LITTLE OR NO EDUCATION PREDOMINANTLY RURAL 70% WORKING IN THE INFORMAL SECTOR
- 31. S UNTAPPED 4000MILLION W RESILIENCE FAST TECHNOLOGCAIL ADAPTATION SWOT ANALYSIS UNFAVORABLE COST STRUCTURE VERY HIGH MARKET PENETRATION REQUIRED
- 32. S UNTAPPED 4000MILLION W FAST TECHNOLOGCAIL ADAPTATION UNFAVORABLE COST STRUCTURE VERY HIGH MARKET PENETRATION REQUIRED 26 RESILIENCE
- 33. O DEMAND FORBASIC NEEDS T LACKS LOW COST, GOOD QUALITY ACCESIBLE GOODS POLITICAL INSTABILITY ENVIRONMENTAL HAZARDS 27 HIGH PURCHASING POWER CULTURAL DISSENTION
- 34. ASIA CHARACTERIZATION MARKETSIZE 2.86 BILLION PEOPLE $3470 BILLION AGGREGATE INCOME 83% OF POPULATION 42% OF AGGREGATE PURCHASING POWER YOLOR 28
- 35. LATIN AMERICA CHARACTERIZATION MARKET SIZE 360 MILLION PEOPLE $509 BILLION AGGREGATE INCOME 78% OF POPULATION 28% OF AGGREGATE PURCHASING POWER YOLOR 29
- 36. AFRICA CHARACTERIZATION MARKETSIZE 486 MILLION PEOPLE $429 BILLION AGGREGATE INCOME 95% OF POPULATION 71% OF AGGREGATE PURCHASING POWER YOLOR 30
- 37. 2% CHARACTERIZATIONWHERE DOESTHE INCOME GO? 4% IN BILLION USD YOLOR 71% 31 4% 8% 11% WATER ICT FOOD HEALTH TRANSPORATION HOUSING ENERGY
- 38. CHARACTERIZATIONHOW DO BOPHOUSEHOLDS SPEND USD PER YEAR AFRICA ASIA EASTERN EUROPE LATIN AMERICA ICT 34 54 56 107 HEALTH CARE 154 131 152 325 TRANSPORATATION 211 211141 521 YOLOR 32 FOOD 2087 2643 3687 3050
- 39. CHARACTERIZATIONTHE BOP PENALTY WEALTHIER MARKETS HAVE 7 TIMES MORE ACCESS TO PIPED WATER 24% OF BOPLACK ELECTRICITY HIGHER COST OR LOWER QUALITY TRAP YOLOR 33 BOTTOM HEAVY BOP AND RURAL AREAS LOW ICT AND PHONE ONWERSHIP
- 40. BOP CHARACTERIZATION SECTORMARKETS STRATEGIES BANGLADESH YOLOR team
- 41. “ In aninformal suburb of Guadalajra, Mexico, a growing family is struggling to expand their small house. Help arrives from a major industrial Company in the form of construction designs, credit, enabling rapid completion YOLOR team of the project at less overall cost ” SCENARIO 1
- 42. “ In MaddhyaPradesh, an Indian farmer gains access to soil testing Services, to market price trends that help him decide what to grow and when to sell, And to higher prices for his crop than he can obtain in YOLOR team ” the local auction market. SCENARIO 2
- 43. “ In asmall community outside Tianjin, China, a small merchant Whose children have been repeatedly sickened by drinking water from a heavily - Polluted river is distraught. He finds help not from the local government but from YOLOR team A new, low-cost filtering system developed by an ” entrepreneurial company. SCENARIO 3
- 44. YtOeamLOR SECTOR MARKET HEALTHCARE INDUSTRY 34 $183 A YEAR UGANDA HALF IS SPENT ON SELF MEDICATION OVERLOOK
- 45. YOLOR team SECTORMARKET 35 ASIA HEALTHCARE INDUSTRY SPENDING 2.9 BILLION AFRICA 486 MILLION L.A. 360 MILLION E.E. 254 MILLION
- 46. HEALTHCARE INDUSTRY WHEREIS THE MARKET? YOLOR team SECTOR MARKET 36 ASIA RURAL 2.4 TIMES LARGER THAN URBAN AFRICA URBAN AND RURAL ROUGHLY SAME L.A. URBAN IS 3.5 TIMES THE RURAL E.E. URBAN IS 61% LARGER THAN RURAL
- 47. YOLOR team SECTORMARKET 37 MORE THAN HEALTHCARE INDUSTRY WHAT DO THEY BUY? 50% SPEND MONEY ON PHARMACEUTICALS
- 48. YtOeamLOR SECTOR MARKET 38 IT MAY SEEM OBVIOUS BUT THOSE IN BOP JOIN THE GLOBAL ECONOMY ICT INDUSTRY OVERLOOK CAN’T UNLESS THEY ARE CONNECTED
- 49. YOLOR team SECTORMARKET 39 ASIA SPENDING 2.9 BILLION AFRICA 486 MILLION L.A. 360 MILLION E.E. 254 MILLION ICT INDUSTRY
- 50. YOLOR team SECTORMARKET 40 LARGELY CENTERED WHERE IS THE MARKET? URBAN ICT INDUSTRY
- 51. YOLOR team SECTORMARKET 41 PHONE WHAT DO THEY BUY? V COMPUTERS AVERAGE PHONE $30 MSRP PREPAID SERVICES ICT INDUSTRY
- 52. SECTOR MARKET tYeamOLOR WATER INDUSTRY 42 MORE THAN LACKS CLEAN WATER POLLUTED WATER SOURCES OVERLOOK 1 BILLION URBAN WATER NETWORKS AGING
- 53. YOLOR team SECTORMARKET 43 ASIA SPENDING 2.9 BILLION AFRICA 486 MILLION L.A. 360 MILLION E.E. 254 MILLION WATER INDUSTRY
- 54. WATER INDUSTRY YOLORteam SECTOR MARKET 44 AFRICA VARIED FROM COUNTRY TO COUNTRY ASIA URBAN SPENDING DRIVES MARKET E.E. MAJORITY URBAN REGION WHERE IS THE MARKET? L.A. MAJORITY URBAN REGION
- 55. YtOeamLOR SECTOR MARKET ENERGY INDUSTRY OVERLOOK 45 LACK OF AFFORADABLE ENERGY HARMFUL FUELS USED IN COOKING POLLUTION
- 56. YOLOR team SECTORMARKET 46 ASIA SPENDING 2.9 BILLION AFRICA 486 MILLION L.A. 360 MILLION E.E. 254 MILLION ENERGY INDUSTRY
- 57. ENERGY INDUSTRY YOLORteam SECTOR MARKET 47 ON AN AVERAGE WHERE IS THE MARKET? RURAL BOP USES 45% LESS ENERGY THAN URBAN
- 58. HALF YtOeamLOR SECTORMARKET FOOD INDUSTRY OVERLOOK 48 MORE THAN OF BOP BUDGET % SPENDING ON FOOD DECREASES AS INCOME RISES
- 59. YOLOR team SECTORMARKET 49 ASIA SPENDING 2.9 BILLION AFRICA 486 MILLION L.A. 360 MILLION E.E. 254 MILLION FOOD INDUSTRY
- 60. FOOD INDUSTRY WHEREIS THE MARKET? YOLOR team SECTOR MARKET 50 AFRICA RURAL 1.6 TIMES LARGER THAN URBAN ASIA RURAL MARKET IS 2.5 TIMES THE URBAN L.A. URBAN IS 2.4 TIMES THE RURAL E.E. PREDOMINANTLY URBAN
- 61. YOLOR team SECTORMARKET 51 NECESSITIES WHAT DO THEY BUY? NOT ENSURING NUTRITION FOCUSED MORE ON LOCAL SUSTENANCE FOOD INDUSTRY
- 62. BOP CHARACTERIZATION SECTORMARKETS STRATEGIES BANGLADESH YOLOR team
- 63. YOLOR team STRATEGIES 52 FOCUSING ON THE BOP UNIQUE PRODUCTS AND SERVICES OFTEN REQUIRE REIMAGINING OF ORGANIZATIONAL RESOUCES GENERIC
- 64. YOLOR team STRATEGIES 53 LOCALIZING VALUE CREATION THROUGH FRANCHISING TREATING COMMUNITY AS A CUSTOMER GENERIC USUALLY INVOLVE SUBSTANTIAL INVESTMENT
- 65. YOLOR team STRATEGIES 54 ENABLING ACCESS TO GOODS AND SERVICES FINANCING GENERIC PREPAID PACKAGING INNOVATIONS
- 66. YOLOR team STRATEGIES CAPITALIZING THE MARKET AT THE BOP
- 67. CAPITALIZING THE BOP YOLOR team STRATEGIES 55 SHAPE ASPIRATIONS INCLUSIVE GROWTH SUSTAINABLE DEVELOPMENT MUTUAL VALUE CREATION
- 68. CAPITALIZING THE BOP YOLOR team STRATEGIES 56 INCLUSIVE GROWTH
- 69. CAPITALIZING THE BOP YOLOR team STRATEGIES 57 TAILOR LOCAL SOLUTIONS MARKET SPECIFIC PRODUCTS CO-CREATION INSTEAD OF SELLING BRANDINGINNOVATION
- 70. INNOVATION ENIVORFIT YOLORteam 58
- 71. CAPITALIZING THE BOP YOLOR team STRATEGIES 59 SACHET
- 72. CAPITALIZING THE BOP YOLOR team STRATEGIES 60 INCREASING BUYING POWER MICROCREDIT MOBILE BANKING VENTURE CAPITALS JOINT VENTURE
- 73. CAPITALIZING THE BOP YOLOR team STRATEGIES 61 IMPROVE ACCESS INFRASTRUCTURAL DEVELOPMENT COMMUNICATION LINKS COUNTRY COLLABORATIONS
- 74. SHAPE ASPIRATIONS - INCLUSIVE GROWTHPRODUCTS - SUSTAINABLE DEVELOPMENT - VALUE CREATION YOLOR team STRATEGIES 62 TAILOR LOCAL SOLUTIONS - MARKET SPECIFIC PRODUCTS - CO CREATION - BRANDING - INNOVATION INCREASE BUYING POWER - MICROCREDIT - MOBILE BANKING - VENTURE CAPITALS - JOINT VENTURE IMPROVE ACCESS - INFRASTRUCTRUAL DEVELOPMENT - COMMUNICATION LINKS - COUNTRY COLLABORATION - PUBLIC PRIVATE PARTNERSHIP
- 75. YOLOR team STRATEGIES DIGITIZATION
- 76. DIGITIZATION YOLOR team STRATEGIES 63
- 77. DIGITIZATION YOLOR team STRATEGIES 64
- 78. DIGITIZATION YOLOR team STRATEGIES 65
- 79. DIGITIZATION YOLOR team STRATEGIES 66
- 80. DIGITIZATION YOLOR team STRATEGIES 67 UNLOCK UNTAPPED MARKET CURRENTLY LEGACY MODEL CAN’T SERVE THE BOP ALSO FACE HIGH TRANSACTIONAL COST NOT BEING ABLE TO ACCESS REMOTE LOCATIONS
- 81. BOP CHARACTERIZATION SECTORMARKETS STRATEGIES BANGLADESH YOLOR team
- 82. YOLOR team BANGLADESH 68 CAN THERE BE A BRAND FOR BOP? PROVIDE A CLOTHING BRAND
- 83. YOLOR team BANGLADESH 69 CAPITALIZE ON LEATHER PRODUCT CATER TO BOP MARKETS
- 84. YOLOR team BANGLADESH 70 PHARMACEUTICALS COMPETITIVENESS ADVANTAGE GENERIC DRUGS IN LDC COUNTRIES
- 85. YOLOR team BANGLADESH 71 FINANCING SERVICES TO THE BOP BKASH MODEL
- 86. YOLOR team BANGLADESH 72 #1 IN DISASTER MANAGEMENT CO-ORDINATE WITH AID
- 87. BANGLADESH NGO WASTECONCERN YOLOR team 73
- 88. THE POTENTIAL MARKET IS LIMITLESS YOLOR team BOTTOM OF THE PYRAMID
- 89.