Independently, several years back there were two topics of discussion in business strategy and marketing. They were the Blue Ocean Strategy and the BOP (Bottom [or Base] of the Pyramid Markets). I thought it would be interesting to apply the Blue Ocean Strategy process to penetrating the BOP, which represents the world’s 4 billion people who live on less than US$2/day. In Blue Ocean Strategy language, this market falls in the Third Tier, “Unexplored” markets. That is the type of target market that the Blue Ocean Strategy explores. Taking the Blue Ocean Strategy “Value Curve”, I explore several product lines that could be successful in that very special market. Have a look at the attached. I hope it generates some ideas to think about.

1. 1
Blue Ocean Strategy at
the Bottom of the Pyramid
Blue Ocean Strategy, W. Chan Kim/Renee Mauborgne, Harvard Business School Press,

2. 2
Three Customer Tiers, Unexplored Case
(Bottom of Pyramid)
Examples of penetrating the unexplored bottom of the pyramid markets.
World population
Most marketing attention
in developing countries
Some attention in
developing countries
No attention
at all from major
business community
This emerging middle group (2.6 billion
people, as of 2005) has discretionary
income and spend on education, health,
energy, transportation and personal care.
4 billion people live on less than US$2/day.
Because of the number of people, they
have US$5 trillion in purchasing power.

3. High
OfferingLeveltoreachandservicetheBOP
Above
average
Average
Below
average
Low
Non
existent
Country,culturallanguage,
skillleveldifferences
Understandingofproduct
use&harshconditions
GoodPrice
toutility-
Quickproduct/service
modification
Government,NGO,local
communitysupport
Productdeskilling
BOP market
Producttraining
“Value Curve”: For the Bottom of the Pyramid (BOP)
(Guidelines)
3
Urban middle class market
Ruraldistributionchannel
Corruption
exposure
Waste,water,
powerusage
Wordofmouth
promotion
Organizeself-
developmentgroups
Developinformation
systemsforilliteratemarket
Developlending&
creditsystem

4. Above
average
Average
Below
average
Low
4
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Hindustan Unilever – Lifebuoy Soap in India)
High
Lifebuoy
Urban Soap
Rural Soap
Diarrhea is the third-highest case of death in the world behind acute respiratory infections and AIDS.
It is preventable with better hygiene.
Saves live, prevents illness

5. 5
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Hindustan Unilever – Lifebuoy Soap)
Rural market

6. Above
average
Average
Below
average
Low
6
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Jaipur Rugs business model – Connecting Rural India to Global Markets)
High
Jaipur Rug
Standard rug producerReaching, training, empowering
rural entrepreneurship

7. 7
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Jaipur Rugs business model – Connecting Rural India to Global Markets)
Rural operation

8. Above
average
Average
Below
average
Low
8
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Casas Bahia: Retail for the Poor in Brazil)
High
Casas Bahia
Standard retailer
Credit for the poor
*Up to R$600 (US$390)

9. Above
average
Average
Below
average
Low
9
High
CEMEX strategy
Standard cement
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Cement Sales, CEMEX: Mexico)
Homes, extra rooms for the poor

10. Above
average
Average
Below
average
Low
10
High
Annapurna
Unbranded salt
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Iodized Salt, India-Hindustan Unilever “Annapurna”)
Reducing developmental
& metal disorders from
lack of iodine in diet

11. Above
average
Average
Below
average
Low
11
High
Aravind approach
Standard eye care
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Eye Care, India-Aravind Eye Care)
Reducing needless blindness worldwide

12. 12
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Eye Care, India-Aravind Eye Care)
Reducing needless blindness worldwide

13. Above
average
Average
Below
average
Low
13
High
ICICI
Standard Banking
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, ICICI: Financial Services to the Poor)
Getting credit to people who have none
Self-help

14. 14
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, ICICI: Financial Services to the Poor)
Getting Credit to People who have none
Rural ATM
Available
Self-help for credit
& savings

15. Above
average
Average
Below
average
Low
15
High
Voxiva alert system
Standard medical information
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Voxiva: Health Alerts to reduce disease crises & provide urgent care)
Saving lives with early warning & guidanceSelf-help

16. Third Customer Tier, Unexplored Case
(Bottom of Pyramid, Voxiva: Health Alerts to reduce disease crises & provide urgent care)
Saving lives with early warning & guidance
Telephone
information
processing
16

17. Above
average
Average
Below
average
Low
17
High
E+Co solutions
Standard energy sources
Third Customer Tier, Unexplored Case
(Bottom of Pyramid, E+Co: Clean energy for rural regions
Supplying energy
where there is none
Most rural areas in developing countries has poor source of energy, usually relying on firewood and
dung for heat and cooking which is very dirty and unreliable.

18. Third Customer Tier, Unexplored Case
(Bottom of Pyramid, E+Co: Clean energy for rural regions
18

19. 19
Developing your own value curve far
reaching markets can be approached
Blue Ocean Strategy, W. Chan Kim/Renee Mauborgne, Harvard Business School Press,