BRAC serves the bottom of the pyramid through various social enterprises and development programs. It targets the "poor" who earn about $2 per day through its microfinance initiatives. BRAC links rural and urban markets to access money flows from the top of the pyramid to subsidize its rural development programs. It understands market segmentation and only provides charity to the "ultra poor" who are too poor for microfinance. BRAC scales its programs through a three step process of becoming effective, efficient, and then expanding operations through training and systems. Efficiency is key to operating sustainably in low-margin markets.
Usually the companies in the richer world and the products which comes to the market are usually focused on Tier 1, 2 & 3 markets. Tier 4 markets i.e Bottom of Pyramid Markets are usually devoid of products. Many Companies like Hindustan Unilever, Aravind Eyecare, Narayan Hrudiyalaya, Jaipur Foot, Eid Parry, Lijjat Papad, ITC Ltd, etc have came up with the products that are specially made for BOP markets. The market volume is very high as more than 4000 million people in the world are below $2 annual per capita income, Even 46% of the Indian population live below the poverty line.......This people cannot afford to the products available for the tier 1,2 & 3 markets as they cannot afford them..... Thus a greater potential occurs at the BOP market.....Catering BOP market doesn't mean catering 'sachets" to them. Making such products which are affordable by these markets...and thus making profits..... Instead enabling them to purchase the product by enhancing the buying power of the consumers..........Reverse Innovation can bring upon the change to the BOP markets.......
Usually the companies in the richer world and the products which comes to the market are usually focused on Tier 1, 2 & 3 markets. Tier 4 markets i.e Bottom of Pyramid Markets are usually devoid of products. Many Companies like Hindustan Unilever, Aravind Eyecare, Narayan Hrudiyalaya, Jaipur Foot, Eid Parry, Lijjat Papad, ITC Ltd, etc have came up with the products that are specially made for BOP markets. The market volume is very high as more than 4000 million people in the world are below $2 annual per capita income, Even 46% of the Indian population live below the poverty line.......This people cannot afford to the products available for the tier 1,2 & 3 markets as they cannot afford them..... Thus a greater potential occurs at the BOP market.....Catering BOP market doesn't mean catering 'sachets" to them. Making such products which are affordable by these markets...and thus making profits..... Instead enabling them to purchase the product by enhancing the buying power of the consumers..........Reverse Innovation can bring upon the change to the BOP markets.......
I recently made a presentation to a group of marketing experts at the 2nd Annual Marketing to Low Income Consumers Master-class.
Attached was my presentation. In summary, whatever marketing strategies we have employed in the past are irrelevant. It seems no one really knows how to market to this economic class. What we do know is that Africa has the fastest urbanization rate in the world and so the key thing is how do we make transition easier for them with our products?
Marketing shouldn’t meet customers at their station in life, it should ASPIRE to a higher level and offer a social value; quite often that is the failure of the strategies at the BOP.
Our products must have a purpose. They should cater for people with rural income but urban aspirations.
Please go through the presentation and I look forward to your views on this topic. As marketers, we need to fully understand the BOP; who are they? and only then can we begin to crack and develop strategies that work for them.
Many companies have resulted in developing LUP's for the sake of driving penetration, distribution and affordability. Do you think this is the right way to go? Personally, I think there's so much more to it than just driving penetration with smaller packs.
Share your views and let's discuss more.
The Fortune at the Bottom of the PyramidOutline India
The presentation is based on the book “Future At The Bottom Of The Pyramid” by C.K Prahalad and tries to encapsulate his research. It starts off with the notion of how 4-5 billion poor people of the world is unserved by the private sector. Then it addresses the bottom of pyramid (BOP) as a business opportunity and a viable market. It talks about democratizing the commerce and making globalisation benefits reach everybody. The presentation talks about the nature of the BOP market and states some principles that needs to be followed while catering to them. The presentation contains 3 case studies of ITC, HUL and Jaipur Rugs mentioned in the book and tries to explain how they adapted to the BOP market and adjusted their business models to serve the rural India. It also contain slides which tries to incorporate the learnings and takeaways from the book into the OUTLINE India’s business model.
The notion that the Bottom of the Pyramid (BOP) consumers is a segment that is not important for the long-term viability of most of the businesses is no more classified as ‘accepted wisdom’. There is a shift in thinking of MNCs which now are considering BOP consumers as a potential source of revenues as well as drivers of innovation. Targeting the subsistence marketplaces poses various challenges for MNCs, but has favourable outcomes for BOP participants, economy and business organizations. This paper identifies the challenges of launching products targeting BOP markets in India and discusses the implications for consumers, national economy, and companies targeting BOP consumers.
Myths and Reality at the Bottom of the PyramidDY Works
5-6 years since the late CK Prahlad sexed up this demographic, Bottom of the Pyramid has been hotly discussed and grossly misrepresented. Here is DMA Yellow Works' view on the subject.
I recently made a presentation to a group of marketing experts at the 2nd Annual Marketing to Low Income Consumers Master-class.
Attached was my presentation. In summary, whatever marketing strategies we have employed in the past are irrelevant. It seems no one really knows how to market to this economic class. What we do know is that Africa has the fastest urbanization rate in the world and so the key thing is how do we make transition easier for them with our products?
Marketing shouldn’t meet customers at their station in life, it should ASPIRE to a higher level and offer a social value; quite often that is the failure of the strategies at the BOP.
Our products must have a purpose. They should cater for people with rural income but urban aspirations.
Please go through the presentation and I look forward to your views on this topic. As marketers, we need to fully understand the BOP; who are they? and only then can we begin to crack and develop strategies that work for them.
Many companies have resulted in developing LUP's for the sake of driving penetration, distribution and affordability. Do you think this is the right way to go? Personally, I think there's so much more to it than just driving penetration with smaller packs.
Share your views and let's discuss more.
The Fortune at the Bottom of the PyramidOutline India
The presentation is based on the book “Future At The Bottom Of The Pyramid” by C.K Prahalad and tries to encapsulate his research. It starts off with the notion of how 4-5 billion poor people of the world is unserved by the private sector. Then it addresses the bottom of pyramid (BOP) as a business opportunity and a viable market. It talks about democratizing the commerce and making globalisation benefits reach everybody. The presentation talks about the nature of the BOP market and states some principles that needs to be followed while catering to them. The presentation contains 3 case studies of ITC, HUL and Jaipur Rugs mentioned in the book and tries to explain how they adapted to the BOP market and adjusted their business models to serve the rural India. It also contain slides which tries to incorporate the learnings and takeaways from the book into the OUTLINE India’s business model.
The notion that the Bottom of the Pyramid (BOP) consumers is a segment that is not important for the long-term viability of most of the businesses is no more classified as ‘accepted wisdom’. There is a shift in thinking of MNCs which now are considering BOP consumers as a potential source of revenues as well as drivers of innovation. Targeting the subsistence marketplaces poses various challenges for MNCs, but has favourable outcomes for BOP participants, economy and business organizations. This paper identifies the challenges of launching products targeting BOP markets in India and discusses the implications for consumers, national economy, and companies targeting BOP consumers.
Myths and Reality at the Bottom of the PyramidDY Works
5-6 years since the late CK Prahlad sexed up this demographic, Bottom of the Pyramid has been hotly discussed and grossly misrepresented. Here is DMA Yellow Works' view on the subject.
People's Development Trust Fund: a Tool for Poverty ReductionAndre Villalba
Presentation on the findings of a Study for Policy Review by Ma. Angela Villalba for the National Anti-Poverty Commission - focused on the People's Development Trust Fund
Presentation fin4 dev role of microfinance in ghanaISAAC ANNOR
this presentation is about the role of micro finance in Ghana as an agent of development. it also gives some examples of registered micro finance companies in Ghana.
Presented during Tshikululu's first Serious Enterprise Development workshop, which took place on 6 October 2010. Jason Goldberg (founding director, Edge Growth) asks what South Africa can learn from global experience in enterprise development.
G2P Payments are now assuming an important delivery model in building the framework for including excluded category.It discusses how it saves government's delivery channel while opening up other vistas
Grassroots Business Fund annual report 2010dpriadi
The Grassroots Business Fund strives to create a world where economic opportunity reaches everyone. GBF builds and supports High Impact Businesses that provide sustainable economic opportunities to millions of people at the base of the economic pyramid.