book review_ group no 9

8/7/2019 Book Review_ Group no 9

1/16

By

Suvajeet

Shakti Agrawal

Tapan DoshiPankaj Gehlot

Rahul Kasture

Pratik Sisodiya

The Fortune at

the Bottomof the Pyramid

By :

Shakti Agarwal

Pankaj Gehlot

Pratik Sisodiya

Tapan Doshi

Suvjaeet Dey

Rahul Kasture

Group no: 9


2/16

WHAT IS BOTTOM OFPYRAMID?.....

In economics, the bottom of the pyramid is the largest,

but poorest socio-economic group

It is also often referred to as the "Base of the Pyramid"

or just the "BoP"

current usage refers to the billions people living on less

than $2 per day-as defined by Professors C.K. Prahalad

and Stuart L. Hart (in 1998 )


3/16

AN INVISIBLEOPPORTUNITY


4/16

GENERAL ASSUMPTION ABOUTBOP

There is no money at the BOP

Distribution access is difficult

The BOP are not brand conscious

The BOP consumers are not connected

Are laggards at Technology


5/16

THE MARKET DEVELOPMENT IMPERATIVE

Create the capacity to consume.

The need for new goods and services.

Dignity and choice.

Trust is a Prerequisite


6/16

PRODUCTS AND SERVICES FOR THE BOP

A philosophy for developing products & services for the

BOP

- small unit packages

- low margin per unit

- high volume

- high return on capital employed


7/16

12 PRINCIPLES OFINNOVATION FORBOP

MARKETS

Price Performance

Innovation : Hybrids

Scale of Operations

Sustainable Development : Eco-Friendly

Identifying Functionality : Is the BOP different fromDeveloped Markets?

Process Innovation

Deskilling Of Work

Education OfCustomers

Designing for Hostile Infrastructure Interfaces

Distribution : Accessing the Customer

BOP markets essentially allow us to challenge theConventional Wisdom in Delivery of Products andServices


8/16

BOP : A GLOBALOPPORTUNITY

Why a MNC should go for BOP markets?


9/16

ENGAGING THE BOP

Developing

a unique

approach toBOP

markets

and

learning

from theexperience

Fine-tuning

the

traditional

approach


10/16

GROWTH OPPORTUNITES


11/16

LESSONS FOR MNCS FROM BOP MARKETS

Capital Intensity

Sustainable Development

Innovations


12/16

CHALLENGES IN THE86% MARKETS

Markets, culture and environments are demanding

Extremely fragmented markets

Youthful and growing populations

Limited income and space

Underdeveloped infrastructure

Weak supply and distribution channels

Rapidly changing markets

Can these Challenges

be converted into Opportunities?


13/16

HUL - a successful example large corporations profitably

tapping BOP markets,

HULs success with low-pricedcandy aimed at the BOPmarkets.

HUL offered Max in two sizes, at 25 paise and 50

paise .HULthey tend to the success of some companies, and

give too much credit to a few innovations, such as the use

ofsmall packages.

SUCCESS STORY HUL u..


14/16

ITC E-CHOUPAL

Distance from farmer.

Daily price inflation.

Seasonal price inflation.

Improved agriculture

Better lifestyles

Brighter futures


15/16

IN CONCLUSION

"The transformation is just beginning.

There will be hiccups along the way

The only certainty is, the BOP markets are here to stay.

Even though they won't become developed tomorrow, they are the future.

And the companies that can develop the right solutions to meet their needs

will find a rich source of growth.

Most imp it needs a New Way of Thinking


16/16

book review_ group no 9

Documents