BOTTOM OF THE PYRAMID

2 sides of coins

- Jonty Mohta

2

Signs of Emerging BOP • e Choupal:

• HLL-Annapurna

• The Arvind Eye Care System

3

Framework for Sustainable Development

4

Some Guidelines to Innovate at BOP• Requirement for a New Price-Performance

Envelope

• Technology for Product & Process Innovations

• Conserving Resources: Eliminate – Reduce – Recycle

• Educating the People

And The Journey Has just Begun…

5

POVERTY LINE

East Asia & Pacific 214m

Europe & C Asia 10m

Latin America & Caribbean 47m

Middle East & N. Asia 5m

S Asia 437m

Sub Saharan Africa 303m

Total 1016m

Source: World Development Indicators

FACTS

“4 Billion people in the world

survive on less than $ 2 a day”

A MYTH

-PROF.C.K.Prahalad

Significant purchasing power at the BOP.

Selling to the poor.

Role of MNC’s.

Population 4 billion v/s 2.7 billion

Market size$ 13 trillion v/s $ 1.2trillions

Casas Bahia

Amul Ice Cream

Jaipur Foot

Arvind Eye Hospital

AIDS Drugs

Escort Heart Hospital

Do poor have enough money to meet their basic requirements of life?

Source: World Development Indicators

No profits from BOP

91% percent of the profit comes from middle class

Introduced Rs.5 bottle INTEGRATED AT THE BOP

200ml at Rs.5 was too much for rural world.

Company ended up with a reported loss of Rs. 250crores

Does corruption hurt poor as consumers?

Are poor capable enough of making intelligent choices?

Sachets priced at Re1 for 8 ml.

Increase in volume share from

28% to 32%

Profits rose by only 0.5%

Company has to rely on premium

brands for profits

I.T.C

Amul

Raise the income of the

poor

Micro finance

Job creation

Create efficient markets

Efficient role of

government