THE

FORTUNE AT THE

BOTTOM OF THE PYRAMIDERADICATING POVERTY THROUGH PROFITS

C K PRAHALAD

Rachit Agrawal

At The Bottom Of The Pyramid

Consists of 4 billion people

Living on less than $ 2 per day

400 million people in India constitutes the bottom of the pyramid

Purchasing PowerParity in US dollars > $20,000 Tier1

Tiers 2-3

Tier 4

Tier 5

$1,500 - $20,000

$1,500

<$1,500

75 - 100

1,500 – 1,750

4,000

Population in Millions

Exploitation of poor people by Private sector.

Rural population was primarily poor & urban population was relatively rich.

Private sector businesses , especially MNCs logic about BOP.

There is money at BOP.

Access to BOP markets.

The BOP markets are Brand – Conscious.

The BOP market is connected.

BOP consumers accept advanced technology readily

Create the capacity to consume.

The need for new goods and services.

Dignity and choice.

Trust is a Prerequisite

A philosophy for developing products & services for the BOP

- small unit packages

- low margin per unit

- high volume

- high return on capital employed

Price Performance Innovation : Hybrids Scale of Operations Sustainable Development : Eco-Friendly Identifying Functionality : Is the BOP different

from Developed Markets? Process Innovation Deskilling Of Work Education Of Customers Designing for Hostile Infrastructure Interfaces Distribution : Accessing the Customer BOP markets essentially allow us to challenge

the Conventional Wisdom in Delivery of Products and Services

Why a MNC should go for BOP markets?

Developing a unique approach to BOP markets and learning from the experience

Fine-tuning the traditional approach

Micro encapsulation of iodine in salt – in India has found market in Africa & Tanzania.

Launch of Wheel detergent by HLL.

Micro-financing by Grameen Bank in Bangladesh.

Aravinda Eye Care

Capital Intensity

Sustainable Development

Innovations

What type of Ecosystem is Required?

What sort of Ecosystem is required for Developing Countries?

New-Market disruption enables less-skilled people to do more sophisticated things.

Galanz Enterprise

Grameen Telecom

UTStarcom

Some MNC`s have stated to pay more attention to BOP markets.

BOP can be source of innovation

Is it as easy as he makes it sound?

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