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8/7/2019 Book Review_ Group no 9
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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
8/7/2019 Book Review_ Group no 9
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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 )
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AN INVISIBLEOPPORTUNITY
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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
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THE MARKET DEVELOPMENT IMPERATIVE
Create the capacity to consume.
The need for new goods and services.
Dignity and choice.
Trust is a Prerequisite
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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
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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
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BOP : A GLOBALOPPORTUNITY
Why a MNC should go for BOP markets?
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ENGAGING THE BOP
Developing
a unique
approach toBOP
markets
and
learning
from theexperience
Fine-tuning
the
traditional
approach
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GROWTH OPPORTUNITES
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LESSONS FOR MNCS FROM BOP MARKETS
Capital Intensity
Sustainable Development
Innovations
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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?
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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..
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ITC E-CHOUPAL
Distance from farmer.
Daily price inflation.
Seasonal price inflation.
Improved agriculture
Better lifestyles
Brighter futures
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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
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