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Access@
Bottom of Pyramid
Expanding beyond the metros: How to accessbottom of the pyramid consumers in India ? ?
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2
AGENDA
SECTION I Background
SECTION II Case Studies
SECTION III Recommendations
Questions and Answers
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Four Billion poor can be the engine for next round of global trade and prosperity.
Serving the Bottom of the Pyramid consumers will demand innovations in Technology,
products and services, and business Models. More importantly it will require large firms
to work collaboratively with civil society organizations and local governments.
C.K. Prahlad
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BACKGROUND
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GM drives into ruralmarkets to sparksales ..MINT
Mobile Phone vendors dialinto rural segment
.ECONOMIC TIMESHero Honda to focus onrural MarketsDomainB LG to focus on rural markets
to fight slowdown
.ECONOMIC TIMES
Cement firms shift focus to villages BUSINESS STANDARD
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Infrastructure
> In last 50 years, 40% villages have been connectedby road, in next 10 years another 30% would beconnected
> More than 90% villages are electrified
> Rural Telephone density has gone up by 300% inthe last 10 years
> Number of pucca houses doubled from 22% to41%
Media Penetration
> 41 million Kisaan Credit Cards issued.
> 42 mn rural household are availing bankingservices in comparison to 27 mn urban HH
> Of the total 20 mn rediffmail signup , 60% arefrom small towns.
Disposable Income
> 72% of the Population contributes nearly half ofGDP
> 6 Lakh + Villages, 36 Lakh Shops
> Percentage of BPL families declined from 46% to27%
Aspirations
> 60% of the Goods Consumed by Rural in India
> By 2030, Rural will be 4 times the size of Todaysurban Market
> Rural Literacy improved from 36% to 59% in pasttwo decades
What isChanging ?
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Availability Affordability
Acceptability Awareness
CHALLENGES IN RURAL MARKETING APPROACH
Lack Regular Cash Flow
Little access to Credit Low per capita Income
Traditional Methods of
Advertising difficult
Low Literacy
Physical communication
facilities difficult
Conventional
Distribution channel
not effective. High Cost of Creation
Vast & uneven spread
BarriersCultural ,
Social
Multiple Languages ,
Dialects
Seasonal demand
patterns
Product positioning
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PRODUCTION - SALE CYCLE FOR BOP
Product Design&
ManufacturingDistribution
Marketing &Promotion
Purchase byEnd Consumer
Product RelevanceSocial
Determinant
Low Price PacksEntry barrier
low
Induce Trial
Educate
Usage of Acceptable tools ofpromotion
Use Platforms, commonly visited
Social , Emotional Connect
Repeat purchase
Word of Mouth Involvement of the Community
Community Empowerment
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AGENDA
SECTION I Background
SECTION II Case Studies
SECTION III Recommendations
Questions and Answers
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CASE STUDIES
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HUL PROJECT SHAKTI
Collaborated with Self-Help Groups (SHG) to extend rural reach by offering
them opportunities for business.
BUSINESS OBJECTIVE
Direct reach into untapped markets through local influencers
Sales and distribution initiative that delivers growth
Communication initiative that builds brands
Micro-enterprise initiative that creates livelihoods
SOCIAL OBJECTIVE
Provide sustainable livelihood opportunities for underprivileged rural women.
Social initiative that improves the standard of life in rural India by providing
quality products.
Scalable and sustainable
Started with 17 women in two states. Today, it provides livelihood enhancing
opportunities to about 45,000 women in 15 Indian states and provides access to
quality products across 100,000+ villages and over 3 million households every
month.
Video Link:http://www.youtube.com/watch?v=keTOZ4rfF6I&feature=player_embedded
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LIFEBUOY - HUL
Reformulation : Added Floral Scent, Milled Soap for longer life and more lather
Change in Price : Low Cost
Awareness : Soap only associated with removal of visible dirt, Mass Media Radio & TVnot available.
Community Involvement : Hired two-person facilitator teams to go into village schools
and initially teach youngsters between the ages of 5 and 13 about the problems that can be
caused by invisible germs and how they can be largely eliminated by washing hands with
soap. Parents and village elders are then approached with similar messages.
Most cases of diarrhea can be prevented simply
by washing hands with soap. In India, whichcontributes 30% of all diarrhea deaths in the
world, surveys indicate that even though 95% of
Indian households own soap, only 30% use soap
daily.
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E-Choupal - ITC
Offers the farmers all the information, products and services they
need to enhance farm productivity, improve farm-gate price
realization and cut transaction costs.
Madhya Pradesh,Uttar Pradesh, Andhra Pradesh, and Karnataka
Recognized as Indias largest Internet-based initiative, covering
1,300 choupals, linking 7,500 villages, and serving almost 1
million farmers.
Altogether, more than Rs 1 billion (US$21 million) intransactions have occurred so far.
KEY REASONS FOR SUCCESS
Partnerships built with academia and NGOs to create and
document relevant knowledge about agricultural practices that
are useful for farming communities.
Participatory method in which ITC tried to understand the
information needs of rural communities.
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HORLICKS ASHA - GSKCH
People in rural areas were not regular users of Horlicks because they were short of cash. They could
afford to buy it rarely and would make it last for months. The company needed a product that could
be used on a regular basis.
Reformulation : Horlicks Asha, along with a Small Low Price pack
Change in Price : 40% cheaper than the mainstream brand
Test-marketed in pockets of Andhra Pradesh & Karnataka.
Promotion
Distribution
Added 4,000 sub-distributors to its existing 500 distributors in smaller towns.
Awareness
Series of street plays for introducing the product.
Screening movies and taking the product message across.
Participated in 60 Village Fairs
Tie up with a microfinance group ( SKS Finance ) to distribute 75,000 Samples
PROJECT FAILEDPRODUCT WITHDRAWN
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Micronutrient
Deficiencies
Prevalence(World wide)
Success ofInterventions
Solutions
Low Medium High
Good Moderate Low
Iodized Salt
with Ki & KiO3
Natural & Synthetic
Vitamin A
Food Fortification &
Supplementation
Iodine Vitamin A Iron
Price : Low Price , Small Unit Packs Taste & Form : Acceptable, Iron Fortified Beverage
Distribution : NGO Partnership with Community
Engagement
Marketing & Promotion : Women Empowerment with
creation of Women Entrepreneurs
VITINGO : COCA COLA INDIA
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Initiated Partnership with BISWA in 2009
Effectively utilize BISWA infrastructure (Office and Manpower) to reach out to >
9,00,000 women beneficiaries.
Potential of 1 million U/Cs annually
ACTION
Initiated Partnership with Madura Micro Finance in 2010
Create Women Entrepreneurs to reach out to > 5,00,000 women beneficiaries
across the State.
Potential of > 0.5 million U/Cs annually
Initiated Partnership with Gajam India in 2011
To Create Village Level Entrepreneurs (Women) to reach out to > 10,000 schools in
Bihar.
Potential of 1 million U/Cs
Currently in talks with MYRADA to:Co-create a small scale production unit at the village level that will be independently managed by
a MYRADA Community ManagerTo integrate the production capacity with Government of Karnataka to on-board Vitingo on to the
National Rural Health Mission (NRHM) project on iron deficiency alleviation.
ORISSA
TAMIL NADU
BIHAR
KARNATAKA
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GE HEALTHCARE
PRODUCT - ECG for rural Market
Low Price , reducing the cost of a single ECG exam to as little as the price of a bottle of water
for rural patients
Incorporating a smaller printer
High Battery Life. Moreover, battery performance has been enhanced, enabling as many as 500
ECG readings on a single battery charge.
MARKETING - Its through direct sales efforts that GE is making strides into the rural and semi-
rural markets in India, and slowly making an impact on the quality of rural health.
OTHER PRODUCTS
Low Cost Infant Warmers
Portable Ultrasound Machines
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NOVARTIS AAROGYA PARIVAR SCHEME
KEY OBJECTIVE
Creating Awareness
Enhancing Local Availability
Developing Affordable Health Solutions
Innovative Direct Approach to make villagers aware or prevalent diseases and encourage them to
seek treatment
DECENTRALISED MODEL
The Field force is in Autonomous Cells. Each Cell has Health Educators and supervisors whocollaborate with Local Health professionals, pharmacy chains and NGOs to address the whole
patient flow including education, diagnosis , treatment, delivery and availability and
accessibility of medicines.
Offering patients integrated solutions to Health Probems rather than mainly selling products to
Health Professionals.
Low Cost, Small Size products
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MORE CASE STUDIES OTHER INDUSTRIES
Telecom : Cellular Phone Network
Banking : Financial Inclusion Mobile Instruments : Nokia
Healthcare Delivery : Narayan Hrudalaya , Sankar Netralaya, Arvind Eye Center
Insurance : MicroInsurance , Microfinance corporations
Automobile : Hero Honda, Mahindra
Development Organizations : GAIN ( Fortified Wheat Flour , Milk , Edible Oil ) , Micronutrient
Initiative
FMCG : Lehar Iron Chusti,HUL Pureit,Britannia Nutrition Foundation
Pharmaceutical : Abbott,Elder Pharmaceutical ( Elvista ), Novo Nordisk ( The Changing Diabetes
Barometer Project ), Eli Lily
Medical Device : GE , Roche
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AGENDA
SECTION I Background
SECTION II Case Studies
SECTION III Recommendations
Questions and Answers
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AGENDA
SECTION I Background
SECTION II Case Studies
SECTION III Recommendations
Questions and Answers
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THANK YOU !!