3) Distribution4) Demand5) Dignity
“Using the 5D’s—
development, design, distribution, demand and dignity
can provide aroadmap for a cohesive, human-centered strategy for well-designed products that sell, servicesthat are successful, and programs with low drop-out rates. Observation and user researchconducted to understand your new target audience is critical in establishing the relevant value
propositions.” Simplistic approaches have equated BOP with the “sachet revolution”, the
marketing approach to package shampoo and other items in sachets to make them affordable
to poor people. Pralahad’s approa
ch has also been criticised as being neo-liberal and drivingpoor people into buying useless products and into overspending: the controversy was turning
mainly around “Fair and Lovely” a cosmetic product by Hindustan Lever that supposedly makes
brighter. This is indeed a product that is sold in the remotest villages in South Asia…
but whether it eradicates poverty remains to be seen.The market creation approach aims to go beyond just exploiting BOP markets. It isacknowledged that markets do not initially exist for safe water, sanitation, reforestation andmosquito nets. These markets must be created by public investments: the private sector cannot invest in public health or other development domains such as hygiene awareness, malariaprevention or organising small farmers into viable production units. As the purchasing power of poor people is indeed very limited, smart subsidies may be needed to reach the poorest andmost vulnerable groups.
Lehar’s arrival inside the bylanes of
large urban slums like Santosh Nagar represents just one
part of the $60 billion (global net revenue) PepsiCo’s larger push to build a significant business
catering to the consumers at the bottom-of-the-pyramid (BoP) in India. About three years ago,PepsiCo drew up a new blueprint for long-term growth in India. It spoke of the need forsignificantly widening reach, aiming for the new consuming class across urban and rural India
and more importantly, creating a whole new set of locally developed products for the masses.
Till then, PepsiCo’s attempts to push deeper into the Indian heartland had entailed introducing
smaller pack sizes of its wafers and smaller glass bottles of Pepsi cola priced at Rs. 5. But
somehow, that didn’t help widen the consumer base for wafers and b
everages. It realised itneeded a completely different approach to serve BoP consumers. It discovered two routes: Its joint venture with Tata Global Beverages to launch affordable health drinks and also completelyreworking the Lehar business model to connect with a wider consumer base.