An Introduction to

The Fortune at the bottom of the

Pyramid
Submitted to:
Dr. Manisha Panwala

Submitted by:
Kashyap Bhatt

What is Bottom of the pyramid???

Eradicating Poverty Through Profits

 Private Sector and poverty: Progress during

2004-2009
The Original text book
CEO Reactions to the concept and the book
Case studies and CEO comments
Video Clips

The Fortune at the Bottom of the

Pyramid

The Market at the Bottom of the Pyramid

Products and Services for the BOP
BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: Transaction Governance
Capacity
Development and Social Transformation

The Market at the BOP

The Bottom of the Pyramid

The Power of Dominant Logic

The Nature of the BOP Market

There is Money at the BOP

Access to BOP Markets

Shakti Amma ( Empowered Mother )
Avon

 The BOP Markets are Brand Conscious

The BOP Market is connected ( Cell phones )
BOP Consumers accept Advanced Technology
Readily ( e Choupal )

The Market Development Imperative

Create the Capacity to Consume
Affordability
Access
Availability

 The Need for New Goods & Services

Amul
Bolivian Financial Services ATM
Dignity & Choice ( e Choupal )
Trust is a prerequisite
Benefits to the Private Sector

Products & Services for the BOP

BOP Market
Small Unit Packages
Low Margin / Unit
High Volume
High Return on Capital
employed

Rest Market
Large Unit Packages
High Margin / Unit
High Volume
Reasonable Return on
Capital employed

Twelve Principles of Innovation for

BOP markets
Price Performance It is not about lowering
prices. It is about altering the price
performance envelope. ( i.e, RIM, Operations,
Arvind Eye Care System, Citi Bank )
Innovations: Hybrids( HUL - Salt, AMUL - Milk )
Scale of Operations
Sustainable Development: Eco - Friendly

Cont
Identifying Functionality
Is the BOP different from Developed markets?

Cont
Process Innovation

Cont
Deskilling of work ( CEMEX )
Education of Customers ( HLL )
Designing for Hostile Infrastructure ( e
Choupal )
Interfaces
Distribution: Accessing the Customer
BOP Market essentially allow us to challenge
the conventional wisdom in delivery of
products and services

BOP: A Global Opportunity

Engaging the BOP

Local Growth Opportunities

Learning to Grow

Cont
Local Innovations and Global Opportunity ( IDD )
BOP Solutions for Developed Markets
Lessons for MNCs from BOP Markets

Capital Intensity
Sustainable Development
Innovations
The Cost of Managing
Learning to Live in a Network of Relationships

The Ecosystem for Wealth Creation

Market Oriented Ecosystem

Cont

Ecosystems for a Developing Country

Learning the Sanctity of Contracts
Reducing Inequities in Contracts
Building Governance Capabilities Among the
Poor

Reducing Corruption: Transaction

Governance Capacity
Are the Poor Poor?
TGC

TGC

Building TGC

The Andhra Pradesh e Governance Story

eSeva
Center for Good Governance
Impediments
Lessons from the Andhra Pradesh Experiment

Development as Social Transformation

Development as Social Transformation

Breaking Down Barriers to Communication
BOP Consumers Upgrade
Gaining Access to Knowledge
Identity for the Individual
Women are Critical for Development
Evolving Checks and Balances

The Real Test: From the Pyramid to the

Diamond

Thank You