The Fortune at the

Bottom
of the Pyramid
Group no: 9

By
Suvajeet

ByShakti
: Agrawal
Tapan Doshi
Shakti Agarwal
Pankaj Gehlot
Pankaj Gehlot
Rahul Kasture
Pratik Sisodiya
Pratik Sisodiya

Tapan Doshi
Suvjaeet Dey
Rahul Kasture
WHAT IS BOTTOM OF PYRAMID?.....

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 )
AN INVISIBLE OPPORTUNITY
GENERAL ASSUMPTION ABOUT BOP
 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

THE MARKET DEVELOPMENT
IMPERATIVE

 Create the capacity to consume.

 The need for new goods and services.

 Dignity and choice.

 Trust is a Prerequisite
 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

12 PRINCIPLES OF INNOVATION FOR BOP MARKETS
 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
BOP : A GLOBAL OPPORTUNITY

 Why a MNC should go for BOP markets?

 ENGAGING THE BOP

Developing a
unique Fine-tuning the
approach to traditional
BOP markets approach
and learning
from the
experience
GROWTH OPPORTUNITES
LESSONS FOR MNCS FROM BOP
MARKETS
 Capital Intensity

 Sustainable Development

 Innovations
CHALLENGES IN THE 86% 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?
SUCCESS STORY – HUL …..
HUL - a successful example large corporations profitably
tapping BOP markets,

HUL’s success with low-priced candy aimed at the BOP

markets.

 HUL offered Max in two sizes, at 25 paise and 50

paise .
HUL they tend to the success of some companies, and
give too much credit to a few innovations, such as the use
of small packages.
ITC E-CHOUPAL

Distance from farmer. Improved agriculture

Daily price inflation. Better lifestyles

Seasonal price inflation. Brighter futures

 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”

 ou
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