2. CONTENT
Concept of BOP
Market at BOP
Products and Services for BOP
Global Opportunity
Ecosystem for Wealth Creation
Reducing Corruption
Developing Social Transformation
3. CONCEPT OF BOP
BOP: Bottom of Pyramid
Concern for BOP
Big Questions:
• Why can’t we do something for BOP?
• Why can’t we mobilize the investment capacity of large
firms with the knowledge and commitment of NGO’s and
the communities that need help?
• Why can’t we co-create unique solutions for BOP?
Bigger Question:
• What is the solution for all these questions?
4. MARKET AT THE BOP
•Poor are not victim or burden
•There is a large market opportunity at BOP
•How?
•MNCs biggest mistake
•New growth opportunity for MNC
•MNC must become an integral part of the
work at BOP
•Dominant Logic
5. MARKET DEVELOPMENT IMPERITIVES
Create the capacity to consume
3 Basic Principles:
Affordability
Access
Availablility
Need for new goods and services
Dignity and choice
Trust
6. BENEFIT TO MNCS
4 to 5 billion
underserved population
13 trillion PPP
Large potential
BUT…
Need for innovation
7. NATURE OF BOP
There is money at BOP
BOP accepts advanced technology ( ITC e-Chaupal)
BOP Market is connected (Grameen phones, Bangladesh)
Access to BOP (HLL, Shakti)
8. PRODUCTS AND SERVICES FOR BOP
Philosophy of developing Products and Services for BOP
Twelve Principles of product innovation:
1. Price-Performance (Reliance Monsoon Hungama)
2. Innovation: Hybrid (HLL Iodized Salt
3. Scale of Operation (Serving 1.5 billion across the border)
4. Identifying functionality (Jaipur Foot)
5. Sustainable Development (Resource Utilization)
6. Process Innovation (Arvind Eye Care)
7. Deskilling of work (Peru, Cemex)
8. Education of customers (HLL, Handwash)
9. Designing of hostile infrastucture (ITC e-Chaupal)
10. Interface (Creative interface Design)
11. Distribution (ICICI e-banking, ATM, Rural Banking)
12. Change in conventional wisdom in delivery of goods and
services
9. BOP: GLOBAL OPPORTUNITY
Engaging BOP
Local Growth Opportunities
(S curve & I curve)
Local Innovation and Global
opportunity
BOP Solutions for
developed markets
Lessons for MNCs from
BOP Markets:
Capital Intensity
Sustainable
Development
Innovation
Costs of Managing
Learning to Live in a
Network of Relationships
10. ECOSYSTEM FOR WEALTH CREATION
Market Oriented Ecosystem:
Micro Enterprises
Small and Medium
Enterprises
Cooperatives
Large Local MNC firms
NGO
Ecosystem for Developing
Countries (HLL)
Learning the Sanctity of
Contracts ((HLL, Shakti
Amma)
Reducing Inequalities in
Contracts (ITC e-Chaupal)
Building Governance
Capacity Among the poor
(Bank of Madura, ICICI)
13. DEVELOPING SOCIAL TRANSFORMATION
Social transformation
Breaking down communication barriers
BOP consumers upgrade
Gaining access to knowledge
Identity for the individuals
Women are critical for development
Evolving checks and balances
14. CONCLUSION
The real test: From the Pyramid to the Diamond