Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business
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Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business
Knowledge & lessons learned from marketing and selling to the so called Base of the Pyramid (BoP)
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Forbes India Magazine - Businesses For the Poor

Forbes India Magazine - Businesses For the Poor | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

How do you un-poor the vast multitude around the world? Economic growth ought to be an obvious solution, but it is harder than it seems. Governments have their public works programmes. The rich try and contribute through charity and philanthropy.

 

And then you have Jacqueline Novogratz’s approach. Hers is a middle ground. It takes certain features of the markets-based approach and fuses it with elements of the grant-based approach because there are areas where the markets approach will not work. Novogratz calls it “patient capital”.

 

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To achieve inclusive business, companies must ramp up their understanding and capacity for partnering with other societal sectors

To achieve inclusive business, companies must ramp up their understanding and capacity for partnering with other societal sectors | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

To achieve inclusive business, companies must ramp up their understanding and capacity for partnering with other societal sectors.

 

Inclusive business (IB) projects, by definition, tend to sit in areas outside of companies’ traditional comfort zones. Whether providing incomes to disadvantaged people by including them in the company’s value chain, or developing new markets with pro-poor products or services, they are rarely business as usual, requiring a much stronger interaction with ‘society’ than traditional business

 

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bottom of the pyramid (BOP) definition from Financial Times Lexicon

The Bottom of the Pyramid (BOP) is a socio-economic concept that allows us to group that vast segment - in excess of about four billion - of the world’s poorest citizens constituting an invisible and unserved market blocked by challenging barriers that prevent them from realising their human potential for their own benefit, those of their families, and that of society's at large.

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Connecting & Enriching the Lives of Every Person on Earth | CSR@Intel

Connecting & Enriching the Lives of Every Person on Earth | CSR@Intel | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Let’s start by thinking of people’s use of technology as a pyramid.

 

We all start at the big base of the pyramid – communicating, playing, seeking information. In other words, as users of technology. Then we move up a level as builders – we use technology to build our communities, do our jobs, help our families, improve our lives. And at the tip of the pyramid we have the creators – envisioning and creating technology.

 

Today, all around the world, women and girls are underrepresented at every level of that pyramid. If Intel truly wants to enhance the lives of every human being on earth, we’ve got some catching up to do with the female half of the population. But we’ve made a good start! Twelve million teachers around the world have learned to use technology with their students thanks to Intel Teach. Well over half are women. Think of the impact that has on the girls they teach, and on their own lives.

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Nokia Brings Phones to the Billion at the Base of the Pyramid (BoP)

Nokia Brings Phones to the Billion at the Base of the Pyramid (BoP) | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

It’s much easier for a company to demonstrate its commitment to sustainability in good times than in bad times. Yet, companies that don’t abandon sustainability when it gets tough not only demonstrate a truthful commitment, but also find that it can play an important role in transitional times.

 

Take Nokia, for example. The company’s latest sustainability report for 2011 shows very clearly how Nokia uses sustainability to address very difficult challenges in one of the worst times in the company’s history

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IFC Will invest US $ 1 bn in India for inclusive growth and climate change: Karin Finkelston

IFC Will invest US $ 1 bn in India for inclusive growth and climate change: Karin Finkelston | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
A member of World Bank Group, International Finance Corporation (IFC) has chalked out its investment plans for India focusing mainly on the renewable energy sources and targeting the bottom of the pyramid. Karin Finkelston, vice president, Asia Pacific talks to Rutam Vora on IFC's investment plans in India during the current year. Edited excerpts:

 

What are your plans for investments in India during the current year?
In the year 2011, our commitments in the entire South Asia was about US $ 742 million. This year, we are planning to invest about US $ 1 billion in India alone. This will be the largest investment in a single country by IFC in a year. Also, IFC's largest country exposure is in India at US $ 3,766 million worth of committed portfolio, which is about 9 per cent of IFC's global portfolio.

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The Economist: Spreading gospels of wealth

The Economist: Spreading gospels of wealth | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

EVEN more private jets than usual landed at Santa Barbara airport on May 9th, as some 35 billionaires and a score or so of spouses flew in for a behind-closed-doors meeting in the luxurious Bacara resort.

 

They included Warren Buffett and Bill Gates, America’s two richest men; Melinda Gates, Ted Turner and Steve and Jean Case, as well as youngsters such as Elon Musk, a founder of PayPal, Pierre Omidyar, the founder of eBay both in their 40s. Their mission: to help each other become better philanthropists.

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An Economic Revolution Driven by Microentrepreneurs

An Economic Revolution Driven by Microentrepreneurs | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
"The 10 member countries of the Association of Southeast Asian Nations (ASEAN) together form an important strategic and economic region with a combined population of over 600 million, a nominal GDP exceeding US$ 1.8 trillion, and a growth rate for the region expected to exceed 5% in 2012 despite ongoing economic turmoil in the Eurozone and the United States. The ASEAN Economic Blueprint has established concrete targets to form a single market and production base by 2015."

 

 

Inasmuch as I am excited with the enormous potential of our region, I still can't help but question how much of that growth will actually impact those at the economic base-of-the-pyramid, arguably those who need to benefit from this the most. The term inclusive growth is often used nowadays, and in the backdrop of connectivity across the region, a conversation on this must constantly take place - not only amongst us social entrepreneurs, but also amongst different stakeholders - government, big business, civil society - and necessarily, with grassroots communities as well.

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Is It Fair To Use The Term "Reverse Innovation" For The Technology From India & China

Is It Fair To Use The Term "Reverse Innovation" For The Technology From India & China | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Is it fair to use the term “Reverse Innovation” for the technology emanating from India & China, especially when these countries are emerging as technology super powers????

 

There was a time when the Innovation was considered to emanate from the rich countries like USA, Germany, & Britain and spread to the rest of the developed world and then when it became obsolete in the developed world, it used to slowly drip down to the developing world as new technology. This was considered the process and procedure for the better part of the 20th century, and was closer to the reality of the times also.

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Microfinance for Water and Sanitation: An Example of Client-Focused Innovation

Microfinance for Water and Sanitation: An Example of Client-Focused Innovation | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Microfinance was conceived in the name of community service. In fact, one could argue that the industry’s DNA inherently aligns it with the needs of local communities.

 

This is one of the industry’s core strengths. As Michael Porter and other insightful business thinkers have emphasized, excessive focus on short-term financial performance while ignoring customer and community well-being distorts decision making, inhibits innovation and ultimately limits financial success.

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VIDEO: MinkaDev: Creating Inclusive Business Ecosystems

Minka-Dev is a platform that connects the needs and aspirations of society's most disadvantaged groups with innovative, inclusive and sustainable business solutions.

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Segmentation for Innovation: Understanding the Financial Service Needs of the Poor in Mexico | Mobile-Financial.com

Segmentation for Innovation: Understanding the Financial Service Needs of the Poor in Mexico | Mobile-Financial.com | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

In an earlier blog post of last year we shared the findings of a market segmentation study in Mexico conducted by CGAP, in collaboration with McKinsey & Company. The study (available in English and Spanish) sought to better understand the financial needs and wants of low-income customers, in an effort to improve product design by financial service providers.

 

A recent CGAP Brief summarizes several key findings from the study and reminds us of the following puzzle: While we may know a lot about the supply side of financial inclusion, the demand side remains poorly understood.

In a perfect market for micro-financial intermediation, product offerings would reflect the distinct needs of a diverse clientele. An artichoke producer in Caraz, Peru would be able to access a loan with flexible repayment schedules to match his revenue stream around the harvest dates. Micro-insurance would allow this same farmer to secure cash flows against adverse weather conditions such as frost and rainfall brought about by “El Niño”.

 

A garment factory worker in Bihar, India would have a savings account with “pockets” for separate financial goals: her daughter’s primary school expenses, university tuition and ultimately her wedding. Ex-ante imposed cut-off dates would determine as of when she is allowed to draw on the accumulated capital.

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Prahalad - Strategies for the Bottom of the Pyramid - Creating Sustainable Development

August 1999.  Before publishing Fortune at the Bottom of the Pyramid, CK Prahalad and Stuart Heart wrote Strategies for the Bottom of the Pyramid: Creating Sustainable Development.

 

"As multinational firms (MNCs) search for avenues for profitable growth and radical innovationin the new millennium, they may find a unique, counter intuitive opportunity – the 4 billion poorthat are at the bottom of the economic pyramid. Converting the very poor into activeconsumers will foster innovations in technologies and business models. It will challengemanagerial (and public policy) assumptions about sustainable development. Managers will beforced to consider the meaning of scale – the need to marry highly distributed small-scaleoperations and a few world scale capabilities --creatively along the value chain. Mostimportantly, conceiving of a market of 4 billion of the world’s poorest people will force areexamination of the “price–performance” relationships for products and services. It willdemand a new level of capital efficiency. The bottom of the pyramid presents a new managerialchallenge – one potentially as powerful as the challenge presented by the proliferation of theInternet and e-business. The transformation of the bottom of the pyramid and the creation of anew and emerging market, like the opportunty in e-business, requires a total transformation of managerial practices in established MNCs. It will also transform public policy debates in bothdeveloped and developing countries."


Via W. Robert de Jongh
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Ghana Bamboo Bikes Initiative wins World Business and Development Award | Ghanamma.com

Ghana Bamboo Bikes Initiative wins World Business and Development Award | Ghanamma.com | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

The Ghana Bamboo Bikes Initiative has been announced as one of eleven winners at the 2012 World Business and Development Awards (WBDA) for its efforts to improve living standards in some of the world’s most disadvantaged communities.


The bamboo bikes can be used for personal or cargo transportation, as well as for commercial purposes. It can carry a much heavier load due to better design and greater strength. Have a better replacement rate of approximately once every five years as the replacement material is locally grown.

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From Gap to Opportunity: Business Models for Scaling Up Energy Access at the BoP

From Gap to Opportunity: Business Models for Scaling Up Energy Access at the BoP | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
This report breaks new ground by estimating that there is a $37 billion market opportunity for improved energy services at the base of the pyramid.

 

More specifically, the report sizes the commercial opportunity for lighting, basic electricity and cooking services, and explores in depth how companies are capturing this potential around the world. With a view to scaling up market-based successes, it offers a series of recommendations for operating firms, social and commercial investors, as well as policy-makers.

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Is it Immoral to Earn Attractive Profits from Poor Customers? - Business Fights Poverty

Is it Immoral to Earn Attractive Profits from Poor Customers? - Business Fights Poverty | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
What are the common features of initiatives that have truly helped extremely poor people move out of poverty?


They begin by thoroughly listening to poor customers and thoroughly understanding the specific context of their lives.
They design and implement ruthlessly affordable technologies or business models.

 

Energizing private sector market forces plays a central role in their implementation.
Radical decentralization is integrated into economically viable last mile distribution.
Design for scale is a central focus of the enterprise from the very beginning.

It is clear that all of these factors are integral components of a business system, but this takes us back to the original question: should it be a business system that enhances the livelihoods of poor people without making a profit for outside investors? Or should it make a profit for investors as well as the poor people who are served by it?

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Jón Sallé's comment, June 13, 2012 5:03 AM
Smells of mission drift : the author forgot to mention that all microfinance manager claiming the same drifted, and either changed the social mission of their institution or were vired...
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Combining philanthropy and business for a win-win outcome – The Express Tribune

Combining philanthropy and business for a win-win outcome – The Express Tribune | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

KARACHI: In Pakistan, many education, health and poverty alleviation projects are financed by philanthropic contributions. One of the key challenges currently faced by the social sector locally and the world-over is the question of the sustainability and scaling of similar efforts.

 

The Monitor Group recently published an insightful study titled ‘From Blueprint to Scale’, in which they reviewed hundreds of examples of social sector inclusive businesses in Africa and Asia to answer the critical question on the role of philanthropy and impact investment in addressing social development challenges in developing and third world countries.

 

One of the challenges identified was finding a way to attract new entrepreneurs into the social sector; which has historically been dominated by private philanthropists and aid donors. The question asked was: if market-based inclusive business solutions hold some promise for wider social impact, then what is the ‘right design’ and ‘roles’ of various players to scale the solution and bring everlasting change?

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Ruma, Grameen Foundation and Qualcomm Launch Mobile Survey Tools that Provide Additional Income to Underserved Indonesians

Ruma, Grameen Foundation and Qualcomm Launch Mobile Survey Tools that Provide Additional Income to Underserved Indonesians | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

JAKARTA, Indonesia, June 6, 2012 /PRNewswire via COMTEX/ -- Ruma, Grameen Foundation and Qualcomm Incorporated QCOM -0.69% , through its Wireless Reach(TM) initiative, today announced the launch of Market Intelligence tools and applications.

 

The mobile survey tools enable businesses to better understand the needs and interests of low-income consumers, while providing additional revenue for some of the world's poorest people. These products are part of the Application Laboratory (AppLab) project that partners announced in 2010.

 

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Why Social Entrepreneurship Is Becoming A Top Career Choice

Why Social Entrepreneurship Is Becoming A Top Career Choice | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Has "social entrepreneur" become a career of choice? Twenty-five years ago, at the founding of Echoing Green, an organization that provides seed money and support to promising social entrepreneurs, young people wanted to be doctors, lawyers or business executives.

 

No one ever said they wanted to be a social entrepreneur. Very few people had even heard the term, which was coined by Bill Drayton, who in 1981 founded Ashoka, a global association of the world's leading social entrepreneurs. Yet today, I often hear young people say, "I want to be a social entrepreneur."

 

Now, being a social entrepreneur is a real choice, popularized by great examples (think of the founders of Teach For America, Freelancers Union and City Year, all of which were launched by Echoing Green Fellows) and supported by university curricula.

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Impact Forum 2012: Igniting Capital Markets for Social Good | SOCAP

Impact Forum 2012: Igniting Capital Markets for Social Good | SOCAP | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

The Impact Forum 2012: Igniting Capital Markets for Social Good is a global conference focusing on examining the latest developments in the Impact Investing and Social Enterprise space in Asia Pacific.

 

It will be held in Singapore on the 25th and 26th of June 2012, and will be a unique opportunity to learn, engage, and deepen experiences and relationships in the Asian impact investing space.

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More Business School Students Turn Toward A Degree In Doing Good

More Business School Students Turn Toward A Degree In Doing Good | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Business school students today may not have their eyes set on big bonuses quite like their predecessors.

 

Studies show that they're turning their finance and entrepreneurial skills towards founding socially responsible businesses

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Impact Investing’s Momentum Today: A Positive Inflection Point? « The Latin American Venture Capital Association

Impact Investing’s Momentum Today: A Positive Inflection Point? « The Latin American Venture Capital Association | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

A growing class of investors is waking up to the fact that that positive investment returns and constructive social and financial impact can go hand-in-hand. This philosophy is the basis of impact investing.

 

Some private equity firms have taken this approach a step further by applying it within the rapidly growing and uniquely fertile environment of Latin America. One example is Vox Capital, Brazil’s first impact investing venture capital firm that focuses on high potential businesses that serve the Brazilian low-income population through products and services with the potential to improve their lives.

 

It is focused on sectors that have a more direct impact on people, such as health, education and housing and in companies helping to solve main bottlenecks on serving the BOP: market intelligence, distribution and financial services. Vox invests with the clear to goal to help progress the living conditions of the low income population while delivering financial return to the investors1.

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CleanStar Mozambique: Food, fuel and forests at the bottom of the pyramid

CleanStar Mozambique: Food, fuel and forests at the bottom of the pyramid | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
What on earth is Novozymes, a $1.8-billion industrial biotechnology company headquartered in Denmark, doing in Mozambique, a poor African country (per capita income: $440) where corruption is rampant and more than half of the government’s budget comes from foreign aid?

 

 

The company says it’s trying to protect forests, increase agricultural productivity, lift farmer incomes, reduce indoor air pollution and, not incidentally, make money.

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Selling Ethanol Stoves in Mozambique to Generate Carbon Credits

Selling Ethanol Stoves in Mozambique to Generate Carbon Credits | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Along a dirt road in Mozambique’s Sofala province, a long line of men on bicycles stretches into the distance, each carrying an impossibly big bag of charcoal strapped to his bike.

 

The journey to town takes two days from where they or their families cut down trees and put logs in earth-covered pits to smoulder, to produce the charcoal.

 

It is a common sight in a country where 80 percent of people rely on charcoal for cooking.

 

Each year the charcoal sellers’ journey gets longer as locals and foreign logging companies chop down indigenous forests, the source of coal in this southern African nation.

 

However, breaking the country’s dependence on "dirty" fuel is the aim of a for-profit venture called Cleanstar that began selling ethanol cooking stoves in the capital, Maputo, earlier this year. The ethanol is made from cassava, or mandioca, which is grown in virtually every back yard here.

 

"Interesting. The alcohol they use comes from mandioca, a product that is produced a lot here. That is good," says one curious potential customer, Maputo taxi driver Milton Bilale.

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Yamaha India to build the Nano of motorcycles, with a sub $500 low cost entry level commuter bike | IndianCarsBikes.in

Yamaha India to build the Nano of motorcycles, with a sub $500 low cost entry level commuter bike | IndianCarsBikes.in | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

A brand which has been synonymous with performance motorcycles wants a pie of the massive “fortune at the bottom of the pyramid”, borrowing the iconic words of late management guru CK Prahalad.

 

We’re talking Yamaha here, a brand that gave India legends like the RD350 and the RX100, both motorcycles that ignited the minds of successive generations of motorcycle enthusiasts in the country, who starved for high performance motorcycles, took to the RD and the RX like fish to water.

 

Why, even the Yamaha YBX125, the brand’s first four stroke motorcycle for India, launched way back in 1998, came out on tops when it came to performance, with a 11 Bhp powering a 108 Kilo kerb weight, when other brands like Hero MotoCorp(Hero Honda back then) and Bajaj were peddling 100cc four stroke economutersgood for just 7-8 Bhp.

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