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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Urban Housing Affordability in Latin America – Initial IDB Findings : Habitation For The Planet

Urban Housing Affordability in Latin America – Initial IDB Findings : Habitation For The Planet | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

A recently book released by the Inter-American Development Bank (IDB) entitled “Room for Development: Housing Markets in Latin America and the Caribbean” has pointed to the acute nature of the housing gap in the region’s largest cities.

 

The book provides an in-depth examination of 18 Latin American and Caribbean countries whilst specifically examining the magnitude of the issue as a whole (determinants and consequences of such poor outcomes); the main factors leading to the widespread presence of significantly inferior habitation as well as the role that regulations and housing policy have in relation to confronting the problem (looking at finance, construction and land markets).

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Kenyan mobile money sparks inflation fears | SmartPlanet

Kenyan mobile money sparks inflation fears | SmartPlanet | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

JOHANNESBURG — In just five years an upstart Kenyan company that set out to make banking more accessible has revolutionized the way money flows throughout the region. Millions of Kenyans who were once unable to perform simple financial tasks now use M-Pesa, a mobile money transfer service. M-Pesa, and many of its competitors that have sprung up in the past few years, are used as de-facto banks by people who used to deal only in cash.

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Video: Summary of the CK Prahalad's book The Fortune at the Bottom of the Pyramid

5 minute video summary of the Great book "Fortune at the Bottom of the Pyramid". An alternative to reading the whole book for those who wan to get the high level concept.

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Perspective: Design for the next billion 2012: What's missing?

Design for the next billion 2012: What's missing?
An upcoming project's requirements led to the realization that there is a huge gap in design for the next billion (and more).

 

The subsequent domino effect has left a lack in tools, methods, frameworks and thus, disciplines themselves, from the perspective of addressing the challenge of serving the bottom of the pyramid (BoP) population segment. Here I will simply attempt to capture the questions raised in these four areas I've noticed:

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Knowledge@Wharton | The Power to Lead: The Next Generation of Social Entrepreneurs

Knowledge@Wharton | The Power to Lead: The Next Generation of Social Entrepreneurs | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
In business, social entrepreneurship is getting a lot of attention these days.

 

While social entrepreneurs have as much creativity, passion, drive, energy and appetite for risk as traditional entrepreneurs, they are looking to solve the world’s problems and maximize social value over profits – and to do so on a grand scale.

 

Raviv Turner, cofounder and CEO of Guerillapps, a startup focused on developing social games to support real-world causes, told Forbes magazine this month, “The first step to becoming a social entrepreneur is identifying a social problem in need of a solution. Aspiring social entrepreneurs need not look too far to find social issues in need of solving: poverty, hunger, poor education, environmental damage, political suppression, disease and social inequality,” to name a few.

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Doing Well And Doing Good: Measuring The Results Of Impact Investing | Blog | Social Finance

Doing Well And Doing Good: Measuring The Results Of Impact Investing | Blog | Social Finance | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

In my last post “Measuring The Impact of Social Investing”, I talked a lot about the history of PULSE, the software designed to help track the impact of social investments. Since Acumen Fund first introduced it in 2006, we have seen a constant and increasing need for support, services and even entire organizations to help the impact investing community operate more efficiently and achieve greater success.

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Forbes India Magazine - Michael Porter: Businesses Need an Image Repair

Forbes India Magazine - Michael Porter: Businesses Need an Image Repair | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
The Message:

Our traditional management theories were too simple, too narrow, and didn’t recognise new ways of working with society.

 

The Hypothesis:
Is there more that a business needs to do besides simply make a profit? The starting point of this question is that what a company should do is be philanthropic. The trouble with this approach is that there’s not enough money. You can give all you want, but there’s not enough money to give.

 

So What?:
The best way to understand how a business can have an impact is to see the business as a business, which is able to innovate and find ways of developing products that meet the needs of the community it serves. The measures of business performances will not change. What will change are the tools and techniques by which we generate returns, growth and productivity. Any company, for the next 20 years, that is not exquisitely efficient in the use of energy will be in trouble. Analysts will be looking at use of energy, water and resources. They will look at how companies penetrate non-traditional markets and look at customers’ needs that allow the business to grow.

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Do Companies That Engage in BoP Markets Outperform the Market? : Center for Social Innovation (CSI)

Do Companies That Engage in BoP Markets Outperform the Market? : Center for Social Innovation (CSI) | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Thanks to Dana Krechowicz, Associate, Markets and Enterprise Program at WRI, for providing the background on Socially Responsible Investing.

 

In April of this year, The Opportunities for the Majority Office of the Inter-American Development Bank (IDB) and Innovest Strategic Value Advisors (Innovest) announced the completion of a groundbreaking project – to create the Opportunities for the Majority (OM) Index of publicly traded national and multinational firms operating in the Latin American and Caribbean (LAC) region that are engaged in BoP activity.

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Fujitsu Research Institute: BOP Market Development and Administrative Innovation for Corporations in Society

Base of the Pyramid (BOP) business, which chiefly targets people with low-incomes in emerging and developing countries, has become the center of attention.

 

The BOP, which is made up of those earning less than $3000 annually, totals some 4.5 billion people, or more than 70% of the world population, and is estimated to have a market value of approximately $5 trillion. As developing and emerging countries experience economic growth, the BOP, which was once treated as a target for international support, is now considered to be a new volume zone and the “next market” in the global economy. Some global companies from western countries began forming partnerships with international institutions, governments, and NPOs and developing BOP markets as early as ten years ago. In Japan, too, METI’s establishment of the BOP Business Support Center in October 2010 shows that interest is on the rise.

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Micro-loans or micro-savings at the BoP: what works?

Micro-loans or micro-savings at the BoP: what works? | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
After her time in Malawi, Tanya Cothran began to question if micro-loans truly alleviate poverty or empower people, as we’ve heard so often over the past few years.

 

“Is there any one member of this group going for a loan from FINCA again? No! No! Is there any member who is going for micro-loan? No!” Such was the dialog I heard in Malawi from a local savings and loans group (called MAVISALO) discussing micro-loans. Where I had expected to hear great stories of micro-loan organisations empowering people and solving problems, instead I heard tones of disgust. David Roodman’s Due Diligence: An impertinent inquiry into microfinance finds little compelling evidence that micro-loans alleviate poverty or empower people, two of the most common themes in micro-credit marketing.

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Generating Evidence of Impact at the Bottom of the Pyramid - Business Fights Poverty

Generating Evidence of Impact at the Bottom of the Pyramid - Business Fights Poverty | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Finally, many current inclusive business impact studies do not collect sufficient baseline data or examine alternative cases.

 

How many of the benefits are attributable to the programme and how many would have occurred anyway? While it isn’t always possible (or ethical) to assign people to experimental control groups, there are other ways of determining the counterfactual ‘what if’ or ‘what if not’ case. Wach argues that doing so is essential if we really want to know the real impacts of a business.

 

If we want more inclusive business, we need our impact studies to actually demonstrate impact so we know what practices really work.

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Do the economics of Corporate Social Responsibility matter for Private Sector Interventions?

Do the economics of Corporate Social Responsibility matter for Private Sector Interventions? | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Corporate Social Responsibility (CSR) has attracted significant discussion and controversy since the times of Milton Friedman’s famous 1970 NYT article stating that the only social responsibility of firms is to maximize profits. However, the conclusion that CSR automatically is in conflict with profit maximization or strategic firm behavior and therefore should be reduced either to a market failure or some form of altruism turned out to be incorrect.

 

Quite the opposite: my current article in the Journal of Economic Literature jointly written with Jay Shimshack not only shows that CSR constitutes an economically important phenomenon that may well be strategic (i.e. profit maximizing), but also argues that, when concisely defined, CSR can be efficient. In other words, it can be a viable private channel of public goods provision and a formidable complement or even alternative to classic government intervention.


Via W. Robert de Jongh
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Learning to Trade and to Innovate at the Base of the Pyramid | Innovation Management

Learning to Trade and to Innovate at the Base of the Pyramid | Innovation Management | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Is sustainable business the missing link in alleviating poverty and boosting global trade and prosperity? If so, how should companies exploit this opportunity in practice? Louise Koch, Danish Anthropologist and Business Innovator, talks about best practice, mindsets and resources for sustainable, people-centred innovation in developing countries.

 

Is sustainable business the missing link in alleviating poverty and boosting global trade and prosperity? If so, how should companies exploit this opportunity in practice? Louise Koch, Danish Anthropologist and Business Innovator, talks about best practice, mindsets and resources for sustainable, people-centred innovation in developing countries.

The Base of the Pyramid is a socio-economic concept that refers to the demographic group of approximately 2 billion poor people around the world, who survive on 2 dollars or less a day. The Base of the Pyramid has become the common denominator for a relatively new and booming field of innovation projects and business ventures aimed at developing profitable and sustainable new markets.

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Time to Work Together? Corporations and NGOs have a ways to go with Mobile Financial Services

Time to Work Together? Corporations and NGOs have a ways to go with Mobile Financial Services | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

It was just a year ago that I was sitting on the floor of a tiny local community building in a small village about 90 minutes outside of Ahmedabad, India listening to 30 women tell me what they wanted from mobile technology.

 

These women, all leaders with the Self-Employed Women’s Association (SEWA), were on their game despite the fact that my agenda was to get insights into a financial literacy application I was helping design. They were shrewd, insightful, and knew exactly what they wanted and needed to improve their important rural work in microfinance and membership services…I was about to get schooled.

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Technology & Savings: Competing for Kenya’s Base of the Pyramid | Digital Globalization

Technology & Savings: Competing for Kenya’s Base of the Pyramid | Digital Globalization | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Kenya’s financial market has caught the world’s attention. The rise of mobile money in Kenya has become the interest of financial inclusion experts, the excitement of mobile network operators, and an opportunity for financial institutions to rethink their products and services.  Last year alone, mobile phones transferred over 900 billion KSh (US $10 billion) representing almost 30 percent of the country’s GDP.  However, the implications and transformative impact of mobile money and other breakthroughs on the bottom of the pyramid are often much less understood.

Our new research study examines how Kenya’s rapidly evolving market has opened up to a wide range of new and dynamic players and looks at what this means for savings products available at the bottom of the pyramid.


Via W. Robert de Jongh
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The Base of the Pyramid as a development strategy : ICCO / OXFAM

ICCO & OXFAM Novib
Karolien Bais
June 2008

 

This paper explores the possibility of aligning the goals of poverty reduction and economic profit through the marketbased approach of the BoP. In other words, can this approach be as much a development strategy as a business strategy? Can the productive capacity of the poor be leveraged in creating products and services that ultimately raise their own incomes and not only those of the companies involved? What does it take to work in BoP markets, combining profit with cultural appropriateness and environmental sustainability?

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Reality Check at the Bottom of the Pyramid - HBR June 2012

Reality Check at the Bottom of the Pyramid - HBR June 2012 | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Most companies trying to do business with the 4 billion people who make up the world’s poor follow a formula long touted by bottom-of-the-pyramid experts: Offer products at extremely low prices and margins, and hope to generate decent profits by selling enormous quantities of them.

 

This “low price, low margin, high volume” model has held sway for more than a decade, largely on the basis of Hindustan Unilever’s success in selling Wheel brand detergent to low-income consumers in India.

 

However, as an abundance of recent experience shows, the model has a fatal flaw: It inevitably requires an impractical penetration rate of the target market—often 30% or more of all consumers in an area.

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Solar energy enterprise to provide 10 million with access to renewable energy | Business Call to Action

Solar energy enterprise to provide 10 million with access to renewable energy | Business Call to Action | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
New York, 23 May 2012 – Ten million low-income people living in rural communities in Sub-Saharan Africa, Asia and the Pacific, Latin America and the Caribbean, will gain access to low-cost solar energy by 2015, in part due to a commitment made by solar energy provider Barefoot Power to the Business Call to Action (BCtA).

 

The BCtA is a global initiative that encourages private sector efforts to fight poverty, supported by several international organizations including the UN Development Programme (UNDP).

 

The Australia-based social enterprise Barefoot Power aims to expand access to its high-quality, energy efficient, affordable light-emitting diode (LED) lamps, home lighting systems and phone chargers, to more off-grid communities with expansion in Ghana, Senegal, Nigeria and India as a focus by 2015. The company has already captured the majority market share in East Africa.

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Harvard Business Review June 2011: Segmenting the Base of the Pyramid (BoP)

Harvard Business Review June  2011: Segmenting the Base of the Pyramid (BoP) | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Cross the invisible line into the base of the economic pyramid in emerging markets and you enter a world of pitfalls. If a company embarks on an initiative that focuses solely on commercial gain, civil society and governments are likely to oppose it intensely, as the international water utility company Aguas del Tunari discovered in Bolivia.

 

If a company tries to stay under the radar by keeping its base-of-the-pyramid operations small, profits are likely to be meager, as Procter & Gamble found out with its water-purification product in Latin America and Asia. Even if you focus mainly on social impact and consider profits secondary, the base of the pyramid is a risky place: Projects that fail to make money will eventually be relegated to companies’ corporate social responsibility departments, as Microsoft discovered.

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FUJITSU RESEARCH INSTITUTE: Correctly Understanding the Characteristics of BOP Business and Developing Relevant Strategy


Correctly Understanding the Characteristics of BOP Business and Developing Relevant Strategy
Jianmin Jin, Senior Fellow


April 27, 2012 (Friday)


The global financial crisis which originated in the US and evolved into the European debt crisis continues with no end in sight. As a result, global companies have changed tack and are now more interested in emerging and developing countries than developed countries such as Japan, the US, and Europe, which have small prospects of economic growth. Japanese companies are rushing to develop new markets; rather than the middle class, they are showing great interest in business targeting the Base of the Economic Pyramid (BOP), i.e. the economic stratum composed of low-income earners (less than $3000 in purchasing power parity (PPP) per person per year), in particular.

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Can mobile banking boost financial inclusion in Nigeria?

Can mobile banking boost financial inclusion in Nigeria? | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Nigeria’s telecommunications sector has been one of the country’s star performers over the past decade. According to Standard Bank, Nigeria is already the world’s tenth-largest mobile market. South African mobile operator MTN closely studied the Nigerian market for three years before it entered the country in 2001.

 

Today MTN Nigeria has over 40 million subscribers, its biggest market out of the 21 countries where it operates. Many other brands such as Glo, Airtel and Etisalat have also launched operations in Nigeria.

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Video: Bottom of Pyramid - growth of mass marketing to low income consumers - marketing speaker - Futurist

How Hindustan Lever and other multinationals are selling low cost products to lower income consumers at the bottom of the wealth pyramid.

 

Customer insight and consumer trends. Impact on banking, phone companies, consumer goods, markets, marketing, manufacturers and retailers. Microloans, microfinance and micro insurance.

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Poor management perpetuates poverty: Guy Pfeffermann - The Times of India

GBSN's vision is for the developing world to have the management talent it needs to generate prosperity. In India, I would like to see greater awareness on the part of policy-makers that the quality and volume of management talent is a crucial driver of economic and social development.

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Investing For Global Impact: Be Early Be Patient - Forbes

Investing For Global Impact: Be Early Be Patient - Forbes | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Over the last several years, the world has woken up to the enormous market potential of serving 2-3 billion people at the base of the economic pyramid. A growing cadre of investors recognizes that we can create new ways to meet the needs of this huge population in a sustainable, business-like way. A new wave of socially responsible funds, institutional investors, microfinance investment vehicles, banks and even conventional venture and private equity funds collectively have raised billions to invest in social enterprises.

 

This shortage does not bespeak a lack of bold innovation among entrepreneurs. A host of new entrants, many of them based in Africa, Asia and Latin America, are pioneering innovative solutions to help the poor access quality financial services, building on technological advances such as the spread of mobile phones, expanding access to the Internet, and new ways of doing business with cloud computing and big data analysis to improve outreach, reduce cost, and increase convenience and affordability. Frontiers include:

 

i) Mobile phone-based businesses aspiring to create a world of branchless banking that may include services like savings accounts, remittances, credit and micro-insurance;
ii) Specialized credit to finance micro, small and medium sized enterprises, housing and education, and sustainable energy initiatives;
iii) Online or social media approaches that are pioneering peer-to-peer lending and other internet-based financial services;
iv) Pay-as-you-go or lease-to-own models for energy products, modular housing and other “embedded” financial services.

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