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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The Guardian: The case for inclusive capitalism

The Guardian: The case for inclusive capitalism | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

There is no contradiction between delivering high returns to investors and addressing society's most pressing unmet needs.

 

Capitalism is the greatest engine for prosperity the world has ever seen and part of its success lies in its capacity to adapt. The historical fact, too often overlooked in our angry debates over the current crisis, is that the capitalism of 1830 was not the same as the capitalism of 1880 or 1930, or even 1980. Rather than defend the existing system or attack it, the crucial question to ask now is: where do we want to take it next?

 

We believe that move has to be toward what we call "inclusive capitalism", one in which the benefits are more widely shared by all. It's no longer sufficient, for example, for business leaders to hail the virtues of "creative destruction" without doing more to address the yawning gap between the skills needed for the new jobs being generated and the abilities of those whose jobs are being destroyed. It's not acceptable, in an era of rising income inequality, to focus just on delivering measurable shareholder value without generating value for the broader society as well.

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The Chairman's Blog: The Next Banking Boom: The 2.5 Billion Unbanked Worldwide

The Next Banking Boom: The 2.5 Billion Unbanked Worldwide


Of the 5 billion adults in the world, staggeringly, only half have a bank account.

 

This is one of the huge findings from a global poll by the World Bank and Gallup, funded by the Gates Foundation. The report, by World Bank economists Asli Demirguc-Kunt and Leora Klapper, is brilliant.

This big finding means that 2.5 billion people are “unbanked,” therefore not participating in modern economic life. Advanced countries can feed them, clothe them, rush them medicine, school them -- but those people will never experience sustainable human development until they’re integrated into the global channels of buying and selling. Simply put, they need access to money and credit, and they need to have a bank account.

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Lok Capital, Acumen to invest $1.2M in Hippocampus Learning Centres | Mergers, Acquisitions, Private Equity, Venture Capital, Investment Banking

Lok Capital, Acumen to invest $1.2M in Hippocampus Learning Centres | Mergers, Acquisitions, Private Equity, Venture Capital, Investment Banking | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Lok Capital, a venture capital firm focused on bottom-of-the-pyramid (BoP) market, and Acumen, the social venture capital investor, are investing $1.2 million in Karnataka-based rural education service provider Hippocampus Learning Centres (HLC).

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The 'Bottom of the Pyramid' Approach: Responsible Capitalism or Business as Usual?

Debate filmed at the University of Oxford Saïd Business School on 3 May 2012, bringing together leading champions and critics to air opposing views about the...
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Micro Crediting Clean Energy at the BoP in Pakistan

In Pakistan, about 43% (80 million people) of the total population lives without access to electricity.


The idea of micro financing in rural communities by providing them the access to money when their official organizations fail to follow through is basically to initiate investment, help the community out of the depths of poverty, to give a boost to economic growth and to help improve the standard of living of the deprived individuals forced to live a life of ‘third grade citizens’.


No matter recently the word ‘third world’ has been found odious, but I believe that changing words will not help us escape the gravity of the situation. Those living below the poverty line in a developing country are in reality living no better of a life than that of an individual living back in the Stone Age.


These rural areas are hard to imagine for an individual raised and matured in a developed nation, as there is no comparison to think of. Having no access to electricity, natural gas, telecommunication, sanitation, or clean waters facilities, living in a rural area is equal to giving up every facility and technological advancement of the last century. Living in a world of iPads it is hard to believe that one quarter of the humanity still lacks the basic facility of electricity. Being the minority it is our duty to either provide for those being forced to live as ‘third grade’ citizen or embrace ourselves as to those who took away from the deserving, building castles on the lives of others.

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UHD Marketing: Bottom of the Pyramid

Business is now focusing on emerging and underdeveloped markets such as Sub-Saharan Africa, South Asia, East Asian and Latin America, including the caribbean. Usually these markets are treated as if they had similar consumer behavioral trends instead of being homogenous. Consumers in these countries are referred to as BOP or Bottom of Pyramid Market. They are described as a, “large body of consumers whose annual income on a purchasing power parity basis is less than $1,500 per year.”


Some marketers do not find the BOP class to be very desirable because of , “lack of classification, the size of the market, and the problems of reducing poverty.” There is a need to find the actual size of the market and research it further to properly classify, and successfully market.

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Amazon.com: MicroFranchising: Creating Wealth at the Bottom of the Pyramid (9781847201089): Jason S. Fairbourne, Stephen W. Gibson, W. Gibb, Jr. Dyer: Books

Amazon.com: MicroFranchising: Creating Wealth at the Bottom of the Pyramid (9781847201089): Jason S. Fairbourne, Stephen W. Gibson, W. Gibb, Jr. Dyer: Books | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Poverty remains one of the most intractable problems in the developing world. Microfranchising offers great promise in alleviating poverty by aiding in the foundation of locally owned businesses.


Microfranchising is defined as small businesses whose start-up costs are minimal and whose concepts and operations are easily replicated. It involves the systematizing of microenterprises to create and replicate turnkey businesses for the poor. With the awarding of the 2006 Nobel Prize in Economics, attention has increased on this remarkable concept.


This unique book provides an overview of the need to alleviate poverty and what methods have been used in the past to do so (e.g. microcredit). It then introduces the concept of the microfranchise and discusses how this business model can be used in poverty alleviation. Different models of microfranchising are reviewed and specific case studies highlighted to show how it has worked in different parts of the world. The book concludes with a discussion of the advantages as well as the potential problems and pitfalls that accompany microfranchising.

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Tetra Pak identifies 2.7 billion BoP consumers as dairy industry's next big opportunity

Tetra Pak identifies 2.7 billion BoP consumers as dairy industry's next big opportunity | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it


Tetra Pak identifies 2.7 billion consumers as dairy industry's next big opportunity.


Fifth Tetra Pak Dairy Index highlights the challenges and opportunities in meeting rising expectations of low-income consumers in developing countries

New research from Tetra Pak has identified 2.7 billion low-income consumers in developing countries as the dairy industry’s next big growth opportunity due to an expected rise in prosperity, purchasing power and desire for packaged liquid dairy products (LDP).


Consumption by low-income consumers in developing markets is forecast to increase from about 70 billion litres in 2011 to almost 80 billion litres in 2014, according to the Dairy Index, which tracks worldwide facts, figures and trends in the global dairy industry. Many of these consumers are expected to switch in coming years from drinking loose milk to packaged milk.


“Low-income consumers represent one of the biggest growth opportunities for the dairy industry. The key to tomorrow’s success is reaching these consumers today,” said Tetra Pak President and CEO Dennis Jönsson. “They make up almost 40% of the world’s population and live in economies driving our industry’s growth and they are growing more affluent.”

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The ‘Bottom of the Pyramid’ Approach: Responsible Capitalism or Business as Usual? - Business Fights Poverty

The ‘Bottom of the Pyramid’ Approach: Responsible Capitalism or Business as Usual? - Business Fights Poverty | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Yesterday evening I took part in a Public Debate at Saïd Business School, organised by the Centre for New Economies of Development - a collaboration between the Universities of Oxford, Sussex and Edinburgh.


The event also saw the launch of a new website to encourage academic discussion and knowledge sharing on the BoP: responsiblebop.com

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Expand the Evidence Base at the Bottom of the Pyramid - The Practitioner Hub

If we want to differentiate between responsible capitalism and business as usual in market based approaches to international development we need to expand the evidence base at the bottom of the pyramid.


This was one of the conclusions drawn by seven panelists from the world of business, management and development policy who participated in an Oxford University debate on May 3rd about the merits and risks of the Bottom of the Pyramid approach, chaired by Simon Maxwell.

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Berkeley professor wins Lemelson-MIT Award - Mass High Tech Business News

Berkeley professor wins Lemelson-MIT Award - Mass High Tech Business News | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Ashok Gadgil has won this year’s $100,000 Lemelson-MIT Award for Global Innovation for his pursuit to blend research, invention, and humanitarianism for broad social impact.


Gadgil, a physicist, is a chair professor of safe water and sanitation at the University of California, Berkeley, and director of the Environmental Energy Technologies Division at Lawrence Berkeley National Laboratory. His work is helping those in the developing world to live healthier, safer lives, according to MIT.


“I’m honored and excited to get selected for a Lemelson-MIT Award. It means a lot to me,” Gadgil told Mass High Tech. “The award is a tremendous validation and encouragement of what I have been doing for a long time, to bring science and technology to people at the bottom of the economic pyramid.

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The FINANCIAL - Selling consumer products to the Bottom of the Pyramid (BoP) in Bangladesh


Professor Linda Scott, Dr Catherine Dolan and Mary Johnstone-Louis of Saïd Business School, University of Oxford, have completed a four-year research project on CARE International’s Rural Sales Programme - a distribution system which has developed from a modest pilot scheme in 2005 involving 49 local women, into a sales network of 2,640 women working in 80 districts, carrying goods from seven companies.


From this fledgling NGO programme, CARE International and danone.communities have announced the formation of a joint venture named ‘JITA’ – a groundbreaking NGO-private sector hybrid with the goal of employing 12,000 women and reaching 10 million customers in Bangladesh by 2014.

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The Really Truly Transformative Potential of Impact Investing

The Really Truly Transformative Potential of Impact Investing | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Money managers pay attention: Impact investing -- investment for financial return in addition to measurable social or environmental benefit -- will change the way you do business. Really. Truly.


For the first time, in a systematic way, impact investing provides an alternative to the axiomatic idea that the value of capital ought to be measured solely by the risk-adjusted financial return that it can generate, regardless of costly externalities and/or non-financial benefits that are unaccounted for.

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6 Tips on Innovation from 'Treps in Emerging Markets

6 Tips on Innovation from 'Treps in Emerging Markets | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
"Jugaad" is a Hindi word that loosely translates as “the gutsy art of overcoming harsh constraints by improvising an effective solution using limited resources.” It's a unique approach to innovation and it's how entrepreneurs are driving exponential growth in emerging markets like India, China, Brazil and Africa.

 

Jugaad is an antidote to the complexity that characterize emerging markets, with all their mind-blogging diversity, pervasive scarcity of all kinds, and exploding interconnectivity. Consider that India alone adds 10 million cellphone subscribers each month.

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Reverse Innovation and the Emerging-market Growth Imperative - Richard Ivey School of Business

Many established global companies discount the need to innovate when competing in emerging markets. After all, innovation is expensive and risky. So, how can it make sense to spend heavily on an innovation for a market in which customers have so little money? Readers will find out just why it does make a lot of sense.

In March 2009, Logitech formed a special team with an urgent mission. The maker of computer peripherals, especially keyboards and mice, had been caught off-guard when consumers in China unexpectedly fell in love with a new mouse that was not Logitech’s. The company closely monitored its direct rivals, especially Microsoft, but this market insurgency was engineered by a Chinese company called Rapoo, at best a faint blip on Logitech’s radar screen.

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Impact Investing Challenge: Rural Electrification Renewable Energy

Stanford social entrepreneurs won the International Impact Investing Challenge with REwiRE, a project to expand the electrical grid in Indonesia to rural areas.


Push play to hear about the Stanford team of social entrepreneurs who recently won the International Impact Investing Challenge with a project to expand the electrical grid in Indonesia to rural areas, a country with 18,000 islands.


Worldwide, 1.3 billion people are without electricity, 84% of whom live in remote rural areas. Electricity is an important factor in improving education, health and much more. Access to electricity is directly connected to public health, education, family income and the overall quality of life. World Bank estimates annual welfare benefits of electrification at $600 per household. REwiRE seeks to provide power not only for light but refrigerators, medical care, cell phones, computers, and more.

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A top-down approach: Lend a hand to the ‘bottom of the pyramid’ in Pakistan– The Express Tribune

A top-down approach: Lend a hand to the ‘bottom of the pyramid’ in Pakistan– The Express Tribune | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

KARACHI: The phrase “Bottom of the Pyramid” (BOP) was first coined by US president Eisenhower in 1932 and it was not until 1998 when two prominent US professors defined it as people earning less than $2 a day. This helped define the largest yet poorest socio-economic class, making up roughly 2.8 billion people or 40% of the world’s population.


Pakistan has a checkered history on this front. It is reported that poverty level in the 50s was as high as 60%. By early 90s it had more than halved to mid-20s mainly behind economic growth during President Ayub Khan’s rule plus the huge influx of western aid to fight the Russians during the 80s – both these decades delivered an impressive 7% GDP growth rate.


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India Inclusive Innovation Fund

India Inclusive Innovation Fund

A key proposal emerging from National Innovation Council deliberations: is the proposal to establish the India Inclusive Innovation Fund. This Council effort seeks to establish a Fund that will drive and catalyse the creation of an ecosystem of enterprise, entrepreneurship, and venture capital, targeted at innovative solutions for the bottom of the pyramid.


The Inclusive Innovation Fund is built on the principle that innovative enterprise can profitably, scalably, and competitively engage citizens at the bottom of the economic pyramid: and, in doing so, provide goods and services that will transform their lives for the better. The Fund proposes to invest in a new generation of Indian entrepreneurs who will build – and are in the process of building – world class enterprises that focus on the problems of the poor, without compromising on economic success. In doing so, the Fund will help create a new Indian model of innovation: one that bridges growth and equitability.


The Fund will focus on providing risk capital funding to enterprises that create and deliver technologies and solutions aimed at enhancing the quality of life at the Bottom of the Pyramid; and – subject to applicable law – work with other funds with objectives similar to its own. The Fund will support investment at different stages of the enterprise development cycle – from early stages, through later phases of scaling-up of potentially successful solutions and business models.

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Reporting from the NYU Series on Impact Investing | Blog | Social Finance

Reporting from the NYU Series on Impact Investing | Blog | Social Finance | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
The NYU School of Law organized a Series on Impact Investing during the Spring Semester 2012. This Series offered "a forum for students, scholars and practitioners interested in the field of impact investing to exchange perspectives, develop ideas, and dialogue with thought leaders and experts in the field."


The Series was a student initiative, led by Nyasha Pasipanodya (NYU Law 2011 graduate and 2011-2012 NYU Law Kauffman Fellow) and joined by student members of the Law and Social Entrepreneurship Association (School of Law), the Society of International Business and Development (Center for Global Affairs) and the African Law Association (School of Law), as well as students from the Stern School of Business.

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New Apps for the BoP - Technology Review

New Apps for the BoP - Technology Review | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Low-tech phone technology allows images to be sent as bitmaps in text messages, opening up applications for the world's poorest.


When it comes to mobile communications, there's still a lot of room for innovation at the bottom. In Bangalore, India, researchers from the University of Toronto and Microsoft are now imagining new business models for the world's poorest phone owners by adapting a little-known protocol that can receive pictures as bitmapped text messages.


The technology could readily be used in the roughly 1.5 billion low-end Nokia and Samsung phones in circulation. The researchers have shown how to use the technology to crowdsource the task of digitizing handwritten documents word by word, a type of work that anyone with an inexpensive phone could do for extra money. A handwritten word is displayed as the image—resembling retro graphics from 1980s Atari games—and the phone owner types in the word, contributing piecemeal to a larger job.

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Inclusive Business: The Nigerian Experience - The Practitioner Hub

Inclusive Business: The Nigerian Experience - The Practitioner Hub | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Our interaction in BIF Nigeria cuts across various organizations including blue chip companies as well as smaller and mid-sized companies. We continuously strive for large scale social impact as we seek projects that possess the three pillars of being sustainable, replicable and scalable.


Although scale can be easily achieved by larger organizations, we have learnt that developing an innovative model that can be easily replicated by smaller and mid-sized organizations also go to large scale even if it is not achieved by a single organization.


Hence we applauded the introduction of the Non Contracted Support (NCS) and an increased budget which has helped us loosen our approach and spread our nets to engage mid-sized companies making our portfolio a rich healthy mix. In order to achieve large scale social impact we try to think outside the box with regards to smaller organizations that might not have the capacity to achieve scale on their own.


Take for instance a relatively small organization in our pipeline with an excellent inclusive business idea to empower farmers via capacity building, access to market and finance. In order to achieve large scale social impact through the project, finding a synergy with larger projects in our portfolio that have complimentary objectives was the adopted strategy..

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Finding a solution for Africa's energy gap at the BoP

Finding a solution for Africa's energy gap at the BoP | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
In advance of the World Economic Forum on Africa, Sameer Hajee, CEO of Nuru Energy, discusses the need for a new approach to energy poverty.


To start the discussion, let me debunk a few myths that we have come across in the past four years:


Myth: The base of the pyramid (BOP) should enjoy the same access to electricity that we do in the developed world.


Reality: In an ideal world, this would, of course, be the ultimate solution. But let’s face it, access to grid electricity for the majority of rural Africans is a distant proposition, and there are insurmountable costs and logistical problems. If we want to address the issue immediately, we need to start focusing on hyper-local solutions that get people access today (tonight!).

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Accelerating Inclusive Business Opportunities: Business Models that Make a Difference at the BoP

Accelerating Inclusive Business Opportunities: Business Models that Make a Difference at the BoP | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
IFC has launched a report that identifies seven inclusive business models that expand access to goods, services, and livelihoods for the world’s poorest people while generating strong financial returns.


The report, Accelerating Inclusive Business Opportunities: Business Models that Make a Difference, underscores IFC’s commitment to creating opportunity at the base of the economic pyramid. Its findings are based on an analysis of IFC’s portfolio, which found that mature investments in companies with inclusive business models show financial returns very similar to those of IFC’s portfolio as a whole, while having a larger impact on development.

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Base of the Pyramid markets largely untapped by Finnish businesses

Base of the Pyramid markets largely untapped by Finnish businesses | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it

Base of the Pyramid markets largely untapped by Finnish businesses

Finnish companies should focus on the untapped BOP consumers/markets, as we found out in a seminar on the 20th of April 2012. Here are some success stories of companies in emerging markets as examples and guidance for Finnish companies on how to actually make it in markets quite different from ours.

There are 4 billion people living on less than 5 € / day. These people are referred to as the Base of the Pyramid (BOP), and they make up two thirds of the world population. We had the pleasure of attending a seminar organized by Finpro, Aalto University and Tekes together with the Ministry of Employment and the Economy, the Ministry for Foreign Affairs and the Confederation of Finnish Industries. This seminar tackled the challenges of going into the BOP markets and the opportunities for Finnish businesses in commercialization and scaling up inclusive businesses in emerging markets.

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Are export processing zones the new sweatshops, or drivers of development?

Are export processing zones the new sweatshops, or drivers of development? | Base of the Pyramid (BoP) Markets, Marketing at the BoP & Inclusive Business | Scoop.it
Where does Nike make its trainers? Or Wrangler its jeans? In the same place Raleigh make its bikes, Philip Morris makes its cigarettes, Korean companies make LED lights, and giant corporations like Walmart, Mothercare, Tesco and Reebok make practically everything from pharmaceuticals to fishing rods and baseball caps.


The Chittagong export development zone (EDZ) in Bangladesh is the capital of globalisation, the plumb centre of global free trade, and the reason, it could be argued, that industrialised countries don't make much any more.


This month, I was invited to a Youngone factory, one of 17 that the giant Korean conglomerate has making clothes and shoes for the world in the Chittagong zone. That people died in riots here in 2010 – and that the factory was ransacked by Bangladeshi workers angry that the government had not increased their wages – was not mentioned. The intention was to show Bangladesh as a modern manufacturing centre.
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