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Anirudh Agrawal, PhD Fellow, CBS CSR

Contents
Frugal Innovation
Transportation Microfinance FMCG : fast moving consumer goods Energy Drinking Water
Water Harvesting

Sanitation Telecommunication Health Care

Activity: Brand Management Theoretical Perspective on Frugal Innovation Criticisms


Anirudh Agrawal, PhD Fellow, CBS CSR

http://www.youtube.com/watch?v=FYIwa3Y1KA o#t=157

Anirudh Agrawal, PhD Fellow, CBS CSR

Frugal Innovation
Design to extreme affordability Strategic thinking towards volume markets Creativity and innovation towards extreme affordability Design, engineer and produce for marginal markets Translating and innovating a high margin brand for low margin markets Creating and innovating towards branded and quality products for marginal markets
Frugal innovation blogpost, stanford.edu, uni. Santabarbara frugal innovation centr
Anirudh Agrawal, PhD Fellow, CBS CSR

Frugal Innovation Market Potential

Anirudh Agrawal, PhD Fellow, CBS CSR

Source : WRI 2008

Anirudh Agrawal, PhD Fellow, CBS CSR

Transportation
120 billion dollars

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Electric Tricycle

Anirudh Agrawal, PhD Fellow, CBS CSR

Micro-Finance

Anirudh Agrawal, PhD Fellow, CBS CSR

Financial Services Pyramid

Anirudh Agrawal, PhD Fellow, CBS CSR

What Is Microfinance?
Microfinance is the offer of financial & non-financial services to people excluded from the traditional banking system. The services are adapted to the needs of the target populations.

MICRO

FINANCE

Micro-entrepreneurs Self-employed Low income populations Excluded populations

Business & educational loans Savings Micro-insurances Remittances Micro-entrepreneur training Coaching & workshops on health, hygiene, etc.
Anirudh Agrawal, PhD Fellow, CBS CSR

Microfinance Stories
Grameen bank SKS Microfinance

Anirudh Agrawal, PhD Fellow, CBS CSR

Fast Moving Consumer Goods


Sampoo Bathing Soaps Beauty Items Utensils Coolers and ACs Refrigerators TV sets Washing Machine
Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Washing machine

Anirudh Agrawal, PhD Fellow, CBS CSR

Story of Nirma

Anirudh Agrawal, PhD Fellow, CBS CSR

Story of Lifeboy

Anirudh Agrawal, PhD Fellow, CBS CSR

Cooling in Summers

Anirudh Agrawal, PhD Fellow, CBS CSR

Earthen Refrigerator

Anirudh Agrawal, PhD Fellow, CBS CSR

Water Cooler

Anirudh Agrawal, PhD Fellow, CBS CSR

Grameen Danone

Anirudh Agrawal, PhD Fellow, CBS CSR

Estimated Frugal Market for Energy

500 billion dollars

Source: WRI 2008

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Frugal Market for Water

Source: WRI 2008

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Water Harvesting

Anirudh Agrawal, PhD Fellow, CBS CSR

Anirudh Agrawal, PhD Fellow, CBS CSR

Grameen Veolia Business Model

Anirudh Agrawal, PhD Fellow, CBS CSR

Sanitation: Story of Sulabh

Anirudh Agrawal, PhD Fellow, CBS CSR

Pay as you use model for Sanitation

Anirudh Agrawal, PhD Fellow, CBS CSR

Sanitation: Poop Truck

Anirudh Agrawal, PhD Fellow, CBS CSR

Health Care
GE Portable device http://www.youtube.com/watch?v=yB47wxb6sY

Anirudh Agrawal, PhD Fellow, CBS CSR

Arvind Eye Care

Anirudh Agrawal, PhD Fellow, CBS CSR

Aravind Eye Care Van

Anirudh Agrawal, PhD Fellow, CBS CSR

Emergency Medical Services

Anirudh Agrawal, PhD Fellow, CBS CSR

Life Spring Hospitals

Anirudh Agrawal, PhD Fellow, CBS CSR

Estimated Frugal market of Housing

Source: florence rizzo and anirudh agrawal YT summer school

Anirudh Agrawal, PhD Fellow, CBS CSR

Modular Housing

Anirudh Agrawal, PhD Fellow, CBS CSR

Prefabricated Houses

Anirudh Agrawal, PhD Fellow, CBS CSR

ICT

Source: florence rizzo and anirudh agrawal YT summer school

Anirudh Agrawal, PhD Fellow, CBS CSR

Examples
Nokia Asha for developing Markets 100 dollar laptop 20 dollar tablet Grameen Telenor Joint Venture

Anirudh Agrawal, PhD Fellow, CBS CSR

Activity
Discuss in group of 3-5, how will a high margin brand strategise its brand and manage frugal innovation. Example: Arla innovating high energy, high nutirient yogurt for poor countries

Anirudh Agrawal, PhD Fellow, CBS CSR

Theoretical Perspective

www.frugal-innovation.com

Anirudh Agrawal, PhD Fellow, CBS CSR

Criticism and Caution


Ethical Marketing Quality Management Labeling and Framing

Anirudh Agrawal, PhD Fellow, CBS CSR

Ethical Marketing

Anirudh Agrawal, PhD Fellow, CBS CSR

Ethical Marketing

Anirudh Agrawal, PhD Fellow, CBS CSR

Labeling and Framing : Poor Mans car

Anirudh Agrawal, PhD Fellow, CBS CSR

Further readings
http://www.youtube.com/watch?v=TPC1J7cPnU8

Source: florence rizzo and anirudh agrawal YT summer school

Anirudh Agrawal, PhD Fellow, CBS CSR