The Fortune at the bottom of the Pyramid

Author: C.K.Prahalad
ISDN No: ISBN-10: 9789332518926,
ISBN-13: 978-9332518926
Publication: Wharton School Publishing
 Brief synopsis of the book
• The book depicts the picture of reality at the bottom of the pyramid
which constitutes to a 60% of total population and sheds light on
market that remains underserved to date.
• The author has tries to showcase the innovative ideas used by the
Indian companies as well as MNC’s to eradicate poverty and has
made to think about the potential market at BOP.
• The role of price performance and creating a capacity to consume is a
major task at BOP
• The role of women is critical for development at BOP
• The Market at BOP is a Global Opportunity
 Book Contents
Part I The Fortune at the Bottom of the Pag Part II Innovative Practices at the Page
Pyramid e Bottom of the Pyramid No.
No.
Chapter 1 The Market at the Bottom of the 1 Section I The Market at the Bottom of 115
Pyramid the Pyramid
Chapter 2 Products and Services for the BOP 23 Section II Known Problems and Known 169
Solutions: What Is the Missing Link?
Chapter 3 BOP: A Global Opportunity? 47 Section III Known Problems and 241
Unique Solutions
Chapter 4 The Ecosystem for Wealth 63 Section IV Known Problems and 287
Creation System wide Reform
Chapter 5 Reducing Corruption: Transaction 77 Section V Scaling Innovations 359
Governance Capacity
Chapter 6 Development as Social 99 Section VI Creating Enabling
Transformation Conditions for the Development of the
Private Sector
 4 Key topics of the book
• Solving the unique problems faced by the bottom of pyramid
customers.
• Breakthrough form of innovation for emerging markets.
• Building new ecosystem for wealth creation.
• Scaling up to impact the enterprise and society.
 Explanation of the topics
• What exact does BOP means ?
• The untapped market, which is still unserved by
large MNC’S
• The Bop consumer have Purchasing power as
compared to BPL
• The Bop market is growing rapidly and want to
upgrade with the global growth
12 principles of innovation for BOP markets
1. Focus on value, on delivering performance for the price.
2. Innovate – Old technologies can‘t solve the problems of BOP consumers.
3. Make the solution scalable
4. Aim to conserve resources
5. These customers may require different functionality than high-end consumers
6. Think in terms of process innovations
7. Reduce the skills required to do the job
8. Educate consumers in the use of products
9. Design products and services to operate in very tough infrastructure environments
10. Make the interface simple and the learning curve short
11. Innovate in distribution
12. Challenge assumptions
 Strengths of bottom of the pyramid
• There is money at the Bottom of the Pyramid: it is a viable market.
• Access to Bottom of the Pyramid markets is not necessarily difficult.
Unconventional approaches such as the Avon ladies approach may
work.
• The poor are very brand-conscious.
• The Bottom of the Pyramid market has been connected (mobile
phones, TV, Internet).
• Bottom of the Pyramid consumers are very much open towards
advanced technology.
• There is a dominant assumption that poor are not brand conscious
but if we look at Bop market the poor are very brand conscious and
also extremely value conscious by necessity
• Example: The Experience of Casas Bahia in Brazil and Elektra in
Mexico
• The business model convinced poor people to take out loans in order
to pay for furniture and appliances they otherwise can’t afford,
“selling them dreams” of cabinets and televisions.
• Bop consumer have desire and are constantly hardworking to achieve
their wants and dreams
• The Bop consumer readily accept advanced technology and make the
viable use in their daily business
• Example : ITC Echoupal an initiative for farmers by ITC Group, CDMA
Phones by reliance
• Initially farmers didn’t know how to hold the mouse but 4 month
later
• Even if they take away the computers we will buy one we need net
connectivity.
• Bank of Madhura
• E seva inclusion by government of Andhra Pradesh
• Cemex: Innovation in housing for the poor
• Jaipur Foot: Challenging Convention
• Aravind Eye Care: Delivering the most precious gift
Women are critical for development
• The Project Shakti by HLL
• With 45000 women HLL was able to reach about 100000 household
• Making women self sufficient and also helped in improving the
standards of living of Bop market
• Understanding Iodine Deficiency in salt consumption and then
promoting salt as India's First Iodized salt with help of Shakti Ammas
 Key learnings
• The books tell how important and huge is the market at bottom of
pyramid
• The consumer at bop accept new technology and innovation going
across the globe
• They have the desire to live a more better and sustained life with
aspiration to buy products and services that are needs for individual
• The price and the model that the companies bring at bop plays a vital
role
• Women at bop play a vital role and act as support for the distribution
and sales to reach out local houses
How has it helped you in your career pursuit
• The book teaches how a company can help in eradicating poverty in a
country with doing the business without losses and improve the
quality of life at bop
• Focusing on product innovation and sales channels, the enterprises
can lead to a better society
• The role of governments and corporations across the globe to adopt
the newfound best practices for uplifting the living standard of the
underprivileged.
• Understanding & catering to an untapped market of poor households
will result in profitable business transactions
Thank you