jerryking + bottom_of_the_pyramid   40

He Grew Up on a Farm. Now, He Helps Protect Them.
Oct. 3, 2019 | The New York Times | By Norman Mayersohn.

Books: Warren Buffett biography, “Buffett: The Making of an American Capitalist,”

Few livelihoods offer as many paths to failure as agriculture. Throughout history, farmers have been at the mercy of nature — be it weather, pests or crop diseases — even as the survival of people and livestock depended on their success...... Thomas Njeru, is a co-founder and the chief financial officer of Pula, a four-year-old microinsurance firm that serves 1.7 million smallholder farms of 0.6 acres or less in 10 African countries and India. Microinsurance — think of it as an offshoot of the microloan programs that kick-start businesses in impoverished areas — provides protection for low-income individuals who do not have access to conventional coverage....Pula, based in Nairobi, Kenya, partners with government agencies and loan providers to cover the cost of the insurance, which is included in the price of seed and fertilizer; there is no direct charge to the farmer. Among the coverages Pula provides is weather index insurance to cover failures of seed germination, using satellite data to determine whether there has been sufficient rainfall. Longer-term coverage, called yield index insurance, compensates farmers with replacement supplies in the event of a poor harvest......People in Africa don't invest in agriculture because the chance of them losing their money due to the vagaries of the weather is huge.........Pula’s mission is to give farmers confidence by providing risk mitigation. Our solutions protect a farmer’s investment by pairing it with insurance. We build business cases to persuade Fortune 500 companies, seed and fertilizer suppliers, lending institutions, and governments in Africa, that embedded insurance will help deliver better results for both businesses and food security....The sad reality is that farmers are one drought or one disease outbreak away from sliding into absolute poverty......the penetration of agriculture insurance in Africa is less than 1 percent. The reason is that insurance companies’ business models are not set up to serve the unique needs of smallholder farmers......scaling Pula’s business model to the point that insured seed and fertilizer become ubiquitous in the market......The average annual insurance premium per farmer is about $3 to $5. This includes the cost of product development, pricing, underwriting, claim adjustment and, of course, the claim costs. We use artificial intelligence, mobile-based registration systems, remote sensing and automation tools...Agriculture insurance is a cemetery of pilots and trials..
Africa  agriculture  behavioral_change  books  Bottom_of_the_Pyramid  crop_insurance  farming  insurance  Kenya  low-income  microfinance  mobile_applications  poverty  precarious  Pula  seeds  smallholders  start_ups  risks  risk-mitigation  Warren_Buffett  weather 
5 days ago by jerryking
A proven identity offers a path to many freedoms
August 11, 2017 | Financial Times | Gillian Tett.

Most of us in the west take it for granted that we have an official identity, both in digital life and real life. We usually only think about it if we are worried that somebody is trying to steal it, or that governments are threatening to breach our privacy.

But in the developing world, the idea of having an identity — be that digital or in any other form — is a luxury. It is estimated that some two billion adults around the world do not have a bank account. In emerging markets, some women in particular have no way to independently identify themselves, making it difficult for them to protect their rights, access services or lift themselves out of poverty.

“Large numbers of women are unable to take control of their finances because they lack the basic documentation to open a bank account,” Okonjo-Iweala pointed out, noting that around 42 per cent of adult women in developing countries lack a bank account partly because they have no way to show a bank teller (or anyone else) who they are. 

According to research carried out by ID2020, a public-private project that’s trying to promote digital identifier systems: “Experts estimate that 1.5 ­billion people lack any form of officially recognised identification, and that’s one-fifth of the planet.” These tend to be “women and children from the poorest areas of the world”. The United Nations, meanwhile, has declared that one of its sustainable development goals is to provide everybody on the planet with a legal identity by 2030. 

The good news is that all manner of organisations and groups are now getting involved in the cause. The World Bank, for example, is working with private-sector bodies including MasterCard to create digital identities using credit platforms. Ajay Banga, MasterCard CEO, is a vocal champion of this campaign, particularly for women (partly, a cynic might suggest, because he hopes this will create a future market).

ID2020 is spearheading another non-government initiative, in conjunction with groups such as Accenture and Microsoft. Refugee bodies, including the United Nations Development Programme, are trying to create digital identities for people in camps.
digital_identity  identity  Gillian_Tett  emerging_markets  women  children  Bottom_of_the_Pyramid  low-income  developing_countries 
august 2017 by jerryking
The End of Typing: The Next Billion Mobile Users Will Rely on Video and Voice - WSJ
By Eric Bellman | Photographs by Karan Deep Singh/The Wall Street Journal
Aug. 7, 2017

Instead of typing searches and emails, a wave of newcomers—“the next billion,” the tech industry calls them—is avoiding text, using voice activation and communicating with images. They are a swath of the world’s less-educated, online for the first time thanks to low-end smartphones, cheap data plans and intuitive apps that let them navigate despite poor literacy.

Incumbent tech companies are finding they must rethink their products for these newcomers and face local competitors that have been quicker to figure them out. “We are seeing a new kind of internet user,” said Ceasar Sengupta, who heads a group at Alphabet Inc.’s Google trying to adapt to the new wave. “The new users are very different from the first billion.”
Google  India  video  voice_interfaces  Bottom_of_the_Pyramid  visual_culture  imagery 
august 2017 by jerryking
Auction houses embracing digital technology to sell to the new global rich
SEPTEMBER 18, 2014 by: John Dizard.

....The auction houses have been under pressure to adapt to this changing universe. While the most visible aspect of the houses’ digital revolution may be their online auctions, the most essential is in the systematising and networking of their customer, market and lot information. Without that, the auctioneers would lose control of their ability to charge gross margins in the mid-teens as intermediaries of the $30bn global art auction market....Within the quasi-duopoly of Christie’s and Sotheby’s at the top of the auction world, Christie’s has now moved to implement what it calls its “digital strategy”....Christie’s now has James Map (as in founder James Christie), a sort of private internal social network that allows specialists, client service staff, support staff and executives to see what is known about a client and his tastes. Past auction records, relatives’ purchases and sales, statistical inferences on how likely clients are to move from buying an expensive watch online to participating in a high-end evening sale – it all can be in the mix.

The idea, Murphy explains, was “to create an internal app that spiders into our database of information and brings up on our internal [screen] environment lots of connectivity. This is faster and better than the email chains [that it replaced].”....This summer, Sotheby’s announced a partnership with eBay, the online auction giant. While the details of the partnership are still being developed, it is understood eBay will distribute live Sotheby’s auctions to its global audience of 150m buyers.

Ken Citron, Christie’s head of IT

The digital strategy is also making it easier to take part in auctions. Even with all the unseen know-your-customer checks now required by financial supervisory agencies, it has become much faster and easier to register as an auction house client. About half now do so online.

But while the online revolution may have left some auction houses behind, for others it is generating new business. Auction houses used to regard the sale of smaller, cheaper objects from, for example, estate liquidations as an annoying loss-leader business that just wasted their specialists’ time. Now, however, many are making money selling objects for $2,000-$3,000; it’s just a matter of cutting transaction costs. “We have a new app with which you can take a picture, push a button, and it goes to a specialist, with a description. Then the specialist can decide if it might fit into an auction,” says Citron.
auctions  Sotheby's  Christie's  data  art  collectors  high_net_worth  partnerships  eBay  duopolies  digital_strategies  CRM  IT  margins  intermediaries  internal_systems  loss-leaders  transaction_costs  cost-cutting  know_your_customer  Bottom_of_the_Pyramid  estate_planning  liquidity_events  online_auctions  digital_revolution 
november 2016 by jerryking
Want to kickstart the Canadian economy? Try "indovation", says U of T prof | U of T News
January 26, 2015 | U of T News | Terry Lavender.

Professor Dilip Soman heads up U of T's India Innovation Institute. He explains how necessity can be the mother of innovation. Indovation is a portmanteau of the words “Indian” and “innovation” and it means taking existing constraints – such as a shortage of funds or raw materials – into account when developing a response to actual problems.... “Frugality is at the essence of it,” Soman says. “In India, unless you can drive down costs, your idea is a non-starter.

“For example, mobile banking. That’s a classic ‘indovation’. It came about as a response to a particular problem, and it was developed in India and adopted in the west,” says Soman.

we’re working on developing a dataset on reverse innovation; the idea that innovations that have developed in the global south can be scaled back to the western world,” Soman says. “We have white papers on several topics: crowd-funding, agriculture, and retail and investment opportunities. The goal is to build up a database of information that both researchers as well as practitioners can use.”
constraints  innovation  India  Rotman  uToronto  trickle-up  frugality  necessity  reverse_innovation  jugaad  Bottom_of_the_Pyramid  datasets  Indians 
february 2015 by jerryking
Tristan Walker Raises $6.9 Million From Andreessen, Others - Digits - WSJ
June 17, 2014 | WSJ | By KATHERINE ROSMAN.

Walker's Bevel (https://getbevel.com/) brand of razors, shaving creams and salves has sold well, with more than 90% of customers returning for more products, Walker says. He won’t reveal revenue or sales numbers, though.

Walker plans to use the newly raised money to develop new and existing products, and to get Bevel into brick-and-mortar locations like barber shops and specialty stores. He also is planning in-person and video-conference educational programs to teach African Americans how to shave.
Tristan_Walker  Andreessen_Horowitz  start_ups  Bevel  Foursquare  entrepreneur  personal_care_products  personal_grooming  African-Americans  underserved  Bottom_of_the_Pyramid  bricks-and-mortar 
july 2014 by jerryking
Search for a Market Niche, and You Might Find a Crowd - NYTimes.com
By JENNA WORTHAM FEB. 8, 2014

Tristan Walker decided that his moon shot would be revolutionizing the skin-care and beauty-product industry for African-Americans....Kartik Hosanagar, a professor of online commerce at the Wharton School of the University of Pennsylvania, said that even the smallest companies would soon have to start paying attention to so-called unconventional markets.

“There are still two Silicon Valleys,” Mr. Hosanagar said. “Young entrepreneurs in San Francisco, working at a tech firm, surrounded by the tech 1 percent, solving problems for the 1 percent. And there are companies that manage to break through that and become relevant. The Googles, Twitters and Facebooks of the world.”

The companies that break out, he said, are successful because they are adept at appealing to all users. But even those tech giants must think ever more broadly if they are to have continued success and growth. Signs suggest that these companies are trying to extend their reach and understand the complexity and diversity of their users and potential users.
African-Americans  niches  entrepreneur  moonshots  Foursquare  Andreessen_Horowitz  unconventional_thinking  personal_care_products  personal_grooming  underserved  Bottom_of_the_Pyramid  Jenna_Wortham  Tristan_Walker  pay_attention 
february 2014 by jerryking
The Microinsurance Revolution - NYTimes.com
June 6, 2012 | NYT | By TINA ROSENBERG.

Insurance is a peculiar product, unavailable to those who need it most. One group is people likely to make claims — if you want health insurance, for example, best not to be sick. The other underserved group is the poor.

Poor people need insurance more than wealthier people do, because they have no other cushion. Few people are always in a state of poverty. Most are cyclically poor. They work and save, but then something happens and they fall into poverty : a crop failure, a loss of a job, the death of a breadwinner. Often, the trigger for poverty is illness....Insurance offers a safety net, of course, but it is more than that. If you know you are covered, you’ll be more likely to invest in the future. “Your whole capacity to take risks changes,” says Andrew Kuper, president and founder of LeapFrog Investments, which helps to scale up companies worldwide that provide insurance to the underserved. “A daughter can go to school rather than work, the farmer can plant crops that can triple his income. We’re used to thinking of insurance as a safety net, but it’s also a springboard.”
smallholders  insurance  microfinance  Bottom_of_the_Pyramid  poverty  safety_nets  risk-taking  scaling  risk-preferences  risk-tolerance  underserved 
june 2012 by jerryking
Bottom-Feeding from Blockbuster Businesses
March 2003 | Harvard Business Review | David Rosenblum, Doug Tomlinson, and Larry Scott.

Unprofitable customers are the pariahs of the business world. Marketing experts encourage companies to analyze the economics of their customer portfolios and ruthlessly weed out buyer segments that don’t generate attractive returns. Loyalty experts stress the necessity of aiming retention programs at the “good” customers—the profitable ones, that is—and encouraging the “bad” ones to buy from competitors. And customer-relationship-management software provides ever more sophisticated means for identifying poorly performing customers and culling them from the ranks.

On the surface, the movement to banish unprofitable customers seems eminently reasonable—what company, after all, can afford to waste precious resources courting and serving customers that don’t provide any payback? But writing off a customer relationship simply because it is momentarily unprofitable is at best rash and at worst counterproductive. Customers are scarce, and every one should be approached as a potential asset. Executives shouldn’t be asking themselves, How can we shun unprofitable customers? They need to ask, How can we make money from the customers that everyone else is shunning?

When you look at apparently unattractive segments through this lens, you often see what others are blind to: opportunities to serve those segments in ways that fundamentally change customer economics.
HBR  business_models  underserved  Bottom_of_the_Pyramid  blockbusters  overlooked_opportunities  customer_segmentation  customer_profiling 
june 2012 by jerryking
Gillette's in Razors: the 11-Cent Blade - WSJ.com
OCTOBER 1, 2010 | WSJ | By ELLEN BYRON.Winning over
low-income consumers in developing markets is crucial to the growth
strategy of P&G's chief executive, Robert McDonald. Over the next
five years, Mr. McDonald wants to boost the company's total customer
base for its many products to five billion of the world's expected
population of seven billion. Many of these new consumers will have to
come from markets like India, where P&G has a small presence
compared to Unilever PLC and some other competitors.The need to grow in
emerging markets is pushing P&G to change its product-development
strategy. P&G uses what it calls reverse engineering. Rather than
create an item and then assign a price to it—as in most developed
markets—the company starts with what consumers can afford and then
adjusts the features and manufacturing processes to meet the target.

For Gillette Guard, the target was five rupees, about the cost of
shampoo sachets or small tubes of toothpaste.
Gillette  innovation  India  P&G  personal_care_products  reverse_engineering  reverse_innovation  cost-cutting  emerging_markets  Bottom_of_the_Pyramid  customer_growth  low-income 
october 2010 by jerryking
Nestlé Plans Indian Center to Tap Low-Income Market - NYTimes.com
By HEATHER TIMMONS
Published: September 22, 2010
The Swiss food giant said Wednesday that it would open its first
research and development center in India, where it plans to use local
ingredients and spices as well as low-cost Indian research and
engineering to make products for India and the rest of the world....Like
many other Western companies, Nestlé is expanding in emerging markets,
where fast-growing economies and young populations mean an increasing
number of people can afford nonessential consumer goods. Nestlé expects
to get 45 percent of sales from emerging markets by 2020.

“We have to understand the consumer” in India and know how he or she
cooks, Mr. Zimmermann said. The company’s new research center will be
staffed mostly by Indians and will develop new products relying on
Indian cuisine, traditional ingredients and spices, he said.
India  Nestlé  Bottom_of_the_Pyramid  R&D  emerging_markets  low-income 
september 2010 by jerryking
What Knockoffs Can Teach Companies About Chinese Markets | Co.Design
Sep 8, 2010 | Fast Company | by Makiko Taniguchi & Eddie
Wu. Fakes and knockoffs often express unmet desires that big firms miss.
Learn from them...Countries, from the U.S. to Japan, regularly accuse
China of copying designs. Indeed,MNCs in these countries spend an
inordinate amount of time and money trying to prevent their products
from being copied. But Shanzhai -- "copycat" design --represents a vast
business opportunity. Shanzhai is an open platform for grassroots
innovation: Apple, Nokia, and Samsung smartphones get copied, but the
knockoffs adapt the original designs in ways that appeal to Chinese
customers. E.g., Shanzhai designers might add a flashlight, key in areas
with unstable electricity. The effect is to make products accessible to
common folks in terms of price, aesthetics, values, and needs. Shanzhai
designs are an opportunity for international companies to introduce
Chinese consumers to their brands, and then observe how local Chinese
culture adapts their offerings.
counterfeits  China  customer_insights  discoveries  pattern_recognition  ideo  opportunities  innovation  design  adaptability  patterns  copycats  unarticulated_desires  Bottom_of_the_Pyramid  emerging_markets  brands  multinationals  aesthetics  knockoffs  creative_appropriation  cost-consciousness  low-income  affordability 
september 2010 by jerryking
You Can Ignore 5 of These Trends: But Only 5 - Adam Smith, Esq.
24 August, 2010 | Adam Smith .
* Trend 1: Distributed cocreation moves into the mainstream
* Trend 2: Making the network the organization
* Trend 3: Collaboration at scale (jk: economies_of_scale)
* Trend 4: The growing 'Internet of Things'
* Trend 5: Experimentation an big data
* Trend 6: Wiring for a sustainable world
* Trend 7: Imagining anything as a service
* Trend 8: The age of the multisided business model
* Trend 9: Innovating from the bottom of the pyramid
* Trend 10: Producing public good on the grid
trends  McKinsey  Bruce_MacEwen  economies_of_scale  public_goods  Industrial_Internet  massive_data_sets  experimentation  Bottom_of_the_Pyramid 
august 2010 by jerryking
The Life’s Work of a Thought Leader
August 9, 2010 | Strategy + Business | by Art Kleiner.
Thought Leaders: In interviews conducted before his untimely death,
C.K. Prahalad — the sage of core competencies and the bottom of the
pyramid — looked back on his career and talked about the way ideas
evolve.
C.K._Prahalad  Bottom_of_the_Pyramid  interviews  core_competencies 
august 2010 by jerryking
The Importance of Frugal Engineering
May 25, 2010 | Strategy + Business | by Vikas Sehgal, Kevin
Dehoff, and Ganesh Panneer. Providing new goods and services to “bottom
of the pyramid” customers requires a radical rethinking of product
development. Frugal engineering is not simply low-cost engineering. It
is not a scheme to boost profit margins by squeezing the marrow out of
suppliers’ bones. It is not simply the latest take on the decades-long
focus on cost cutting.Cost discipline is an intrinsic part of the
process, but rather than simply cutting existing costs, frugal
engineering seeks to avoid needless costs in the first place. Frugal
engineering, addresses the billions of consumers at the bottom of the
pyramid who are quickly moving out of poverty in China, India, Brazil,
and other emerging nations.
innovation  C.K._Prahalad  Bottom_of_the_Pyramid  product_development  Tata  BRIC  low-cost  emerging_markets  trickle-up  reverse_innovation  jugaad  frugality  cost-cutting  supply_chain_squeeze 
august 2010 by jerryking
Danone Expands Its Pantry to Woo the World's Poor - WSJ.com
JUNE 29, 2010 | Wall Street Journal | By CHRISTINA PASSARIELLO. Danone Expands Its Pantry to Woo the World's Poor.
Danone  multinationals  yogurt  consumer_goods  Bottom_of_the_Pyramid  dairy 
june 2010 by jerryking
Doing More Business in the World's Poorest Places
June 15, 2010 | BusinessWeek | By Karen E. Klein. As
technology upends tired notions of 3rd World entrepreneurship, says
Marty Anderson, Westerners will find competitors, partners, and workers.
Marty is a lecturer at Babson College, and devoted the 1st part of his
career to corporate turnarounds and supply chain mgmt. In the course of
his travels, he's begun documenting what he calls "innovation at the
edge of electricity." Implications in all this for the U.S. and the
West in general? " Our companies are a tiny slice at the top of the
world's economic chain. Probably 80 % to 90 % of global economic
activity is conducted by small family businesses using cash-flow
business models, not equity. P2P and villager-to-villager microlending
is the dominant form of financing in the world. If you drop modern
electronics into that environment, without regulatory restrictions, all
the family businesses in the world can start cracking genomes or doing
music distribution or publishing.
3rdWorld  entrepreneurship  Bottom_of_the_Pyramid 
june 2010 by jerryking
Vijay Govindarajan Pins Future Growth on Reverse Innovation
October 6, 2009 | — World Business Forum — Presented by Shell |
Vijay GovindarajanTo tap opportunities in emerging markets, companies
must excel at “reverse innovation”: develop products in countries like
China and India and then distribute them globally. Why? The fundamental
driver of reverse innovation is the income gap that exists between
emerging markets and the developed countries....Established automakers
are missing the opportunity. They have chartered their innovation
efforts for rich countries — and then offered the same cars, perhaps
de-featured to reduce costs somewhat, in poor countries....Yet far more
is at risk than missed opportunities for growth. Increasingly, success
in the developing world is a prerequisite to continued vitality at home.
In the transformed economic landscape, reverse innovation is not
optional — it is oxygen.
reverse_innovation  gurus  Vijay_Govindarajan  Bottom_of_the_Pyramid  product_development  China  India  missed_opportunities  de-featured  automotive_industry  emerging_markets  developed_countries  jugaad  developing_countries 
may 2010 by jerryking
The C.K. Prahalad Fortune at the Bottom of My Backpack
April 29, 2010 | Harvard Business Review | by Justin Fox .
"And then he started addressing the really interesting question: what
comes next?

"Ten years ago, my job was to start from scratch and move the agenda of
private sector involvement [in serving the world's poor]," he said. "Now
I want to start from the other end, the idea of democratizing commerce.
What the book [The Fortune at the Bottom of the Pyramid] is describing
is the early version of the building blocks of how you democratize
commerce. Somehow the pyramid must transform itself into a diamond, with
a huge middle class. There will always be poor and rich. It is the
shape of the distribution that matters." "
C.K._Prahalad  HBR  obituaries  Bottom_of_the_Pyramid 
may 2010 by jerryking
C.K. Prahalad, 1941-2010 - BusinessWeek
April 22, 2010 | BusinessWeek | By Susan Berfield. The late
management expert was a thinker who told companies they could boost
profits—and benefit the poor—by crafting products for them. "Prahalad
had eclectic interests: bird migratory habits, historical maps, the
spread of languages. He wasn't especially gregarious, but when he
traveled, which was often, he tried to pry useful information out of
everyone he met. He was always looking for connections and patterns,
hoping to predict change."
C.K._Prahalad  obituaries  Bottom_of_the_Pyramid 
april 2010 by jerryking
C. K. Prahalad, Proponent of Poor as Consumers, Dies at 68 - Obituary (Obit) - NYTimes.com
April 21, 2010 | New York Times | By VIKAS BAJAJ. C. K.
Prahalad, a management professor and author who popularized the idea
that companies could make money while helping to alleviate poverty, died
Friday in the La Jolla neighborhood of San Diego. He was 68 and lived
in San Diego.
C.K._Prahalad  obituaries  Bottom_of_the_Pyramid 
april 2010 by jerryking
A special report on innovation in emerging markets: The world turned upside down
Apr 15th 2010 | From The Economist print edition. The United
Nations World Investment Report calculates that there are now around
21,500 multinationals based in the emerging world. The best of these,
such as India’s Bharat Forge in forging, China’s BYD in batteries and
Brazil’s Embraer in jet aircraft, are as good as anybody in the world.
The number of companies from Brazil, India, China or Russia on the
Financial Times 500 list more than quadrupled in 2006-08, from 15 to 62.
Brazilian top 20 multinationals more than doubled their foreign assets
in a single year, 2006.
innovation  emerging_markets  reverse_innovation  Bottom_of_the_Pyramid  BRIC  multinationals 
april 2010 by jerryking
At 3M, Innovation Comes in Tweaks and Snips
MARCH 1, 2010 | Wall Street Journal | By DANA MATTIOLI and KRIS MAHER
Dana_Mattioli  innovation  3M  slight_edge  Bottom_of_the_Pyramid 
march 2010 by jerryking
Innovation in Emerging Markets | Articles | Chief Executive - The magazine for the Chief Executive Officer
January/February 2010, Posted On: 1/29/2010

Innovation in Emerging Markets

Three critical factors should not be overlooked in any strategy aimed at emerging markets.
By Scott Anthony
emerging_markets  Scott_Anthony  Innosight  C.K._Prahalad  market_segmentation  business_models  rethinking  Bottom_of_the_Pyramid  think_threes 
february 2010 by jerryking
Serving the World's Poor, Profitably
Sept. 1, 2002 | Harvard Business Review | by C.K. Prahalad and Allen Hammond
C.K._Prahalad  BRIC  HBR  Bottom_of_the_Pyramid  filetype:pdf  media:document  low-income 
december 2009 by jerryking
Tech's Future
SEPTEMBER 27, 2004 | Business Week | by Steve Hamm. Developing
countries require new business strategies as well as new products. .. A
new class of businesses -- tech kiosk operators -- is emerging to
provide computing as a service. With cash often in short supply,
pay-as-you-go programs are not only boosting cell-phone usage but are
catching on with computers and Web access as well. When these
technologies cycle back into the mature markets, it could change
everything from pricing to product design. To succeed in the developing
world, devices and software have to be better in many ways: cheaper,
easier to use, extra-durable, more compact -- and still packed with
powerful features. The resulting improvements will ultimately benefit
everybody from New Delhi to New York.
HP  BRIC  C.K._Prahalad  Bottom_of_the_Pyramid  kiosks  new_businesses  new_products  pay-as-you-go  developing_countries 
december 2009 by jerryking
Switch to the low-income customer
14-Nov-2005 | Financial Times | By Jeremy Grant. "When AG
Lafley came in [in 2000] and said, 'We're going to serve the world's
consumers', that led us to say, 'We don't have the product strategy, the
cost structure, to be effective in serving lower income consumers'.
"What's happened in the last five years has been one of the most
dramatic transformations I've seen in my career. We now have all of our
functions focused on that," says Mr Daley. P&G, the world's largest
consumer goods company, devotes about 30 %of its $1.9bn in annual
research and development spending to low-income markets, a 50 % increase
from 5 yrs. ago. Consumer research: spend time in consumers' homes to
gain insights into daily habits; Cost innovation: use proprietary
technology to design low-income products; Innovation productivity: use
"matchmakers" such as InnoCentive; Manufacturing efficiency: cut mfg.
costs by developing a network of suppliers in China, Brazil, Vietnam and
India.
P&G  BRIC  market_research  consumer_research  primary_field_research  customer_insights  innovation  Bottom_of_the_Pyramid  A.G._Lafley  InnoCentive  supply_chains  China  Brazil  Vietnam  India  observations  insights  cost-structure  jugaad  proprietary  behavioural  cost-cutting  match-making  CPG  low-income 
december 2009 by jerryking
Marketers Pursue the Shallow-Pocketed - WSJ.com
Jan. 26, 2007 | WSJ | By ANTONIO REGALADO. Interpublic Group's
McCann World Group in 2005 polled 15 of its major advertising clients.
These clients saw their biggest mktg. opportunities as being people
with low incomes....In recent years, mktg. to the poor has become a hot
subject. Univ. of Michigan economist C.K. Prahalad helped popularize the
idea with his 2004 book "The Fortune at the Bottom of the Pyramid,"
which argued big companies could profit and help the world's 4 billion
poor or low-income people by finding innovative ways to sell them soap
and refrigerators....Some companies have already been tackling
low-income mkts. by revamping distribution sys., or tweaking products so
that they are simpler or less expensive. E.g., Nestlé Brazil saw sales
of its Bono cookies jump 40% last year after it shrank the package to
140 g. from 200 g. and dropped the price... Illiteracy is one big
challenge...The strong role that community plays in poor neighborhoods
is of particular interest.
advertising_agencies  C.K._Prahalad  marketing  market_research  BRIC  Bottom_of_the_Pyramid  low-income 
december 2009 by jerryking
C.K.'s Lessons For Executives
(1) Think Big (2) Cater to the Poor (3) Don't Get Blindsided (4) Reconsider Outsourcing
tips  executive_management  CEOs  C.K._Prahalad  overdeliver  chutzpah  game_changers  Bottom_of_the_Pyramid  thinking_big  blindsided  blind_spots 
december 2009 by jerryking
Business Prophet
JANUARY 23, 2006 | Business Week | By Pete Engardio. Strategy
guru C.K. Prahalad is changing the way CEOs think. Prahalad's 2004 work
on the topic that today's needy masses are the future of the global
economy. His book, The Fortune at the Bottom of the Pyramid, has been
hailed as one of the most important business books in recent years and
turned Prahalad into a celebrity in the field of international
development. Trickle-up innovation.
trickle-up  strategy  India  reverse_innovation  C.K._Prahalad  management_consulting  gurus  Bottom_of_the_Pyramid  Indians  global_economy  low-income 
december 2009 by jerryking
India's Next Global Export: Innovation
Dec. 2, 2009 | BusinessWeek | By Reena Jana. A Hindi slang
word, jugaad (pronounced "joo-gaardh") translates to an improvisational
style of innovation driven by scarce resources and attention to a
customer's immediate needs, not their lifestyle wants. It captures how
Tata Group, Infosys, and other Indian corporations have gained
international stature. The term seems likely to enter the lexicon of
mgmt. consultants, mingling with Six Sigma, total quality, lean, and
kaizen, the Japanese term for continuous improvement. Like previous
mgmt. concepts, Indian-style innovation could be a fad. Moreover,
because jugaad essentially means inexpensive invention on the fly, it
can imply cutting corners, disregarding safety, or providing shoddy
service. "Jugaad means 'Somehow, get it done,' even if it involves
corruption," cautions M.S. Krishnan, a Ross b- school professor.
"Companies have to be careful. They have to pursue jugaad with
regulations and ethics in mind." Trickle-up innovation.
trickle-up  India  globalization  innovation  cheap_revolution  Tata  reverse_innovation  Bottom_of_the_Pyramid  jugaad  improvisation  inexpensive  Indians 
december 2009 by jerryking
Indian Firms Shift Focus to the Poor
Oct 20, 2009 | Wall Street Journal pg. A.1 | by Eric Bellman.
With the developed world mired in a slump and the developing world
still growing quickly, companies are focusing on how to innovate, and
profit, by going straight to the bottom rung of the economic ladder.
They are taking advantage of cheap research and development and low-cost
manufacturing to innovate for a market that's grown large enough and
sophisticated enough to make it worthwhile. Instead of using
traditional supply chains, many companies are distributing through rural
self-help groups and micro-lenders that are already plugged into
villages. And while profit margins are slim, companies are counting on
volume to compensate. Many hope to sell to other poor and underserved
markets in Asia and Africa eventually. Trickle-up innovation.
trickle-up  underserved  reverse_innovation  emerging_markets  socioeconomic  Bottom_of_the_Pyramid  jugaad  developed_countries  supply_chains  manufacturers  R&D  microlending  microfinance  low-cost  Indians  low-income 
november 2009 by jerryking
Where are the world's poor finding hope? Under the table -
May 30, 2009 | The Globe and Mail | by Doug Saunders. A
generation ago, informal work was on the fringes of the poorest and most
authoritarian countries. Now, according to a study by a group of
economists from the OECD, the majority of the world's jobs are
"informal" or officially non-existent, and that proportion is increasing
rapidly. "Informality is increasingly becoming normal," they conclude,
"not least in middle- and even high-income countries." Dr. Deepa
Narayan and her team of analysts at the World Bank have authored
"Moving Out of Poverty: Success from the Bottom Up". Are informal labour
markets a cause of rising fortunes or an unfortunate byproduct?
Doug_Saunders  informal_economy  OECD  Bottom_of_the_Pyramid  ProQuest 
june 2009 by jerryking

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