LIJO PAULOSE T

SECTION - A

Briefing about the brain behind it

C.K Prahlad.(IIM-A, Harvard university.)

Prof.@Paul and Ruth McCracken university at the Ross School of Business.

Laureate of padma bhooshan, pravasy bharathiya samman & Lal bhahadur sasthri award for contributions.

Considered as one among the top ten management guru’s of the last century.

Great impact & acceptance from UNDF, IFC & World bank. CEO’S of

top companies accepted it.

For innovation & making new

markets.

Aimed at poverty

alleviation & improvement.

Wealth based distribution of population.

Some cases

$ 200 computer ( impacted not only Indian market but also US.)

SachetsAkash computers.Opportunity is in the air. Identify it.(story of

chapel sellers, a model for finding out creative opportunities.)

MAJOR EFFECTS OF SERVING AT THE BOTTOM

Skepticism in initial stage.Wireless cellular – an impact.Technology to illiterates.Prepaid market.Small industries & new entrepreneurs.Innovation, mobile cash e.g. airtel money.Mobile phone in public health education.E.g. googling and epidemic awareness.

Major obstacles.

Mental hurdles.Attitude change is an imperative.Logistics & infrastructure requirement in

rural areas.A few areas made impact.

$ 200 carSinger sewing machine for $ 100

EKG machine for $ 800

Cultural and communication barriers.

Nothing so. Recognize the market. EG. BRICKS &

Indonesia, turkey, Mexico Etc.( vulnerable markets to grow in the coming decade.)

Substitute 4P’s (product, price, place, promotion) to 4A’s (Awareness, access, affordability, & availability.)

SURPRISES & RESULTS

A surprise even to the think tang behind the idea.

Wide access, ecosystem( network),linking the locals(partnership- not one man show.)

Decentralized production but centralized processing. (supply chain) E.g.. Amul, ITC

Requirements to serve the global customers

Ensure global standard of safety & quality.Know ecosystem,(BE) & Affordability.Be keen to geographical & demographic

factors.(trends in west may not be applicable in south.)

References

http://knowledge.wharton.upenn.edu/article/new-approaches-to-new-markets-how-c-k-prahalads-bottom-of-the-pyramid-strategies-are-paying-off/

http://en.wikipedia.org/wiki/The_Fortune_at_the_Bottom_of_the_Pyramid

THANKS