The Fortune at the Bottom of the Pyramid
Products and Services for the BOP
Quote:
As White explains, “our products have huge reach and so the opportunity to improve lives and to make sure we reduce our overall environmental impact is primarily through our products.”
Learning Expectation:
Not only are companies attracted by the prospect of discovering markets with untapped growth potential, but they’re also aiming to have an impact, in a global society characterized by deep divisions between the haves and the have-nots. But those developing new products for those living in poverty are finding that cost alone isn’t the most important factor.
Review:
The product had clear social benefits, providing clean drinking water for households in places where the health risks of untreated drinking water are high, especially for children. After three years of market tests though, PUR was looking like a commercial failure. Many other firms would have closed down the project, but P&G instead moved PUR to its corporate sustainability department, easing the pressure on turning a profit. Since 2003, P&G has sold the product at cost and worked in partnership with non-profit organizations, who distribute the product through their development and humanitarian relief networks.
 
Lessons Learned:
People can afford computers and, thus, schools can justify investments in routers and infrastructure, a sensible proposition for companies like Cisco. The cycle goes on.
So, rather than, or as a complement to, trying to make money off of the BOP as new market opportunities, when companies help create value by allowing families to create wealth through “their” creations or products, lends itself to more robust investments. Otherwise, companies will continue to scratch their heads on how to capitalize on the BOP.
Integrative Questions:
1. What are the products of BOP?
2. What are the services for the BOP?
3. What are the opportunities in the company?
4. What is the impact in global society?
5. What are the creations of the products or investments?