Views from the BRINQ

An ancient Foosball table in Asa Branca favela, Rio de Janeiro, BrasilBoP Protocol Partners in Kibera slum, Nairobi, KenyaEco - eco friendly "leather"Kiswahili lessons by a community water tank in Kibera slum, Nairobi, Kenya

"Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity."

— George S. Patton, U.S. Army General

Creating markets for the base of the pyramid

Posted Wed, 10/28/2009 - 15:02 by Patrick@BRINQ
Creating markets for soy protein in Andhra Pradesh, India

Where was the market for Solae's protein in rural India? It needed to be created.

On Monday, the Wall Street Journal published an article by my colleague Erik Simanis about our work developing new markets in the base of the world's income pyramid. Erik is a pioneer in business development methodologies for the BoP.

The Base of the Pyramid is not actually a market. True, those billions of low-income people have a lot in common. But they don't have two of the vital characteristics you need to have a consumer market. They haven't been conditioned to think that the products being offered are something one would even buy. And they haven't adapted their behaviors and budgets to fit the products into their lives. A consumer market is nothing less than a lifestyle built around a product.

Erik uses a range of examples including bottled water in the U.S., P&G's PUR water cleaning powder, KickStart's MoneyMaker pump, and our own work with Solae in India to demonstrate that companies should think twice before assuming a market for their products exists, even if those products are well designed. And if a market doesn't exist then traditional market entry approaches - the kind that most companies use and most managers are taught - are largely ineffective. Instead, companies need to learn to create markets.

Since the first BoP Protocol pilot in 2005, our work has focused more and more on the challenges of creating new markets and building the enterprises that enable them. Over the years, we have learned a number of hard, but handy, lessons. Three of those lessons are described below.

From the archives...

Base of the Samosa - What's in a name?

Posted Thu, 08/04/2005 - 11:37 by Patrick@BRINQ

There's nothing like a room full of blank stares to tell you that you have just used the wrong word, nobody there knows what you're talking about and you need to adapt, but what do you do when that word is at the heart of what you do? When that glazed-eye-inducing offender is printed all over your business cards?

Erik, Kabi, Edwin and I are in a meeting hall in Kibera, a shanty town in Nairobi, Kenya which, with an estimated one million people, is one of Africa's, if not the world's, largest slums. We're running the second of four community engagement workshops in which we are preparing local community groups, entrepreneurs and social enterprises, on how to best approach and prepare for a partnership with multinational companies; in this case, how to partner with our main corporate sponsor, SC Johnson. This is what we do, we bring people from diverse backgrounds and with diverse resources together, "a creative collision of world views", to create new market opportunities for multinationals and locally grown businesses for poor communities via a process of "mutual value creation". Buzz phrase laden work, yes, but it's actually all been going quite well so far, except that now our community partners are stuck on our name. Behind us, on a brown flip chart taped to the wall, is drawn a large three sided figure, a triangle really, with the words "Base of the Pyramid" written on top, or BoP for short. That's us.