the BOP MARKET
Business Solutions to PovertySamarth Bansal
Lead Software Developer, m.Paani
WHAT IS BOP?
4 billion low income people earning
< $3000/year constitute the BOP!
THE BOP!
Oops, majority of the humanity lies here!
The Current Picture
More than 70% of workforce in developing countries operates in informal or underground economy!
SACHS VS EASTERLY !
TRADITIONAL Approach
Focus on very Poor..
FOREIGN AID!
Assumption : They are unable to help themselves
Welcome to the New Approach!
MARKET BASED SOLUTIONS
...for businesses are not just for profits!
MARKET BASED Approach
Poor don't eliminate commerce and market processes.
All poor households trade cash to meet basic needs.
...unmet needs of more than half the worlds population!
We need innovative solutions in form of new products and new business models
$5,000,000,000,000 market
Segment wise BOP Market
Business with the Poor? Are you kidding me?
Where is the money?
Lets talk about business strategy......
(1) Focus on BOP
...with unique products, services or technologies apt to BOP needs.
(2) LOCALIZING VALUE CREATION
Project Shakti , HUL
...through franchising, through agent strategies that involves building local systems of vendors or suppliers!
(3) ENABLING ACCESS
to goods and services!
- Packaging strategies that lowers purchase barriers.
- Novel distribution strategies or deployment of low cost tech
(4) UNCONVENTIONAL PARTNERING
+ 
...with govt, NGO's or groups of multiple stakeholders to bring necessary capabilities to table!
~CK Prahlad : Fortune at the BOP(2005)Large scale and wide spread entrepreneurship is at the heart of the solution to poverty"
THANK YOU!
Talk more on BOP? Would love to connect. Drop in a line at samarth@mpaani.com