Description
This is ppt describes Book review The fortune at the bottom of the pyramid by C K Prahlad
Author : C.K.Prahlad
Agenda
The Fortune at the Bottom of the Pyramid
The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
2
3
A Paradigm Shift…
?Where is
?Its
World?s most exciting, fastest growing market?
where you least expect-THE BOTTOM OF THE PYRAMID
?Four
billion poor waiting having immense buying power and entrepreneurial capabilities
?STOP
thinking them as burden or victims and start recognizing their capabilities and requirements
?This path
breaking book talks about “Doing Well By Doing Good”
4
The Fortune Pyramid…
5
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
6
Market at the bottom of the Pyramid
?Eradicating
poverty by actively partnering with poor to innovate and achieve win-win scenarios, where companies achieve this by delivering products & services profitably
?Collaboration
between poor, civil society organisations, governments and large firms can create this largest and fast growing market in the world
?Three basic 1. 2. 3.
assumptions which will make this possible The poor represent a Latent Market, tapping of it lead to inclusive capitalism Since old & tired solutions won?t work in BOP,it creates innovations which will provide a growth opportunities. BOP Markets must become integral part of the work of private sector ,much beyond CSR activities.
?If
all of this is so obvious, why has this not occurred?-THE POWER OF DOMINANT LOGIC
7
The BOP Way….
8
Challenging The Dominant Logic
is Money at BOP – challenges the assumption that poor has no purchasing power and don?t represent a viable market
?There
to BOP Markets – challenges the assumption that distribution is very difficult and hence forming a major impediment for MNCs
?Access
BOP Markets are Brand-conscious – challenges the assumption they are non Brand conscious and value-conscious
?The ?The
BOP Market is connected – contrary to popular view
Consumers Accept Advanced Technology Readily –contrary to common belief
?BOP
9
The Market Development Imperative
?Create
?The
the capacity to consume – Affordability, Access & Availability
need for new goods and services
?Dignity and
?Trust is
Choice
a prerequisite
?All
this will lead to tap a huge market potential of $ 13Trillion (PPP terms) serving 4 to 5 billion underserved people and will imbibe a philosophy of innovation in private sector.
10
The Fortune at the Bottom of the Pyramid
The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
11
Golden rules for BOP Product development
?Focus on
price performance of products/services ?Innovation requires hybrid solutions ?Operations should be scalable & adaptable ?Sustainable development : Eco Friendly ?Identifying Functionality : Is BOP different from Developed markets? ?Process Innovations ?Deskilling of Work – to accommodate talent crunch in BOP ?Educating customers ?Designing for Hostile infrastructure ?Well researched design of Interfaces ?Innovations in Distribution system ?Challenge the conventional wisdom in delivery of Products and services
12
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
13
BOP – A Global Opportunity
?Some ?Many
BOP markets are large & attractive as stand-alone entities
local innovations can be leveraged across BOP markets, creating a global opportunity
?Some
innovations in BOP can be applied to developed Markets
?Lessons
from BOP markets can influence the management practices of
the firm 1. Optimizing Capital intensity 2. Sustainable development 3. Value-oriented innovations from consumer perspective 4. Minimizing the cost of management 5. Learning to live in a network of relationships
14
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation`
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
15
The Ecosystem for Wealth Creation
?A
Market-based ecosystem that allows private sector and social sector to act together and create wealth in a symbiotic relationship
?Developing ?Three
ecosystems that suits developing world
steps in creating a transaction governance capacity based on marketing ecosystem 1. Help the poor understand that there is a win-win situation for them and the firm by respecting contracts 2. The private sector can reduce the asymmetries In information, choice, ability to enforce the contracts and social standing by using Information Technology 3. The Self-Help Groups take it one step further . They start with understanding the rationale for contracting system : how & why it reduces transaction costs and therefore reduces the cost of capital as well as increasing access to capital
?Thus
Private Sector,in its desire to leverage resources and gain market coverage, will invent new sytems, which will bring more people under market based system
16
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
17
Reducing Corruption : Transaction Governance Capacity (TGC)
?Poverty
is a self-imposed problem in most of the world. Local capital formation and functioning of markets are stymied by the lack of institutional arrangements
?TGC
is about making the entire process as transparent as possible and consistently enforced
?TGC
is the prerequisite for active participation of private sector in development
?Transparency results from widely understood and ?Thus transparency reduces transaction costs
clearly enforced rules
18
Building TGC
TGC is about creating transparency and eliminating uncertainty and risk in commercial transactions . The specifications for TGC are four fold:
1. 2.
A system of laws that allows ownership and transfer of property. A process for changing the laws governing property rights that is clear and unambiguous As system become more complex ,a system of regulations that accommodates complex transactions Institutions that allow the laws to be implemented fairly , in a timely fashion, and with transparency
3.
4.
19
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
20
Development as Social Transformation
?Market
mechanism created by participation of BOP consumers creates social and economic transformations in a rapid way
?Break ?BOP
down barriers to communication
Consumers are always upgrading to knowledge
?Gaining access ?Identity for
the individual – legally
?Women
?These
are critical for Development
will make Morphing of Pyramid into a diamond-more & more people moving into middle class life styles and livelihood.
21
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
22
Casas Bahia : Fulfilling a Dream
Bahia a $ 4.2 billion Brazilian retailer – How it revolutionized the market?
?Casas ?The ?The ?An
vision of a great entrepreneur – Samuel Klein Key is creation of a „capacity to consume?
innovation in finance coupled with retailing – a new invention in credit analysis for BOP consumers from informal sector
23
How Casas Bahia did it?
?A
great focused culture & philosophy
?Empowering
?The
the employees and right use of IT to optimise resources
high interest rates and the presence of very high proportion of informal sector created a need for Casas Bahia to enter Financing using good systems & trained Credit analysts.
?90%
of the sales happens thru financing – installment lending from 1 to 15 months
education and cross selling
?Consumer ?Sells
top quality Brands at affordable prices – purchasing power on all parts of Supply Chain for efficiency and effectiveness
?Focus ?The
secret of the recipe – emotional connectivity with consumer
24
CEMEX : Innovation in Housing for the Poor
?CEMEX
is an MNC cement manufacturer in Mexico with global revenues of $
6.54 Bn
?„Patrimonio
Hoy? means “savings / property today” – an innovative model that enables the poor to pay for services and building materials to upgrade their homes
?The
target was women in BOP– who formed the key drivers of savings in Mexican society
?Groups
of three formed out of responsibility called – Socios.
?Promoters ?Formation
these women are formed with collective
are ambassadors of the program who work on commission basis
of Cells from CEMEX which comprised of a manager, an engineer , an architect & a clerk targeting 5000 socios
?These cells
provides savings-credit system where in they give the raw materials and the technical know how to build a house or a part of it
25
CEMEX …
?CEMEX
also acted as intermediary to other suppliers there by getting best buys for consumers and earning 7% margin from them on top of membership fee of 12.5% per Socio payment.
?Positioning
?Pricing ?It
– as a complete solutions provider
– a premium pricing which was justified by the value-added services
worked on Word of mouth marketing offers like free „back to school? were offered to lure customers for
?Promotional
enrollment – adapted the supply chain to counter the insufficient infrastructure and built capacity to store inventory on behalf of consumers.
?Distribution
Management – Managed a low default rate of 0.45%,the success can be attributed to Group commitment, Social capital and penalty fee structure
?Risk
story goes on sucessfully – after 3 years CEMEX has 36,000 customers and $10 Million in credit
?The
26
The Annapurna Salt Story : Public Health & Private Enterprise
?HLL?s ?Indian
Annapurna Salt fighting against Iodine deficiency Disorder diseases
salt market had only 25% iodized salt and consumer?s unaware about iodized salt requirement
?HLL
came up with stable Iodine (K15) technology which usually gets lost through typical Indian conditions storage, transportation & Indian cooking
pressing logic behind all this – the market leader Tatas or no other player was trying to develop any strong salt branding
?The
27
Marketing Annapurna..
?Target
Market – Young mothers in socio-economic segments C&D between 25 &
40 years
Packaging – introduced Low Unit price packs of 200g & 500g to facilitate the weekly buying behaviour of BOP consumers
?Innovative
–As a iodized salt against IDD & Goiters in rural market and as Salt with K15 that increases mental agility & IQ in urban markets
?Positioning ?Promotion
– HLL ran infomercial?s especially in Doordarshan sharing costs with
the network
?Supply
chain innovations like moving into rail system to optimise time &
resources
?Direct
Distribution – Project Shakti & Project SANGAM
28
Selling Health : Hindustan Lever Limited and the Soap Market
?
Every 30 seconds an Indian child succumbs to Diarrhoea-resulting in 3 million deaths per annum especially in rural areas. WHO studies show Handwashing with soap reduces it by 48% Hence HLL the soap leader along with Central & state governments and WHO initiated a CSR based program targeting 70 Million people at 8 Indian states Incidentally Lifebuoy was losing topline growth at 15-20% per year starting in 1999.
? ?
?
29
‘Swasthya Chetana’ ..
?
A Public Private Partnership program formed between HLL,World Bank, WHO & Govt of India
?
Launched a program called „Swasthya Chetna? in the state of Kerala and Ghana in Africa with a view of repeating it globally
Schools Presentation targeting students 5 to 12 Years & their parents
?
?
? ? ? ?
30
Lifebuoy Health Day
Diarrhea Management workshop Launch of Lifebuoy health club Innovative media vehicles Lower price points (@ Rs 2) for handwashing
Lifebuoy Way…
?Product Innovation • Migration from hard soap to a Milled soap –which lasts long, • Increase in Total Fatty matter (TFM)- producing more lather, • Use of „Triclosan? an anti-bacterial agent to strengthen the
health quotient &
?Positioning • communicating ?Pricing Innovation •
it as “Active-B”
•
A shift from Cost Plus model to Targeted pricing model- a consumer centric approach which made it affordable to many rural poor. Price range from Rs 2 to Rs 13.50 in 20% sales growth in those 8 states.
?Resulted ?The
final impact- Higher brand equity with emotional bonds for Lifebuoy & HLL at large as a company which cares.
31
The Aravind Eye Care System – Delivering the Most Precious Gift
?A
noble venture with a noble vision coupled with world-class management and processes
?A
venture by started by Dr.G.Venkataswamy in Madurai in 1976 now becoming the hopes of 95,000 people every year performing eye surgeries
?A
financially self-sufficient organization which keeps the pricing of a cataract surgery at $50 which is about one sixth anywhere in the world.
32
Aravind Process Innovation
– Use of more than 1000 eye camps around the „catchment area ?. Detailed routines for the conduct of eye camps. Selection of patients for treatment
?Origination ?Transport
to Central Facilities – Patients Transported by bus to Aravind
hospitals Facility – Specialized World-class facilities and highly trained doctors and nurses . Clear innovative work process for surgery.
?Processing
Processing – Post operative care & counselling.Follow-up . Research center focusing on preventable eye diseases around the world
?Post
33
The Learning……
?To
ask the right question : What is the Business of Business? have a vision as future managers – inclusive growth as an imperative
?To ?An
eternal but possible dream of making the world a better place to live & let live
34
35
doc_979184725.ppt
This is ppt describes Book review The fortune at the bottom of the pyramid by C K Prahlad
Author : C.K.Prahlad
Agenda
The Fortune at the Bottom of the Pyramid
The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
2
3
A Paradigm Shift…
?Where is
?Its
World?s most exciting, fastest growing market?
where you least expect-THE BOTTOM OF THE PYRAMID
?Four
billion poor waiting having immense buying power and entrepreneurial capabilities
?STOP
thinking them as burden or victims and start recognizing their capabilities and requirements
?This path
breaking book talks about “Doing Well By Doing Good”
4
The Fortune Pyramid…
5
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
6
Market at the bottom of the Pyramid
?Eradicating
poverty by actively partnering with poor to innovate and achieve win-win scenarios, where companies achieve this by delivering products & services profitably
?Collaboration
between poor, civil society organisations, governments and large firms can create this largest and fast growing market in the world
?Three basic 1. 2. 3.
assumptions which will make this possible The poor represent a Latent Market, tapping of it lead to inclusive capitalism Since old & tired solutions won?t work in BOP,it creates innovations which will provide a growth opportunities. BOP Markets must become integral part of the work of private sector ,much beyond CSR activities.
?If
all of this is so obvious, why has this not occurred?-THE POWER OF DOMINANT LOGIC
7
The BOP Way….
8
Challenging The Dominant Logic
is Money at BOP – challenges the assumption that poor has no purchasing power and don?t represent a viable market
?There
to BOP Markets – challenges the assumption that distribution is very difficult and hence forming a major impediment for MNCs
?Access
BOP Markets are Brand-conscious – challenges the assumption they are non Brand conscious and value-conscious
?The ?The
BOP Market is connected – contrary to popular view
Consumers Accept Advanced Technology Readily –contrary to common belief
?BOP
9
The Market Development Imperative
?Create
?The
the capacity to consume – Affordability, Access & Availability
need for new goods and services
?Dignity and
?Trust is
Choice
a prerequisite
?All
this will lead to tap a huge market potential of $ 13Trillion (PPP terms) serving 4 to 5 billion underserved people and will imbibe a philosophy of innovation in private sector.
10
The Fortune at the Bottom of the Pyramid
The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
11
Golden rules for BOP Product development
?Focus on
price performance of products/services ?Innovation requires hybrid solutions ?Operations should be scalable & adaptable ?Sustainable development : Eco Friendly ?Identifying Functionality : Is BOP different from Developed markets? ?Process Innovations ?Deskilling of Work – to accommodate talent crunch in BOP ?Educating customers ?Designing for Hostile infrastructure ?Well researched design of Interfaces ?Innovations in Distribution system ?Challenge the conventional wisdom in delivery of Products and services
12
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
13
BOP – A Global Opportunity
?Some ?Many
BOP markets are large & attractive as stand-alone entities
local innovations can be leveraged across BOP markets, creating a global opportunity
?Some
innovations in BOP can be applied to developed Markets
?Lessons
from BOP markets can influence the management practices of
the firm 1. Optimizing Capital intensity 2. Sustainable development 3. Value-oriented innovations from consumer perspective 4. Minimizing the cost of management 5. Learning to live in a network of relationships
14
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation`
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
15
The Ecosystem for Wealth Creation
?A
Market-based ecosystem that allows private sector and social sector to act together and create wealth in a symbiotic relationship
?Developing ?Three
ecosystems that suits developing world
steps in creating a transaction governance capacity based on marketing ecosystem 1. Help the poor understand that there is a win-win situation for them and the firm by respecting contracts 2. The private sector can reduce the asymmetries In information, choice, ability to enforce the contracts and social standing by using Information Technology 3. The Self-Help Groups take it one step further . They start with understanding the rationale for contracting system : how & why it reduces transaction costs and therefore reduces the cost of capital as well as increasing access to capital
?Thus
Private Sector,in its desire to leverage resources and gain market coverage, will invent new sytems, which will bring more people under market based system
16
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
17
Reducing Corruption : Transaction Governance Capacity (TGC)
?Poverty
is a self-imposed problem in most of the world. Local capital formation and functioning of markets are stymied by the lack of institutional arrangements
?TGC
is about making the entire process as transparent as possible and consistently enforced
?TGC
is the prerequisite for active participation of private sector in development
?Transparency results from widely understood and ?Thus transparency reduces transaction costs
clearly enforced rules
18
Building TGC
TGC is about creating transparency and eliminating uncertainty and risk in commercial transactions . The specifications for TGC are four fold:
1. 2.
A system of laws that allows ownership and transfer of property. A process for changing the laws governing property rights that is clear and unambiguous As system become more complex ,a system of regulations that accommodates complex transactions Institutions that allow the laws to be implemented fairly , in a timely fashion, and with transparency
3.
4.
19
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
20
Development as Social Transformation
?Market
mechanism created by participation of BOP consumers creates social and economic transformations in a rapid way
?Break ?BOP
down barriers to communication
Consumers are always upgrading to knowledge
?Gaining access ?Identity for
the individual – legally
?Women
?These
are critical for Development
will make Morphing of Pyramid into a diamond-more & more people moving into middle class life styles and livelihood.
21
The Fortune at the Bottom of the Pyramid The Market at the Bottom of the Pyramid
Products and Services for the BOP BOP: A Global Opportunity?
The Ecosystem for Wealth Creation
Reducing Corruption: TGC
Development as Social Transformation
Innovative Practices at the Bottom of the Pyramid
22
Casas Bahia : Fulfilling a Dream
Bahia a $ 4.2 billion Brazilian retailer – How it revolutionized the market?
?Casas ?The ?The ?An
vision of a great entrepreneur – Samuel Klein Key is creation of a „capacity to consume?
innovation in finance coupled with retailing – a new invention in credit analysis for BOP consumers from informal sector
23
How Casas Bahia did it?
?A
great focused culture & philosophy
?Empowering
?The
the employees and right use of IT to optimise resources
high interest rates and the presence of very high proportion of informal sector created a need for Casas Bahia to enter Financing using good systems & trained Credit analysts.
?90%
of the sales happens thru financing – installment lending from 1 to 15 months
education and cross selling
?Consumer ?Sells
top quality Brands at affordable prices – purchasing power on all parts of Supply Chain for efficiency and effectiveness
?Focus ?The
secret of the recipe – emotional connectivity with consumer
24
CEMEX : Innovation in Housing for the Poor
?CEMEX
is an MNC cement manufacturer in Mexico with global revenues of $
6.54 Bn
?„Patrimonio
Hoy? means “savings / property today” – an innovative model that enables the poor to pay for services and building materials to upgrade their homes
?The
target was women in BOP– who formed the key drivers of savings in Mexican society
?Groups
of three formed out of responsibility called – Socios.
?Promoters ?Formation
these women are formed with collective
are ambassadors of the program who work on commission basis
of Cells from CEMEX which comprised of a manager, an engineer , an architect & a clerk targeting 5000 socios
?These cells
provides savings-credit system where in they give the raw materials and the technical know how to build a house or a part of it
25
CEMEX …
?CEMEX
also acted as intermediary to other suppliers there by getting best buys for consumers and earning 7% margin from them on top of membership fee of 12.5% per Socio payment.
?Positioning
?Pricing ?It
– as a complete solutions provider
– a premium pricing which was justified by the value-added services
worked on Word of mouth marketing offers like free „back to school? were offered to lure customers for
?Promotional
enrollment – adapted the supply chain to counter the insufficient infrastructure and built capacity to store inventory on behalf of consumers.
?Distribution
Management – Managed a low default rate of 0.45%,the success can be attributed to Group commitment, Social capital and penalty fee structure
?Risk
story goes on sucessfully – after 3 years CEMEX has 36,000 customers and $10 Million in credit
?The
26
The Annapurna Salt Story : Public Health & Private Enterprise
?HLL?s ?Indian
Annapurna Salt fighting against Iodine deficiency Disorder diseases
salt market had only 25% iodized salt and consumer?s unaware about iodized salt requirement
?HLL
came up with stable Iodine (K15) technology which usually gets lost through typical Indian conditions storage, transportation & Indian cooking
pressing logic behind all this – the market leader Tatas or no other player was trying to develop any strong salt branding
?The
27
Marketing Annapurna..
?Target
Market – Young mothers in socio-economic segments C&D between 25 &
40 years
Packaging – introduced Low Unit price packs of 200g & 500g to facilitate the weekly buying behaviour of BOP consumers
?Innovative
–As a iodized salt against IDD & Goiters in rural market and as Salt with K15 that increases mental agility & IQ in urban markets
?Positioning ?Promotion
– HLL ran infomercial?s especially in Doordarshan sharing costs with
the network
?Supply
chain innovations like moving into rail system to optimise time &
resources
?Direct
Distribution – Project Shakti & Project SANGAM
28
Selling Health : Hindustan Lever Limited and the Soap Market
?
Every 30 seconds an Indian child succumbs to Diarrhoea-resulting in 3 million deaths per annum especially in rural areas. WHO studies show Handwashing with soap reduces it by 48% Hence HLL the soap leader along with Central & state governments and WHO initiated a CSR based program targeting 70 Million people at 8 Indian states Incidentally Lifebuoy was losing topline growth at 15-20% per year starting in 1999.
? ?
?
29
‘Swasthya Chetana’ ..
?
A Public Private Partnership program formed between HLL,World Bank, WHO & Govt of India
?
Launched a program called „Swasthya Chetna? in the state of Kerala and Ghana in Africa with a view of repeating it globally
Schools Presentation targeting students 5 to 12 Years & their parents
?
?
? ? ? ?
30
Lifebuoy Health Day
Diarrhea Management workshop Launch of Lifebuoy health club Innovative media vehicles Lower price points (@ Rs 2) for handwashing
Lifebuoy Way…
?Product Innovation • Migration from hard soap to a Milled soap –which lasts long, • Increase in Total Fatty matter (TFM)- producing more lather, • Use of „Triclosan? an anti-bacterial agent to strengthen the
health quotient &
?Positioning • communicating ?Pricing Innovation •
it as “Active-B”
•
A shift from Cost Plus model to Targeted pricing model- a consumer centric approach which made it affordable to many rural poor. Price range from Rs 2 to Rs 13.50 in 20% sales growth in those 8 states.
?Resulted ?The
final impact- Higher brand equity with emotional bonds for Lifebuoy & HLL at large as a company which cares.
31
The Aravind Eye Care System – Delivering the Most Precious Gift
?A
noble venture with a noble vision coupled with world-class management and processes
?A
venture by started by Dr.G.Venkataswamy in Madurai in 1976 now becoming the hopes of 95,000 people every year performing eye surgeries
?A
financially self-sufficient organization which keeps the pricing of a cataract surgery at $50 which is about one sixth anywhere in the world.
32
Aravind Process Innovation
– Use of more than 1000 eye camps around the „catchment area ?. Detailed routines for the conduct of eye camps. Selection of patients for treatment
?Origination ?Transport
to Central Facilities – Patients Transported by bus to Aravind
hospitals Facility – Specialized World-class facilities and highly trained doctors and nurses . Clear innovative work process for surgery.
?Processing
Processing – Post operative care & counselling.Follow-up . Research center focusing on preventable eye diseases around the world
?Post
33
The Learning……
?To
ask the right question : What is the Business of Business? have a vision as future managers – inclusive growth as an imperative
?To ?An
eternal but possible dream of making the world a better place to live & let live
34
35
doc_979184725.ppt