1) Pricing is vitalIt is important to start with an affordable price, keeping in mind that the cost of the product less the profit equals the cost of the product. A new range of exciting options opens up as a result of this different way of thinking.2) Innovation is essentialA fundamental rethink of the market is required to accelerate and improve this process.3) Businesses need to substitute investment for collaborationIn order to increase collaboration, management time is needed - and it is a cheaper option than investing money.

Issues at the bottom of the pyramid:

A company that builds affordable products creates awareness and provides access to the poor will experience phenomenal success.According to Professor C.K. Prahalad, the BOP market has been viewed as a goldmine for reaping profits in business. Rather than just focusing on corporate social responsibility (CSR), the BOP market should be the focus of core business: <ul><li>meeting unmet social needs and incorporating new consumer preferences to serve the BOP market, </li><li>create opportunities that have substantial value for the market. </li></ul>One example of this is the growth of microfinance.

Developing the Innovator’s Mindset

C.K. Prahalad argued that there is a ‘poverty penalty’ where the poorest people pay more for everything because they don’t have a choice: they are stuck with local monopolies and bad products and services.Research recently highlighted by the World Resources Institute shows that the world’s four billion poorest people represent a US$5 trillion market opportunity.

Fortune lies at the bottom

According to the late Professor, even the poor can be considered good customers by marketers who believe that BOP is an unsold market. Although they have a low-income level, they are discerning consumers who value and are aware of more affluent brands. Low income creates obstacles according to this school of thought.He proposed:<ol><li>creating buying power;</li><li>shaping aspirations through product innovation and consumer education;</li><li>improving access through better distribution and communication systems;</li><li>tailoring local solutions.</li></ol>

4 key elements to thrive in the low-income market

An innovative product for the bottom of the pyramid (BOP) market was developed by Godrej (one of the largest manufacturers of home appliances in India). The 'ChotuKool' (meaning 'small cooler') was developed by Godrej's R&D team in 2007.  Godrej's team decided to involve villagers in the market research process. In response to feedback received from rural women, the prototype underwent multiple iterations.The ChotuKool offers a targeted value proposition that serves the BOP segment at a price of about US $65, less than half the price of an entry-level refrigerator.

Example: Godrej Chotukool

The Bottom of the Pyramid is a strategic concept coined by late professor C.K. Prahalad that emphasizes innovation at the grassroots levels of society.

Collectively, the world's billions of poor people have immense untapped buying power. Prahalad's global bestseller shows why companies can't afford to ignore "Bottom of the Pyramid" (BOP) markets. Now available in paperback, it offers a blueprint for driving the radical innovation companies will need to profit in emerging markets, and using those innovations to become more competitive everywhere.

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The world's most exciting, fastest-growing new market is where you least expect it: at the bottom of the pyramid. Collectively, the world's billions of poor people have immense untapped buying power. They represent an enormous opportunity for companies who learn how to serve them. Not only can it be done, it is being done--very profitably. What's more, companies aren't just making money: by serving these markets, they're helping millions of the world's poorest people escape poverty. C.K. Prahalad's global bestseller "The Fortune at the Bottom of the Pyramid," now available in paperback, " "shows why you can't afford to ignore "Bottom of the Pyramid" (BOP) markets. Now available in paperback, it offers a blueprint for driving the radical innovation you'll need to profit in emerging markets--and using those innovations to become more competitive "everywhere." This new paperback edition includes eleven concise, fast-paced success stories from India, Peru, Mexico, Brazil, and Venezuela--ranging from salt to soap, banking to cellphones, healthcare to housing. These stories are backed by more detailed case studies and 10 hours of digital videos on whartonsp.com. Simply put, this book is about making a revolution: building profitable "bottom of the pyramid" markets, reducing poverty, and creating an inclusive capitalism that works for "everyone." Preface xi About the Author xix Part I: The Fortune at the Bottom of the Pyramid 1 Chapter 1: The Market at the Bottom of the Pyramid 3 Chapter 2: Products and Services for the BOP 23 Chapter 3: BOP: A Global Opportunity? 47 Chapter 4: The Ecosystem for Wealth Creation 63 Chapter 5: Reducing Corruption: Transaction Governance Capacity 77 Chapter 6: Development as Social Transformation 99 Part II: Business Success Stories from the Bottom of the Pyramid 113 Financing the Poor 115 Aravind Eye Care-The Most Precious Gift 131 Energy for Everyone 137 Agricultural Advances for the Poor-The EID Parry Story 149 Retail for the Poor 159 Information Technology to the Poor 169 The Jaipur Foot Story 187 Health Alerts for All 191 Transparent Government 201 The Annapurna Salt Story 213 Homes for the Poor-The CEMEX Story 221 From Hand to Mouth-The HHL Soap Story 235 Part III: On the Web at Whartonsp.com Video Success Stories Casas Bahia CEMEX Annapurna Salt Hindustan Lever Jaipur Foot Aravind Eye Care ICICI Bank ITC e-Choupal EID Parry Voxiva E+Co/Tecnosol Andhra Pradesh Full Success Case Stories in pdf format The Market at the Bottom of the Pyramid Known Problems and Known Solutions: What Is the Missing Link? Known Problems and Unique Solutions Known Problems and Systemwide Reform Scaling Innovations Creating Enabling Conditions for the Development of the Private Sector The EID Parry Story Biographies of the Researchers/Writers of the Success Case Stories from "The Fortune at the Bottom of the Pyramid" 247 About the Video Success Stories 255 Index 257