Question

Topic: Strategy

Bottom Of The Pyramid

Posted by Anonymous on 8/19/2010 at 4:48 AM ET 125 Points
I am working to implement the Bottom of the pyramid strategy for a mobile phone service provider in Africa and I am not very sure what type of products and services would work in such a market considering that the market is at the very bottom of the pyramid with even less dollars to spend per day. How do I reach out to this market without making a loss or subsidising to reach such a market
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RESPONSES

  • Posted by Gary Bloomer on 8/19/2010 at 8:58 PM Accepted
    Dear Daniel,

    Following on from Marcus's excellent point (Marcus, you rock!), I recommend you also read Chris Anderson's "The Long Tail".

    This book points out that although the big money CAN be and IS made in the larger sales of goods and services, it's the sum total of sales from all the smaller buys that COMBINED, can and do overpower the market share of the bigger sections.

    Think niche. Think narrow and deep, NOT wide and shallow. Do or find ONE THING that people want but that NO ONE ELSE IS DOING because it's classed as too small potatoes, and DO IT INCREDIBLY WELL.

    Mobile phone services are the EPITOME of continuity programs. Figure out what it is about the service that people like and want and figure out what they DON'T like and DON'T want, then find suppliers that will offer one but not the other and give the people what they want DIRT CHEAP ... but back it up with KICK ASS support.

    I hope this helps. Good luck to you.

    Gary Bloomer
    The Direct Response Marketing Guy™
    Wilmington, DE, USA


  • Posted on 8/20/2010 at 2:53 PM Accepted
    Daniel,
    Like Marcus, I too am a fan of Dr. Yunnus' work.

    To be more specific, look into the "Phone Ladies" program Grameen implemented in Bangladesh. You might be able to replicate the model in your market, and you might also consider reaching out to the Grameen folks for direct assistance.

    Good luck!
  • Posted on 8/20/2010 at 3:08 PM Author
    Thanks all for your insites to my question and your contributions have been very wonderful and encouraging. I will try to get the books refered to though I know it will be very difficult to get them in this part of the world.

    Marcus, your openner was very encouraging from the onset and I immediately remembered the book i read by C.K Praharad on the bottom of the pyramid but my dilema was whether the concept would work in a mobile phone company and Gary and Margareto summed it all in their respences
    Once again thank you
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