Most businesses focus on selling to the wealthiest fourteen percent of the world's population: The developed world. But these markets are over-saturated, over-competitive, and aging.
"The 86 Percent Solution" shows how to unleash new growth and profitability by serving everyone else.
Drawing on dozens of examples from emerging markets worldwide, the authors offer actionable strategies and tactics for product design, pricing, packaging, distribution, advertising, and much more. The book presents radically different "rules of engagement" that make emerging markets tick, and how some companies are already driving billions of dollars in sales there.
Along the way, it also deals with innovative methods to handle lack of infrastructure and media, low literacy levels, and "unconventional" consumer behavior. With the right solutions, these challenges present opportunities.
The potential of emerging markets is staggering. There is great scope to transform that potential into profit. Some key management mantras preached by the book:
Reach middle class and affluent consumers, not just the poor.
Emerging markets are bigger, wealthier, and more diverse than realized.
Don't build a car when you need a bullock cart.
Design products that reflect local environments and cultures.
Aim for the "ricochet" economy.
Use expatriates as your opening into emerging markets.
Grow big by thinking small.
Forget supersizing: big successes often come in small packages.
Discover what your strategy is. The 86 Percent Solution, published by Wharton School Publishing, comes loaded with proven strategies and provides all the insights you need.
This is something which I think we have discussed in length. Customizing products to suit rural needs seems to be the need of the hour. The other point we have discussed and which is not up here is underestimating a rural consumer's willingness to pay. Just like the West's view of India, MNCs seem to be thinking of rual India as impoverished and not worthy of consideration.
ReplyDeleteI'm not sure if you know of this, but sachets for shampoos was started by a Chennai based firm called Cavin Kare. HUL and P&G woke up only when they realized that Cavin Kare was wiping them off the shelves in TN.
I remember the Cavinkare's scare to HUL 10 years back. I also acknowledge and appreciate your view about rural markets. Products do not gain acceptance at the BOP not because of the consumer's lack of WTP but their inappropriateness to cater to the needs effectively. People have started learning this, fortunately.
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