The Base of Pyramid Distribution Challenge: Evaluating Alternate Distribution Models of Energy Products for Rural Base of Pyramid in India
This paper analyzes product distribution choices available in rural Bottom of the Pyramid (BoP) markets for multinational corporations and small and medium enterprises (SMEs). It evaluates key drivers of distribution for a successful go-to-market strategy.Attempts to exploit opportunity in BoP markets have emphasized product and process improvements so far. The paper highlights complexities of operating in rural Indian markets. It presents a new analytical framework to help companies identify viable alternate distribution channels and evaluate their capabilities. Findings include:
- Distribution channel decision is crucial to successful product adoption for manufacturers of rural BoP products;
- Distribution framework set forth in this paper can act as a management tool for the design and evaluation of a products go-to-market strategy in rural India;
- Researching and experimenting with distribution choices before diving into the rural BoP markets can help companies prevent unnecessary failure;
- Collaborating with existing players who have ready touch points in BoP markets can provide producers with strategic advantages.
The paper states that sustainable success of any channel would bring it unprecedented bargaining power and open up unexpected revenue streams for its stakeholders.
