The presentation is about frugal innovation. Its about how innovators can innovate their product to serve the volume markets. One challenge is how high value and high margin brands create products for volume markets and low margin markets. The presentation reduces the complexity of the concept and dwells on the discussion on brand innovation and brand translation in frugal markets. Typically firms operating in frugal markets end up positioning themselves as poor mans product, thus labeling an individual are poor. This strategy can backfire, on the other hand using unethical methods of marketing products to marginal markets can stigmatice the whole industry. Thus product developers have to be critical and thoughtful while innovating for low margin markets. One fine example for frugal innovation is Life-boy soap and Nirma washing powder.
4. Frugal Innovation
• Design to extreme affordability
• Strategic thinking towards volume markets
• Creativity and innovation towards extreme
affordability
• Design, engineer and produce for marginal
markets
• Translating and innovating a high margin brand
for low margin markets
• Creating and innovating towards branded and
quality products for marginal markets
Anirudh Agrawal, PhD Fellow, CBS CSR
Frugal innovation blogpost, stanford.edu, uni. Santabarbara – frugal innovation centr
18. What Is Microfinance?
• Microfinance is the offer of financial & non-financial services to
people excluded from the traditional banking system. The services
are adapted to the needs of the target populations.
MICRO
• Micro-entrepreneurs
• Self-employed
• Low income populations
• Excluded populations
FINANCE
• Business & educational loans
• Savings
• Micro-insurances
• Remittances
• Micro-entrepreneur training
• Coaching & workshops on
health, hygiene, etc.
Anirudh Agrawal, PhD Fellow, CBS CSR
53. ICT
Anirudh Agrawal, PhD Fellow, CBS CSR
Source: florence rizzo and anirudh agrawal YT summer school
54. Examples
•
•
•
•
Nokia Asha for developing Markets
100 dollar laptop
20 dollar tablet
Grameen Telenor Joint Venture
Anirudh Agrawal, PhD Fellow, CBS CSR
55. Activity
• Discuss in group of 3-5, how will a high margin
brand strategise its brand and manage frugal
innovation.
• Example: Arla innovating high energy, high
nutirient yogurt for poor countries
Anirudh Agrawal, PhD Fellow, CBS CSR