English language materials provided in advance to workshop participants

1. The Corporate Leaders Program:
Base of the Pyramid Modeling Workshop
Business Models and Examples for Engaging the BOP
July 2010

2. BOP AS CONSUMERS: BUSINESS MODELS AND EXAMPLES
Consumer Models Description Examples
• No frills or simplified • Amanco (Mexico): Standardized small-scale irrigation systems sold through social
BASIC version of an existing entrepreneurs
PRODUCT OR product or service
SERVICE • LifeSpring Hospitals (India): No frills hospital with narrow focus on maternal and
child health care
NEW OR • Product created or • BCI (Chile): Microloans for entrepreneurs based on credit profiles that utilize
CUSTOMIZED customized to meet a need information from other organizations (e.g. suppliers)
PRODUCT specific to the BOP • Mibanco (Peru): Loans for women microentrepreneurs to invest in productive
assets or improved locales, coupled with financial and management training
• Fonavipo (El Salvador): Housing fund that provides loans to nonregulated MFI’s
that provide credit for low-income housing
• Safaricom M-PESA (Kenya): Money transfer and payment services using mobile
phones and an extensive network of kiosks
PURCHASE • Loans to individuals or • CEMEX (Mexico): Microloans for communities to pave roads in partnership with
FINANCING groups to finance local municipalities
purchases • EPM (Colombia): Bill payment information from EPM used to create credit
profiles and offer credit lines at a network of retail stores
PAY-PER-USE • Customers pay for each use • Sunlabob (Laos): Rental solar-recharging stations and lanterns for villages
SERVICE instead of owning asset without electricity
• Union Fenosa (Colombia): Payment collection and customer service through
local BOP enterprises in order to reduce payment losses
SMALL UNIT • Product sold at more • Procter & Gamble (Venezuela): Bulk sales of shampoo, diapers, and detergent to
SIZE PRODUCT affordable unit size buyers’ clubs who can sell to BOP in smaller unit quantities
• Danone (Senegal): 50-gram portions of drinkable yogurt sold at a lower price
Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 1
length case studies. All other examples are from public sources reviewed in Dalberg research.

3. BOP AS DISTRIBUTORS/RETAILERS AND EMPLOYEES: BUSINESS MODELS
AND EXAMPLES
Distributor/
Retailer Models Description Examples
• Distribute products and • MiTienda (Mexico): Provide warehousing and supply chain technical assistance
LAST MILE TO services to hard-to-reach to small grocery stores which are owned by the BOP and which reach BOP
BOP BOP consumers consumers
• Holcim Apasco (Mexico): Construction material depots located closer to BOP
households
• Coca-Cola (East Africa): BOP manual distribution centers used to distribute
beverages to dense urban and peri-urban centers
INCREASING • BOP used to create new • Nestlé (Brazil): BOP used as local direct sales agents and micro-retailers who sell
POINTS OF points of sale (e.g. sales products in smaller package quantities to BOP consumers in favelas
SALE agents, micro-retailers) • Lydec (Morocco): Local extension workers provide technical support and ensure
customer satisfaction/retention
Employee Models Description Examples
OUTSOURCING • Outsourcing work to BOP • LabourNet (India): Database established to match unorganized workers and
employees, often through companies with staffing needs
an intermediary • TeamLease (India): Service that identifies and contracts temporary workers for
service sector companies
UPSKILLING • Training the BOP to fill • Guangsha Construction (China): Free required training courses for construction
PEOPLE staffing needs workers in order to reduce the number of on-site accidents
DESKILLING • Operations disaggregated • Aravind EyeCare (India): Increased operations performed by less-skilled workers
TASKS into discrete tasks that can in order to optimize utilization of doctors and increase throughput
be performed by BOP
employees
Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 2
length case studies. All other examples are from public sources reviewed in Dalberg research.

4. BOP AS SUPPLIERS: BUSINESS MODELS AND EXAMPLES
Supplier Models Description Examples
• Direct purchase from BOP • Colineal (Ecuador): Technical assistance provided to woodworkers to produce
DIRECT
suppliers, who may or may furniture according to specifications
PURCHASE
not have aggregated their • Mundo Verde (Brazil): Small local suppliers used to increase diversity and
production improve marketing of wellness products
• Natura (Brazil): Traditional farmers used to supply materials for a new
environmentally-friendly cosmetics line
• Pronaca (Ecuador): Support local farmers with training, access to credit, and
new technology to stabilize maize supply
• Starbucks (Latin America): Purchase coffee from suppliers who meet standards
for sustainable coffee production
BOP-OWNED • Purchase from cooperative • Wal-Mart (Latin America): Purchases from local cooperatives of small farmers
COOPERATIVE or other organization that are used to diversify supply chain
is owned by BOP suppliers • Amul (India): Multi-layer cooperative structure that collects milk from
fragmented dairy farmers
• Fabindia (India): Co-owned cooperatives that utilize craft artisans in the
production of clothing and home furnishings
THIRD PARTY • Purchase from • InterfaceFLOR (India): Partnership with a social enterprise that works with
AGGREGATOR intermediary that local artisans to produce traditional floor tiles
aggregates production • SABMiller (India): Provide barley farmers with certified seeds and training, but
from BOP suppliers purchase from a third party contractor that aggregates production
Source: Examples in BOLD are OMJ clients for which additional details can be found in the attached full- 3
length case studies. All other examples are from public sources reviewed in Dalberg research.