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Challenges in Marketing Socially Useful Goods to the Poor

Author

Listed:
  • Bernard Garrette

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Aneel Karnani

    (Stephen M. Ross School of Business - University of Michigan [Ann Arbor] - University of Michigan System)

Abstract

Market-based solutions to alleviate poverty have become increasingly popular in recent years. Unfortunately, there are very few examples of profitable businesses that market socially useful goods in low-income markets and operate at a large scale. This article examines three case studies of multinational firms that tried to market unquestionably useful products--clean water, eyeglasses, and nutritious yoghurt--to the poor but did not succeed commercially. The article also discusses two positive examples of profitable BOP ventures: mobile phones and detergents. Developing strategies for marketing socially useful goods to the poor, far from triggering a revolution in business thinking, requires firms to get back to the basic principles and rules of economics and business.

Suggested Citation

  • Bernard Garrette & Aneel Karnani, 2010. "Challenges in Marketing Socially Useful Goods to the Poor," Post-Print hal-00517194, HAL.
    • Handle: RePEc:hal:journl:hal-00517194
    DOI: 10.1525/cmr.2010.52.4.29
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    Citations

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    Cited by:

    1. Christopher P. Blocker & Kenneth C. Manning & Carlos A. Trujillo, 2023. "Beyond radical affordability in the base of the pyramid: The role of consumer self‐confidence in product acceptance," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 619-647, January.
    2. Virgilio Panapanaan & Tytti Bruce & Terhi Virkki‐Hatakka & Lassi Linnanen, 2016. "Analysis of Shared and Sustainable Value Creation of Companies Providing Energy Solutions at the Base of the Pyramid (BoP)," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 293-309, July.
    3. Krzysztof Dembek & Nagaraj Sivasubramaniam & Danielle A. Chmielewski, 2020. "A Systematic Review of the Bottom/Base of the Pyramid Literature: Cumulative Evidence and Future Directions," Journal of Business Ethics, Springer, vol. 165(3), pages 365-382, September.
    4. Ernst Verwaal & Martin Klein & Jefferson Falce, 2022. "Business Model Involvement, Adaptive Capacity, and the Triple Bottom Line at the Base of the Pyramid," Journal of Business Ethics, Springer, vol. 181(3), pages 607-621, December.
    5. Reiner, Gerald & Gold, Stefan & Hahn, Rüdiger, 2015. "Wealth and health at the Base of the Pyramid: Modelling trade-offs and complementarities for fast moving dairy product case," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 413-421.
    6. Bruton, Garry D. & Ketchen, David J. & Ireland, R. Duane, 2013. "Entrepreneurship as a solution to poverty," Journal of Business Venturing, Elsevier, vol. 28(6), pages 683-689.
    7. Musteen, Martina & Rhyne, Lawrence & Zheng, Congcong, 2013. "Asset or constraint: Corporate reputation and MNCs’ involvement in the least developed countries," Journal of World Business, Elsevier, vol. 48(3), pages 321-328.
    8. Poul Houman Andersen & Lars Esbjerg, 2020. "Weaving a strategy for a base‐of‐the‐pyramid market: The case of Grundfos LIFELINK," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3687-3701, December.
    9. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    10. McGrath, Lucie Klarsfeld & Kayser, Oliver & Dalsace, Frédéric, 2021. "Mindset drives success: Selling beneficial products at the base of the pyramid," Business Horizons, Elsevier, vol. 64(4), pages 475-487.
    11. Spencer Henson & Jessica Agnew, 2021. "Are market‐based solutions a viable strategy for addressing micronutrient deficiency? Lessons from case studies in sub‐Saharan Africa and South Asia," Development Policy Review, Overseas Development Institute, vol. 39(2), pages 233-249, March.
    12. Robin Charbonnier & Pierre Poinsignon & Thomas Paris, 2021. "Du BoP dans le beat , une analyse des transformations numériques dans la musique," Post-Print hal-03328239, HAL.
    13. Danielle A. Chmielewski & Krzysztof Dembek & Jennifer R. Beckett, 2020. "‘Business Unusual’: Building BoP 3.0," Journal of Business Ethics, Springer, vol. 161(1), pages 211-229, January.
    14. Ignasi Martí, 2018. "Transformational Business Models, Grand Challenges, and Social Impact," Journal of Business Ethics, Springer, vol. 152(4), pages 965-976, November.
    15. Hoddinott, John F. & Gillespie, Stuart & Yosef, Sivan, 2015. "Public-private partnerships and the reduction of undernutrition in developing countries:," IFPRI discussion papers 1487, International Food Policy Research Institute (IFPRI).

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    Keywords

    Marketing Socially Useful Goods; Poor;

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