151
been serving high-end markets or business-to-business (B2B) markets in their countries or regions and therefore do not necessarily know how to reach BoP consumers.
In addition, the business case can be quite different, requiring the development of
specific or new product propositions for BoP consumers. While individual BoP consumers may have little purchasing power and therefore be more inclined to buy
small quantities of product (sometimes referred to as “Kadogo Economy”),
5
the
number of consumers and their market share are what drive economies of scale and
profits for value chain actors (Boxes 6.1 and 6.2).
5 http://corporatewatch.co.ke/wrigley-launches-smaller-sized-skittles-kadogo-economy/ provides
a Kenyan example.
Box 6.1 BoP Marketing and Distribution – Theme: Women’s
Empowerment
The empowerment of women within agribusiness value chains is one of the
main goals of 2SCALE. As discussed throughout this paper, developing BoP
marketing and distribution activities can create both entrepreneurship as well
as employment opportunities for women, beyond more “conventional” opportunities in agricultural value chains, such as factory workers and casual laborers. Good examples of this are the Likie Ladies, micro-entrepreneurs who
have formed a network of last-mile distributors for business champion GUTS
Agro in Ethiopia, and the Danaya women’s processor cooperative, which built
a strengthened business network out of the BoP marketing activities in Mali.
In the future, 2SCALE plans to develop more activities that also empower
female BoP consumers, primarily the female heads of households, through
behavioral change campaigns and other activities.
Box 6.2 BoP Marketing and Distribution – Theme: Access to Finance
One of the challenging dynamics in BoP marketing pilots is access to finance
or, more specifically, access to working capital. For instance, the microentrepreneurs who are involved in the sale and distribution of BoP food products often have limited access to working capital, making it difficult for them
to buy stock. This can limit the demand for food products from business
champions. Also, BoP consumers do not always have a steady income, sometimes limiting their ability to buy food, and micro-entrepreneurs often are not
willing to sell food products on credit.
(continued)
6 Innovating at Marketing and Distributing Nutritious Foods at the Base…
been serving high-end markets or business-to-business (B2B) markets in their countries or regions and therefore do not necessarily know how to reach BoP consumers.
In addition, the business case can be quite different, requiring the development of
specific or new product propositions for BoP consumers. While individual BoP consumers may have little purchasing power and therefore be more inclined to buy
small quantities of product (sometimes referred to as “Kadogo Economy”),
5
the
number of consumers and their market share are what drive economies of scale and
profits for value chain actors (Boxes 6.1 and 6.2).
5 http://corporatewatch.co.ke/wrigley-launches-smaller-sized-skittles-kadogo-economy/ provides
a Kenyan example.
Box 6.1 BoP Marketing and Distribution – Theme: Women’s
Empowerment
The empowerment of women within agribusiness value chains is one of the
main goals of 2SCALE. As discussed throughout this paper, developing BoP
marketing and distribution activities can create both entrepreneurship as well
as employment opportunities for women, beyond more “conventional” opportunities in agricultural value chains, such as factory workers and casual laborers. Good examples of this are the Likie Ladies, micro-entrepreneurs who
have formed a network of last-mile distributors for business champion GUTS
Agro in Ethiopia, and the Danaya women’s processor cooperative, which built
a strengthened business network out of the BoP marketing activities in Mali.
In the future, 2SCALE plans to develop more activities that also empower
female BoP consumers, primarily the female heads of households, through
behavioral change campaigns and other activities.
Box 6.2 BoP Marketing and Distribution – Theme: Access to Finance
One of the challenging dynamics in BoP marketing pilots is access to finance
or, more specifically, access to working capital. For instance, the microentrepreneurs who are involved in the sale and distribution of BoP food products often have limited access to working capital, making it difficult for them
to buy stock. This can limit the demand for food products from business
champions. Also, BoP consumers do not always have a steady income, sometimes limiting their ability to buy food, and micro-entrepreneurs often are not
willing to sell food products on credit.
(continued)
6 Innovating at Marketing and Distributing Nutritious Foods at the Base…