7/31/2019 Cases for BOP
1/3
Case 5
Agriculture- BoP targeting at work is e-Choupal in rural India
by ITC. Its an agricultural trading
company. It was launched to eliminate the inefficiencies in its
supply chain management.Individual farmers are now able to check
the market trading prices and directly sell to ITC.
Farmers benefit by realizing better prices. Information centers
linked to the internet. It connects
subsistence farmers with large farms, current agricultural
research and global markets, operatedby local farmer called
sanchalak and information provided bysamyojaks. E-Choupal
leverages
the Internet to empower small and marginal farmers who
constitute a majority of the 75% of
the population below the poverty line, hence, resulting in an
increase in revenues both sides.Domain of e-Choupal has covered
10States, Villages covered are 40,000, No. of e-Choupals are
6,500, No. of Farmers e-empowered are 4 million.
Value chain- The Mandi Operations
The New Value Chain
Farmers Gain: Better information content, Better information
timing, Transportation cost,Transaction duration, Weighing
accuracy, Professionalism and dignity.
ITC Gain: Disintermediation savings, Freight costs, Quality
control and Risk management.
Case 6
ICICI-
I think we have to recognize that a whole lot of potential is
going to come out of the bottom of
the pyramid
-Chanda Kochhar, Executive Director
Retail Banking, ICICI Bank
Mission Statement:
To identify and support initiatives designed to improve the
capacities of the poorest of the poor
to participate in the larger economy
Inbound
Logistics
Display and
InspectionAuction
Bagging and
weighingPayment
Outbound
Logistics
PricingInbound
Logistics
Inspection
and Grading
Weighing
and
Payment
Hub
Logistics
7/31/2019 Cases for BOP
2/3
Core Belief:
Poor do pay for the services rendered to them and they ought to
be viewed as consumers rather
than passive beneficiaries
Two Innovative models to serve the BOP:1. The Direct Access,
Bank-led Model: Catalyzed by the merger with Bank of Madura
andutilizes its power to promote and grow SHGs.
2. Indirect Channels Partnership Model: Looks to leverage
current infrastructure and
relationships of MFIs and NGOs.
Self Help Groups: 15 to 20 members, from same village, married,
between the ages of 20 and 50,
existing below poverty line. Each member contributes Rs 50 to a
joint savings account, leaderresponsible for collection and opening
up of savings account in the bank. The savings are
converted into fund used for emergency lending to an individual
within the group and eligible for
loan after one year of formation. This resulted into Number of
SHGs increased from 1500 in2001 to 8000 in 2003. ICICI has utilized
its financial expertise to fashion a model that is
economically viable. ICICI has positioned itself as socially
conscious corporate citizen and helpsICICIs bargaining power with
the RBI and other government institutions.
Some more examples in short of strategies for BOP are:Poor in
Bangladesh spend as much as 7% of their income on connectivity. HLL
created direct
distribution network in hard to reach locales i.e. markets
without distribution coverage through
traditional distributors & dealers, Amul has introduced a
good quality of ice cream affordable byall the BOP which is very
popular and also planning to launch other products, Grameen
phones
were used in Bangladesh & Telefonica in Brazil by the large
no. of poor consumers. Experience
of CASAS BAHIA in Brazil & Eleckra in Mexico, two of the
largest retailers of consumer
durables of good quality furniture oriented towards BOP market
suggests that the BOP marketsare very brand conscious, BIMBO is the
largest bakery in Mexico & its trucks have become
symbols of trust between BOP consumers and the firm, Micro
encapsulation of iodine in salt in
India has found market in other BOP markets in Africa especially
in Ivory coast, Kenya &Tanzania, Launch of Wheel detergent by
HLL, Micro-financing by Grameen Bank in
Bangladesh, Jaipur foot, Aravinda Eye Care and the case of
Kerala fisherman who sold their
catch to higher bidders by using their cell phones to contact
multiple possible landing sites along
the Kerala coast.
6 Promoters
Formation of new SHGs
6 Coordinators
Formation of new SHGs Monitors the action of promoters
Project Manager
Approve loan applications Helps with the development of SHGs
