Prioritizing whom you put at the center of the strategy and why

The tacit mandate for companies interested in the BoP market is that your product or service must either fill an ‘unmet’ need (of which the poor have many), or provide a way for them to enhance their livelihood or quality of life. Why else would they divert their limited and hard-earned cash for your product or service? So the fundamental consideration before design would be to focus on the benefit to the BoP: Is there an opportunity for social or economic development?

Next, the solution must be well designed—contextually relevant, appropriate, and of course, affordable. But the best designed product or service in the world will not sell if your customer is unable to find it. Since logistics and transportation is as much of an infrastructural challenge in the developing world, distribution becomes critical in ensuring the availability of the product. The entire supply chain might have to be built from scratch.

Once you’ve made the right product and got it out to where its needs to be, are your customers aware of its existence, what benefits it may provide for them, and the reasons why they should think about purchasing it? Is there a demand for this product, or can one be created? Does the value proposition of your offer resonate with the value system and worldview of those at the BoP?

And finally, the whole offering must cohesively hinge upon preserving and ensuring the dignity of your new customers. The poor are not looking for handouts, but rather opportunities; providing them with such products or services through a filter of ‘charity’ or ‘social work’ serves no one.

Our work in the field observing those at the base of the pyramid had led us to conclude that their life of adversity—managing in challenging conditions—evidenced a very different value system and worldview from what is commonly considered mainstream consumer culture. Their buying behaviour and decision-making criteria imply that those in the lower income strata—particularly in the developing world—are not ‘consumers’ but in fact extremely careful ‘money managers’ for whom an expense is often an investment whose return must be maximized. They tend to be risk averse and seek greater value from their purchases.
So an integrated strategy—one that looks beyond the design of the product or service for the other 90% but also takes distribution, demand, development and dignity into account while touching the core values of the BoP customer—could be considered a framework for best practice. ~ The 5Ds of BoP Marketing: Touchpoints for a holistic, human centered strategy

Why?

 

Lets take the example of your average social enterprise seeking to sell a cookstove or solar lamp to the erstwhile BoP customer. Do you know where he or she goes shopping? If you’re targeting rural customers in Sub Saharan Africa or South Asia, what are the odds of there being formal retail within accessible distance?

What are the odds of your subsistence farmer dropping by a supermarket when he’s in town next for market day? What kind of a difference will it make to your distribution strategy or demand creation and customer awareness program if it were designed from the point of view of your intended customers and their daily life, environment and buyer behaviour?

What if these assumptions were validated prior to investing thousands of dollars in setting up traditional distribution channels, per the conventional product introduction strategies as developed in the more sophisticated mainstream consumer markets?

Most social impact programs, whether they offer a new product or a service, or a program for socio-economic development of some sort, tend to focus their efforts on meeting the perceived needs of their most visible stakeholders. Rarely are these the intended recipients or end users, that is, the customers who would be purchasing the product or participating in the program or service.

Thus, when when there is little or no traction in sales and/or use of product or service, its always a head-scratching surprise. No wonder, when marketing may focus on value propositions that attract funders or changes in design are based on intermediary feedback, with little or no resonance with the actual needs or challenges faced by those among the intended target audience.

Human centered design, which inspires this holistic approach to the design of a strategy or plan, provides us with an approach which prioritizes the needs and challenges of the people considered most important for success or failure. Over and over, we learn expensive lessons when little or no impact is observed. Experience shows that the most dangerous assumption at the start of planning a program or crafting a strategy is that there is no difference in context between BoP markets and mainstream ones.

Whom do you choose to respond to? 

Prioritizing a particular user group allows for more relevant design and development. Iteration after initial implementation, that is, testing the prototypes in the field, need to be based on accurate feedback and if this aspect is not considered critically, then strategies get misaligned as multiple voices may offer conflicting or indirect information.

What do you choose to focus on?

Time and money are not unlimited. Prioritizing which set of voices to listen to and what context or needs your service or program is meant to serve helps increase the focus of the efforts and the resources.

As our most recent experience with agricultural value chain innovation in the context of social and economic development for Bottom of the Pyramid markets shows us, the lack of clarity and understanding of who exactly is the “User” ie. not having a specific focal point for planning and for program design leads to a cascading series of challenges from initial implementation through to end result, and thus, impact.

What essential aspects of the approach, philosophy and methodology from human centered design can offer value to such program development for donors?

This entry was posted in Assumption filter, Base of the Pyramid, Design, Frameworks, Indigenous & Traditional, Informal & Flexible, Innovation Planning, Perspective, Prepaid Economy & Informal Sector, Process, Projects and Reports, Strategy, Systems, UCSD, User research and tagged , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

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