Ajaita Shah says:
This article brings up several considerations regarding novel challenges in marketing to the BoP--that is to say, a marketing approach that breaks from traditional models. In a sense, this sort of marketing is unprecedented in that the BoP customer has until recently been an afterthought, and therefore is yet to be well understood as a viable market. Reaching the BoP customer carries an additional burden of supplying value even in relatively small margins, and as the article contends value chains must be radically configured using perhaps unorthodox partnerships. Using India as a test case, it is tempting to conclude that Jugaad has developed as a perfect answer to this. However, it still remains to be seen whether this approach can be brought to scale without losing internal coherence and integrity of value.In Reference To:
Frugal innovation: the key to penetrating emerging markets – Ivey Business Journal
Article Excerpt: There may be no better exemplar of the need to modify business practices when expanding to another country than innovation. Quick check-ins just won’t cut it in India, for example. Instead, companies must understand that customers in emerging markets will not respond to a frivolous innovation but they will buy one tailor made for them, a frugal innovation. This author describes how to do it.