What Is One Business Solution To Poverty That You Think Could Improve Development Outcomes?

I recollect opportunities exist for companies to reach low income consumers in developing countries with goods that meet their unique(predicate) needs. Doing so would imply overcoming certain challenges, but would also yield operative benefits both for consumer goods companies and for the poor. In terms of demand, this opportunity appears to be promising.As the figure supra shows1, 55% of todays world population belong to the so called top of the pyramid ( pass on) and live on more than $8 a day 8% belong to the bottom of the pyramid (BOP) and live on less than $2 a day and 37% belong to the diaphragm of the pyramid (also called deep in the pyramid or DIP) and live on $2-$8 a day. The data shows that, for the period 2009-2020, annual growth for TOP consumers is judge to be +4% whilst growth for DIP and BOP consumers is expected to be -3%.This means that the worlds population living on a daily income above $8 is expected to rise from 55% in 2011 to 66% by 2020 as millions of DIP consumers move up the economic ladder thanks to economic growth. DIP consumers, therefore, have extraordinary potential to boost consumer goods consumption growth in developing securities industrys. patronage a positive demand outlook, the potential in the DIP market re primary(prenominal)s to be fully realized. There are two main challenges that companies need to overcome. First, determining the right price put and creating products to meet that price.This ass be solved through innovation in products and packages, with price point driving product development. Here, reducing package sizes and developing more elementary packaging while ensuring quality, convenience and value is key to success. Second, ensuring product handiness through appropriate distribution. Traditional trade is probably the biggest challenge as companies are used to dealing with structured supermarkets. Reaching every quoin store with its own approach shot to stock keeping, credit and retailing in countri es with underdeveloped infrastructure can be very tricky.In some cases, companies whitethorn need to consider developing production facilities close to market in order to reduce distribution costs. In short, a different approach to risk, investment and organization is needed to meet the challenges of price point and distribution. besides benefits can also be substantial for companies and for the poor. Lets become dairy products as an example. On one hand, dairy brands can agnize significant profits selling high volumes to the DIP market and construct brand awareness in the minds of future TOP consumers.On the other hand, memory access to healthier and safer food would increase for the poor and their children in developing countries, upward(a) nutrition levels. Moreover, local employment would also increase if dairy companies ascertain to produce locally in order to save distribution costs. Finally, the handed-down distribution channel would be strengthened creating a healthy recompense to powerful supermarkets and retailers. It remains to be seen whether companies can successfully overcome the aforesaid(prenominal) challenges and positively impact local communities through share value creation.