Base of the Pyramid
Services: Market Analysis
Sector: Consumer & Retail
Challenge: Our client, a global manufacturer of consumer goods, is developing its strategy to pursue the promise of the base of the pyramid (BOP), represented by 70% of the world’s households. Within this vast and largely misunderstood segment are several layers that separate the working poor, a viable but challenging market from the truly poor who are still decades away from consuming our client’s products. Very few studies exist that provide segmented insight to base of the pyramid. Our client required a reasonable estimate of their addressable potential market and a forecast of how that layer of the pyramid will grow over the next five years.
Approach: AMI analysts began by compiling all of the data in the public domain related to the base of the pyramid in the Latin American markets of interest. Then, using different econometric modeling approaches, we were able to create comparable BOP (base of the pyramid) data across multiple markets and forecast growth over five years to arrive at an estimate of the viable market for our client.
Result: Before research began, our client was at a planning impasse, unable to size their potential market, and thus unable to make a business case to their board to pursue a new growth strategy. With concrete estimates in their hands, their growth plans were back on track.