Evaluating Opportunities with the Base of the Pyramid in LatAm

Services

Opportunity Benchmarking

Challenge

Our client, a global manufacturer of consumer goods, specifically home appliances, was 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 segment is the working poor, a viable but challenging market.

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

Americas Market Intelligence (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.

Client Benefit

AMI’s concrete market size estimates allowed the client to develop a growth plan to pursue its challenging target market segment.