Providing goods to the base of the pyramid: Opportunities for micro, small and medium-sized local producers

The purpose of this research is to identify challenges and opportunities to micro, small and medium-sized producers that supply the base of the pyramid (BOP) market through small retails concerning products features and distribution system. A case study with 30 small retailers that provide goods to...

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Bibliographic Details
Published in:Journal of small business strategy 2018-01, Vol.28 (2), p.80-89
Main Authors: Borchardt, Miriam, Pereira, Giancarlo, Viegas, Claudia, Reolon, Diego, Xavier, Yuri, Battaglia, Daniel
Format: Article
Language:English
Subjects:
Case studies
Consumers
Consumption
Decision making
Developing countries
Emerging markets
Entrepreneurs
Entrepreneurship
Fast moving consumer goods
LDCs
Population
Preferences
Product development
Purchasing power
Quality of life
Retailing industry
Small & medium sized enterprises-SME
Small business
Urban areas
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Summary:The purpose of this research is to identify challenges and opportunities to micro, small and medium-sized producers that supply the base of the pyramid (BOP) market through small retails concerning products features and distribution system. A case study with 30 small retailers that provide goods to BOP was performed. The results indicate that for ordinary products (rice, beans, pasta, sugar), local brands have the preference and price is determinant. For aspirational products (cookies, chocolates), leading brands have the preference and local brands compete if homemade or rural taste is provided. In such cases, the local products occupy the interstices not fulfilled by leading brands. Local producers adapt the size of package to BOP's money availability as well as introduce products innovation aiming to reduce production costs. Local producers should invest on partnership with dealers since they influence retailers' purchase decision. The main results contribute to fulfil some academic gaps and could support local producers to develop and supply goods to BOP.
ISSN:1081-8510
2380-1751