As the global financial crisis continues to rumble on and even China’s growth starts to slow, we all need to identify new opportunities to build our businesses. For many clients, this means tackling previously unchartered territory - whether this is entering new markets, targeting new customers, or developing products that address an unmet need. With a presence in over 80 countries, TNS has a well-established footprint. However, we continue to extend this as we help our clients to uncover opportunities in new markets. In 2012 this has meant opening an office in Cambodia, as well as starting to work in Myanmar – we’ll be sharing our insights about this newest of consumer markets in a forthcoming edition. There are two clear themes in this edition of GEMs, both of which explore new territory for many of our clients. Firstly we have a look at the impact of digital and mobile technology in sub-Saharan Africa and LatAm. Whilst lower GDP per capita does tend to mean lower levels of technology ownership, mobile is the one must-have device, enabling and empowering new generations of consumers and increasing social mobility. As the cost of smartphone ownership continues to decrease, mobile becomes an even more significant opportunity for brands in emerging markets. Secondly, we continue to reflect on the lives of those at the base of the pyramid (BoP), whose population numbers 4 billion, with a combined purchasing power of $5 trillion. We’ve been partnering with clients for many years, to help them understand the aspirations of this new consumer class – building a sense of their priorities and what they need from brands. http://www.tnsglobal.com

1. Gems
Insights from emerging markets
November 2012

2. Contents
1
Introduction 3
2
Technology and the Internet in Latin America 4
3
Social skills in the classroom: digital media use in Sub-Saharan Africa 9
4
A shifting base: the BoP in context 15
5
Bridging the gap 21
6
Dreaming little dreams: brand building at the Base of the Pyramid 27
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2

3. Introduction
As the global financial crisis continues sub-Saharan Africa and LatAm. Whilst lower GDP per capita
does tend to mean lower levels of technology ownership, mobile
to rumble on and even China’s growth is the one must-have device, enabling and empowering new
starts to slow, we all need to identify new generations of consumers and increasing social mobility. As the
opportunities to build our businesses. cost of smartphone ownership continues to decrease, mobile
becomes an even more significant opportunity for brands in
For many clients, this means tackling emerging markets.
previously unchartered territory - whether Secondly, we continue to reflect on the lives of those at the
this is entering new markets, targeting new base of the pyramid (BoP), whose population numbers 4 billion,
Chris Riquier customers, or developing products that with a combined purchasing power of $5 trillion. We’ve been
CEO, Asia Pacific partnering with clients for many years, to help them understand
address an unmet need. the aspirations of this new consumer class – building a sense of
their priorities and what they need from brands. In this issue you
With a presence in over 80 countries, TNS has a well-established
can explore some of the work we have done and what we have
footprint. However, we continue to extend this as we help our
learnt about the implications for research.
clients to uncover opportunities in new markets. In 2012 this
has meant opening an office in Cambodia, as well as starting I hope you find this edition of GEMs interesting and inspiring
to work in Myanmar – we’ll be sharing our insights about this – as ever, if you would like to discuss any of the issues in more
newest of consumer markets in a forthcoming edition. detail, please do contact your local TNS consultant, or me.
There are two clear themes in this edition of GEMs, both of Kind regards,
which explore new territory for many of our clients. Firstly we Chris Riquier,
have a look at the impact of digital and mobile technology in CEO, Asia Pacific
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4. Connected world
Technology and the Internet in Latin America - James Fergusson
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4

5. Technology and the Internet in Latin America
Technology use in LatAm
Emerging markets including LatAm are significantly outstripping
the West in terms of technology adoption. Whereas the West is
used to high levels of technology ownership, including PCs, fixed
line telephones and fixed line Internet, Latin America doesn’t have
the same level of infrastructure. Businesses looking to grow their
presence in the region are therefore finding innovative ways of
harnessing the technology that does exist there – one of the
reasons that Internet-enabled mobile is taking off so quickly.
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6. Technology and the Internet in Latin America
Mobile and social mobility Hot products to watch
The future of digital is mobile, particularly in Latin There is a particularly strong interest in tablets in the Country Mobile Internet available on phone
America, where handheld technology is enabling region – stronger than in the US and very close to 2010 2011 2012
and empowering new generations of consumers and European demand levels – and there’s evidence that this
Argentina 30.2 55.1 68.2
increasing social mobility. Lower GDP per capita tends interest is translating into actual purchases more than in
to mean lower levels of tech ownership, but mobile other emerging markets. One in five of Latin American
Brazil 29.9 43.2 70.6
has strong usage levels across the board, with 82% consumers plan to buy a tablet in the next six months
of consumers in Latin America owning a handset. if they don’t own one already. Massive demand for
Chile - 69.4 74.9
In this way mobiles are helping to bridge the divide smartphones is opening up a battle between Nokia’s
between rich and poor, and between people in rural Symbian OS and Google’s Android in the race to bring Colombia 25.2 - 67.1
and urban areas. These are many Latin American phones to market that meet consumer demand, secure
consumers’ only link to the online world, with many share of wallet and start to win the platform wars. Costa Rica - 34.4 -
‘leapfrogging’ web-based sites to skip straight to their
mobile counterparts. For example, many people’s Guatemala 16.8 17.4 -
82%
first experience of online banking will be via their
mobile phone. Mexico 26.7 33.0 79.2
of consumers in Latin America own a handset Source: TNS Mobile Life 2012
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7. Technology and the Internet in Latin America
Correlation between GDP per capita and number of technology devices owned; source: IMF / TNS Mobile Life
Latin American consumers have a far stronger affinity
to content brands compared to other developing
markets. The most accessed brands tend to be global
brands such as Google, YouTube and Facebook. Only
12% of LatAm consumers are accessing Orkut via their
mobiles, versus 25% who are doing so with Facebook,
showing that the latter still has the most potential for
companies looking to engage with new consumers via
social media.
20%
of mobile activity is social networking compare to...
Social media Social networking is the second most popular
The social media revolution is taking over the world, service activity on the mobile in LatAm (20%), behind
32%
and with 34% of LatAm consumers saying they feel uploading photos/videos to a personal computer
they can express themselves better online, the Internet (32%). In addition, consumers are looking to increase
is likely to play a greater and greater role in all kinds the number of activities they are doing in social media,
of social interaction. so there are myriad opportunities for businesses to
get in on the action by providing new online products uploading photos/videos to a personal computer
and services.
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8. Technology and the Internet in Latin America
strategy, but an entirely different medium requiring
Consumers using mobile banking
(Checking bank accounts, making purchases securely its own bespoke approach.
Current tablet Intend to purchase a tablet from mobile)
Country Country
ownership within next 6 months
2010 2011 2012 Also, whilst many companies will be broaching new
territory, the basics still apply. Mobile services still
Argentina 4.7 14.6 Argentina 4.2 8.9 12.2 need to be relevant to consumers, be easy to use,
and – especially given the target market – affordable.
Brazil 9.8 20.9 20.4 Whilst mobile banking service mPesa has revolutionised
Brazil 6.3 17.7
banking in rural Kenya, the same kind of service has
Chile - 11.8 20.2
not flourished in India due to poor service delivery.
Chile 8.4 18.4
Costa Rica - 2.1 - Latin America can learn from these successes and
Colombia 7.1 23.2 failures, but ultimately solutions need to be closely
Guatemala 3.4 1.2 - tailored to the local market: there is no place for a
cookie cutter approach.
Mexico 8.8 20.3
Mexico 0.6 1.8 18.3
Source: TNS Mobile Life 2012
Kenya 5.6 17.7 23.2
Implications for businesses
India 1.9 1.3 1.7
The most enlightened companies are fast capitalising
on the demand for mobile services, recognising that Source: TNS Mobile Life 2012
mobile is not just an extension of a company’s web
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9. Connected world
Opinion Leader
Social skills in the classroom: digital connected consumer
Sustaining brand relevance with themedia use in Sub-Saharan Africa - Mark Molenaar
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10. Social skills in the classroom: digital media use in Sub-Saharan Africa
For the world’s fastest-growing Internet population the web is a social,
educational and largely handheld tool. Brands must adapt their digital
strategies to the available technology in order to succeed.
Sub-Saharan Africa boasts the world’s fastest growing Internet
population, increasing by over 2500 percent between 2000 and 2011.
However, these consumers’ experience of digital media remains very
different to that of audiences in other markets, focused on less playful,
more purposeful roles such as social networking, e-learning and banking.
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11. Social skills in the classroom: digital media use in Sub-Saharan Africa
Digital life is mobile wielding archetype of more developed markets. He or
Sub-Saharan consumption of digital media is she is typically younger (43 percent are aged 16-24,
43%
predominantly mobile. The spectacular growth in compared to 27 percent of web users worldwide),
Internet access for the region has been driven by even with lower spending power, and holds a Nokia or
more impressive rises in mobile penetration. The 695 Samsung feature phone rather than an iPhone or
million mobile subscriptions in the region today equate Android handset.
of Sub-Saharan smart phone or tablet
to 65 percent mobile access, and represent a 4000
users aged 16-24
percent increase over the last 10 years. The expansion Such differences have shaped a distinct approach
of mobile broadband and increasing competition to digital media in the region, with the popularity
26%
between networks will further boost the availability and of different services and solutions often depending
affordability of mobile web access through driving down on their accessibility via mobile technologies such as
the cost of both data plans and handsets. Four out of WAP and SMS. Constraints on Internet access speeds
every five Internet users in Sub-Saharan Africa accesses and affordability mean a reduced appetite for online
the Internet via mobile phone, compared to one in three entertainment (only 6 percent of web users watch of worldwide smart phone or tablet
globally. Three quarters of Sub-Saharan Africans say YouTube videos compared to 37 percent worldwide) users aged 16-24
they would be happy to do all of their Internet surfing and shopping (10 percent have browsed and 2 percent
via mobile phone (compared to just over a quarter in completed purchases online, compared to global figures
developed countries). of 37 percent and 24 percent respectively). Instead,
Sub-Saharan consumers’ use of digital media is focused
The region’s typical mobile web consumer cuts a distinct on immediate needs, via platforms that can be accessed
figure, very different to the smartphone or tablet- across a range of handsets.
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12. Social skills in the classroom: digital media use in Sub-Saharan Africa
Social networks shape the web experience
Communication is the foremost of these needs and
58%
social networking is the digital channel that Sub-Saharan
Africa’s mobile web users turn to, in order to fulfill it.
Social networking is the most important online activity
for 58 percent of Internet users in the region, compared
Tanzania case study
of Sub-Saharan Internet users think social In Tanzania, the BridgeIT initiative, known locally as
to 26 percent globally. Four out of five use Facebook networking is the most important online activity Elimu kwa Teknologia or Education through Technology,
compared to two out of five worldwide. Accessed enables teachers to access a catalogue of educational
relatively easily on a broad range of mobile handsets, video content using Nokia N95 mobile phones,
26%
which are then connected to classroom TVs.
there are signs that social networks are becoming the
cornerstone of the digital media experience, used for The University of Pretoria In South Africa uses mobile
sharing information as well as catching up. Significantly technology to support its paper-based distance-learning
for advertisers, 70 percent of Sub-Saharan web users programmes for postgraduate students in rural areas.
say that social networks are a good place to learn about believe this globally.
Dr Math, launched in 2007 and with 32,000 users in
products and brands. South Africa, provides a mobile tutoring service hosted
via a free application, MXit and available for less than
Major role for information and education online activity compares to 10 percent worldwide. the price of an SMS. Although many mobile-based
educational programmes are in their infancy, there is
Education and learning is the second most important This reflects both the younger average age of the
clearly strong demand for suppliers who can match
use of digital media in Sub-Saharan Africa. The Internet population – and the role that the mobile quality resources to innovative forms of low-cost
18 percent of web users nominating knowledge- Internet is playing in extending access to educational mobile delivery.
gathering and education as their most important content to rural classrooms.
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13. Social skills in the classroom: digital media use in Sub-Saharan Africa
Numerous studies have attested to the value of jobs. MTN has launched its own Mobile Money service
the mobile web in bringing market knowledge and across 12 African countries with 5.1 million registered
information to remote rural communities. Establishing subscribers by June 2011.
14 Million
early-mover authority in such areas could prove an
important strategy for mobile providers looking to Mobile banking will continue to grow in Sub-Saharan
retain market share. Nokia is one example, having Africa, powered by distrust of banks and the demand M-PESA subscribers in Kenya
recently launched its OVI Life Tools app to provide for safe, affordable financial transfers, often in small
African consumers with affordable access to agricultural denominations. As the capabilities of phones increase,
information, educational content and market prices. mobile banking may well become more sophisticated.
Amongst Sub-Saharan web users, 65 percent say they
Strong growth in mobile banking
Overcoming traditional barriers to opportunity is the
driver of another significant use of digital media:
are interested in Internet banking (compared to 27
percent worldwide); 70 percent say they are interested
in banking via mobile phone.
32,000
jobs have been created since the launch of M-PESA
mobile banking. This area has seen major growth
since the pioneering launch of Safaricom’s M-PESA
$ 9.6 Billion
in Kenya in 2007. M-PESA is now used by over 14
million subscribers in Kenya and a further 2.7 million
in Tanzania. The platform, which allows customers to
deposit, withdraw and transfer money via SMS using
total transaction value since the launch in 2007 ($)
a network of M-PESA agents has conducted transactions
worth USD $12.75 billion and created more than 32,000
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14. Social skills in the classroom: digital media use in Sub-Saharan Africa
Immediate and future opportunities Market forces within the mobile industry will lead to of digital platforms and functions is likely to increase as
Sub-Saharan Africa’s army of Internet users is still continued strong growth in web access and to a broader phones become a more familiar feature of daily life.
a relatively small one at 12 percent of the total range of opportunities for businesses targeting the At the same time, marketers must continue to adapt
population, and it remains very focused on immediately online population. Mobile broadband access will rise their activities to the capabilities of mobile handsets in
practical, low-cost, mobile web applications. However, with infrastructure investment (over USD $70 billion different markets, as well as the broader characteristics
significant opportunities exist for organisations that infrastructure investment by mobile operators in 2012) of different countries and cultures. Exporting business
can adapt digital communications strategies to fit this and the reduced cost of handsets and data plans as a models from other regions (or even other countries
pattern of web use. result of competition. Smartphones will play a greater within Sub-Saharan Africa) is unlikely to prove effective.
role as they become more affordable: the Huawei This is an extremely diverse region, and understanding of
The reaction of mobile owners to the Somalian famine Ideos smartphone launched in Kenya in 2011 sold over cultural nuances, demographics and different stages of
provides a demonstration of the role that social networks 30,000 units in its first month and mobile manufacturer digital development is crucial to creating engagement.
and mobile banking can play when aligned with broader HTC has announced its intention to launch a sub-USD
awareness through offline media. Facebook, Twitter and $100 Android smartphone into the region. However,
12%
SMS were used to mobilise support across Kenya’s urban the most significant area of increased opportunity is
and rural populations after mainstream media initially consumers’ growing familiarity with the digital platforms
raised awareness of the plight of Somalian refugees. available through their handsets. Most mobile owners
Kenyans responded by donating USD $67 million, in Sub-Saharan Africa have been using their phones for of Sub-Saharan total population use the Internet
with the majority of private donations coming through two years or less – and their appetite for a broader range
M-PESA
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15. Finding Leader
Opinionfaster growth: new customers
A shifting base: the BoP in context - Poonam Kumar
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16. A shifting base: the BoP in context
The Base of the Pyramid (BoP) is on the
move – and the hope and optimism
of those living there is creating an
unprecedented opportunity for growth
in emerging markets.
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17. A shifting base: the BoP in context
A shifting base: the BoP in context and challenges of doing well by doing good. In many
Few people have transformed attitudes to the global cases this requires questioning developed world
4 billion
poor to the extent that the late C.K. Prahalad did in his thinking when it comes to making a profit. Innovative
path-breaking 2004 work, The Fortune at the Bottom thinking on business models can be as essential for
of the Pyramid. Only a few years earlier, those living doing business with the BoP as innovative product
in poverty were still considered the rich man’s burden, development and branding. The BoP’s population numbers 4 billion
their economic role restricted to needy recipients
40%
of charity. Prahalad helped us to see them as the Size matters – and so does distribution
future: dynamic individuals who together form a vast, Its sheer scale puts the BoP centre-stage in any
untapped potential market. discussion of emerging market opportunities. The BoP’s
population numbers 4 billion, its combined purchasing
In a sense though, Prahalad’s book is only the beginning power of $5 trillion is more than 2.5 times the GDP of Live in India
of the work that needs to be done in understanding the UK, and its geographical distribution is concentrated
75%
the Base of the Pyramid (BoP). This work is constant, on those regions promising to drive global growth
because the BoP itself is ever-changing. Companies over the next decade. Of those inhabiting the BoP
that want to do business in this area must invest in worldwide, 40 percent live in India with a further 23
understanding the BoP’s great variety of potential percent in China, 16 percent in Africa and 10 percent in
of India’s population are members of the BoP
innovators, entrepreneurs, producers and consumers Latin America. In India, 75 percent of the population are
– and they must be prepared to face the setbacks members of the BoP.
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18. A shifting base: the BoP in context
Seeing the BoP as individuals TNS segments the BoP into three categories of
It remains a tragedy that 4 billion of the world’s potential consumer: ‘Strugglers’ surviving on less
1995
population survives on less than $8 per day. However, than $1 per day, ‘Fighters’ living on between $1
it is important to recognise that this definition of the and $2 per day and ‘Strivers’ with purchasing power
BoP covers a large range of very different scenarios, of between $2 and $8 per day. Encouragingly,
73%
aspirations and opportunities. An understanding of ‘Fighters’ and ‘Strivers’ together represent more
the BoP population’s varied situations is essential for than 70 percent of the BoP according to World
companies looking to target its growth opportunities Bank statistics. This is an emerging consumer class,
effectively. ready to join the market economy, and its ranks
2007
are swelling.
11%
In 1995, consumers earning less
than $2 per day represented
73 percent of the population
of rural China; by 2007, they
represented only 11 percent.
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19. A shifting base: the BoP in context
Hustlers or entrepreneurs? must have the dedication to help their consumers disposable income that any brand purchase represents.
Those waiting to emerge from the BoP have the overcome the daily challenges and barriers that A successful proposition for the BoP must combine
characteristics of a middle-class-in-waiting: educated, they face. affordability with robust functionality, delivery against
earning a semi-regular income and starting to own priority needs and credible perceptions of quality.
consumer goods. They look forward to the future Reinventing the brand wheel Increasingly, trusted brands are also asked to provide
with hope and optimism. They can see their own BoP consumers show a strong preference for buying guidance and emotional affirmation in the midst of
potential and they are confident in their ability to fulfil brands over commodities – but they demand a great the tensions arising from social and economic change.
it. And they have great motivation and self-respect. deal from those brands in return. This isn’t surprising The brands that embrace this multi-dimensional role
Many would describe themselves as hustlers – but we when you consider the significant proportion of will be the ones to succeed.
recognise their ‘hustling’ for what it is – energetic and
dedicated entrepreneurialism.
These top tiers of the BoP represent an immense
concentration of ‘unmet needs’, the type of Brand credibility and strategy
cannot be imported from
opportunities that companies in developed markets
invest significant time and money to uncover. In this
respect the BoP can appear like a gold mine for global
other markets.
brands. But prospectors beware.
They must be prepared to overcome initial setbacks –
and they must be ready to relearn how to do business,
and build brands. To meet BoP needs effectively they
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20. A shifting base: the BoP in context
International brands have far less resonance amongst of joining the market economy have clear aspirations to realising the promise of growth and success in
the BoP than they do amongst the existing middle-class. and great confidence in their ability to achieve them. emerging markets – and the importance that they
Developed world notions of rebelliousness, ego and And although meeting their needs is challenging, the attach to brand relationships gives first movers a major,
counter-culturalism (the mainstay of many brands across rewards for doing so are immense. The BoP is essential long-term advantage in tapping their potential.
different categories) have no place in an environment
where a sense of isolation and exclusion is something
to be feared. And brands accustomed to targeting
individual desires must adapt strategies to collective
decision-making, in which husbands and fathers often
wield a veto over their family’s purchases.
Crafting a successful proposition may require a
company to reinvent more than its brand identity.
Successful BoP strategies often embody a shift in
business model as well: from focusing on margin to
focusing on volume. Such changes can play a vital
role in delivering the affordability that the BoP requires
without undermining the credibility that it demands.
Doing well by doing good
For those prepared to embrace the challenges of
building brand propositions from the ground up, the
BoP today represents a greater opportunity than at
any point in history. Although it remains financially
impoverished, its population is not emotionally or
imaginatively so. Those BoP consumers on the point
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21. Finding Leader
Opinionfaster growth: new customers
Bridging the gap - Anjali Puri
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21

22. Bridging the gap
In researching the Base of the Pyramid
(BoP), researchers must learn to operate
without the shared assumptions on
which communication typically relies.
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23. Bridging the gap
“The real voyage of discovery,” Marcel Proust wrote, answers to these questions really mean. They must start success by focusing their proposition on economic
“consists not in seeking new landscapes but in having by adapting their approach to the types of decisions advancement, rather than more immediate and obvious
new eyes.” Researchers working at the BoP must that BoP consumers are accustomed to making. consumer benefits.
embrace both experiences if they are to be successful:
exploring new landscapes in terms of economic From choosing products to choosing needs
disparities, infrastructure and literacy, whilst adapting to In the environment of the BoP, the very notion of
subtler socio-cultural gaps in order to ‘see’ this world in consumer choice changes. The question is not so much High
the same terms as BoP consumers. “what product do I choose to fulfil this need?” but
“which need should I choose to fulfil first?” With many
priority
When conversations lack common ground priorities competing for limited disposable income, we
The absence of shared implicit assumptions about the often find situations where choices and trade-offs are
way the world works can greatly inhibit our ability made across markedly different categories. The relative
to ‘read’ and communicate with BoP consumers. value of fulfilling a need depends on the priority given
When talking to populations that have very different to the area of life that it impacts. Understanding these
experiences of learning, media, products and services, priorities fully can enable research to make a greater
it is surprising just how many notions and concepts no contribution than focusing questions on brand
longer hold true. or product preference.
Culture can be defined as a system of common In the BoP, for example, growth in income or social
assumptions, and this shared starting point is essential capital is frequently prioritised over personal comfort
for communication and interpretation. When it is and convenience, something that does not hold
removed, the resultant breakdown in communication true to the same extent in many developed markets. Low
can be bewildering. Researchers must respond by Brands in sectors as diverse as mobile phones, fertilisers priority
framing questions in new ways, and learning what the and personal care products have found considerable
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24. Bridging the gap
A not-so-common visual language As with colours, so with ‘simple, everyday symbols’ that However, ticks and crosses are themselves formally
Poor literacy levels amongst BoP consumers create can turn out to be indecipherable to the audience they learned symbols rather than intuitively understood.
another set of challenges when it comes to research were intended for. In one example, ticks and crosses In this case, the tick was decoded as representing
and marketing. Visual messaging, using common next to covered and uncovered pots of water were a ladle to scoop out water – and the picture had
symbols and images, is an obvious alternative to intended to show the importance of keeping drinking no meaning beyond this.
written questions and communication. However, water covered.
what passes for common visual language in many
situations does not necessarily apply in the BoP.
When researching in remote, rural communities, it
is often surprising how visual grammar that seems
intuitive to urban populations turns out to be wholly
alien to BoP consumers. The idea of traffic lights, with
green standing for go ahead and red indicating stop,
is a wholly urban notion. For consumers who have
never seen a traffic light, the colours red and green
do not have the same meaning. This can have serious
consequences, not only in research but also in
simple messaging. Colour coding bore-wells to mark
safe and unsafe drinking water is unlikely to have the
intended impact, for example.
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25. Bridging the gap
Cultural interpreters
? Working in partnership with those with exposure to the BoP can provide ready insight as
to where cultural gaps exist – and a means of bridging them. Young people from remote
rural communities who have moved to work in the city, or community workers belonging
to NGOs can act as cultural interpreters and an important aid to data gathering.
Common visual grammar
Seeing with new eyes Understanding the shortcomings of supposedly universal symbols is an important first step
The best solutions to the perception gaps that emerge towards developing a more intuitive visual grammar. TNS is developing a process to identify
when working with the BoP is prolonged immersion a common visual language that can be used in communication with the BoP.
by researchers to build contextual knowledge and
understanding of different communities. However, the
demands of commercial market research mean that
such an approach is not always practical. TNS applies Mapping priorities
diverse approaches to BoP research that can provide Studying patterns of adoption across different categories is enabling us to map how BoP
a more timely and applicable solution to bridging the consumers prioritise and trade-off between their many different needs – producing a more
gaps produced by different socio-economic experiences meaningful guide to consumer decision-making.
and include:
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26. Bridging the gap
Leading the way to a better understanding
Research is a natural arena for confronting the issues
involved in communicating with the BoP. However,
the benefits of a shared understanding go beyond the
gathering and interpreting of data; they are essential for
acting on it as well. The insights gained through seeking
a common cultural language have immediate value for
brands, governments, NGOs and all others tasked with
engaging BoP consumers – and exploring new forms of
research has a crucial role to play in this process.
Abc
字母
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27. Finding Leader
Opinionfaster growth: new customers
Dreaming little dreams: brand building at the Base of the Pyramid - Poonam Kumar
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28. Dreaming little dreams: brand building at the Base of the Pyramid
Logic suggests that brands have
a limited role to play at the Base
of the Pyramid. But try telling
that to the people who live there.
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29. Dreaming little dreams: brand building at the Base of the Pyramid
It goes without saying that affordability matters a great college in the city. She is a bright girl with potential, educations who land salaried jobs in the city – and so
deal to consumers who live on less than $8 a day. the local schoolteacher said. Her family had watched they have carefully set aside what money they can to
However, it would be a terrible mistake to assume that stories on the community TV set about girls with college send Priyanka to college.
it is the only thing that matters. With products asked
to perform a range of functional and emotional tasks,
there is a natural and hugely valued role for brands at
the Base of the Pyramid (BoP). However, those brands
must be prepared to develop original, innovative and
relevant propositions if they are to deliver against
the needs of BoP consumers and become part of an
exciting growth opportunity.
Priyanka’s story
TNS uses fictionalised realities, stories compiled from the
many different interviews conducted by our researchers,
to help bring to life the issues regularly faced by BoP
consumers in different markets. Here is one such story.
Priyanka is 19 years old. She lives in a small village
near Lucknow in India, part of a family of six that
survives on the annual income of $4,000 that her
father generates from the small piece of land he owns.
Every day Priyanka travels for over two hours to attend
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30. Dreaming little dreams: brand building at the Base of the Pyramid
Unlike the more affluent students at the college,
Priyanka does not have pocket money – but her
parents give her small amounts for transportation
and food. For the last month, though, she has
gone hungry most days. Hidden in her college
bag, a secret from her parents, is the reason:
a small tube of moisturiser.
Neutrogena is one of the more expensive moisturiser
brands on the market – and when Priyanka bought
her first tube from a shopkeeper in the city, she was
shocked at the small size of the product she was
given having saved up her lunch money to buy it. She
decided to try it anyway – and has never willingly used
another moisturiser brand since. She loves the way
that the cream feels on her face – and she is certain
that the soft look it gives her skin helps her to fit in
amongst wealthier students. When the shopkeeper
ran out of Neutrogena one month, Priyanka Although the moisturiser is the only beauty product money – in order to buy a Ponds face wash. By sharing
tried another upmarket brand. She went back to that Priyanka buys, it is not the only product that she the two products, the girls are able to use a full
Neutrogena as soon as it was back in stock. uses. One of her friends has also been saving her lunch skin-care regime.
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31. Dreaming little dreams: brand building at the Base of the Pyramid
When she returns home from college, Priyanka spends In particular, she fears being forced to abandon her
her evenings helping her mother. Dust from sweeping plans for a career if her parents choose to arrange a
the floor clings to her long hair, which her traditional- marriage for her. Until then, though, the secret tube of
minded parents will never allow her to cut. It leaves her Neutrogena helps her to balance the two very different
skin feeling dry and spotty. If she did nothing about her parts of her life.
appearance, she knows she will be ridiculed and singled
out as a ‘village girl’ when she travels to the city.
She fears that such perceptions will stand in the way
of her opportunities.
Priyanka’s mother and father both believe that cutting
Priyanka’s hair would damage her prospects for a good
marriage. When she asked to wash her hair more
frequently, to keep it from getting oily, they worried
that she was secretly seeing boys. They would worry
equally about make-up or beauty products – and that’s
why they can’t know about the tube of Neutrogena.
Keeping her family happy is very important to Priyanka.
She wants to be accepted in her home village, just as
she wants to be accepted amongst the other students
at college. She is worried, though, that these two
worlds will one day pull her in different directions.
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32. Dreaming little dreams: brand building at the Base of the Pyramid
Where brand loyalty means more Brands are valued, even loved, as they offer reassurance will be asked to perform within the BoP; robust,
We find Priyanka’s story echoed across the lives of men and certainty in potentially very uncertain lives. Once functional, affordable, addressing priority needs and
and women in India, China, Latin America and Africa: won over, BoP consumers reward their brands with yet also providing reassurance and even guidance.
the regions where the vast majority of BoP unshakeable loyalty, giving early movers in this market Achieving this often means re-engineering a brand
consumers live. a strong competitive advantage. However, to earn through production innovation, packaging and
that loyalty, brands must first craft a proposition that delivery mechanisms.
People living on less than $8 per day resonates with the multi-dimensional role that they
demonstrate a strong and surprising
preference to buy a brand over
a commodity, provided the brand
proposition is relevant, accessible
and affordable.
This is particularly true of an upper BoP segment, those
with purchasing power of between $2 and $8 a day,
which TNS identifies as ‘Strivers’.
These BoP consumers are educated, hopeful and
optimistic about their future, aspirational, ambitious
and confident in their ability to achieve their ambitions.
Like Priyanka they value their social equity and seek
ways to build it further. But like Priyanka they often
find themselves caught in conflict between traditional
worlds and new opportunities.
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33. Dreaming little dreams: brand building at the Base of the Pyramid
Functional, emotive expertise Successful brand relationships often begin with
Any brand proposition for the BoP must be anchored in information and education, reasons to believe and
strong functionality that makes a measurable difference reassurance that money is being spent wisely. However,
to the consumer’s life. The brand’s products must propositions are most effective when they build on
withstand stress and hostile physical environments, this functional relevance and credibility to connect
and last much longer than would be expected in other emotionally as well.
scenarios. And they must address genuine, high-priority
needs in order to compete successfully for a share of
very limited incomes.
Unilever
Unilever’s Lifebuoy brand commands a premium
Nokia in rural India by delivering germ protection that
has saved and changed lives. Its credibility is built
Brands must combine affordability with robust on more than a protection product. Lifebuoy has
quality. Nokia’s brand reputation as a lifeline for successfully established itself as a protection brand
rural Indians and Africans rests partly on its products’ that champions the cause of health and hygiene,
reputation for being kicked, thrown, dropped, ground educating over 70 million Indians on the importance
into the dirt – and still working. Perceptions of quality of germ protection and featuring as one of the
and expertise are as important in the BoP as in more country’s most trusted brands year after year.
developed market sectors, building trust, visibility and Like Priyanka’s tube of Neutrogena, Lifebuoy
reassurance that consumers are getting the best that delivers emotional support through the trust it
their money can buy. engenders as well as the crucial role it performs.
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34. Dreaming little dreams: brand building at the Base of the Pyramid
Emotional resonance one of the world’s poorest countries, get the micro-
Across markets, we find a range of emotional themes nutrients they need. Danone’s scientists worked to
resonating with BoP consumers in this way – and create a product that strips away all unessential costs
providing reassurance, support and even guidance: without compromising on nutritional quality and the
company partnered with the Grameen Foundation to
Empowerment establish an innovative community distribution model.
The sense of a brand enabling and empowering, either Shakti Dohi is marketed door-to-door by Grameen
oneself or one’s family, is particularly powerful. Brands ladies, who also help to educate and raise awareness.
that have successfully leveraged this emotional value
include Nirma, now valued at $500m, which started Pleasure
life with a promise of ‘affordable whiteness’ for low- Despite, or perhaps because of their many pressing life
income consumers, distancing them from the brown concerns, BoP consumers welcome brands promising
colours that symbolise dirt and poverty. Priyanka’s tube special moments of cheer. SAB Miller’s Chibuku beer is
of Neutrogena also stands firmly in this category. one such proposition: engineered for those who cannot
afford bottled beer (the majority of the population in
Fortification Botswana, Malawi, Zambia and Zimbabwe where it is
Food brands that promise immunity against sickness sold), Chibuku is brewed from sorghum and corn and
or an improvement in reproductive health resonate sold in paper cartons and plastic containers. The brand
strongly across the BoP, as do nutrition solutions that proposition: Shake Shake, builds an identity around the
can help to make children stronger and better prepared need to shake the cartons before drinking, to mix the
for the future. Danone’s fortified yoghurt product, separated ingredients.
Shakti Dohi helps to ensure that children in Bangladesh,
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35. Dreaming little dreams: brand building at the Base of the Pyramid
Assertiveness
Themes of excellence and success can also resonate
amongst BoP consumers, provided they focus on
relevant needs. Brands have found success with
promises of mastery over budget, admiration and envy
of superior homemaking skills, enhancement of social
stature and parental pride and ambition. Priyagold, a
biscuit brand in India, challenged the market norms
and the market leader by introducing a range of
indulgence biscuits. Until then, the only biscuits that
were accessible to lower income consumers were
the cheaper energy range. Priyagold’s ‘demand with
entitlement’ proposition instead asked: Why should the
good things in life be denied to you?
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36. Inclusion not exclusivity: Although international brands have aspirational appeal with consumers. With $5 trillion of spending power
some potential traps for global brands amongst the emerging middle class, that appeal has far currently residing within the BoP, the rewards for
In developing emotive propositions, brands must take less resonance for BoP consumers. Functionality, quality investing in these relationships are substantial.
great care not to apply developed market themes that and the ability to satisfy emotional needs must be
have potentially negative connotations amongst established on the ground, within the audience’s own
BoP consumers. experience; they cannot be imported from elsewhere.
Local brands are often the ones to thrive within the
BoP – and global brands looking for new growth
Rebelliousness and opportunities can gain valuable insights by studying
their success.
exclusivity have no
place here; meaning
Brand-building the old-fashioned way
The key to crafting a winning BoP proposition for
and purpose are global brands lies in a willingness to re-engineer
product and brand infrastructure to craft an affordable,
everything. quality proposition. However, it also requires a will to
go further: to develop emotional engagement and
to fulfil the role of reassuring, trusted advisor that
If a brand issues a challenge then that challenge must BoP consumers actively seek from their brands. For
relate to real needs or changing unfair practices, not marketers, the BoP provides an opportunity for good,
self-indulgent, edgy rebelliousness. Superiority must be old-fashioned ‘brand building’ – and an environment
directed towards a goal, never towards ego satisfaction. ideally suited to building meaningful relationships
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37. About the authors A shifting base: the BoP in context – Poonam Kumar contemporary thinking in qualitative research globally,
Technology and the Internet in Latin America – Dreaming little dreams: brand building at the Base of the particularly in the area of consumer decision making and
James Fergusson Pyramid – Poonam Kumar social media. She is a frequent presenter at ESOMAR and
James Fergusson is the Global Head, Digital and Poonam Kumar is Regional Director in TNS’s Brand & other industry forums, and the recipient of the ‘Best New
Technology Practice at TNS, leading a group of global Communication practice bringing more than 20 years Thinking’ award by the UK MRS in 2006.
experts focused on helping clients to apply digital to fuel experience in brand development, brand strategy
their growth strategy. planning, ethnography and consumer insight to her About TNS
role. Poonam has specific expertise on marketing to TNS advises clients on specific growth strategies around
Australian by birth, James has 18 years’ experience in the Base of the Pyramid, and on motivational research new market entry, innovation, brand switching and
market research, across several agencies. James is a and market segmentation and is a regular presenter on stakeholder management, based on long-established
specialist in technology and telecommunications across BoP consumers at ESOMAR and other industry events. expertise and market-leading solutions. With a presence
both rapid growth and developed markets. He has Poonam holds a degree in Electrical Engineering from a in over 80 countries, TNS has more conversations with
worked with most of the world’s major companies in this premier Institute (IIT Chennai) and a post graduate degree the world’s consumers than anyone else and understands
sector and is increasingly applying working with clients in in Management from a top management school in India individual human behaviours and attitudes across every
a more diverse range of sectors. (IIM Calcutta). cultural, economic and political region of the world.
Social skills in the classroom: digital media use in Bridging the gap - Anjali Puri is Regional Director, TNS is part of Kantar, one of the world’s largest insight,
Sub-Saharan Africa - Mark Molenaar Qualitative Research, TNS Asia-Pacific. information and consultancy groups.
Mark Molenaar is Director, Client Service at TNS, based A seasoned qualitative researcher with close to two Please visit www.tnsglobal.com for more information.
in Cape Town. Mark has been with TNS for over 18 years decades in the industry, Anjali has held a number of
during which time he has helped clients to understand regional and global roles. She has extensive experience Get in touch
consumer dynamics across different sectors and the across categories in India and Asia Pacific, particularly If you would like to talk to us about anything you have
opportunities that these present for brands. Mark is food & beverage, healthcare and technology. Anjali read in this report, please get in touch via
heavily involved in interpreting TNS’s Mobile Life and has been active in the development of new qualitative enquiries@tnsglobal.com or via Twitter @tns_global
Digital Life studies and the advance of digital and mobile methodologies and has been responsible for shaping
across Africa.
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38. Share this Gems
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