Challenges and opportunities of the last mile for the base of the pyramid: the case of Brazil

• Main Authors: Edgard Barki, Juracy Parente
• Format: Article
• Language: English
• Published: Institut Veolia Environnement 2014-10-01
• Series: Field Actions Science Reports
• Subjects: base of the pyramid; distribution; marketing channels
• Online Access: http://journals.openedition.org/factsreports/3671

The last mile in distribution offers many challenges for organizations to access the Base of the Pyramid (BoP) market. This paper analyses how companies in Brazil are managing to effectively serve these markets. Small retailers located in these regions have developed very strong emotional bonds with their clients, becoming fierce competitors to large global retailers. We have identified that the companies which perform well in these markets, either small local enterprises or large global corporations, have developed business models incorporated the following 3 dimensions: efficient execution, close relationship with retailers and BoP communities, and an ingrained BoP DNA culture. Rethinking distribution is important not only to reduce BoP consumers’ vulnerability with a decrease of the poverty penalty, but also to offer in a more efficient manner access to basic needs such as health, education and financial services.