Challenges in Marketing Socially Useful Goods to the Poor
California Management Review Forthcoming
35 Pages Posted: 18 Nov 2009 Last revised: 4 Nov 2013
Date Written: Feburary 0, 2010
Market based solutions to alleviate poverty have become increasingly popular in recent years. Unfortunately, there are very few examples of profitable businesses that market socially useful goods in low-income markets and operate at a large scale. This article examines in-depth three case studies of multinational firms that tried to market unquestionably useful products -- clean water, eyeglasses, and nutritious yoghurt -- to the poor, and did not succeed commercially. The overarching lesson we draw from the case studies is that developing strategies for marketing socially useful goods to the poor, far from triggering a revolution in business thinking, requires firms to get back to the basic principles and rules of economics and business.
Keywords: Poverty reduction, bottom of the pyramid, economic development, social goods
JEL Classification: M14, O, O17
Suggested Citation: Suggested Citation