Business opportunities

There are several business opportunities within the BOP food market. Innovative approaches, such as designing affordable, nutritionally fortified foods and extending retail distribution networks into poor communities through unconventional partnerships, are proving effective for food companies wanting to do business with BOP consumers.

Designing nutritious food for poor consumers

Designing nutritious food products for poor consumers is an important business opportunity within the food sector. The price/nutrition factor for many products is often low which causes many types of deficiencies and nutrition related diseases. Several food companies have already created a profitable business producing and selling high-nutrition or fortified food products in the BOP market. However, experience shows that there is a need to design targeted marketing campaigns to inform the target group about the benefits of the products. In other words the markets often need to be created through consumer education rather than entered. The products also need to have a strong value proposition besides the nutritional benefits.  

Expanding retail distribution network

When developing a BOP business model, a central problem is often reaching the BOP consumer. And this requires innovative distribution models. Proven strategies for reaching the BOP consumer include: Utilizing existing informal retail and distribution networks, developing partnerships with other companies or NGO’s, and creating a micro-franchise concepts. Companies that are able to reach the BOP market with their products are well positioned to tap into the vast BOP food market.

Strengthening consumer demand through effective marketing

Strengthening consumer demand through effective marketing is a fundamental opportunity in the BOP food sector. There is great potential in applying innovative communication models, as the BOP consumer is not effectively targeted through traditional marketing schemes. Marketing models that have proven efficient in reaching the BOP consumer and have significantly increased demand for products include word-of-mouth, door-sales, and community meetings

Optimization of the sourcing process

Processed foods are increasingly in high demand – this fact combined with high tariffs and production costs make it financially attractive to source from local small-scale farms instead of importing goods. This in turn also creates local employment and development.