frugal innovation
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Anirudh Agrawal, PhD Fellow, CBS CSR
Frugal Innovation
Anirudh Agrawal, PhD Fellow, CBS CSR
Contents• Frugal Innovation– Transportation– Microfinance– FMCG : fast moving consumer goods– Energy– Drinking Water
• Water Harvesting
– Sanitation– Telecommunication– Health Care
• Activity: Brand Management• Theoretical Perspective on Frugal Innovation• Criticisms
Anirudh Agrawal, PhD Fellow, CBS CSR
http://www.youtube.com/watch?v=FYIwa3Y1KAo#t=157
Anirudh Agrawal, PhD Fellow, CBS CSR
Frugal Innovation
• Design to extreme affordability• Strategic thinking towards volume markets• Creativity and innovation towards extreme
affordability• Design, engineer and produce for marginal markets• Translating and innovating a high margin brand for
low margin markets• Creating and innovating towards branded and
quality products for marginal markets
Frugal innovation blogpost, stanford.edu, uni. Santabarbara – frugal innovation centr
Anirudh Agrawal, PhD Fellow, CBS CSR
Frugal Innovation Market Potential
Source : WRI 2008
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Transportation
120 billion dollars
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Electric Tricycle
Anirudh Agrawal, PhD Fellow, CBS CSR
Micro-Finance
Anirudh Agrawal, PhD Fellow, CBS CSR
Financial Services Pyramid
Anirudh Agrawal, PhD Fellow, CBS CSR
What Is Microfinance?• Microfinance is the offer of financial & non-financial services
to people excluded from the traditional banking system. The services are adapted to the needs of the target populations.
FINANCE MICRO
• Micro-entrepreneurs• Self-employed • Low income populations• Excluded populations
• Business & educational loans• Savings• Micro-insurances• Remittances
• Micro-entrepreneur training• Coaching & workshops on health, hygiene, etc.
Anirudh Agrawal, PhD Fellow, CBS CSR
Microfinance Stories
• Grameen bank• SKS Microfinance
Anirudh Agrawal, PhD Fellow, CBS CSR
Fast Moving Consumer Goods
• Sampoo• Bathing Soaps• Beauty Items• Utensils• Coolers and ACs• Refrigerators• TV sets• Washing Machine
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Washing machine
Anirudh Agrawal, PhD Fellow, CBS CSR
Story of Nirma
Anirudh Agrawal, PhD Fellow, CBS CSR
Story of Lifeboy
Anirudh Agrawal, PhD Fellow, CBS CSR
Cooling in Summers
Anirudh Agrawal, PhD Fellow, CBS CSR
Earthen Refrigerator
Anirudh Agrawal, PhD Fellow, CBS CSR
Water Cooler
Anirudh Agrawal, PhD Fellow, CBS CSR
Grameen Danone
Anirudh Agrawal, PhD Fellow, CBS CSR
Estimated Frugal Market for Energy
Source: WRI 2008
500 billion dollars
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Frugal Market for Water
Source: WRI 2008
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Water Harvesting
Anirudh Agrawal, PhD Fellow, CBS CSR
Anirudh Agrawal, PhD Fellow, CBS CSR
Grameen Veolia Business Model
Anirudh Agrawal, PhD Fellow, CBS CSR
Sanitation: Story of Sulabh
Anirudh Agrawal, PhD Fellow, CBS CSR
Pay as you use model for Sanitation
Anirudh Agrawal, PhD Fellow, CBS CSR
Sanitation: Poop Truck
Anirudh Agrawal, PhD Fellow, CBS CSR
Health Care
• GE Portable device• http://www.youtube.com/watch?v=yB47wx-
b6sY
Anirudh Agrawal, PhD Fellow, CBS CSR
Arvind Eye Care
Anirudh Agrawal, PhD Fellow, CBS CSR
Aravind Eye Care Van
Anirudh Agrawal, PhD Fellow, CBS CSR
Emergency Medical Services
Anirudh Agrawal, PhD Fellow, CBS CSR
Life Spring Hospitals
Anirudh Agrawal, PhD Fellow, CBS CSR
Estimated Frugal market of Housing
Source: florence rizzo and anirudh agrawal YT summer school
Anirudh Agrawal, PhD Fellow, CBS CSR
Modular Housing
Anirudh Agrawal, PhD Fellow, CBS CSR
Prefabricated Houses
Anirudh Agrawal, PhD Fellow, CBS CSR
ICT
Source: florence rizzo and anirudh agrawal YT summer school
Anirudh Agrawal, PhD Fellow, CBS CSR
Examples
• Nokia Asha for developing Markets• 100 dollar laptop• 20 dollar tablet• Grameen Telenor Joint Venture
Anirudh Agrawal, PhD Fellow, CBS CSR
Activity
• Discuss in group of 3-5, how will a high margin brand strategise its brand and manage frugal innovation.
• Example: Arla innovating high energy, high nutirient yogurt for poor countries
Anirudh Agrawal, PhD Fellow, CBS CSRwww.frugal-innovation.com
Theoretical Perspective
Anirudh Agrawal, PhD Fellow, CBS CSR
Criticism and Caution
• Ethical Marketing• Quality Management• Labeling and Framing
Anirudh Agrawal, PhD Fellow, CBS CSR
Ethical Marketing
Anirudh Agrawal, PhD Fellow, CBS CSR
Ethical Marketing
Anirudh Agrawal, PhD Fellow, CBS CSR
Labeling and Framing : Poor Mans’ car
Anirudh Agrawal, PhD Fellow, CBS CSR
Further readings
Source: florence rizzo and anirudh agrawal YT summer school
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