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Where was the market for Solae's protein in rural India? It needed to be created.

On Monday, the Wall Street Journal published an article by my colleague Erik Simanis about our work developing new markets in the base of the world's income pyramid. Erik is a pioneer in business development methodologies for the BoP.

The Base of the Pyramid is not actually a market. True, those billions of low-income people have a lot in common. But they don't have two of the vital characteristics you need to have a consumer market. They haven't been conditioned to think that the products being offered are something one would even buy. And they haven't adapted their behaviors and budgets to fit the products into their lives. A consumer market is nothing less than a lifestyle built around a product.

Erik uses a range of examples including bottled water in the U.S., P&G's PUR water cleaning powder, KickStart's MoneyMaker pump, and our own work with Solae in India to demonstrate that companies should think twice before assuming a market for their products exists, even if those products are well designed. And if a market doesn't exist then traditional market entry approaches - the kind that most companies use and most managers are taught - are largely ineffective. Instead, companies need to learn to create markets.

Since the first BoP Protocol pilot in 2005, our work has focused more and more on the challenges of creating new markets and building the enterprises that enable them. Over the years, we have learned a number of hard, but handy, lessons. Three of those lessons are described below.

Image rendered from logos of Linked In and the BoP Learning Lab

A few years ago I was swept up in a wave six-degrees-of-separation invitations from the professional networking site Linked In, most of the invitations coming from old b-school classmates at UNC.  As a good little networking MBA, I sent out as many invitations as I could too, feeling a certain thrill in seeing the breadth of my professional and social network. However after that initial rush I pretty much forgot all about it.  “Who actually uses this thing?” I remember thinking.

Then a week ago I got another invitation from an old colleague of mine at Rockwell International who wanted to reconnect and to share the news that a patent application of ours had finally been accepted (I have two patents in my name, officially making me an “inventor”, albeit the kind that doesn’t make any money for his inventions).  This old colleague wrote, “I always wondered what happened to you after you went back to school, sounds like you’re doing some interesting things!”

Those words sent me back into the Linked In universe, searching for other old colleagues that I had missed.  And after the excitement of reaching out to old acquaintances had passed, I decided to go poking around my Linked In network. It didn’t take long before I started looking for other people who also worked in the Base of the Pyramid. About 65 connections came up, interestingly enough most of them at 2 least degrees away or more: meaning I have few direct connections working in my own field.  

Things have been pretty quiet around the BRINQ Workshop, only a few posts in the last six months, so what have we been up to?

Well, besides trying to get things started in Brazil again, I've been doing a lot of work for other folks, most particularly Enterprise for a Sustainable World (ESW), a new organization started up by Cornell University professor and Sustainability guru Stuart Hart, whose book "Capitalism at the Crossroads" we covered here before.

Catalytic Communities (CatComm), our community partner in Rio de Janeiro, Brazil, announced the launch of its new community empowering site www.CatComm.org. CatComm is a huge inspiration for us here at BRINQ, their insights in cultivating and capturing local innovations have been critical to us in our early years and their active work with communities generating solutions has taught us that stronger relationships lead to more viable innovations. In a world of people content with "asking the hard questions", Catalytic Communities is a refreshing example of an organization actually looking for the hard answers.

The World Resources Institute has officially launched NextBillion.net, an online community focused on the intersection of business, innovation and poverty. We were lucky enough to get an early look at NextBillion, and WRI was kind enough to quote our impressions in their press release. See for yourself!

New WRI Blog Targets 'Next Billion' Consumers Dollars

WASHINGTON, May 27, 2006 - The World Resources Institute has launched an interactive blog focusing on business's role in eradicating world poverty. The organization hopes to position its new "NextBillion.net -- Development through Enterprise" blog as "the world's premiere online water cooler and conference room" for socially responsible business development.

Previously, there have been e-mail lists for such business developers, but NextBillion.net allows development and poverty reduction to reach a new level by offering a bottom-up educational resource and threaded-discussion tool for everyone from multinational executives to small-business entrepreneurs.

Representatives of companies such as Microsoft, Hewlett-Packard, Pitney Bowes, DuPont and SC Johnson (as well as many innovative individuals) have already begun posting comments and discussions on the blog. For instance, noted author Stuart Hart posted exclusive content this week detailing issues highlighted in his new book, Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World's Most Difficult Problems. Additionally, with today's official launch, NextBillion.net's creators expect to quickly establish the site as the top news feed and content resource for corporations, foundations, the business-school community, poverty NGOs, development organizations, and many others.