Distribution strategies for the base of the pyramid: an exploratory study in Brazil

Detalhes bibliográficos
Autor(a) principal: Barki, Edgard Elie Roger
Data de Publicação: 2010
Tipo de documento: Tese
Idioma: eng
Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
Texto Completo: http://hdl.handle.net/10438/4484
Resumo: Access has been one of the main difficulties companies have faced in emerging markets (PRAHALAD, 2005). The capillarity of the market, the existence of small, not professionalized and sometimes informal retailers, the lack of infrastructure and high transportation costs are some of the distribution challenges companies face in poorer regions. The literature concerning the Base of the Pyramid (BoP) is still recent and only after the seminal article by Prahalad and Hart (2002), it evolved into many different management perspectives. However, there is a lack of researches concerning distribution strategies to the BoP. Therefore, the main objective of this research is to identify, in the perception of executives working in the market, the conditions associated to a satisfactory distribution for the BoP market in Brazil and to build a substantive theory that helps to shed light to the understanding of the distribution phenomenon adopted by consumer goods companies to reach the BoP market in Brazil. In order to accomplish the objectives of this thesis, a grounded theory methodology (Glaser; Strauss, 1967; Corbin; Strauss, 2008) was used. This approach helped to identify the channel strategies used by local and global companies in the market. Many techniques for data collection were applied. The most important one was in-depth interviews with 26 executives from 24 different consumer goods companies in Brazil. Among the companies there were small, medium and large enterprises; which were also grouped as manufacturers, distributors and retailers. Furthermore, secondary data were examined to identify business strategies to reach BoP and map global distribution initiatives. A database from a consumer panel was also used to analyze what and where BoP consumers purchase non-durable goods. It was verified that small and traditional retailing is a very strong format in BoP markets and in the Northern/Northeastern regions. Cash & Carry is a format that is growing a lot. On the other hand, hypermarkets are not very used by low income population. The results suggest that three major categories are associated to a satisfactory distribution: (a) willingness, which means the effort, knowledge and enthusiasm a firm has to operate at BoP markets; (b) well-done execution, which is related to designing correctly the marketing channel and operating efficiently in an environment full of obstacles, such as lack of infrastructure, capillarity, lack of safety, regional differences and informality, and (c) relationship, which was perceived to be friendlier and essential at BoP markets, since it is very difficult for manufacturers to reach the entire market alone. It is more likely to have a satisfactory distribution when manufacturers establish strong relationships in the marketing channel. Besides, small retailers have a perception of isolation and expect a higher level of relationship. These major categories explain also the competitive advantage that local companies have in relation to MNCs and large companies. Despite of the limitations of an exploratory study, it is expected that this thesis will contribute to the BoP knowledge as well as to the identification of the peculiarities of distribution in BoP markets.
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spelling Barki, Edgard Elie RogerEscolas::EAESPBrito, Eliane Pereira ZamithRosa, Fernando deKato, Heitor TakashiBandeira-de-Mello, RodrigoParente, Juracy Gomes2010-04-20T21:18:45Z2010-04-20T20:08:14Z2010-02-24BARKI, Edgard Elie Roger. Distribution strategies for the base of the pyramid: an exploratory study in Brazil. Tese (Doutorado em Administração de Empresas) - FGV - Fundação Getúlio Vargas, São Paulo, 2010.http://hdl.handle.net/10438/4484Access has been one of the main difficulties companies have faced in emerging markets (PRAHALAD, 2005). The capillarity of the market, the existence of small, not professionalized and sometimes informal retailers, the lack of infrastructure and high transportation costs are some of the distribution challenges companies face in poorer regions. The literature concerning the Base of the Pyramid (BoP) is still recent and only after the seminal article by Prahalad and Hart (2002), it evolved into many different management perspectives. However, there is a lack of researches concerning distribution strategies to the BoP. Therefore, the main objective of this research is to identify, in the perception of executives working in the market, the conditions associated to a satisfactory distribution for the BoP market in Brazil and to build a substantive theory that helps to shed light to the understanding of the distribution phenomenon adopted by consumer goods companies to reach the BoP market in Brazil. In order to accomplish the objectives of this thesis, a grounded theory methodology (Glaser; Strauss, 1967; Corbin; Strauss, 2008) was used. This approach helped to identify the channel strategies used by local and global companies in the market. Many techniques for data collection were applied. The most important one was in-depth interviews with 26 executives from 24 different consumer goods companies in Brazil. Among the companies there were small, medium and large enterprises; which were also grouped as manufacturers, distributors and retailers. Furthermore, secondary data were examined to identify business strategies to reach BoP and map global distribution initiatives. A database from a consumer panel was also used to analyze what and where BoP consumers purchase non-durable goods. It was verified that small and traditional retailing is a very strong format in BoP markets and in the Northern/Northeastern regions. Cash & Carry is a format that is growing a lot. On the other hand, hypermarkets are not very used by low income population. The results suggest that three major categories are associated to a satisfactory distribution: (a) willingness, which means the effort, knowledge and enthusiasm a firm has to operate at BoP markets; (b) well-done execution, which is related to designing correctly the marketing channel and operating efficiently in an environment full of obstacles, such as lack of infrastructure, capillarity, lack of safety, regional differences and informality, and (c) relationship, which was perceived to be friendlier and essential at BoP markets, since it is very difficult for manufacturers to reach the entire market alone. It is more likely to have a satisfactory distribution when manufacturers establish strong relationships in the marketing channel. Besides, small retailers have a perception of isolation and expect a higher level of relationship. These major categories explain also the competitive advantage that local companies have in relation to MNCs and large companies. Despite of the limitations of an exploratory study, it is expected that this thesis will contribute to the BoP knowledge as well as to the identification of the peculiarities of distribution in BoP markets.Acesso tem sido uma das maiores dificuldades que as empresas tem enfrentado em mercados emergentes (PRAHALAD, 2005). Alguns dos desafios de distribuição que as empresas enfrentam em regiões mais pobres são a capilaridade do mercado, a existência de varejistas pequenos, não profissionalizados e por vezes informais, a falta de infra-estrutura e os altos custos de transporte. A literatura relacionada à base da pirâmide (BoP) é ainda recente e apenas após o artigo seminal de Prahalad e Hart (2002), que o assunto evoluiu em diversas perspectivas em negócios. No entanto, ainda há uma lacuna em estudos relacionados a estratégias de distribuição para a base da pirâmide. Assim sendo, o principal objetivo deste estudo é identificar, na percepção de executivos que trabalham no Mercado, as condições associadas a uma distribuição satisfatória para o Mercado da Base da Pirâmide no Brasil e construir uma teoria substantiva que apóie o entendimento do fenômeno da distribuição para a base da pirâmide de empresas de bens de consumo no Brasil. Para atingir os objetivos deste trabalho, foi utilizada a metodologia da Grounded Theory (Glaser; Strauss, 1967; Corbin; Strauss, 2008). Esta metodologia ajudou a identificar as estratégias de canal utilizadas por empresas locais e globais. Várias técnicas de coleta de dados foram utilizadas. A mais importante foi a realização de entrevistas em profundidade com 26 executivos de 24 empresas diferentes de bens de consume no Brasil. Dentre estas empresas havia pequenas, medias e grandes organizações; que também foram agrupadas em fabricantes, distribuidores e varejistas. Além disso, dados secundários foram analisados para identificar estratégias de negócios e mapear iniciativas globais de distribuição. Um banco de dados de um painel de consumidores foi utilizado para analisar o que e onde os consumidores da base da pirâmide comparam bens não-duráveis. Foi verificado que o pequeno varejo tradicional é um formato muito importante para a Base da Pirâmide e nas regiões Norte e Nordeste. Cash & carry é um formato que está crescendo bastante. Por outro lado, hipermercados não são muito utilizados pela população de baixa renda. Os resultados sugerem que três categorias principais estão associadas a uma distribuição satisfatória: (a) Interesse em atuar na Base da Pirâmide, que significa o esforço, comprometimento, conhecimento e entusiasmo de uma empresa em atuar na Base da Pirâmide; (b) execução, que está relacionada ao correto desenho da estrutura de canais e em uma operação eficiente em um ambiente repleta de obstáculos, tais como falta de infra-estrutura, capilaridade, insegurança, diferenças regionais e informalidade, e (c) relacionamento foi percebido como sendo mais amigável e essencial na base da pirâmide, dada a dificuldade dos fabricantes em acessar o mercado todo sozinhos. É mais provável estabelecer-se uma distribuição satisfatória quando os fabricantes possuem relacionamentos estreitos com o canal de marketing. Além disso, pequenos varejistas tem a percepção de isolamento e possuem a expectativa de um maior nível de relacionamento. Apesar das limitações de um estudo exploratório, espera-se que esta tese contribua para o conhecimento na Base da Pirâmide e na identificação das peculiaridades existentes na distribuição de produtos de bens de consumo para a Base da Pirâmide.engMarketing channelsBase of the pyramidDistribution strategiesMarketing strategyEmerging marketsCanais de marketingBase da pirâmideEstratégias de distribuiçãoEstratégias de marketingMercados emergentesAdministração de empresasMercado financeiroConsumo (Economia) - Aspectos sociaisMarketingPlanejamento estratégicoCanais de distribuiçãoDistribution strategies for the base of the pyramid: an exploratory study in Brazilinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/doctoralThesisreponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL71060100730.pdfapplication/pdf1696550https://repositorio.fgv.br/bitstreams/07f05ce0-429c-4817-b82c-c465710ba188/download2ab1fb226ddf72ebf4f0005759bf9cd2MD51TEXT71060100730.pdf.txt71060100730.pdf.txtExtracted texttext/plain100594https://repositorio.fgv.br/bitstreams/a720c2e6-0e4b-4c65-833f-dc100fdfd2be/download17616e8f4d09e5d3335e43dc54d944a5MD54THUMBNAIL71060100730.pdf.jpg71060100730.pdf.jpgGenerated Thumbnailimage/jpeg2558https://repositorio.fgv.br/bitstreams/69d27673-6ee9-4b79-bc25-984d73265258/downloadd1a9cdbe8893fe31c4ff6bf38a822392MD5510438/44842023-11-27 12:44:51.364open.accessoai:repositorio.fgv.br:10438/4484https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-27T12:44:51Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false
dc.title.eng.fl_str_mv Distribution strategies for the base of the pyramid: an exploratory study in Brazil
title Distribution strategies for the base of the pyramid: an exploratory study in Brazil
spellingShingle Distribution strategies for the base of the pyramid: an exploratory study in Brazil
Barki, Edgard Elie Roger
Marketing channels
Base of the pyramid
Distribution strategies
Marketing strategy
Emerging markets
Canais de marketing
Base da pirâmide
Estratégias de distribuição
Estratégias de marketing
Mercados emergentes
Administração de empresas
Mercado financeiro
Consumo (Economia) - Aspectos sociais
Marketing
Planejamento estratégico
Canais de distribuição
title_short Distribution strategies for the base of the pyramid: an exploratory study in Brazil
title_full Distribution strategies for the base of the pyramid: an exploratory study in Brazil
title_fullStr Distribution strategies for the base of the pyramid: an exploratory study in Brazil
title_full_unstemmed Distribution strategies for the base of the pyramid: an exploratory study in Brazil
title_sort Distribution strategies for the base of the pyramid: an exploratory study in Brazil
author Barki, Edgard Elie Roger
author_facet Barki, Edgard Elie Roger
author_role author
dc.contributor.unidadefgv.por.fl_str_mv Escolas::EAESP
dc.contributor.member.none.fl_str_mv Brito, Eliane Pereira Zamith
Rosa, Fernando de
Kato, Heitor Takashi
Bandeira-de-Mello, Rodrigo
dc.contributor.author.fl_str_mv Barki, Edgard Elie Roger
dc.contributor.advisor1.fl_str_mv Parente, Juracy Gomes
contributor_str_mv Parente, Juracy Gomes
dc.subject.eng.fl_str_mv Marketing channels
Base of the pyramid
Distribution strategies
Marketing strategy
Emerging markets
topic Marketing channels
Base of the pyramid
Distribution strategies
Marketing strategy
Emerging markets
Canais de marketing
Base da pirâmide
Estratégias de distribuição
Estratégias de marketing
Mercados emergentes
Administração de empresas
Mercado financeiro
Consumo (Economia) - Aspectos sociais
Marketing
Planejamento estratégico
Canais de distribuição
dc.subject.por.fl_str_mv Canais de marketing
Base da pirâmide
Estratégias de distribuição
Estratégias de marketing
Mercados emergentes
dc.subject.area.por.fl_str_mv Administração de empresas
dc.subject.bibliodata.por.fl_str_mv Mercado financeiro
Consumo (Economia) - Aspectos sociais
Marketing
Planejamento estratégico
Canais de distribuição
description Access has been one of the main difficulties companies have faced in emerging markets (PRAHALAD, 2005). The capillarity of the market, the existence of small, not professionalized and sometimes informal retailers, the lack of infrastructure and high transportation costs are some of the distribution challenges companies face in poorer regions. The literature concerning the Base of the Pyramid (BoP) is still recent and only after the seminal article by Prahalad and Hart (2002), it evolved into many different management perspectives. However, there is a lack of researches concerning distribution strategies to the BoP. Therefore, the main objective of this research is to identify, in the perception of executives working in the market, the conditions associated to a satisfactory distribution for the BoP market in Brazil and to build a substantive theory that helps to shed light to the understanding of the distribution phenomenon adopted by consumer goods companies to reach the BoP market in Brazil. In order to accomplish the objectives of this thesis, a grounded theory methodology (Glaser; Strauss, 1967; Corbin; Strauss, 2008) was used. This approach helped to identify the channel strategies used by local and global companies in the market. Many techniques for data collection were applied. The most important one was in-depth interviews with 26 executives from 24 different consumer goods companies in Brazil. Among the companies there were small, medium and large enterprises; which were also grouped as manufacturers, distributors and retailers. Furthermore, secondary data were examined to identify business strategies to reach BoP and map global distribution initiatives. A database from a consumer panel was also used to analyze what and where BoP consumers purchase non-durable goods. It was verified that small and traditional retailing is a very strong format in BoP markets and in the Northern/Northeastern regions. Cash & Carry is a format that is growing a lot. On the other hand, hypermarkets are not very used by low income population. The results suggest that three major categories are associated to a satisfactory distribution: (a) willingness, which means the effort, knowledge and enthusiasm a firm has to operate at BoP markets; (b) well-done execution, which is related to designing correctly the marketing channel and operating efficiently in an environment full of obstacles, such as lack of infrastructure, capillarity, lack of safety, regional differences and informality, and (c) relationship, which was perceived to be friendlier and essential at BoP markets, since it is very difficult for manufacturers to reach the entire market alone. It is more likely to have a satisfactory distribution when manufacturers establish strong relationships in the marketing channel. Besides, small retailers have a perception of isolation and expect a higher level of relationship. These major categories explain also the competitive advantage that local companies have in relation to MNCs and large companies. Despite of the limitations of an exploratory study, it is expected that this thesis will contribute to the BoP knowledge as well as to the identification of the peculiarities of distribution in BoP markets.
publishDate 2010
dc.date.accessioned.fl_str_mv 2010-04-20T21:18:45Z
dc.date.available.fl_str_mv 2010-04-20T20:08:14Z
dc.date.issued.fl_str_mv 2010-02-24
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dc.identifier.citation.fl_str_mv BARKI, Edgard Elie Roger. Distribution strategies for the base of the pyramid: an exploratory study in Brazil. Tese (Doutorado em Administração de Empresas) - FGV - Fundação Getúlio Vargas, São Paulo, 2010.
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10438/4484
identifier_str_mv BARKI, Edgard Elie Roger. Distribution strategies for the base of the pyramid: an exploratory study in Brazil. Tese (Doutorado em Administração de Empresas) - FGV - Fundação Getúlio Vargas, São Paulo, 2010.
url http://hdl.handle.net/10438/4484
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