Los teens

©Professor Kash Rangan Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

1.225 Billion People More Developed Countries USA, Canada, Western Europe, Japan, Singapore, Taiwan, South Korea, Australia 6.8 Billion People

5.575 Billion People Middle and Lower Income Countries Brazil, Russia, India, China, South Africa,Mexico, Turkey, Indonesia, Thailand, Egypt, Bangladesh, Nigeria, Kenya, Tanzania
©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

More Developed (Age) 0-20 20-64 65+ TOTAL World (Age) 2010 (Billions) 0-20 20-64 65+ TOTAL 2.250 4.025 0.525 6.800

2010 (Billions) 0.250 0.775 0.200 1.225

Less Developed (Age) 0-20 20-64 65+ TOTAL

2010(Billions) 2.000 3.250 0.325 5.575

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

World Population Share 15%
1.225 Billion

World GDP Share

67% (Per Capita GDP $25,000)

85%

5.575 Billion

33% (Per Capita GDP $2,500)

1 : 9

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard BusinessSchool

Developed Countries (A)
250 million

Household Income $5/day

500million

Developing Country Upper Income (B) Base of the Pyramid (C)

1 Billion

Household Income $3/day
500million 500 million

Bottom of the Pyramid (D)

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair,Professor of Marketing at the Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

500 million children; nearly all urban Educated, white-collar parents Or, blue-collar factory workers who have saved for theirchildren’s future Have experienced socio-economic mobility themselves Eager and ambitious for their children’s future Emphasis on Education and Training Competitive, Optimistic, and Hardworking These are the children who become Doctors, Engineers, Software Programmers, Managers, and so on Many will emigrate and have global ambitions
©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing atthe Harvard Business School

Westernized and Brand Conscious, but by-and-large make value tradeoffs. Watch sports, go to restaurants, buy clothes (especially girls) The biggest expenditure is on education and is incurred by parents Use Internet mainly for gathering information. Use mobile phone extensively Pro-business in perspective, keep away from politics Focus on self (and not that much onsociety)

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

1 Billion: Mainly urban, semi-urban and some rural Parents are blue collar or agricultural laborers (many are temporary workers) Parents have some education and aspire for worldlypossessions—TV, bicycles, cell phones, and so on Family lives in cramped and often insecure housing Children go to public school (80%) or private school (20%); but quality of education is poor Family has access to low-quality public healthcare Most children start working by age 15 – carpets, soccer balls, garments, footwear, restaurants

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professorof Marketing at the Harvard Business School

©Profesor V. Kasturi Rangan
Malcolm P.McNair, Professor of Marketing at the Harvard Business School

Regional in tastes and consumption Share food, books, even clothes Will compromise quality for price Main entertainment is movies and television Family’s aspiration is to move from a bi-cycle to a two-wheeler Some entrepreneurial, some...