Most global businesses focus nearly all their efforts on selling to the wealthiest 14% of the world's population. It's getting harder and harder to make a profit that way: these markets are oversaturated, overcompetitive, and declining. The Invisible Market shows how to unleash new growth and profitability by serving the other 86%. Vihajan Mahajan offers detailed strategies and implementation techniques for product design, pricing, packaging, distribution, advertising, and more. Discover radically different 'rules of engagement' that make emerging markets tick, and how European and Asian companies are already driving billions of dollars in sales there. Mahajan shows how to understand and manage lack of infrastructure and media, low literacy levels, and 'unconventional' consumer behavior. Learn how to redefine the 'real' competition; tap into the informal economy and unconventional channels; leverage expatriate word-of-mouth; pool demand to reach critical mass; piggyback innovations on local tradition; and price and package to reflect local realities. As traditional markets become increasingly unprofitable, emerging markets become the #1 opportunity for growth.
The Biggest Market Opportunity Of The 21St Century
So many international companies focus on the most affluent part of the world's population the top 14 percent that many of these markets have become oversaturated and overcompetitive. In The 86 Percent Solution, marketing experts Vijay Mahajan and Kamini Banga describe how global companies can make a profit and grow by serving the other 86 percent of the world's people. By presenting many examples of companies that have successfully reached out to the emerging markets of the world, the authors demonstrate how potential markets have been turned into profit by innovative companies that have grown larger by thinking smaller.
The authors have organized The 86 Percent Solution into a new set of "rules of engagement" that can help companies reach underserved markets with more appropriate products. These rules include, "Don't build a car when you need a bullock cart," "Think young," and "Bring your own infrastructure." By expanding on these rules with numerous case studies and statistics from around the world, the authors provide a blueprint for understanding the key drivers of today's and tomorrow's global economy.
Develop With the Market
To help companies keep up with change by recognizing and taking advantage of shifts in developing markets, the authors provide these eight strategies:
Why We Like This Book
The 86 Percent Solution presents fascinating lists of strategies such as these in each of its 10 chapters on making headway in developing markets. Through colorful and timely examples from around the globe, the authors illustrate the opportunities that are available in the developing world while highlighting how many companies have grown while improving life in underserved markets. Copyright © 2006 Soundview Executive Book Summaries