By Lucie Klarsfeld, Hystra
As of 2014, malnutrition remains a widespread issue across the globe. Families living at the Base of the Pyramid (BoP) spend an average of 60% of their income on food, and yet, undernutrition still accounts for over 3m deaths per year among infants and young children. 26% of all under-five children are stunted, irremediably reducing their chances of becoming successful adults.
A range of solutions has been developed to improve the quality of nutrition during the critical first 1,000 days of life (in utero and in the first 2 years of life). Little is known however about the potential contribution of market-based solutions. A new report by Hystra learns from the successes and failures of best practice organizations that successfully sell nutritious complementary foods and supplements for 6-24 months infants to BoP families in developing countries.
The report does not judge product quality and effectiveness, but instead analyses the marketing and sales approaches of these organizations. It is based on extensive desk research, interviews with 32 experts on nutrition for the BoP, infant nutrition and health-related behaviour change, previous Hystra work studying over 20 models of micro-distribution at the BoP and analyzing marketing and sales best practices for innovative devices, and the in-depth analysis of 7 case studies specifically for this work: BRAC-Renata (Bangladesh), Danone Milkuat (Indonesia), Econocom Foods(South Africa), Gret program Nutrifaso (Burkina Faso), Naandi Community Water Services (India), Nutri'zaza (Madagascar), and Protein Kissée-La (Côte d'Ivoire).
The report findings are summarized in eight lessons learnt, some of which challenge conventional wisdom:
Further research is needed to validate and deepen these findings. Yet we hope that they can already lead to more large-scale initiatives that leverage market-based mechanisms to bring the benefits of innovative products and services to more families at the BoP, and help solve the scourge of malnutrition.
Readers should keep in mind that this report (1) does not endorse the products sold by the companies described in the report, (2) is based on a limited set of examples and (3) might have overlooked important nuances in both products and geographies. It will need to be revised as the evidence base builds up.
The Global Alliance for Improved Nutrition (GAIN) provided funding for this report as part of its work to improve nutrition for low-income consumers and vulnerable groups. GAIN was founded in 2002 to combat this human suffering by improving access to a wide variety of affordable, nutritious foods for vulnerable populations. First among our priorities are adolescent girls, women, and children in their first 24 months of life, when poor nutrition may cause lifelong problems. The strategies we apply: 1. Introduce new models of delivery and improve delivery mechanisms to better meet global needs; 2. Test new models that are market-based in their approach, innovative, sustainable and scalable; 3. Catalyze results-based partnerships among those positioned to create impact – governments, civil society, businesses and humanitarian agencies.
Hystra is a global consulting firm that works with business and social sector pioneers to design and implement inclusive business approaches that are profitable, scalable and eradicate social and environmental problems. In order to “be the change we want to see in the world”, Hystra itself is a hybrid consulting firm – a for-profit tool for social change. Since its creation in 2009, Hystra has conducted in-depth sectorial studies on clean energy, safe water, affordable housing and ICT-based business models for development, analyzed winning marketing strategies in micro-distribution, designed new models to serve low-income communities with home improvement packages, irrigation pumps, solar lights, safe water, and improved nutrition products, prepared business plans for pioneering inclusive businesses and supported the creation of a social impact fund. In five years Hystra has worked in close to 20 countries serving over 35 clients, including large corporations, international aid agencies, foundations, and governments, to support business models that change the lives of low-income communities across the globe.
To download the full report and Hystra reports on Marketing for the BoP, Energy for the BoP, Safe Water for the BoP and ICT for the BoP, visit www.hystra.com.
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