New Places, New Consumers
SC Johnson long has been committed to practicing and promoting what increasingly has become known as the “base of the pyramid” strategy. In 2004, this concept gained further recognition as we partnered with Stuart L. Hart, Samuel C. Johnson Chair of Sustainable Global Enterprise and Professor of Management at Cornell University’s Johnson Graduate School of Management, to develop and promote the groundbreaking Base of the Pyramid Protocol.

Building on the concept of creating value for those most in need of support, SC Johnson participated throughout 2003 and 2004 in the creation of the protocol, through which the private sector and local communities build economic, social and environmental value at the base of the economic pyramid.

The protocol is a collaborative venture between Cornell University, the University of North Carolina, the University of Michigan, The World Resources Institute and The Johnson Foundation. The effort is supported financially by SC Johnson, DuPont, Hewlett-Packard and Tetra Pak.

The protocol encompasses a formal business process to generate value for all stakeholders. It provides a step-by-step process for initiating this model, including three key phases:

  • Opening Up – launching non-business- specific immersion guided by two-way dialogue to understand the environment and generate competitive ideas
     
  • Building the Ecosystem – generating a network of relationships among multinational corporations and local individuals and organizations that support co-creation and win-win strategies
     
  • Enterprise Creation – piloting a test, evaluating results and then further launching business experiments that generate value for all constituencies
Following the protocol, multinational corporations can identify and develop sustainable new products and businesses in partnership with base of the pyramid consumers, resulting in lasting value that stems from a deep understanding of their needs, perspectives and capabilities.

SC Johnson has been closely involved in the development of the protocol, and in 2004 participated in the design workshop that led to the draft protocol. This summer, we are sponsoring field testing of the protocol in Kenya by funding interns from Cornell University, the University of North Carolina and the University of Michigan who will implement the protocol and document its impact. By doing this, we hope to learn more about base of the pyramid strategy and its implementation. Equally important, by making this process transparent and sharing the learnings, we hope to prove the tremendous positive impact that can be made by multinational corporations.

Ultimately, like its partners in this effort, SC Johnson aims to continue finding and implementing opportunities to generate local development and wealth while developing new capabilities and markets for our business.

Here are a few of the insights shared in the Base of the Pyramid Protocol that SC Johnson helped develop:

  • Put the Last First – Insights come from seeking out the base of the pyramid voices, which are seldom heard
  • Co-Develop Solutions – Success comes from mutual learning between multinational corporations, partners and base of the pyramid members
  • Create Mutual Value – All parties must benefit in terms important to them