Following the launch of bp’s first customized ‘base of the pyramid’ energy solution in 2005, bp Chairman Lord John Browne mandated the development of a global bp business strategy for emerging energy consumers. The result was three distinct initiatives: 1) a market sizing, segmentation and momentum analysis focused on underserved consumers in country markets worldwide; 2) the establishment of new product development projects in selected strategic markets—China, South African, and Vietnam; and 3) the establishment of a new Emerging Consumer Markets business unit within bp to oversee this new business area.
The Next Practice was engaged to support these three initiatives in 2006. Using data from the International Energy Agency, national census studies, World Bank household expenditure surveys and other sources, TNP developed a unique market segmentation approach based on the idea of household energy transition from producers of low efficiency fuels to consumers of efficiency engineered clean and safe fuels and appliances. TNP’s quantification of the scale and pace of this transition in scores of countries enabled bp to size its revenue pool opportunity in markets globally.
The Next Practice team also established and managed a product/business innovation project in South Africa and advised a second bp innovation team in Vietnam, both of which led to market introduction of innovative energy solutions in 2007, including the award winning Arivi paraffin stove in South Africa. Finally, TNP also extensively advised bp on the establishment of its new Emerging Consumer Markets business unit.
Awards: Finalists, INDEX 2009.