A shared-channel model for BoP access in the Philippines
This chapter is based on research undertaken by Asian Social Enterprise Incubator (ASEI) in the Philippines. Working with multilateral agencies, corporates, social enterprise and NGOs, it was realized that distribution to the BoP is, on the one hand, a major challenge for scaling up BoP ventures, and, on the other hand, a major contributor to the BoP penalty. The shared-channel model offers a mode of distribution that appeals to firms as it holds the promise of being a cost-effective way to reach clients. It overcomes the need to build up a sales force, which is a resource-intensive undertaking as the clients live in difficult-to-reach areas. The application of the model will ultimately contribute to a reduction of the BoP penalty. The chapter analyses different shared-channel models and proposes the Shared Channel Assessment Framework (SCAF) for BoP ventures on evaluating and monitoring distribution partnerships.