Market Based Solutions for Addressing Nutritional Deficiencies: The Case of Grameen Danone Foods Ltd

Market based solutions for addressing nutritional deficiencies are based on the fact that the poor procure a portion of food from markets. However, it is not clear if commercial business models can be implemented in low-income markets. A value chain analysis is applied and finds that cost management strategies can produce sustainability and scale. There is also little evidence to substantiate if poor consumers value nutritious products and will consume them in adequate amounts. An RPL and RE model are used to conduct a willingness-to-pay analysis. Nutritional benefit is valued over other attributes of a fortified yogurt product. WTP values are most highly influenced by factors of nutritional awareness and acceptability. A binary response model is used to analyze adequacy of consumption. The most influential factors are related to acceptability, availability and channel of delivery. Together these elements help identify if business models can be used as a nutritional intervention.