* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Marketing Extension
Grey market wikipedia , lookup
Marketing communications wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Ambush marketing wikipedia , lookup
Market analysis wikipedia , lookup
Neuromarketing wikipedia , lookup
Marketing research wikipedia , lookup
Digital marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Target audience wikipedia , lookup
Market penetration wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Sports marketing wikipedia , lookup
Supermarket wikipedia , lookup
Darknet market wikipedia , lookup
Direct marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Multi-level marketing wikipedia , lookup
Product planning wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Advertising campaign wikipedia , lookup
Sensory branding wikipedia , lookup
Target market wikipedia , lookup
Marketing plan wikipedia , lookup
Multicultural marketing wikipedia , lookup
Street marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Green marketing wikipedia , lookup
Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises SDC-Samriddhi project implemented by HELVETAS Swiss Intercooperation Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises Text writing: Shamim Hossain Md. Zahid Hasan Ms. Ismat Ara Laboni Ms. Nilufar Sultana Editing: Adwyait Kumar Roy Layout & designing: Sultan Mahmud Year of publication: First edition: December 2005 Second edition: December 2011 Copies available at: Country Office HELVETAS Swiss Intercooperation-Bangladesh House # 2F NE (D), Road 73 (G) Gulshan-2, Dhaka-1212 Bangladesh Phone: (880)-2-881 56 88, 882 76 33, 882 92 08 E-mail: [email protected] Website: www.intercooperation-bd.org Foreword Poor producers in the villages produce diversified products on a very small scale and occasionally sell these subsistence products at unfair prices. The commercialisation of the small amount of products requires the development of market-oriented production. Success in commercialisation depends on market orientation and on the removal, or reduction of a broad range of marketing constraints. Due to the lack of marketing knowledge rural producers cannot identify potential products and exploit market opportunities. There is no appropriate institution for rural producers to develop their marketing knowledge. The Marketing Extension (ME) handbook contains a sixstep process, which aims at the development of the marketing knowledge of rural producers in order to increase their profit margin. Basically, the processes foster the capacities of the producers for analysing existing products and markets, and developing appropriate strategies of marketing by themselves. This handbook aims at providing an appropriate guideline for Local Service Provider-Business Service (LSP-BS) developed by Samriddhi project working with Micro and Small Enterprises (MSE). This handbook is also helpful for the development workers working for the economic empowerment of the rural micro and small enterprises. ATM Azmul Huda Deputy Country Director HELVETAS Swiss Intercooperation Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises Glossary of Terms APO Annual Plan of Operation CBO Community Based Organisation LEAF Livelihoods, Empowerment and Agroforestry (project) LSP-BS Local Service Provider-Business Service ME Marketing Extension MSE Micro and Small Enterprise VC Value Chain Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises Contents Page 1. Background............................................................................... 05 2. Strategies of enterprise development....................................... 06 3. What is marketing extension.................................................... 09 4. Operational methodology......................................................... 09 4.1. Step-1: Assessment of villagers' products........................ 10 4.2. Step 2: Analysis of selected products .............................. 11 4.3. Step 3: Market survey ...................................................... 12 4.4. Step 4: Analysis of market survey findings....................... 13 4.5. Step 5: Selection of strategies ......................................... 14 4.6. Step 6: Development and implementation of action plan Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 15 1. Background Samriddhi project aims to contribute to sustainable well-being and resilience of poor and extreme poor households of Rajshahi and Rangpur Divisions and Sunamganj District through social and economic empowerment. The project aims to ensure poor and extreme poor men and women make use of enhanced employment and income generating opportunities through the processes of influencing market system, and defining, managing and lobbying to secure a more enabling environment for their sustainable well-being. Under this goal, Samriddhi has taken various initiatives for promoting income generation and marketing activities for rural poor considering the major constraints of exploiting market opportunities i,e lack of marketing knowledge of rural producers. In 2004, Livelihoods, Empowerment and Agroforestry (LEAF) project started a pilot on marketing extension approach for increasing the marketing knowledge of Community Based Organisation (CBO) members in order to identify appropriate income generating activities. At least 5,000 CBO of 56 upazillas were benefited of this course, which encouraged them to scale up their marketing activities adopting different marketing strategies such as; producing bulk amount, improving quality of products, group purchasing of inputs, group selling of products, producing new products that have higher market demand and involving more community people in income generating activities. This document is a guiding tool for the foundation of rural enterprises. The first part of this guidebook consists of the strategies of enterprise development. The second part of the document will clarify about Marketing Extension while the third part of it consists of the process of facilitation. Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 05 2. Strategies of enterprise development: Empowering the poor to exploit market opportunities The project identified the main cause of poverty as the lack of economic opportunity, compounded by insufficient skills to capitalise on market opportunities. In this context, the poor were extremely vulnerable to shocks and crises, the majority living below the poverty line ($1 per day). On this basis, the following hypothesis was made: "Lack of marketing knowledge of the producers is the major constraint in rural areas for exploiting market opportunities. A greater understanding of functioning markets and the actors, while participating in identifying the economic opportunities at field level, could reinforce their selfconfidence to negotiate with market actors. Ultimately, becoming more proactive in undertaking new income generating activities and businesses would increase their incomes in a sustainable way". Based on the above mentioned hypothesis, the project designed the empowering process of four stages allowing poor and extreme poor to gradually acquire knowledge and skills and finally join in marketing activities independently and confidently. Fig-1: Empowering process Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 06 Marketing Extension Acronyms APO BMDA BRRI BWDB/WDB CBO CC CDMP CF CP CRiSTAL DRR FF IC IGA First stage - Developing capacity of planning through Annual Plan of Operation (APO) and implementation: The first stage of empowerment process is APO development .The APO process helps the communities to analyse their livelihood strategies, identify the barriers and opportunities and finally develop a list of micro projects for local development. Second stage - Developing capacity on marketing strategies through Marketing Extension (ME) and implementation: The second stage is the Marketing Extension (ME) exercise, which aims to empower villagers to identify and exploit market opportunities especially in the local area. The ME exercise helps the communities to assess their products, analyse cost-benefit of the products, assess markets, develop appropriate marketing strategies and elaborate plans. During implementation of marketing plan, judging profitability, creating access to markets, developing skills, gaining experience, etc. help the producers and traders to understand their role in the market chain. This consensus enables them to function more cooperatively and more efficiently to everyone's benefit. IPCC IRRI LEAF LSP MFDM MoFF PNGO Third stage - Developing capacity of Micro and Small Enterprise (MSE) development: The third stage is the MSE development, which assists the producers to manage the business efficiently and effectively. The MSE are to manage business at two different levels; firstly at MSE level and secondly at MSE network level with a view to develop the formal relationship with different levels of market actors considering different types of products. SAAKTI SDC SHARIQUE UDMC UNISDR UP WB Marketing Extension : A Guiding Tool for the Foundation of Rural Enterprises 07 Fourth stage - Developing capacity on linkages through Value Chain (VC) development: The fourth stage is the value chain development, which assists MSE to scale up existing marketing activities. For scaling up marketing activities, the major requirements of MSE are: information of higher market, information of advanced technical and financial services, and linkages with the market actors and service providers. In this stage, the project facilitates the process of implementation by responding to MSE's needs through various tools such as value chain analysis, business plan development, skill development and stakeholder workshops. All these tools are organised in a participatory way with MSE playing an active role. MSE are encouraged to take the lead role and make decisions about production and marketing themselves. Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 08 3. What is Marketing Extension? Marketing Extension module is a 6 (six) days course on knowledge of marketing for developing the skills of rural poor producers' groups. In each day of this process, producers' groups are to spend 2 hours time. The total course requires 1.5 months of time for each producers' group. LSP-BS facilitates the producers' groups for exercising the module. Through the exercise, the producers' groups and their taskforces collect the market information, analyse those, develop strategies and finally elaborate marketing action plans. The producers' groups implement their marketing action plans by themselves. During the implementation of the plans, LSP-BS also accompanies the producers' groups. Objective of the ME course is to develop the capacities of the producers' groups so that they can identify the strengths and weaknesses of their firms, identify the opportunities and threats of the markets, improve their products, innovate new products, explore markets and distribute products to the appropriate actors of the value chain with maximum profit as well as maintain values. “Empower the villagers to identify markets opportunities and plan how to exploit them” Marketing Extension: A powerful approach in 6 steps Assessment of villagers' products Selection of 1 to 2 potential existing products Constraints and opportunities at production to market level All villagers involved FACILITATION Analysis of selected products Cost and profit analysis of products Selection of location for market survey Carried out by a producers' taskforce Market survey Discussion with traders on selected products Collection of information ( price, quality, quantity) Identification of new market opportunities). Analysis of market survey findings Selection of strategies (production and marketing) for existing products and new products All villagers involved Development and implementation of action plan COACHING Discussion on different marketing strategies for selected products and new products identified (weakness, strength and opportunity). Fig-2 : Overview of Marketing Extension 4. Operational Methodology If the community's APO reflects marketing problem, 6 (six) steps ME course is offered for them. LSP-BS accompanies all 6 steps. The steps are incorporated in the community's APO for exercising within the 1.5 months of time starting from a suitable time through the negotiation between the producers' group and LSP-BS. The steps of the module are as follows: Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 09 4.1. Step-1: Assessment of villagers' products The first step of the process is to assess the existing situation of the communities'/villagers' products. The products are assessed through discussion with all the community people. All interested community people participate in the discussion. The LSP-BS facilitates the community people to develop the production calendar of the community/village. The major contents of the calendar are the product's name, monthly distribution, production volume, selling prices, % quantity of selling and consumption, etc. The major outputs of the steps are firstly, the general overview of the marketable goods of the community, secondly the selection of promising goods. Operation: Introduction of the community people and the facilitator (LSP-BS); Brief discussion about the expectation of the community people regarding marketing of products; Hanging of the format of production calendar on the poster paper; Asking the community people to explain the monthly and yearly production volume, price of their products and document in the poster; Identification of major problems related to profit maximisation; Selection of potential 1-2 products from the list for in-depth analysis and market survey; Formation of a taskforce of 5-7 members for market information collection (As per requirements, other village people are included in the taskforce); Selection of a suitable day for organising a taskforce meeting. JAN FEB Summer-2 Summer-1 MAR APR MAY JUN JUL AUG SEP OCT NOV Examples Vegetables Fruits Goat Fish Poultry Handicraft Skills Spare time Interest for new activities Major Expenses Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 10 DEC Constraints Winter Opportunities Products/ Resources % of sales Production volume sales price (maximum-minimum), Planting time, selling time Production (kg) Villagers' products assessments 4.2. Step 2: Analysis of selected products The second step is the taskforce meeting of 5-7 members. LSP-BS facilitates the taskforce meeting. The major discussion of the taskforce meeting is to discuss the main issues, which create obstacle to maximise profit from the selected products. Generally the major issues are inferior quality of the products, lack of professional relationship with the real actors in the value chain. Two questionnaires are used as the checklist of collection of information; one at firm level and the other at market level. Operation: Facilitation of the taskforce meeting; Discussion about the main marketing problems facing by the producers (prices, demand and competition etc); Identification of the actual cost and profit of the selected products and determination of the expected price. (Four types of costs are considered such as input cost, labour cost, input carrying cost and product transporting cost); Presentation of different markets and market actors in the value chain through diagram; Selection of the required questions for interviewing market actors in the value chain for collecting information from the market. Product analysis Producers & market Price of products at producer and market levels Distance of market from producer Constraints/ Opportunities Producers Village market-1 Village market-2 Union market Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 11 4.3. Step 3: Market survey The third step of the process is the collection of information from the market through interviewing the representatives of different stakeholders such as traders, wholesalers, processors, retailers etc. The taskforce survey markets related to the selected products. Generally the producers survey the village markets where the producers did never sell their products. Sometimes, the taskforce go to the subdistrict and district markets. LSP-BS accompanies the taskforce to go to the market and to discuss with the traders. Operation: Selection of the traders in the market; Briefing about the objective of the discussion and introduction of the group with the traders; Discussion with traders and collection of different types of information of the selected products; Selection of new products and ideas from the traders (in some cases); Establishment of a primary agreement between the taskforce members and the traders. Checklist for the market survey - Why are they interested to this business? - Way of communication - Name and address of trader - Type of trading: Wholesaler / Retailer/ / Aratdar - Date of establishment Existing products Potential products 1. Where the products come from? 10. Which products could be the best for the poducers' 2. Who have benefit to collect product? groups? 3. What is the price? 11. How the producers' groups can start? 4. Do they buy products in cash or on credit? 12. Who will be the best person for training? 5. What is the quantity required for colleting products at a 13. What could be the production time? time? 14. Is there any opportunity of processing of new products? 6. What is the good way of selling/supplying products for 15. Do they sell processed products? Which products? the producers? 16. What are the advantages of processed products? 7. How the producers can improve their products? 17. Who are the buyers? How do they communicate? 8. What strategy do they follow during collecting products (Collecting from the farm gate or sending to the shop)? Major problems and ways of solutions 9. Do they have any opportunity for collecting products 18. Do they have any suggestion for buying and selling directly from the producers? products? Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 12 Marketing Extension Acronyms APO BMDA BRRI BWDB/WDB CBO 4.4. Step 4: Analysis of market survey findings The fourth step is also a taskforce meeting. The taskforce members arrange the information collected from the markets. The information are arranged considering the areas such as name of products with weaknesses, strengths, opportunities, costs, prices and demand-supply situations at different levels (farm, village market, urban market, traders and wholesalers). Operation: CC Preparation of a chart (considering products, weaknesses. strengths, opportunities and strategies); CDMP CF CP Incorporation of information from the markets; CRiSTAL Identification of some strategies for the presentation in the group meeting of all producers. DRR FF IC Analysis of market information (Qualitative & Quantitative) IGA IPCC Location of market IRRI LEAF LSP Village MFDM MoFF Market Actors Mobile traders Retailers Wholesalers SAAKTI Union Mobile traders SDC Aratder traders SHARIQUE Retailers UDMC Upazilla UNISDR Wholesalers WB Strategy Producers PNGO UP Strength Weakness Opportunity Risk Aratder Retailers Wholesalers District Aratder Retailers Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 13 4.5. Step 5: Selection of strategies The fifth step is selection of strategic choice. The step is organised in the group meeting. All the producers of the community participate in the meeting. The taskforce members present the information collected from the markets. They also present the potential strategies. The participants debate with the identified strategies and finally prioritise the most potential ones. Operation: Development of presentation by the taskforce; Orientation of the facilitators from the taskforce by the LSP-BS before the plenary session; Facilitation of the group meeting by the taskforce members; Hanging of the strategies on the board; Discussion about the information collected from the farm, market; Explanations of different options and strategies; Discussion with the general producers; Selection of potential strategies from the discussion. Selection of strategies Strategy Strength Weakness Opportunity Risk Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 14 4.6. Step 6: Development and implementation of action plan The final step is the preparation of the action plan by the producers' groups. The action plans are prepared in the group meeting in the presence of all the producers. In the action plan they document the products and strategies, list of activities against all the products, the responsible persons, time frames and required service providers. Operation Facilitation of the meeting by the taskforce members; Hanging of the Gann chart of the action plan; Incorporation of the selected products in the Gann chart; Identification of list of activities against each of the products; Identification of the responsible person/small group and time frames; Identification of the required service providers. Action plan Different strategies / options Specific activities Responsibility Time Required supports Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 15 Marketing Extension in Photograph ME group discussion Products marketing through MSE network Marketing Extension: A Guiding Tool for the Foundation of Rural Enterprises 16