MARKETING FOR THE BOP WORKSHOP

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1 MARKETING FOR THE BOP WORKSHOP Concept Note This note presents our methodology to help refine the marketing and sales practices of organizations that sell innovative devices (such as water filters or improved cookstoves) or healthy fast-moving products to the Base of the Pyramid. It summarizes the (1) context, (2) objective, (3) methodology and indicative workshop agenda, for this initiative. The appendix provides testimonials from past workshop participants. Context In 2013, Hystra published a research analyzing 15 organizations that have successfully developed "best practices" in marketing life changing devices to the BOP in Asia, Africa and Latin America (see map on the right). Our research has shown that while these 15 organizations address very different needs, the nature of the marketing challenges that they face and the innovative solutions that they have developed are remarkably similar across products and geographies. We compiled the findings from this research in a report, presentation and videos that are available on our website ( best practices in areas of improvement. In June 2014, Hystra published a new research based on the same methodology, on marketing nutritious products for infants, also available online on (see map of case studies on the left). In order to help individual players get the full benefits of these two pieces of work, we have designed an interactive workshop leveraging our findings, to help organizations assess their marketing and distribution strategy and performance, identify strengths and weaknesses and draw inspirations from existing We have already tested this benchmark + workshop approach with several experienced marketing teams of social enterprises. These workshops have proven very effective in helping management teams assess their performance objectively and rethink their practices, 13 Passage de la Tour de Vanves, Paris, France

2 inspired by what other players are doing, often in very different sectors or countries (see appendix for testimonials). Objective The objective of this workshop is to help the management team of companies marketing innovative devices or healthy products improve their marketing and sales practices by: Providing an objective benchmarking of their performance compared to their peers as well as global best practices (optional) Facilitating an exchange of best practices among the sales teams Exposing them to inspiring marketing practitioners as well as a systematic data base of best practices from over 50 successful organizations Facilitating the setting of priorities and action plan. Methodology 1. Benchmarking (optional) The workshop needs to be prepared by the local teams answering a detailed questionnaire about their customers and operations. This preparation is critical in order to enable a good discussion during the workshop. Some participants have indicated that going through this systematic review of their operations had been useful in itself, prior to the workshop. Filling in the questionnaire typically requires one to two man-days from the local teams and a couple of iterations with our own team. We recommend starting the benchmarking efforts a month before the planned workshop date. Our questionnaire follows the structure presented below. Analytical framework Sustainably: guaranteeing your clients quality service in a long term financially viable way for your company 2

3 The benchmarking results are shared with the management team as a table presenting where they stand on over 40 KPIs, visually indicating the ones where they are best practices, in line with industry standards or with potential for improvement (see illustration below). The table also includes suggested levers for improvements where relevant, to be discussed more in depth during the workshop. Benchmarking result format 2. Workshop The 1.5 to 2.5 day workshop follows the key lessons learned structure developed in our research. It delves into best practices on each key topic for a successful marketing and distribution strategy at the BoP, presenting concrete examples from the case studies we have seen across the world. The workshop combines presentations and discussions between the organization s representatives and the Hystra consultant(s). Time Day 1 Timing TBD Day 2 09:00-09:10 09:10-09:20 09:20-09:30 09:30-11:00 11:00-11:15 Topic (lead speaker) Workshop proposed agenda Field visit or in-depth discussions with the sales team Debriefing of the benchmark Workshop objectives (company director) Facilitator s introduction (Hystra) Presentation of participants Value proposition (key selling points, price point, ) and end-user financing - Presentation of best practices (Hystra) - Discussion: what does it mean for you? (Hystra + participating company) Coffee break 3

4 11:15-12:45 12:45-13:45 13:45-15:15 15:15-16:15 16:15-16:30 16:30-17:00 Day 3 Morning Marketing (key messages, use of media, proximity marketing, reminders and incentives for replacement sales ): same format as for Value proposition Lunch Distribution and sales force organization (sales force productivity, role of door-to-door, cost of retail, urban vs. rural strategies ): same format as for Value proposition Coffee break Overheads, sustainability and scaling up processes (use of IT, choice of customer base ): same format as for Value proposition Remaining questions and wrap up of key points from the day s discussion (Hystra + participating company) Set up of workplan to apply key learnings from days 1-2 (Hystra + participating company) Wrap up (Hystra + participating company) Note: timing is indicative. Though we recommend allowing 2.5 days for this exercise, this format can be adapted depending on the company s needs, availabilities and interests. After the workshop, we can also provide follow-up support (e.g., in the form of 2-hour quarterly calls), and possibly an update of the benchmark after a year to validate progress made and review possible ways forward. * * * We have the utmost respect for companies and organizations that have strived over the past years to serve the poorest with socially beneficial products. We would be honored to help you capitalize on the formidable efforts that were already made in designing, testing and refining effective marketing approaches, with the ultimate goal to bring more life-changing products to the BoP. 4

5 Appendix: testimonials from past participants We have already conducted this workshop approach with several experienced marketing teams of social enterprises, following the research we did on Marketing innovative devices for the BoP and Marketing nutrition for the BoP. These workshops have proven very effective in helping management teams assess their performance objectively and rethink their practices, inspired by what other players are doing, often in very different sectors or countries, as the testimonial of these participants shows. Marketing Innovative Devices workshop In a management workshop, Hystra enabled us to confidentially assess our performance against a relevant set of comparable enterprises and gain valuable insights on how to improve our approach. As a direct result, we have fundamentally changed our approach in lower performing markets while building on what works in top performing markets. We could not have been more satisfied. In our experience, Hystra is by far the most sophisticated and experienced consultancy we've seen, uniquely bringing Fortune 100 global strategic perspective and discipline to emerging markets social impact organizations. Donn Tice, Chairman and CEO of d.light Through our sessions with Hystra, our team learned numerous insights and takeaways that we will integrate into our model going forward. We appreciated the opportunity to view familiar challenges from fresh perspectives. When challenged on certain assumptions, the Hystra team were quick on their feet to come back with researched, insightful answers that went beyond the initial scope; displaying an extremely high level of professionalism and commitment to client satisfaction. Liz Jarman, Director of Product Development at Living Goods The workshop brought us some very good and practical ideas about marketing and distribution. It also helped to challenge the status quo - social enterprises tend to focus on replication and sometimes forget to recalibrate their business model from time to time. In our case for instance, the workshop contributed to trigger a much needed conversation about which relationship we want to have with our clients. Willem Nolens, CEO and Founder at SolarNow Overall your presentation was great and you left us a lot to think about really good! I thought the benchmark results were helpful in terms of comparing us to other social businesses and seeing where we can improve so we can focus on action items in these areas. The workshop was great in allowing us to see what others are doing in the same space in other countries. But - advice to other companies who would like to do this! - you should allow for 2 days or 2.5 days rather than just one for this workshop, to allow for more discussions and experience sharing. Philip Wilson, Founder and CEO, Ecofiltro Guatemala Hystra makes the most profound analysis thinking of every single need your organization may have in the present and future, leaving you with a detail action plan step by step. Carlos Levy Montezuma, CEO, Ecofiltro Mexico 5

6 Testimonials from other workshop participants (on agro-products) The workshop uniqueness resides in its practicality, combined with deep and very critical insights into our model -COO An eye opener for those interested in being sustainable, profitable and want to scale up -Head of Partnerships Opportunities for out of the box thinking, paradigm shifts a world of possibilities... - Head of Supply Chain Management Made us think outside our usual confines... the benchmarks will go a long way to shape our strategic choices... - Head of Marketing A comprehensive study, covering best practices in all aspects practical examples challenged what we practiced and believed all along fresh thinking that will radically change our operations - Head of Finance Simple and innovative ways to scale successfully and efficiently the light bulbs we lit after the presentation will improve our business models - Head of IT Marketing Nutrition workshop This was a hugely stimulating workshop, very much appreciated by all of the Valid people who attended. There were some profound eye openers during our discussions. Dr Steve Collins, MBE, Founder and Director of Valid The workshop was very useful as it made me understand that marketing of nutritional products has to be strategic and not plain retailing. You have to take it to the consumer on the ground if you have to reach your targets. The presentation was very well done and Hystra had much information. We also made some good connections and are working on new products based on the workshop. Dorothy Eriksson, Founder and Managing Director at Chankwakwa Zambia The workshop was very useful to me as well as our organization. The presentation was good, encouraging participants views, experiences, etc. It was great to learn more on strategies that have worked well somewhere else before and are worthy considering here in Zambia. There was also a great deal of social interaction amongst ourselves the processors. Eddie Khan, Operations Director at SHARE Africa For Java Foods - who is a new kid on the block, we felt that it was very useful. No need to re-invent the wheel if we can learn from others - internationally and also from our own market. It was great to meet existing food producers as well. Monica Musonda, CEO at Java Foods The workshop was interesting and useful to us at COMACO because we have been looking for practical ways to market nutrition and Lucie gave us the solutions. What Lucie presented gave us the insights we did not have and the practical ways that selling nutrition can be a success in Africa. The presentation was precise, useful and exactly what we needed at this stage in the development of our efforts in scaling up nutrition as the private sector. Kanangwa Newlove, Operations, Sales & Marketing Manager at COMACO The Hystra research on marketing nutritious foods to the BOP has proven to be really useful for DSM. There is a tremendous need for nutritious foods to be made available to the 6

7 BOP foods that are not only nutritious but also affordable, accessible, tasty and attractive. The insights gained from the research are valuable to DSM when working with its customers on successful product solutions for the BOP. The BOP represents the largest and fastest growing consumer group worldwide, and their nutritional needs are extremely important. Getting it right is crucial; and this research gives us an insight that helps us get it right. Anthony Hehir, Director - Nutrition Improvement Program 7

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