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1

‘How do we improve the livelihoods of the landless asset-poor?’ is a question that thedevelopment community is struggling with. Quite often the answer lies in the adoption ofincome generating activities and entrepreneurial endeavours. Unfortunately, the traditionalbusiness approaches of both the NGOs and government are outdated, impractical, and,frequently, ineffective. This is because, typically, income generating activities have beenfocusing on skill enhancement and teaching participants to produce.

This type of instruction is dangerously obsolete for many reasons:■ The focus is on skill enhancement, typically encouraging participants to enter

production, which is an increasingly untenable position for small entrepreneurs. Largercompanies have the ability to work on a massive scale, producing more than a smallentrepreneur can ever hope to match at a fraction of the cost. Therefore, a production-centred focus for income generating activities is simply not sustainable in a globalisedmarketplace.

■ Skill training is typically capital intensive, requiring expenditures on machinery, factories,and raw materials to move forward. This imposes a huge monetary risk upon landless,asset-poor participants who can least afford it.

■ Skill enhancement that is limited to a single product, requires large capital commitmentsand makes lateral mobility – moving from product to product – virtually impossible. Ifparticipants find that the activity they have been trained for is not viable, they cannotswitch easily to another business. Therefore, if the product fails, so do the participants.

■ ‘Is there a market?’ ‘Who will buy it?’ These questions are central to any business butsimply not asked, i.e., participants have committed time, effort, capital, and hopeinto a business venture without even knowing if people want their product. Countlessincome generating activities are launched, and fail simply because they have notasked these basic questions.

INTRODUCTION

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2

MOVE

Income generating activities taken up by NGOs and government are stuck on a businessmodel that has been refuted decades ago, a model in which production, finance, marketing,and human resources are equal parts.

Why MOVE?Market Oriented Value Enhancement (MOVE) is a method to approach income generatingactivities for the landless, asset-poor, and illiterate with marketing as the central focus.

Marketing, for our purpose, is defined as understanding the customer’s needs and wants,and designing and delivering products and services accordingly.

Market Orientation is when instead of being oriented to their perceived abilities or lack ofit, participants will undertake a business venture according to customer demand. Thekey to the process is when participants first ask, ‘What does the customer want?’ andthen, ‘How do I deliver it?’

Traditional Model

MOVE Model

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Illustration 1: Business modelsHumanResource Production

Finance

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Marketing

Traditionally, participants are given limited training for the production of asingle product and then abandoned, to later find their own way in the market.But according to today’s thinking, marketing is not just a component, but theCENTRAL driving force of a business. Therefore the traditional approach mustbe turned on its head if income generating activities are to be successful.Participants must first develop the skills to analyse and research the market,and only then, start a business.

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3

Value Enhancement is the process of continuously evolving new products and servicesto cater to customer needs and demand. By adding value to products according to thecustomers’ wants, entrepreneurs can serve specific market niches that larger producerscannot cater to.

This approach solves many problems:■ By conducting thorough market research first, income generating activities are more

likely to succeed. Participants estimate market demand, gauge possible sales of agiven product, identify market segments to target, and THEN begin business. Notonly does this method make success more likely in the long term, it results in agreater likelihood for immediate success in the short term. Training and educationbuilds the participants capacities to enter the market, but nothing reinforces theirconfidence like the first experience of turning over a profit.

■ With the emphasis being on marketing rather than on a specific product, adaptabilityto the marketplace is built in. Hence, participants are trained to be more than justskilled labourers – they become entrepreneurs. If income generating activities arelike teaching participants to memorise a single poem, MOVE is like teaching participantsto read. In short, they develop the skills to navigate the market, no matter what formtheir business may take. If one product proves to be unsuccessful over time, theyhave the skills necessary to identify demand and switch to another product.

■ Though the poor and landless may not have the resources to compete with large scaleproduction, they have one key advantage over large corporations: the possibility of a directconnection to the customer. As big players rapidly work on a larger and larger scale, theyare less able to cater to the specific needs of diverse market segments. Participants cancapitalise on this advantage by catering to the customers needs in any number of ways:

● By delivering products to their doorstep in remote villages, and thereby addingvalue to existing products (for e.g., by adding embroidery to clothes)

● By tailoring products to the specifications of the customer (for e.g., providing milkwith varying fat content to different customers).

The purpose of this manualThis manual is a practical guide for community organisers to replicate the MOVE process,which begins with motivation, progresses to general business concepts, market research,and finally the formulation of a business. By the end, participants should be empowered toenter the market confidently as independent players.

Market analysis is commonly perceived to be the monopoly of experts, but through innovativetools, MOVE has opened up possibilities for the illiterate to understand the market. Complexbusiness concepts are communicated through methods that have been tailored for anilliterate audience. Every step of the MOVE process is driven by the knowledge of theparticipants and every step forward is based on decisions the participants have made.Therefore, the modules are designed for participants to share what they know, expand

Introduction

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MOVE

their knowledge base, and move forward based on what they have learned about themarket and potential customers.

Each module in this manual articulates the goals of the session, the link to the entireMOVE process, followed by detailed step by step instructions and case studies. Theinstructions provide a guide and the case studies illustrate a variety of approaches andoutcomes. The process will vary widely across many different contexts, and deviationfrom the text is entirely expected. Trainers using this manual should make anymodifications necessary so the module is relevant, occurs in a timely fashion, andmost of all, so the primary lessons are imparted.

The MOVE process is about a single idea – i.e., the customer-centric approach to business.By focusing on the demand of the market and the needs and wants of the customers,participants can enter the marketplace as confident and independent entrepreneurs.Most importantly, it provides a real alternative for improving the livelihoods of the poor.

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5

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6

MOVE

With knowledge... Business will take you places!

Without knowledge... Business is a complicated burden

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7

PurposeTo gauge the group’s proficiencywith numbers and lay thegroundwork for teaching numbersto illiterate women.

Link to MOVEFamiliarity with numbers is essential in a business to understand printed prices,receipts, contracts and to maintain records.

Materials Needed● Sheets of paper numbered

from 0–9● Currency of various

denominations (coins and notes)● Lined paper● Markers

The Number Game

MODULE 1A

Steps

1. Find out how many participants are literate in the group.

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8

MOVE

2. Group the illiterate people together and lay out the number cards in randomorder in front of them.

Outcomes

Participants should gain basic familiarity with the digits 0–9 and with numbersabove ten.

3. One volunteer should place the numbers in order. If she cannot do this, giveher a one rupee coin.

Then ask her the following: ‘What is the worth of the money/coin you areholding in your hand? How do you know the value of the coin?’ Make her identifythe number on the coin. She should then identify the corresponding number inthe set of number cards.

Note: The members may know basic maths (i.e., addition, multiplication,subtraction and division) but may not be able to recognise the numbers. Thekey to the game is to connect the numerical symbols, which they do not know,to the mathematical calculations and exchanges of currency that they arealready familiar with from their everyday experiences. The game should beimprovised as per the situation

4. Continue this strategy with other denominations and numbers. The volunteershould place the number cards in order. If she is unable to do this in severaltries, let someone else help her.

5. Once the cards are in order, ask her to try to memorise the order. Then mix upthe cards again, and ask her to arrange them once again.

6. After this, deal with numbers 10 and above. Ask the participant: ‘What comesafter 9?’ She should put together the number using the cards (0–9). If shecannot do this, show her a Rs10 note. Ask her: ‘What is the value of themoney?’ Make her identify the number on the bill. She should then recreate thenumber using the number cards. Combining two digits to form numbers over9 is generally a very difficult concept to understand. Give the participantsufficient time to figure this out because she probably will not understandimmediately how to do this.

Note: It is not realistic to expect illiterate participants to learn functionalnumeracy in just one lesson. However, if each subsequent MOVE session beginswith a brief session on the numbers, it is possible that participants will makesignificant progress by the end of the entire training.

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9

Across all villages it was found that, although illiterate, participants knew maths andcould recognise currency, but they could not identify number symbols. For example,in Channapur village, participants quickly and accurately answered addition,subtraction, multiplication, and division problems when presented in terms of money.One participant was even able to calculate compound interest on a loan in her head.However, these very same participants who did lightning-quick mental calculationscould not recognise a single digit. Their experiences with money had developedtheir mathematical skills, but they identified the money by its colour and size andnot by the numbers printed on the currency. The key in all the villages was toconnect numerical symbols to money.

The number game was most successful in villages where a systematic approachwas used. An example of a non-systematic approach was in Kotur village whereparticipants were simply asked to put the cards in order over and over again.Trainers asked participants only to memorise the numbers.

A more systematic approach was used in Mugad. When participants could not putthe number cards in order, they were given currency, asked to identify the valueand then match the number on each note to the cards. This worked because thefacilitator used a strategy which built upon participants familiarity with money.

Case Study 1: In Our Experience… The Number Game

Module 1A

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MOVE

PurposeMotivation exercise to emphasise the importance of having goals and explorethe thinking behind formulating goals.

Link to MOVEAll income generating activities need goals to set targets for profit and growth.This game is an introduction to the concept of setting goals.

Steps

Materials Needed

● Chalk● 10 coins

Appr

ox. 3

feet

Approx. 15 feet

Goal Setting Game

MODULE 1B

1. Draw a circle approximately 3 feet indiameter and a horizontal lineapproximately 15 feet away.

The goal of the game is to throw asmany coins as possible into the circle

Individual Goal Setting

Group Goal Setting

2. Ask each volunteer: ‘How many attempts would you like?’ Then ask, ‘How manycoins will you get in the circle?’

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11

3. Ask questions related to the results:❏ Why did you choose x number of coins to attempt?❏ Why did you choose y number of coins to get in the circle?❏ Why did you get more/less than you predicted?

Outcomes

● Understanding the similarity between setting goals in this game and settinggoals in a business.

● The challenges and benefits to setting goals.

● The differences between individual and group goal setting.

4. Allow the volunteers a second chance to improve upon their performance.

5. Relate the results to a business venture. For example:❏ If the volunteer gets more coins in the circle on the second attempt, the

trainer could possibly offer the explanation that they are more likely to besuccessful as they gain experience.

❏ If they get fewer in the second time, emphasise that they may experiencesuccess or failure, but the more they try, the more they will succeed. In thisfashion, relate the results to a potential business.

❏ Since any outcome is possible, it is absolutely essential that the trainer isable to improvise, no matter what happens.

Note: There is a danger that the participants will play the game and notunderstand why it is relevant to a business. It is extremely important to pauseafter each volunteer has thrown her coins to ask questions about how thegoal-setting game is related to a potential business.

6. Divide the participants into three or four groups. Ask each group to set agoal. The participants may each decide to throw coins or choose a singledesignated thrower.

7. Ask questions such as:❏ Why did you set your goal at ‘x’ coins out of ‘y’ attempts?❏ How was choosing a goal different in a group from that as an individual?

Why?❏ Why was it the same as/different from the thrower’s previous results?❏ Why do you think that the thrower experienced success/failure?

8. Again, relate these results to a potential business. For example, if a participantreceives a lot of advice from her team and succeeds, emphasise that sharedknowledge, supportiveness, and unity are ingredients for success. Theparticipants should discuss why they succeeded or failed. ‘Was the throwerconfident/over confident? Was the team supportive/not supportive? Were theexpectations realistic?’ Again, because results will vary widely, the trainer mustimprovise a link between an outcome and a business venture.

Module 1B

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MOVE

PurposeTo show participants the challenges and benefits ofworking together in a fun and lively setting.

Link to MOVEThe participants will have to work together to run aneffective business. They will have to delegateresponsibility and learn to cooperate.

Materials Needed● Stones of varying shapes (flat,

round, jagged). It is best if thestones are approximately thesame size.

● Stopwatch

Tower Building Game

MODULE 1C

Outcomes

Understanding the importance of cooperation.

Steps

1. Split the participants into groups of three or four. Give each group about5–6 stones of varying shapes.

2. Each group should stack the stones one on top of the other (not side by side) tomake a tower. The first challenge is to stack the stones in 60 seconds, and thennext in 30 seconds. Then the participants should compete against the othergroups for the fastest time. The groups should exchange their sets of stonesand they should compete again.

3. Discuss the strategies that successful groups used and the strategies thatunsuccessful groups used. Ask the participants: ‘Why did certain teamsaccomplish their goals?’ ‘Why did others fail?’ ‘Did some groups succeedbecause they had an easier set of stones?’ ‘Did some groups continue tosucceed no matter what stones they had?’

4. Improvise a discussion with questions such as: ‘How do the outcomes relate toa business?’ ‘How did everyone contribute?’ ‘How are the contributions in thegame similar to the contributions members must make to a potential business?’

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13

PurposeTo facilitate understanding ofthe basic elements of running abusiness.

Link to MOVEThis game will simulate a decision-making environment whereparticipants have to buy rawmaterials, produce, delegatespecific responsibilities, ensuretimely delivery, set reasonableprices, negotiate, and estimateprofit margins. This exercise is the introduction to the idea of customerorientation, which is the central focus of MOVE.

Steps

Materials Needed● 15 card sheets in 4–5 colours

(A1 size)● 150 sheets of plain white

(A4 size)● 30 sheets of coloured paper

(goti sheets) in 4–5 colours● 3 glue sticks (gum tubes)● 3 scissors (or blades)● 3 sets of markers, coloured

pencils, or sketch pens● Currency (photocopied or real

money) for groups to buy rawmaterials

The Wedding Card Game

MODULE 2A

1. The basic premise of the wedding card game should be explained to theparticipants as follows: The participants will be divided into groups of 4–5 thatrepresent wedding card companies. The companies will buy materials fromthe trainer to make sample wedding cards and based on the sample, thetrainer will place orders for wedding cards with the companies.

2. The trainer divides participants into three groups to become three companies.Each company chooses a name. The trainer provides each company with moneyto buy materials.

Note: Real money could be used in this game so that participants can moreeasily relate to the results.

Set Up

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MOVE

3. The trainer sets up a shop where the women can buy the materials necessaryto make the cards. At the shop all materials are displayed with price tags.

Purchase of Raw Materials:

Sample Production:

Once the cards are ready, each company needs to getorders. For this:

1. Each company should introduce the company’s nameand explain why that particular name has been chosen.

2. Each company should present their cards to thetrainers. They should explain the advantages of theirown cards, the disadvantages of other competingcompany’s cards, and set the price.

3. After negotiations on the price of the cards takes place,the trainer places orders for cards from all threecompanies. The trainer should make sure that she/heplaces an order that will be realistic for participants tofulfil in the allotted time frame.

1. The three companies buy the raw materials fromthe trainer to create sample cards.

2. Equipment (such as scissors, markers, and glue)should be given free to the companies or rented outto them.

3. The trainer should record details of purchases ofeach company in Table 1a. (Shown on page 16)

Give the groups 20 minutes to create samplewedding cards.

Order Procurement:

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15

Mass Manufacturing

Analysis and Review:

Note: No clues should be given to the groups to ask the customer what hewants. This will make the impact of this lesson stronger.

2. Information and input that should have influenced production:❏ Price range: How much is the customer willing to pay?❏ Quality: What features did the customer want in the product?❏ Product: What type of card did the customer want?❏ Market: ‘What is the range of prices for your product?’ ‘Into which market

niche can your product fit?’ Find out what the customers want and what youcan deliver.

Final Sales:

1. The product should be subjected to close scrutiny by thetrainer. If the trainer feels that the product is not the samequality as the sample, then she/he should:❏ Feel free to cancel the order and reject the product❏ Reduce purchase quantity❏ Negotiate a lower price. This helps the groups to

understand that the customer is the KING.

2. The buyer will then in today’s market pay for the cards hehas decided to purchase. The trainer should record detailsof sales of each company in Table 1b. (Shown on page 16)

1. The first lesson that participants learn is that CustomerPerspective Is Important. Generally participants tend toproduce without asking the customer (in this case thetrainer) what she/he is looking for. How many companiesactually asked the customer what she/he wanted? Wouldthe companies have been more successful if they had askedthe trainer what kind of cards she/he needed for his shopand then produced exactly what she/he needed?

3. Analysis of each company (Table 1c on page 16): The trainer should help thecompanies analyse and compare their profits.

The companies must then produce the number of cards ordered within abouttwo hours.

Module 2A

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MOVE

Table 1a: Expenditures on Inputs

Raw Material Cost of Raw Material Quantity Purchased Total

Outcomes

● The customer is King. The customer’s perspective is most important,and cannot be ignored. An understanding of the customer is requiredBEFORE production begins.

● Find out from the customer what she/he needs. Meet the customerand have a dialogue.

● Know the market and the range of prices for the product. With knowledgeof the market, analyse where a product can fill a market niche and ask,‘Why should the customer buy this?’ ‘What do I have to offer that othersdon’t have?’

Table 1b: Revenues from Sales

Price of Card Quantity Sold Total Sales

Table 1c: Revenues from Sales

Total Sales Total Cost Total Profit

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17

Case Study 2: In Our Experience… The Wedding Card Game

The wedding card game in all villages illustrated that the customer is all important.In Channapur, three groups experienced three different challenges which werealso faced in many other villages. Group A presented the trainer two samplecards, but he thought that neither of them was of good quality. He said, “Do youexpect me to buy these pieces of garbage just because you made them?” Theparticipants were forced to sit out for the rest of the session with nothing to dobecause they had failed to make a sample that met the standards of the customer.

Group B created the nicest, most ornate cards of all groups. It took womenapproximately 15 minutes to draw the intricate design work on each card.Unfortunately the group’s representative set the price at 80 paisa, which wasactually below the production costs. The trainer readily agreed to this price andordered 15 cards. The group slaved away making the cards and despite theirhard work and the outstanding quality of their product, they suffered a deep loss.These women learned a lesson they would not forget: No matter how high thequality, if the pricing is not fixed correctly, they will make a loss.

Only one of the four women in Group C was working. This woman complained,“These three aren’t working. I am the only one doing anything.” Unfortunately, shewas not able to delegate responsibility efficiently and give the other women tasksto do, such as cutting and gluing. The group fell well short of the target order andthus made only minimal profits.

It was also found that the impact of the game was dependent on simplifying therules so participants could easily understand the results. In Kottur village, the womenwere given Rs200 to buy items such as glue, markers, and scissors. Becausethese items could be used over and over again, it was difficult to calculate theactual cost per card and profits. The trainers attempted to cost these materials byestimating that one tube of glue could last for approximately 200 cards, so theydivided the cost of glue by 200. They made similar calculations for markers andscissors. The final figure was given to the women when the profits were calculated.However, with such complicated calculations (which the participants were not involvedin), the participants could not understand the actual cost per card. As a result, thecompanies set their prices based on random estimates and each group spentabout Rs100 regardless of how much material they actually needed. In short, theybought materials and sold products with no clear idea of what they had actuallyspent and how much profit they had actually made on each card.

In contrast, in Mugad village, women were given glue, scissors, and markers forfree. Despite having plenty of initial capital, they bought only the amountnecessary to make their samples. The participants in Mugad were more awareof the expenditure on raw materials so they estimated the cost of productionper card and set prices above that cost. This was a simpler process, easilyunderstandable by participants.

Module 2A

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18

MOVE

PurposeTo understand customer behaviour, selling behaviour, therole of the middlemen, distress selling, sunk cost, andprofits of different products.

Link to MOVEMost people start income generating activities with the assumption thatproduction is necessary to make a profit. This exercise shows participantsthat retailing is a legitimate business in and of itself, that offers the potentialfor substantial profit. They learn the techniques of buying and selling.

Steps

Materials Needed● Various products such as

soap, groceries, vegetables,stationery, biscuits,and so on.

● Money

Buying and Selling Game

MODULE 2B

1. Explain the basic premise of the game to the participants: in this game twogroups will start shops and two other groups will have to buy from those shops.The groups who start shops will buy their stock from the trainer, who will act asa wholesaler.

2. Divide participants into four groups, two groups will be sellers who each owna shop and two groups will be buyers who must buy from these shops. In thecase of a fewer number of participants, divide them into only two groups, onebuyer and one seller group.

3. The trainer (acting as a wholesaler) sets up his shop and fixes price tags oneach item. The prices are fixed slightly higher than the actual cost.

4. Provide each group with an equal amount of money (to be returned after thesession). For example, if the total amount of material purchased by the traineris Rs370, it is best to give each seller group about Rs200, so all the productswill be sold at a reasonable price.

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19

Module 2B

5. Each selling group must use all their money. Any money they do not spend willbe returned to the trainer.

6. The seller groups have to set up shops and act as retailers. They can give theirshop a name. The seller groups should display their wares with price tags.

7. The trainer should then give the same amounts of money to the two groups ofcustomers. The customer groups must spend all their money, but still bargainfor the best prices possible.

Trainer

Wholesale

Sellers

Retail

CustomerCustomer

Sellers

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8. In the next 30 minutes or so, the buyer groups buy from the seller groups.There should be lively bargaining, various deals, and other negotiations as thesellers try their best to make a profit and the buyers try to get a good deal.

9. When the time is over, the seller groups can sell unsold products back to thewholesaler at half the price. The trainer should feel free to reject perishableproducts such as milk and vegetables.

10. After the session, analyse the results:❏ What items do the seller groups have left over? Would they be able to sell

these items the next day (compare perishables to non-perishables such asclothes or soap) Is it a ‘sunk cost’ – an expenditure that will not be recovered(for products such as milk or vegetables)?

❏ Ask the buyer groups why they selected and bought certain items and whythey prioritised certain items over others. Analyse the thinking behind eachpurchase and track the patterns of buying and selling.

❏ What lessons can we learn from this game? Who was most successful andwhy? What products were most successful and why? Which products yieldedthe highest profits? Which products yielded the highest losses? Whichproducts sold the most volume? Which products sold the least? How canwe relate the results of the game to reality?

Distress Selling

Outcomes

Participants gain an understanding of:

● Wholesale and retail rates and profit margins

● Buying strategies

● Selling strategies

● Distress selling – decreasing prices in order to minimise losses.

● Sunk cost – products that will not yield a revenue. For e.g., wiltedflowers which have not been sold by the end of the day cannotbe sold at all. This is a sunk cost.

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21

In all villages, participants realised the importance and profits associated with retailing.In Mandihal, two groups sold based on two very different philosophies. Group Asaid, “We should make 25% profit on each item.” They attempted to accomplish thisby any means necessary, and even resorted to cheating. Group A charged customersthe price for a 4 kg packet of soap while in fact the packet contained only 2 kg. Thecustomers were furious, shouting at Group A and threatening to go to Group B.Group A apologised profusely, and after a lot of sweet talking, managed to get thecustomers to sit down again. But they did not learn their lesson. Next they attemptedto sell undergarments for almost double the price, saying there were four pieces ina packet which only contained two. 15 minutes of name-calling, accusations, andthreats followed. Customers did not trust Group A to make fair transactions, so theyrefused to buy from their shop. As a result, Group A made heavy losses. Group Acheated because they were too set on achieving a 25% profit margin, which blindedthem to the fact that this margin did not match market prices.

Group B, on the other hand, set their prices at one rupee above the wholesale price,and said, “Take it or leave it.” They conducted business without any quarrelling, buttheir profit margins were tiny. Group B did not take market prices into consideration.Instead of setting the price based on market factors such as, ‘What are the pricesof comparable products?’ ‘How much is the customer willing to spend?’ and ‘Whatare the prices of the competitors?’ they set a very simple price formula based onthe wholesale price. This strategy prevented them from making larger profits.

However, most villages noticed a sharp increase in the profits made in just onehour of retailing compared to the previous session of an entire afternoon spentproducing wedding cards. Every group used different methods to buy materialswholesale. In Mugad, groups bought the cheapest items first to minimise risk. InChannapur, groups bought items such as vegetables because they were consumeddaily. Certain products had moderate, but almost guaranteed profits, such asfood, while clothing items generated the most profit when sold (in Kottur) and themost losses when they went unsold (in Channapur). These products were analysedlater as high risk with high gain (clothes), and low risk with low gain (vegetables).

Case Study 4: In Our Experience... The Buying and Selling Game

Wholesale Retail

Module 2B

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22

MOVE

Format Free Market Visit

MODULE 3A

PurposeTo go to the market without any preconceived ideas to observe various typesof sellers and customers, different types of products, and buying and sellingpatterns. To shift the participants perspective from that of a customer to thatof a potential entrepreneur.

Link to MOVEThis is a milestone session because it is here that the initial market orientationtakes place. What participants learned in previous simulated sessions cannow be observed in reality. Participants will observe transactions not onlyfrom the customer’s point of view, but also from the seller’s point of view.

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23

They observe market dynamics. This session is also essential becauseparticipants begin collecting the basic information needed to explore possiblebusiness opportunities and construct business strategies.

StepsBriefing prior to market visit

1. Discuss what the participants saw on their way from their homes to the market.Emphasise the businesses they saw along the way (such as tea shops, vendorsat bus stops).

2. Tell them that the casual observations they have made about these businessesis only a fraction of the information they can gather. They have to observecarefully, ask questions and gather as much information as they can and explorethe market from the perspective of a business person.

Walk through the market.

Outcomes

● Participants discuss various products and prices. Although they have someinformation, they still see the market primarily as a customer.

● Through discussions the trainer helps participants realise that they have notobserved a range of different market features (trainer can refer to table 2 onpage 26)

● This session prepares them for a formatted market visit.

● The result should be that participants share the information they have gathered,but also recognise, ‘Oh, I didn’t think about that.’

1. Let the participants walk around the market place on their own.

2. Assign a time and location for everyone to meet to discuss what they haveseen. ‘Allow plenty of time for exploration but not so much that the participantsget exhausted and then cannot engage in discussion.

Discuss what was seen and the experiences in the market

1. ‘What happened during their visit?’ What information were they able to get?What were the products available? Ask about: ‘How much were the wholesalecosts? What is the distribution pattern? Who are the customers?’ etc. The gapsin the participants’ knowledge will set the agenda for the next session, i.e., theformatted market visit.

Module 3A

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24

MOVE

The participants gathered very little information other than wholesale and retailprices. Most participants did not ask questions about shelf-life, stock, distribution,customer relations, market segments, or other information. Most participantstook the session as a chance to do some shopping and shared with otherparticipants the asking price of retailers and (proudly) compared it with the pricethey were able to bargain. The shopkeepers in the more urbanised market wereless willing to share information about wholesale rates and even regardedparticipants with suspicion, sending them away. To avoid this, one woman fromGabbur went to get information only from shops where she was an establishedcustomer so the shopkeepers were more forthcoming.

The women from Mandihal who experienced a severe loss during the buying andselling game because they cheated their customers, seized the market visit as achance for redemption. They went far beyond compiling information on the marketand actually made an attempt to enter the market as entrepreneurs. They wentimmediately to the wholesalers, bought vegetables, laid out a mat, and spenttheir entire time in the market selling. During the allotted two hours they managedto make Rs100 profit, with plenty of vegetables left over.

Case Study 5: In Our Experience… Format Free Market Visit

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25

PurposeTo orient participants to observe market dynamics in detail

Link to MOVEThis session helps participants build the skills to understand the market. It fillsgaps in knowledge with primary research. The information they gather in thissession will be the basis for future decisions on how to enter business.

Steps

1. Participants are told that they need to think about the products they areinvestigating both as a customer and as a business person. They are toldnot to go to a shop just to bargain but to speak to shopkeepers as fellowbusiness people. Participants should introduce themselves, inform theshopkeepers that they are undergoing business training, and request time toask them a few questions.

Formatted Market Visit

MODULE 3B

2. The participants should be divided into groups of three. Each group shouldchoose five products to explore in-depth. Participants will choose their futurebusinesses from the information gathered in this session, so each group mustbecome experts on the products of their choice.

3. Ask shopkeepers: ‘Who are the customers?’ ‘What is the turnover?’ ‘How muchprofit is made weekly?’ ‘What are the main challenges to the business?’ ‘Whereare materials bought wholesale?’ etc. Then follow the trail and ask thewholesaler: ‘Where does most of the supply come from?’ ‘How labour intensiveis the production?’ ‘Who are the retailers you sell to?’ and ‘Which retailer hasthe most success?’ At every step – from producer, to wholesaler, to retailer, tocustomer – find out as many details as possible about price, profit, sales,quantity, and so on.

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26

MOVE

Ex: Where do thewholesalers get theproduct? Who arethe producers?When is productionthe highest/lowest(ex. Vegetableseasons)? Is itpossible for youto produce thisproduct?

Table 2: Information Collected from Formatted Market Visit

Prod

uct

Prod

uctio

nIn

form

atio

n

Who

lesa

le P

rice

Reta

il Pr

ice

Whe

re it

is s

old

Prof

it

Dai

ly/W

eekl

y Sa

les

Cust

omer

Oth

erIn

form

atio

n

Recordgeographiclocation, andtypes ofstores thatsell theproduct, i.e.(roadsidevendors,shanties,fancy shops).

Who buys this product(Rural people orurbanites, rich, middleclass or poor)? Dodifferent shops havedifferent types ofcustomers? Howmuch are peoplebuying? What qualitiesare they looking for inthe product?

Any information particularto the product beingexamined. Ask retailersand wholesalers theadvantages anddisadvantages of sellingthis product. What arethe strategies they canuse to succeed?

Outcomes

The participants have an in-depth understanding of the types of customers, typesof shops and types of products.

They get information about the dynamics of the marketplace and on differentproducts, which builds their capacity for lateral mobility (switching business ventures).

4. Let the participants walk around the market place on their own. Assign a timeand location to discuss what they have seen.

5. The success of a business is most dependent on information. All informationfor the business will come from the participants and nowhere else. The moreinformation the participants get in this session, the more successful theirbusiness will be in the future. Discuss what was seen in the market with thehelp of Table 2.

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27

PurposeTo facilitate an understanding ofconsumers’ needs and wants of aproduct. To assess which needsand wants participants can meet. To be able to estimate demand.

Link to MOVEIn the previous module, the participants observed how products are boughtand sold and shortlisted a few products. This session asks the participants tolink what they observed in the market to the customers’ needs and wants forthe products selected.

Materials Needed● Chart paper or brown paper

(big sheets)● Marker pens

Understanding Needs and Wants

MODULE 4

Prerequisite

■ The groups should have been on a market visit where each sub-group collectedinformation on five products. There should be information on at least 10–15 productsbased on the number of subgroups created.

■ The number of houses in the village/area should be known to estimate market demand.

■ Approximately the number of rich, medium or poor households should be known.

Needs Wants

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28

MOVE

Steps

A product is a bundle of wants

1. Make a list of all the products that the participants have researched during theirvisits to the market.

2. Ask them to choose five products that they would want to produce or sell fromthe list. Give them sufficient time to discuss the ‘WHYs?’ of inclusion or exclusionof certain products.

3. For each of the five products that are eventually chosen, collectivelly discussthe needs and wants on a chart that everyone can see (Table 3).

Table 3: Needs and Wants of Products: Soap

Commodity Needs Wants What wants can you meet?

Soap To clean clothes Smell good

Low price X

Nice lather

Soft on hands X

Note: Needs are the most basic qualities that a customerwould expect of a product. Wants are extra features thatare not necessary but desired by a customer. For instance,the need for soap is that it should clean clothes; the wantsare that it should smell nice, create a nice lather, cost areasonable amount, and not be harsh on the hands.

Smell

Tastes

Weight

Money

4. Tick off the wants that participants can satisfy if they manufacture or retail theproducts. Some wants may eliminate others. For example, if you satisfy the wantof nice packaging, you may not be able to satisfy the want of low price. Thereforethe participants will have to think of different priorities different customers mayhave. They should begin to realise that a product is a bundle of wants.

5. Identify the market potential: The group estimates the number of households towhom they can potentially sell. When estimating the number of potentialcustomers, participants need to keep in mind that most people already go tocertain shops to purchase these items. The target households will be the onesthat the participants can win over.

✓

✓

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29

6. For each product they should identify: the buying rate, the selling rate, thenumber of potential households that can be sold to, the amount consumedand total profits. Table 4 below can be used as a guide for the discussions.

Table 4: Estimation of Market Demand and Profit for Each Product

Product Cost/ Price/ Profit/ Total Estimated Consumption/ Target Total/Unit Unit Unit Number of Target Time Period Household Profit

Household Household Consumption Year

(Rs/unit) (Rs/unit) (Rs/unit) (HH) (HH) (Rs/year)

Puffed 1Re/ 1.5Rs/ 0.5Rs/ 500 HH 100HH 6 219,000 109,500Rice measure measure measure measure measure Rs/year

day year(fxgx365) (hxd)

Soap 2Rs/bar 3Rs/bar 1Re/bar 500 HH 100 HH 1 5,200 5,200bar/week bars/year Rs/year

(fxgx52) (hxd)

(a) (b) (c) (d) (e) (f) (g) (h) (i)

Module 4

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30

MOVE

PurposeParticipants will design a production, promotion, anddistribution strategy. After detailing the needs and wantsof each product in the previous session, participantsexamine how to deliver those needs and wants.

Link to MOVEThis takes the previous module a step forward byexamining the products from the perspective of how toserve potential customers. Market segments are definedand each segment’s specific needs and wants areidentified. Furthermore, the best way to deliver theseneeds and wants are detailed through product, pricing,distribution, and promotion strategies. Broader ideasabout products are broken down into specific concerns.

Materials Needed● Samples of the entire price

range of the five chosenproducts. Make sure you havethe cheapest brand of product,a high-end brand, and a few inbetween. Include a singlebrand with two or morevarieties that target differentcustomers or perform differentfunctions (for example, barsoap and powder soap).

● One large sheet of brown paper● Markers

Marketing Strategy

MODULE 5Smell

Touch

Feel

Incense Temple Home Shop

Market segments: Different customers, Different needs, Different prices

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31

Low quality Medium quality High quality

Prerequisite: The community organiser shouldhave bought various samples of the fiveproducts chosen, each varying in price, qualityand brand.

Note: Do not compromise on representing the ENTIRE spectrum of products.

Steps

1. For each of the five short-listed products, obtain the cheapest brand and themost expensive brand with at least three varieties in between.

2. For each product present the various brands. Allow participants to take theirtime examining the qualities of each, compare and contrast the different brands.Discuss which brands are bought by which customers. This helps participantsunderstand market segments.

3. Participants should provide the information necessary to complete Table 5. Thiswill be a long, in-depth discussion.

4. Focus on price. What is the price of the product? What market segment doesthis product serve? Why?

5. Repeat this process for each of the 5 products.

Outcomes

● Participants should be able to visualise what products they want to sell andwhere to sell it.

● Create strategies that are specific to each product.

● Know about different pricing for different market segments.

Module 5

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32

MOVE

Tabl

e 5:

Mar

ket

Stra

tegy

Prod

uct

Pro

duct

Str

ateg

yPr

icin

g St

rate

gySe

lling

Str

ateg

yP

rom

otio

n St

rate

gyD

istr

ibut

ion

Stra

tegy

1.Id

entif

y th

e cu

stom

erus

ing

fam

ily s

ize,

age

grou

p an

d so

on.

2.Id

entif

y m

arke

tse

gmen

ts, i

.e.,

hous

ehol

ds (r

ich,

med

ium

, poo

r)3.

Iden

tify

shop

s, h

otel

s,ho

stel

s an

d so

on

4.Id

entif

y w

ants

of e

ach

mar

ket s

egm

ent

(Exa

mpl

e: H

ouse

sne

ed h

igh

qual

ity,

hote

ls n

eed

bulk

).5.

Com

pare

exi

stin

gbr

ands

. W

hich

bra

ndta

rget

s w

hich

segm

ent?

1.Re

late

pric

e to

mar

ket s

egm

ents

and

wan

ts.

2.W

hich

mar

ket

segm

ents

will

be

willi

ng to

pay

?3.

Wha

t wan

ts c

anth

ey fu

lfil f

or th

atpr

ice.

1.D

irect

sel

ling:

●D

oor

to d

oor

●St

reet

vend

ing

●Ex

hibi

tions

and

fairs

2.Se

ll to

oth

ersh

ops

atw

hole

sale

rate

s.3.

Sell

at re

tail

rate

s th

roug

hth

eir

own

shop

.4.

Set u

p st

all i

n a

groc

ery

stor

ean

d pa

y a

stor

eco

mm

issi

on.

1. P

acka

ging

: wha

tty

pe o

f pac

kagi

ngdo

they

nee

d?(c

olou

rful

, cle

arpl

astic

, diff

eren

tsi

zes,

com

pany

nam

e pr

inte

d on

the

pack

age?

)2.

Bra

ndin

g: H

ow d

oyo

u ch

oose

a b

rand

nam

e? W

hat w

ould

be it

s m

essa

ge?

Wha

t do

you

wan

t to

conv

ey?

Who

isyo

ur ta

rget

audi

ence

?3.

Adv

ertis

ing:

Use

netw

orks

toge

nera

te d

eman

dth

roug

h w

ord

ofm

outh

.

Exam

ple:

Ince

nse

Stic

ks

Ince

nse

Stic

ks1.

Mar

ket s

egm

ents

:Te

mpl

es, h

omes

,sh

ops,

offi

ces,

bus

es2.

Tem

ple:

Min

imum

wan

ts: i

t sho

uld

just

burn

. Sm

ell,

long

evity

, pac

kagi

ngis

not

impo

rtan

t.3.

Hom

e: It

sho

uld

last

alo

ng ti

me,

be

frag

rant

.4.

Shop

: Be

ing

frag

rant

is th

e m

ost i

mpo

rtan

tfa

ctor

.

Tem

ples

: Pric

e sh

ould

be c

heap

.H

omes

: Will

ing

to p

aya

little

bit

for

long

last

ing

stic

ks.

Shop

s: M

ay b

e w

illing

topa

y m

ore

for

frag

ranc

e.

Dire

ct s

ellin

g to

tem

ples

. Ess

entia

l to

know

fest

ival

dat

esan

d au

spic

ious

day

s.Se

lling

thro

ugh

shop

s.

1.M

argi

n: W

hat

are

the

prof

it m

argi

ns if

you

are

pro

duci

ngan

d se

lling

to w

hole

sale

rs a

nd if

you

sel

l ret

ail?

Wha

t mar

gins

can

you

get i

f you

buy

from

who

lesa

le a

nd s

ell r

etai

l?2.

Stoc

king

: How

muc

h of

the

prod

uct s

houl

d be

ava

ilabl

e at

a tim

e? H

ow m

uch

shou

ld b

e in

sto

res?

How

muc

h sh

ould

be w

ith th

em?

The

refo

re, h

ow m

uch

shou

ld th

ey p

rodu

ceor

hav

e av

aila

ble

mon

thly

?3.

Shel

f life

: Wha

t is

the

min

imum

and

max

imum

she

lf lif

e of

your

pro

duct

? With

in th

at s

helf

life

how

muc

h ca

n yo

u se

ll?W

hat

will

you

do

with

exc

ess

stoc

k? C

an y

ou e

xten

d th

esh

elf l

ife?

Nea

ring

the

end

of th

e sh

elf l

ife if

you

can

’t se

ll,do

you

hav

e a

back

up

plan

, lik

e an

age

nt to

who

m y

ou c

anof

f-loa

d th

e pr

oduc

t. If

a pr

oduc

t (lik

e ve

geta

bles

) dec

reas

esin

qua

lity

with

tim

e, w

ill yo

u se

ll it

at a

dis

coun

t?4.

Inve

ntor

y (v

arie

ty):

Whi

ch m

arke

t seg

men

ts re

quire

wha

tva

rietie

s an

d ho

w m

any

varie

ties

will

you

sto

ck f

or e

ach

mar

ket

segm

ent

(ex.

The

ric

h re

quire

man

y va

rietie

s of

bang

les

to c

hoos

e fro

m).

5.C

hoic

e of

Dis

trib

utor

: Who

is a

goo

d di

strib

utor

? How

muc

hpr

oduc

t sto

ck is

a d

istr

ibut

or w

illing

to ta

ke? H

ow m

uch

can

she/

he s

ell?

Wha

t kin

d of

pro

fit m

argi

n w

ill sh

e/he

giv

e yo

u?Is

she

/he

willi

ng to

pro

mot

e yo

ur p

rodu

ct o

ver t

ime?

Tem

ples

do

not n

eed

elab

orat

e pa

ckag

ing.

Low

pric

e an

d m

inim

alpa

ckin

g ne

eded

.H

omes

wou

ld w

ant a

nice

car

dboa

rd b

ox w

itha

nice

des

ign,

whe

reyo

u ca

n cl

ose

the

card

boar

d bo

x to

kee

pth

e st

icks

fres

h.

Shel

f lif

e is

not

muc

h of

a c

once

rn. P

rodu

cts

last

long

er if

they

are

in s

eale

d pa

ckag

es, b

ut th

is w

ill be

at a

n ex

tra

cost

.Va

riet

y is

not

impo

rtan

t for

tem

ples

, but

if y

ou w

ant t

o se

llto

mul

tiple

mar

ket

segm

ents

, yo

u ne

ed d

iffer

ent

varie

ties

with

diff

eren

t qua

litie

s an

d di

ffere

nt fr

agra

nces

.D

istr

ibut

or a

nd S

tock

ing:

If

you

wan

t to

sel

l to

sho

psou

tsid

e te

mpl

es,

you’

ll ha

ve t

o se

ll in

bul

k. If

you

you

rsel

fw

ant t

o se

ll ou

tsid

e te

mpl

es y

ou c

an s

ell i

n sm

alle

r am

ount

sor

eve

n se

ll si

ngle

stic

ks.

Hom

es w

ill w

ant

a fe

w in

cens

est

icks

in a

box

that

will

last

. Out

side

tem

ples

, you

can

als

ose

ll a

kit w

hich

incl

udes

a c

ocon

ut, f

low

ers,

etc

. Sel

ling

door

to d

oor

may

not

be

wor

th i

t be

caus

e pr

ofits

may

not

com

pens

ate

for t

rans

port

atio

n co

sts.

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33

PurposeTo create and test a market surveythat participants can use.

Link to MOVEParticipants design surveys to conduct in their village to understand the localmarket. The Participatory Market Appraisal (PMA) is a version of marketresearch specifically designed for the illiterate.

Materials Needed● Brown sheets or chart paper● Marker pens● Carbon sheets

Preparation for PMA

MODULE 6A

Prerequisite: The community organiser should have visited all the shops in the village/area to understand what is being sold.

StepsDesign of visual surveys

1. Take the list of five products. For each product, ask participants to list thequalities customers want in the product, based on the analysis from Module 4.

2. Participants should define these qualities in detail (For example, ‘What does crunchymean? Should it make a sound when you eat it? Should it be not soggy at all?’)

3. Participants should rank the top qualities for each product.

4. Participants should create a symbol for each of these qualities. The trainershould work collaboratively with the participants if they are unable to draw thesymbols on their own. It is important that the ideas for the symbols shouldcome from the participants and should be understood by the participants.

5. Symbols also have to be created for other relevant information such as price,quantity, family information and so on. Include relevant information on thehousehold for each product. If you are surveying bangles, find out the number offemale members in the household. If the survey is for cattle feed, find out thenumber of livestock the household owns. Illustration 3 shows a typical PMA withsymbols for quantity, type of market and product characteristics.

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6. Since the participants are primarily illiterate, they have to mark quantity withtick marks or dots.

Note: Participants must use uniform measures for each product! Participantsmust be very clear about the unit for each product namely kilograms, litres,bundles, boxes and so on. The time frame must be clear, namely daily, weekly,monthly, etc. For example, if one person enters data on edible oil in litres perweek and another enters it in kilograms per month, the information will be useless.

7. For symbols of quantity, if there are different denominations such as ¼, ½,draw a circle divided into four parts and colour in the appropriate number ofsegments.

8. The facilitator should reproduce charts for each woman using carbon sheets.

9. Conduct a pilot test among participants to familiarise them with surveying.Divide the participants into groups of two and ask each one to pilot test thesurvey on his/her partner.

Illustration 3: Example of Participatory Market Appraisal for Soap: Mugad Village

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10. In the pilot some questions may be screened out. For instance, price for agiven product may be uniform so it may be eliminated from the survey. Changethe survey if necessary.

11. After the session, the trainer should make photocopies of the revised surveysfor the next session.

Symbols for needs & wants

Note: It is best to help participants create a chart that simplifies the process,so they can just simply tick off a box. Organise the chart in any way, whichmakes sense to the participants. This will require a degree of creativity andimprovisation on the part of the facilitator.

Outcomes

● The group has an understanding of the existing competitors, what they sell,how much they sell and why customers go to them

● Participants have created a workable prototype of a survey that they canunderstand

Module 6A

Create Survey

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MOVE

PurposeTo sample and survey households and thus giveparticipants the tools to research their customer base.To collect the data necessary to understand the market, find a niche, andmove forward in business.

Link to MOVEEstimates of market size in the previous sessions and assumptions of whatcustomers need and want are put to test with actual surveying. For the first

Materials Needed● Surveys created in the

earlier session● Pens

Sampling and Surveying

MODULE 6B

1 2 3

1

2

3

3

2

2

2

2

2

1

1

1

1

1

11

1

1

1

1

11

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37

time, participants are asking the customers about their buying habits anddesires face-to-face. This dialogue between entrepreneur and customer formsthe core of the MOVE process.

Prerequisite: The community organiser should know the number of households in thevillage and approximately how many are rich, middle income and poor. Enough surveysshould have been created and photocopied so at least 10% of the village is surveyed foreach product. Every member should participate.

Steps

1. Participants should identify the number of households in the village. They shouldsample approximately 10% of this population for a large village and at leastthirty households if it is a small village.

2. Split the sample population into wealth categories of rich, middle class, poor,and very poor. Ensure participants survey a proportionate number of householdsfrom each wealth category. Assign each participant households from eachwealth category to survey.

Note: participants will typically only want to survey their neighbours and mayfeel intimidated or uncomfortable going to richer or unknown households.Make sure that all types of households are represented in the sample andeach participant surveys every category of household.

3. Give every participant an equal number of forms to fill for each product.

Note: Every participant should conduct the survey for every product. Theidea is to give every participant information on every product so that eachis familiar with all five products and can make an informed decision on whatto sell. This is needed for participants to understand different market segments.

Surveying

1. Each participant should spend the next week visiting the households they areassigned to and filling out the forms by ticking off the appropriate boxes.

2. When the participants are surveying they should be careful not to suggestanswers or prompt the client and only mark what the client has said.

3. No leading questions should be asked. For example, with the case of puffedrice ask the customers what they want from puffed rice. If they say it shouldbe cheap then the surveyor should only tick off those boxes. These responseswill be the wants that are most important to the customer. The surveyor shouldnot ask the customer about every attribute on their survey form, with questionssuch as: ‘Do you want it to be cheap? Do you want it to be crisp’ and so on.Because there will be a natural tendency for the client to agree to all the

Sampling

Module 6A

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Illustration 4: Example of Participatory Market Appraisal for Milk: Gabbur Village

wants. The result will be that all forms are identical, with every box ticked. Thismakes the survey useless. Instead ask questions such as, “Where do you buypuffed rice?” and then “Why do you buy it from there?” or “What kind of puffedrice do you buy?” And then “Why do you buy that kind?” so customers are freeto provide their own reasons. These strategies should be practiced thoroughlybefore the actual surveying takes place.

Rich Medium Poor

Adult Male Adult Female Child Male Child Female✓ ✓ ✓ ✓✓ ✓

Quantity ofmilk consumed

Reasons for buying

Contact

Buffalo’s milk

Cow’s milk

Other Services

Pure

Facilities

Tea

Ghee

Butter milk

Time Taste

Freshness

Cheap price

Home Delivery

Credit

Butter

Sweets

Curds

Utilization

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Do you want puffed riceto be crisp?

Clean Yes

Yes

Yes

Crisp

Wrong

Outcomes

● Since participants collect the data themselves, there is a sense of ownershipover the data.

● The process of gathering data on five different products from very differenthouseholds helps orient participants to customers and their needs.

● They obtain the skills to gather market information and deal with differenttypes of customers

● They lose the fear of dealing with richer clients which helps build confidencefor future sales.

● Participants begin to get a clearer idea of their own market, how muchcustomers consume, and what customers want.

It’s cleaner and the

measurements are

accurate

Why do you buy

puffed rice from

the City?

Useless

Right

Good

Module 6B

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MOVE

PurposeTo analyse the data collected in the PMA collectively inorder to create a clear picture of the market. To know themarket size of a product and gauge the possibility forbusiness success.

Link to MOVEThe collection of all the results will give the participants a clearer image oftheir customer base and market. Based on their findings, they will discoverthe true market potential for each product surveyed as well as what customerswant from each product the most. Based on the survey data participants willchoose a market niche to fill.

Materials Needed● Large sheets or chart paper● Sketch pens of different colours● Marker pens

Analysis of the PMA

MODULE 7

StepsEntering Data

Prerequisite

■ The participants should have done the survey and collected all the data.

■ The community organiser should have created the master sheets using the sameformat as the surveys so participants can easily fill in the data they have collected.

1. The trainer should hang large sheets prepared exactly like the survey sheetson the wall, one sheet for each product. These sheets should be re-creationsof the survey forms with the exact same symbols for each product. If fiveproducts were surveyed then there should be five large sheets.

2. Participants should each be given different coloured sketch pens.

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3. Participants should enter all the data from theirforms on to the main charts for each product.

4. Boxes checked on the survey forms should in turn bechecked in the corresponding box on the largesheets. The participants should enter all the dataon each survey form onto the large sheet.

5. After each survey form has been entered it shouldbe checked off on top of the survey forms toindicate that the data has been transferred (so bymistake it does not get entered a second time).

Table 6: Summary Data for Edible Oil: Channapur

Edible Oil Purchasing in the City Purchasing in the Village

1 14 9 17.5 kg/w 27 35 8 1 1 4

2 17 9 12 kg/w 26 27 8 3 1 1

3 37 8 10 kg/w 23 25 8 3

4 57 16 19 kg/w 53 49 16 1 2 9

5 122 40 41 kg/w 101 109 36 1 2 27

Total 247 82 99.5 kg/w 230 245 76 3 5 46 1 0 0 1

Wea

lthCa

tego

ries

Tota

l num

ber

of fa

mili

es

Num

ber

offa

mili

es s

urve

yed

Qua

ntity

cons

umed

by

fam

ilies

sur

veye

d

Wom

en

Men

Gro

undn

ut O

il

Palm

Oil

Shou

ld n

ot s

poil

Accu

rate

mea

sure

Gro

undn

ut O

il

Palm

Oil

Shou

ld n

ot s

poil

Accu

rate

mea

sure

Module 7

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In Channapur village, the information gathered on edible oil yielded many conclusions.

Market Demand: A total of 99.5 kgs of edible oil was consumed by the samplehouseholds per week. Since the sample (82 households) is approximately a thirdof the population (247 households) total market demand can be estimated bymultiplying into 3 which is about 300 kgs per week (i.e., 99.5 x 3). A more detailedanalysis that breaks down the estimate for each wealth category is also possible.

Location: Almost everyone in the village bought edible oil from the city (with76 households reporting buying groundnut oil from Hubli city market compared to1 household buying it in the village). This clearly indicated an opportunity to beginsales within the village without threat of competition.

Attributes: Most people (46 households) consider accurate measurementsextremely important, a feature usually associated with city markets. Very few(5 households) are concerned with the prospect of the oil spoiling. Peopleoverwhelmingly prefer groundnut oil over palm oil (76 households compared to3 households).

The basic information that this survey yielded was that if the women of Channapurwanted to sell edible oil, they would have virtually no competition within the village,but they would have to insure their customers received accurate measurements,and there is more demand for groundnut oil. Women decided they would start withselling 15 kgs of groundnut oil per week targeting 5 per cent of the market (300kgs). They estimated they could make Rs2 profit per kg or 30 rupees per week.

Note: Ideally for this session there should be five people facilitating, onelooking after each chart, so they can ensure that participants fill the informationon all five products simultaneously and correctly. If there is only one facilitator,organize the participants in the most practical and fastest way to compilethe information.

Case Study 6: In Our Experience… Collective Analysis of PMA

Collective Analysis

1. Quantity: To analyse the quantity, the column assessing quantity should be totalledup at the bottom. If the sample was 10 per cent, numbers should be multiplied byten to arrive at total village/area demand for that product. (In Case Study 6, thesample is a third)

2. Prices: Analyse the range of prices, if this information has been acquired.If not, use this opportunity to estimate price.

3. Location: Ask participants to look at where there is the highest concentrationof dots in the location columns (Local market vs urbanized markets) tounderstand where people buy the product the most. For example, in CaseStudy 6, most people are buying from the city.

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4. Product Attribute: What is the most important factor for customers to buythat product? Where are the maximum dots in the product attributes? Forexample, do most people buy from the city because it is cheap or because ofvariety or other such reasons?

Outcomes

● After analysing all five product charts, participants know market demand in termsof volume and profits

● To estimate profit, participants need to know or estimate the cost of productionand price to get profit margin for each product.

● If they intend to do retail they need to know the wholesale rate to estimateprofit margins.

● The participants can now decide which product they would like to produce orretail and what percentage of the market they want to capture.

● All assumptions about where and why people buy goods will be proven orcontradicted

Module 7

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MOVE

PurposeA more detailed analysis matching demand and supplyis done on one or two products to narrow down theproduct the group wants to retail or manufacture. Tounderstand the different kinds of shops in the village,products sold, amounts sold, and profit margins. Todifferentiate between what the shops are offering and what the participantscan offer.

Link to MOVEAfter choosing a product, the participants will begin planning for logisticalissues. In earlier modules participants studied potential strategies, identifiedthe market, and now they zero in on the strategies that will match thefindings of their market research. By mapping shops in the village, theparticipants get an idea of the current market environment and how theycould potentially fit in it, which is another element of market orientation.

Matching Demand and Supply;Narrowing Down the Products

MODULE 8A

Materials Needed● A map of the village/area (if it

does not already exist, one canbe created with the participants,see map on page 45)

● Chart or brown paper● Marker pens

Prerequisite: They should haveanalysed all the five products fromtheir survey and decided upon one ortwo products that they want to startdoing business in.

Which product should I choose ?

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StepsMapping of markets

1. Create a map of the village or use the one that has been made in the ParticipatoryRural Appraisal (PRA).

2. Locate the shops and other businesses. Use different symbols for differentkinds of shops so that they can be differentiated.

3. Create a symbol for each of the five chosen products. Draw the symbol oneach shop which sells the product.

5. Include some reference to city markets if the villagers have access to urbancentres, but do not go into extreme detail mapping it.

6. If there are sellers coming in from other villages or areas mark them on themap too.

7. If possible also mark the approximate territories each seller has.

Module 8

Map of Mugad Village

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MOVE

8. Once the shops and sellers are marked, ask why people buy from some shopsand not others. Also examine types of products sold by each type of shop.

9. Once members have chosen a product, shops selling it are identified andquantity sold by each shop is estimated, using the map from module 6A. Thistells the participants the approximate total supply of the product.

10. Participants use the results of the PMA to estimate the total demand for aproduct. Participants find the difference between estimates of demand andsupply to estimate potential sales.

11. For each product the different qualities are discussed and matched to differentwealth categories or market segments.

12. Of the total market not covered by shops, they estimate what percent of themarket segments they can attract. (e.g., 10 per cent of the rich and 20 per centof the poor)

13. Based on this percentage, they can decide what variety and how much ofeach variety of the product they can sell or produce.

Outcomes

● The participants have a clear idea of what they want to sell, what quality, howmany varieties, who their targeted customers are, their sales cycle, selling priceand approximately how much profit they can make. All the information theyhave gathered in earlier comes together to form a plan of action.

● The product is chosen and participants decide if they want to produce it or sellthe product through buying wholesale and selling retail.

● They also estimate the sales cycle, namely how quickly they can sell a product(within one week or one month)

For retailers refer to Module 8b.

For producers refer to Module 9.

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PurposeTo start buying and selling of one or more products.

Link to MOVEAfter choosing potential products, participants begin business. They locatewholesalers and buy in bulk and begin selling at retail prices to customers.

Retailing

MODULE 8B

Steps

Prerequisite: They should have chosen the products from their survey analysis.

1. Participants need to locate wholesalers and buy products based on priceand quality.

2. Participants should decide on a selling strategy (door to door, starting ashop, etc.).

3. The timing of buying and selling should be based on when customers buyproducts. For example, ration shops sell rice around the 10th of every monthwhich runs out by the end of the month. So to prevent people from buying riceoutside, sale of rice can be sold in the first ten days of the month.

4. Through a couple of cycles participants are able to estimate: ‘How much canwe sell? When can we best sell? Who buys? What profits can we make? How dowe factor in costs such as transportation?’

5. Once funds start to flow problems may arise because some participants maywork more than others and want a higher share of profits. Thus some rulesneed to be developed by the group as the business grows to decide on profitsharing, distribution of work, account keeping and so on.

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MOVE

PurposeTo guide potential producers on the series of steps that follow once the decisionis made to enter production.

Link to MOVEAfter choosing potential products participants begin production and selling. WithMOVE production begins on a small scale with a clearly identified customer basewhich is based on market research. Then the business expands to fulfil demand.

StepsTesting

Production

MODULE 9

1. Participants are taken on exposure visits to production units to learn theproduction process for the product of their choice.

2. They learn particular production techniques based on price and quality.

3. They then produce a small sample of their product

4. They test market samples by selling small amounts to customers.

5. The trainer should inform the participants that there are three types ofcustomers:❏ Those who are known and will buy the product because of a pre-existing

relationship with the producer.❏ Those who are flexible and could potentially shift❏ Those who are loyal to other brands and will not shift.

6. When selling, the participants should focus on those who are flexible. What dothese customers want?

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49

7. Based on customer feedback (Module 10), they make changes to the product.These changes may even require a second or third visit to production ortraining units to learn new techniques which produce goods that match theconsumer needs.

8. They again produce and sell another round of samples. This process continuestill their clients are satisfied.

Small scale production Sample selling

Large scale production

Branding

1. At this point, before scaling up, they decide on the product name

2. The facilitator makes the participants aware of the importance of brandingthrough a series of exercises which includes exposure to a variety of existingbrands in the market. Participants are asked to examine each brand for quantity,shape of packet, size of packet, design of the packet, logos and symbols oneach packet, colour of the product and the packet, specific properties of thebrands, language used in branding (English or local language) and the pricing.

Module 9

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MOVE

3. This familiarisation exercise makes them realise how branding should be done,why it is important and then participants choose their own brand name andmode of distribution.

Pricing of the product

4. The facilitator helps participants by providing them information on costing oflabels which varies according to the method used such as screen-printing,offset printing and polythene printing.

1. Based now on a clear idea of how much people will pay, participants decide onthe price.

2. At this stage they enter full production and scale up production. As they continueproducing they research ways to cut costs and increase efficiency.

Note: Production takes a long time. In MOVE, production is a constant learningprocess which tailors the product to the customer. It follows a cycle ofproduction, sample sales, customer feedback, learning new productionmethods, and production again. It may require that the product itself is changedbased on what sells. Participants will go into full scale production when theyare able to meet customer needs satisfactorily.

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PurposeTo maintain a customer-centered approach to business. To give theentrepreneurs the opportunity to hear their customers’ response and moveforward based on their reactions and recommendations. Customers tellentrepreneurs what aspects of the business they are satisfied with, dissatisfiedwith, and recommend further value additions that they would like (in terms ofservices or enhancing the product). By seeking this advice and following it, theentrepreneurs maintain their market share and develop ways to increase it.

Link to MOVEAfter a few trials of selling, participants recognise the central role that customerfeedback plays in running a successful business. By formally introducing acustomer feedback session early in the process, it will continue to be anestablished practice for entrepreneurs. The customers will also suggest severalideas on how the business can expand and evolve in the future.

Customer Feedback for Value Enhancement

MODULE 10

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MOVE

Prerequisite

■ The participants have gone through at least one complete sale cycle, i.e., purchaseof raw materials, production, selling and recovering money

■ The entrepreneurs should ask their customers to attend their next meeting or scheduleinterviews with customers.

Note: It may be difficult to get customers to take the time to participate in thefeedback session. The option is that the participants visit the customers homesand get feedback.

Steps

1. On a large chart for everyone to view, the trainer can fill out a template below(Table 7)

Table 7: Customer Feedback Format: Puffed Rice

Product General customer Value Input (Why Value Addition (WhatFeedback did you buy?) more can be done?)

Puffed Rice The Puffed rice is Because they came They can add nuts.crispy and cheap. to my doorstep. They can add other

There were stones The measurementpresent. was correct.

2. The entrepreneurs should first and foremost listen to the customer feedback,even if it is negative. This is not the forum for entrepreneurs to defendthemselves or clarify misconceptions. The trainer should set the tone byrespectfully listening to the customer feedback and preventing interruptions.

3. First the trainer should ask: Why did you buy the product? Where do you usuallybuy the product from? Why did you buy from the participants? What value dothe participants provide?

4. Then the trainer should move on to ask the customers what other value can beadded to the product. The trainer introduces the idea of the value chain.❏ The Value Chain: value can be added to any product by moving closer to

the customer and fulfilling more and more wants. For example, wheat canbe sold at Rs8 per kg. If it is packaged it can be sold at Rs9 per kg. If it isground into loose flour it can be sold at Rs10–11 per kg, if the flour ispackaged it sells at 14 rupees per kg. Finally if it is baked as bread it issold at 25–40 rupees per kg. The higher the value added the more profitmade. Entering the market at a higher end of the value chain will earn themmore. As participants understand their customer more and more, they cantailor their business to their specific needs and move up the value chain.

flavours to providevariety.

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Case Study 7: In our experience... Customer feedback

A challenge that participants in all villages faced was getting customers toparticipate in the feedback session. Since this session took place during themonsoons, movement was difficult, so even walking the short distance from hometo the meeting place through mud and rain was hard. The participants were finallysuccessful in acquiring customer feedback because they accommodated theirown schedules to fit with the customers.

This spirit of putting the customers first was especially evident in Channapur.Participants laid out two mats on one side of the room and one mat on the otherside. Six customers spread out on the spacious area of the two mats while eightparticipants crowded themselves in half the space on the tiny single mat. Viewingthis scene, the trainer commented, “Make way for the gods!”

In Channapur participants remained completely silent as the customers spoke;they did not argue, protest, or respond in any way. The room felt as if the customerswere the only people present, and as a result the customers were more open andgave more detailed feedback than in other villages.

Outcomes

5. After the customers have finished giving all the feedback, the trainer shouldmoderate a discussion between the entrepreneurs and customers where theycan address their concerns and discuss how they will improve operation in thefuture to meet their needs.

● The goal is to develop the habit of analysing past sales cycles in order to tailorbusiness for the immediate future and the long term.

● At this point participants should be ready to continue their business on theirown, adapting to the market and to customer demand as necessary.

Value chain profits

Wheat Flour Packing Bread

Module 10

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MOVE

PurposeTo evaluate the initial stages of the business and create a business plan for theimmediate future as well as long-term accordingly.

Link to MOVEAfter altering their strategies according to customer feedback, further analysisof past success and failure will dictate future plans for the entrepreneurs. Thebasic necessities for conducting a business should be well established so thegroup should be self-sufficient from this point on.

Creating a Business Plan

MODULE 11

Prerequisite: Participants should have detailed records of expenditures and revenueswith them.

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Steps

1. A universal template is impossible for business plan development. Base youranalysis on whatever records or other information that the group has with them.

2. Any and all information participants have gathered (i.e. expenditures on differentproducts, sales of different products, sales by date, etc.) should be displayedfor all members to see.

3. Based on the profit and loss of their first experiences in business, participantsshould devise a plan to move forward.

4. Discussion points may include:❏ Where were the most sales?❏ Can you sell in other places?❏ Are there ways to cut expenditures?❏ What are the primary barriers to growth?❏ How can you overcome these barriers?❏ What are possible promotional strategies?

5. Guidelines for developing a business plan could include❏ Facilitate the development of business plans from the market side: Unlike

conventional business plans where profit and loss statements are linked toproduction, in this case, participants develop plans based on marketforecasts. In other words, projections should be based on how much youthink people will buy and adapt accordingly.

❏ Estimating market demand: Participants identified market segments(households and retail outlets). For each segment participants assess currentand future demand.

❏ Profit and loss statements: Based on their projections participants estimatefuture costs and profits.

Table 8: Projected Business Plan as per Future Sales Cycles: 400 kgs of Soap

Plan Components Rupees

Raw Materials 6600

Transportation 400

Packing 280

Total Expenditures 7280

Total Revenue 8000

Gross profit 720

● The participants should now have a sound business plan with which they canapproach a bank for credit linkages.

Outcomes

Module 11

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MOVE

Market Oriented Value Enhancement (MOVE) gives the illiterate poor the tools to understandthe market. MOVE teaches participants to estimate market size, demand, and customerneeds and wants, thus providing them with the tools and the confidence necessary toenter the market.

The MOVE process was used with seven different groups in five villages around the twincities of Hubli-Dharwad, India. Two iterations of MOVE have taken place, for existing andpotential producers. The second iteration of MOVE resulted in all five groups taking uptrading, i.e. buying products wholesale from city markets and selling them at retail pricesin their own villages. This outcome may be because the business plans were createdover a relatively short six month period. The unanimous adoption of trading may be anindication that this is simply an initial phase of a longer process. It is possible thatparticipants may wish to take on the capital risks of entering production only after theyhave identified a reliable customer base for a given product through retailing. As theirbusinesses evolve, participants may also begin catering to customers’ specific needsthrough value addition, identifying and serving more specialized market niches

In our experience participants have manufactured soap, started a grocery shop, andsold clothes, to name just a few endeavours. But the applications of MOVE are almostlimitless. More specific MOVE modules can be developed for any number of businessactivities, for example

■ Skilled trades such as tailoring

■ Natural resource based businesses such as milk producing

■ Natural resource based services such as for Para veterinarians

■ Health services such as those provided by midwives

And much, much, more…

Our experiences provide only a snapshot of businesses as they continue to evolve. Thismanual takes participants to the point where they have business plans and can begin abusiness on their own. There are a series of modules that can be developed as participantsthink about scaling up, entering new markets, and exploring new products, therefore,this manual is only the first of a series. The modules presented here are only the beginningand there are many more places that MOVE can go. MOVE has been tested mainly invillages located in the urban periphery, which offered many advantages such as access

FINAL REMARKS MOVE

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to urban markets and potentially a greater scope for value addition. However, MOVE canbe tailored to many different contexts, from India, to across Asia, to across the thirdworld, in urban centers, rural areas, and everywhere in between.

It is worth pursuing these new applications of the MOVE process because it has provento be dramatically more effective than traditional income generating schemes. Everygroup that has undergone this training has experienced immediate profits, with no initiallosses. These profits have increased with every successive business cycle. These resultswere achieved with poor, landless, illiterate women. If MOVE has succeeded with thisgroup, it will surely succeed with better off groups.

Thus MOVE represents a real alternative for the very poor. The very poor cannot afford torisk their meagre assets for the production of items that may not even be sold. Schemesdesigned to improve the livelihoods of the poor can even get them further into debt if themarketing component is ignored. MOVE is an effective way to improve the livelihoods ofthe very poor because it exposes them to less risk by teaching them to research areasof the market where they are likely to be successful and then enter business gradually.

In the larger context, the world is rapidly urbanizing and the service sector is booming, soan increasing emphasis on customers will be required. MOVE is necessary because currentproduction-centred approaches to business are not effective and will become even lesseffective in the future. MOVE can teach ANYONE to not only cope with a globalized economy,but to also capitalize on it, by understanding and adapting to the market. Therefore, MOVErepresents an essential and radical shift in thinking about income generating activities thatis clearly the way forward, eliminating production fixation and introducing a market focus inits place.

Final Remarks MOVE

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MOVE

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MOVEMarket Oriented Value Enhancement

Created and Developed by:

Dr M S SubhasKIMS, Karnataka University

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MOVE

Published by

BOOKS for CHANGE139, Richmond RoadBangalore-560 025Phone: +91-80-25580346e-mail: bfc@actionaidindia.orgwww.booksforchange.net

Edition: First, January 2006

Copyright © Dr M S Subhas, KIMS, Karnataka UniversityShawn Sebastian, BPFSimone Purohit, BPFSangeetha Purushothaman, BPF

Price: Rs95.00 in IndiaUS$7.00 outside India

ISBN: 81-8291-019-6

Bf C Production Team: Shoba Ramachandran, Rajeevan, Gokul and ShailajaCover design and illustrations: Shailaja

MOVEMarket Oriented Value Enhancement

The views expressed in this manual are not necessarily those of DFID