MOVE Manual for Commodities and Services

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Market

Oriented

Value

EnhancementFor Commodities and Services

A trainers

manual to

promote access

to markets

for the poor


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MarketOrientedValue Enhancement

Best Practices Foundation

for Commodities and Services


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Market Oriented Value Enhancementfor Commodities and Services

Published by

139, Richmond RoadBangalore560 025 India

: +91-80-25580346: +91-80-25586284

: +919448371732

: [email protected]

: www.booksorchange.ino

Supported by

Sir Dorabjee Tata Trus t

Bombay House24 Homi Mody Street, FortMumbai400 001

Edition : 2012

Copyrght : Dr M S Subhas, KIMS, Karnataka University

Dr Sangeetha Purushothaman, Best Practices Foundation (BPF)

Price: `160.00

ISBN: 978-81-8291-078-2

Contributing Authors:Sangeetha Purushothaman-BPF, M S Subhas-KIMS, James Brockington-BPF, Anita Basalingappa-MICA,Soumita Basu-BPF, Meera Halakatti-BPF, Rony C J-BPF, Natasha Ravindran-BPF, Simone Purohit-BPF,

Shawn Sebastian-BPF. Sudha Menon-BPF

Disclaimer: The views expressed are those o the authors and may not represent the views o Sir Dorabji

Tata Trust and Allied Trusts.

BfC Production Team: Shoba Ramachandran and M V Rajeevan

Cover Design: Sudha Menon

Illustrations: M B Suresh Kumar


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CONTENTS

Introduction v

Module 1A : Goal Setting Game 1

Module 1B : Tower Building Game 6

Module 2A : Wedding Card Game 9

Module 2B : Buying and Selling Game 17

Module 3A : Format Free Market Visit 22

Module 3B : Formatted Market Visit 28

Module 4 : Understanding Customers Needs and Wants 34

Module 5 : Eatery Game 38

Module 6A : Participatory Market Appraisal: Preparation and Survey 43

Module 6B : Participatory Market Appraisal: An Analysis 50

Module 7 : Marketing Strategy 54

Module 8A : Participatory Competency Assessment 58

Module 8B : Skills Training 61

Module 9 : Pilot Business and Customer Feedback 62

Module 10 : Branding and Promotion 66

Module 11 : Pricing 70

Module 12 : Business Development Plan 73


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INTrOduCTION

v

Genesis of MOVE

Over the last three decades, both the Indian Government and NGOs have invested considerable resources

in micro-enterprise programmes aimed at improving the livelihoods o the asset-poor. These interventions

have largely ocused on enhancing the skills o participants and encouraging them to establish small scale

enterprises producing commodities rom locally available resources. All too oten the results have provento be disappointing.

l Skill enhancement training has tended to ocus on one activity i.e., the production o a single commodity.

Fixation on a particular product and sector has resulted in participants lacking the knowledge and skills

to switch rom one activity to another, making them vulnerable to changes in the market.

l Establishing production-based enterprises has oten required participants to take large loans to und

the purchase o machinery and other materials. Repaying these loans depends upon the success o

the new enterprise. For the poor, this represents a high level o risk; i the enterprise ails then they are

saddled with debts they cannot aord, thereore threatening their uture security and well-being.

In this traditional approach, markets have been woeullyneglected. Important questions such as: Who will buy this

product? and Is there sucient market demand? have

been routinely ignored. Thus, participants rom countless

projects have discovered, only once it is too late, that their

products are not in demand and their enterprises are not

viable. Wasted investments o time, eort, capital and hope

have requently let participants worse o than beore they

joined the programme.

MOVE: The Soltion to Bil Maket

Oiente BsinessesMOVE is a customer-centric approach to business. Market Orientation and Value Enhancement is a

practical, sustainable, replicable, adaptable, protable tool that has proven to be a viable alternative to

improve livelihoods o the poor. This tool helps in setting up workable enterprises based on market needs,

thus drastically reducing the ailure rate.

Market Orientation Instead o starting a small enterprise based on existing skills or locally available

natural resources, participants are trained to undertake a business venture according to customer demand.

Participants are trained to rst ask, What does the customer want? and then, How do I deliver it? This

approach increases the chance o success and sustainability o newly created enterprises.


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Value Enhancement Is the process o continuously evolving new products and services to cater to

customer demands. By adding value according to the customers wants, participants can move up the

value chain and access specic markets that generate higher returns. They can also identiy market

niches that larger producers do not, or cannot, cater to.

The main concept in MOVE is that a business has to be customer oriented or it to succeed. The customer

has to be placed at the centre o business development right rom the outset. Participants have to rst

understand their target customer base thoroughly. Once the customers requirements in the target market

are understood, participants are then in a position to evaluate whether it makes good business sense to

provide a particular product or service. Customers may have demands that are dicult to meet in which

case it may not make good business sense to pursue that activity. Only i participants are satised that

there is sucient demand or a product or service should they devote time or other aspects o business

such as developing human resources (skills), securing nance, and purchasing equipment and materials.

Traditionally, development o income generating activities (enterprises) has been approached in the

opposite way. Participants have been taught to build upon existing skills and available resources, take

loans and purchase materials, and to begin production. Systematic thinking about markets has been

neglected until the participants have had a product ready to be sold. It is at this point that most havediscovered that there is an inadequate market; their products have not sold as expected and they have

incurred losses. The rst loss a poor participant makes is a turning point: having ailed once she will

rarely try again. Oten participants continue

an activity only because they have gone

through intensive skills training and do not

have the tools to shit to other products or

services. This is the approach that MOVE tries

to negate. Participants are trained to develop

an understanding o the marketplace, and be

sure they will not make a loss because they are

giving customers exactly what they want.

MOVE gives the trainee the ability to understand

the markets even beore they decide on the

business. It provides the tools to not only

understand customers but also to understand

competitors. MOVE also inculcates a sense o

fexibility which allows trainees to adapt to changeable market conditions and not get xated with any one

product or service. Marketing starts even beore the business starts and ends long ater a product is sold

or a service rendered.

MOVE Taining

Training begins by motivating participants to set goals, understand co-operation, team work, and the

importance o the customer. It progresses to basic concepts on buying and selling, building customer

ocus, identiying protable businesses through market visits, and providing an understanding o the larger

marketplace. Trainees are taught simple methods to survey and understand the demand or a product or

service in a chosen market. They are taught to understand competitor products, how to position their

product or service, package it and brand it. Finally they decide on the marketing strategy and the business

plan. By the end, trainees are empowered to enter the market condently as independent players.


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vii

Ppose of this Manal

This manual is a practical guide or trainers to replicate the MOVE process, which begins with motivation,

progresses to general business concepts, market research, and nally the ormulation o a business. By

the end, participants should be empowered to enter the market condently as independent players.

Market analysis is commonly perceived to be the monopoly o experts, but through innovative tools, MOVEhas opened up possibilities or poor (even illiterate) individuals to understand markets. Complex business

concepts are communicated through methods that have been tailored or an illiterate or semi-literate

audience. In MOVE, participants learn by doing and every step orward is based on decisions that the

participants themselves make.

The rst edition o the MOVE manual, brought out in January 2006, specically targeted rural or peri-urban

women who were landless and illiterate. It ocused on the development o enterprises that produced

commodities. This enhanced second edition has been broadened to include a larger target audience o

women and youth (both girls and boys) in urban as well as peri-urban and rural communities. The ocus

has been expanded to include enterprises that provide services (such as trading and retailing) as well as

those that actually produce commodities.

Stcte of the Manal

This MOVE manual consists o 12 modules broadly classied into several sections motivation and

management games; eld visits; experiential learning; group learning; analysis; survey methods; skills

training; and business plan development. The entire process requires handholding till the enterprise

becomes successul. See Chart 1: The MOVE Path.

Each module in this manual articulates the goals o the session, the link to the entire MOVE process,

ollowed by step-by-step exercises, key concepts, expected outcomes, lessons learnt and case studies.

The instructions provide a guide and the case studies illustrate a variety o situations, approaches and

outcomes. The process will vary widely across many dierent contexts, and deviation rom the text isentirely expected. Trainers using this manual are encouraged to adapt and modiy modules to make them

more relevant to their own specic contexts, and to ensure that the primary lessons are understood by the

participants.

Selection of Taines fo MOVE

When implementing MOVE, it is very important to select the right trainers. MOVE trainers henceorth

reerred to as MOVERs should have experience in community development and training. It is also

preerable that MOVERs are members o a local SHG, Federation or grassroots NGO. This is important

because they must have a good understanding o the local context and be able to adapt the training or

local conditions. It is also important that MOVERs have built a strong rapport with the community beore

the training begins. Because MOVE training is an intensive process, it is advisable that MOVERs should

not be involved in any other training programmes or the duration o the project.

MOVERs should ideally have experience in training in various areas such as motivation, leadership and

livelihood development. They should be comortable acilitating sessions with groups o 2030 trainees.

They should also be adaptable and creative individuals who are adept at improvising solutions to

unoreseen challenges and be ready to deal with the any kind o business that participants may decide

on (however out o the box these ideas may be). At times, MOVERs may also have to help participants

address problems in their personal lives (such as with amily or other members o the community), which

may otherwise hold them back rom successully becoming an entrepreneur.

Introduction


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Selection of MOVE Tainees

It is equally important to select the right participants or MOVE training. All the trainees should:

l Be between 1850 years old.

l Be keen on running a small enterprise.

l Have support rom other amily members to start an enterprise.

l Be a member o a group (SHG) with savings.

l Be eligible or business loans.

l Not be involved in other livelihoods training or activities o other agencies.

Whilst MOVE training is conducted in a way that even illiterate participants can understand, better results

can be expected when the trainees have achieved 10th standard education.

The ideal Sel Help Groups o which trainees are part o should:

l Be at least two years old.

l Have a good track record o savings and credit activities or at least two years,

l Be capable o providing loans at the time when the trainees need the money to start business during

the course o MOVE training.

l Be eligible to receive loans rom relevant agencies (banks, schemes, etc.)

l Have undergone capacity building training or leadership, group strengthening, gender and empowerment.

Time fame fo MOVE Taining

For better results, a MOVE project should run or a period o 12 months. Modules 15 are conducted

in groups and can be delivered intensively over ve to ten days or, alternatively, in evening sessionsover a number o weeks. Handholding o participants between modules is important to ensure that all

participants remain comortable with the content and any problems are addressed in a timely ashion.

From modules 6 onwards, the training becomes increasingly tailored towards the individual needs o

participants who will progress at varying speeds. Group sessions may have to be held with smaller

numbers o participants who are progressing at similar speeds. Since each participant will begin to

develop individual business ideas and will have dierent needs, MOVERs will be required to devote time

to individual business planning sessions alongside delivery o ormal modules. Ideally, all participants

should complete all modules within six to eight months; MOVERs should then spend the remaining months

o the year providing ongoing support and guidance to those participants who successully establish

enterprises. This process o business nurturing is very important to achieving positive outcomes.


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Chart1


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1

MODULE

1A

GOAL SETTING GAME

Steps 1. Draw three circles one large, one medium and one small. The largest circle should be ve

eet away rom the standing point.

Objective To understand importance o setting goals in business.

Key ConceptsGoals; Business; Income groups; Population size; Risk; Team building;

Individual eort; Probability o success.

Link to MOVEAll income generating activities need goals to set targets or prot and growth. This game is an

introduction to the concept o setting goals.

Time RequiredTo train 20 participants:

60 minutes to play and 30 minutes or analysis.

More time to be allotted i more than 20 participants.

5 eet10 20 50

Chalk

Fivecoins.

2. Write 10 in the big circle, 20 in the medium-sized circle and 50 in the small circle to signiy

the value o each circle.

3. Play the game in two parts rst with individual participants and then in groups.Exercise A: With Individuals

4. Explain how to play the game to all participants.5. Each participant will have to throw ve coins inside any o the circles. They can choose

dierent circles or the same circle. Each participant will earn points as indicated by the value

in the particular circle that the coin alls.


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6. Ask each participant how much she/he aims to earn in total and make a note o it using

Worksheet 1 (see below).

7. I a coin lands inside any o the circles, it is considered to be a successul throw. Make a note

o successul throws and how much the individual has earned.

8.Calculatethetotalforeachparticipantbyaddingallthepointsearnedineachsuccessfulthrow.Forexample,ifonecoinfallsinthesmallcircleof50,onecoininthemediumsized

circle o 20, two coins in the big circle o 10 and one coin outside all the circles, the participant

will earn a total o 90 points (50+20+10+10+0).

9. Play this game with as many participants as possible. Keep track o their targets and actual

throws. I the group is large, play with at least our individuals, depending on time constraints.

10. Make a note o the points earned by each participant.

11. Ater this round, ask the participants, questions related to the results:

a. Why did the participant aim or a particular circle?

b. Did they succeed? I yes, why? I no, why?

c. Couldshe/hehaveplayeditanyotherway? Record the answers in Worksheet 1.

A MOVER noting the results o a participants throw

Worksheet 1: Individual Goal Setting Exercise A

Name o participant Target Actual throw Reasons to choose Could she havethat target played in any other way?


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Exercise B: In Groups

1. Divide the participants into groups. There should be at least two groups with three to ve

participants each. Get each group to give themselves a name.

2. Ask each group to choose a representative who will throw coins on their behal.

3. Ask each group to decide targets beore they throw coins. The group should discuss andselect the circles in which they want the representative to throw the ve coins to achieve their

target.

4. Make a note o each groups target in Worksheet 2 (see below).

5. Make a note o where the representative throws the coins.

6. Record the points earned by each group.

7. Calculatethetotalforeachgroupbyaddingthepointsearnedpersuccessfulthrow.

Worksheet 2: Group Goal Setting Exercise B

Name o group Why was that Target Actual throw Reasons to Could they haveand representative player chosen? choose that played in any

target other way?

Goal Setting Game

QUESTIONS TO BE ASKED

Ater playing the game, participants might not be able to link its relevance

to business goals. Hence, it is extremely important to ask questions that

help the participants collectively analyse the game to link it to the goals

o business.

1. Why was the 10 point circle bigger than the 50 point circle?

2. Why was the 50 point circle so ar?

3. Why did the group choose that particular representative? (Ability, skill, seniority, position?)

4. Why did they choose that particular target? (Realistic, ambitious, greedy, under-condent?)

5. Was there any dierence between the targeted and achieved? Why? (Goal too high/low?)

How could they have played better?

6. How can they apply the lessons rom this game to a real lie business situation?

7. Was it dierent choosing goals in a group? How? And why?

Note:


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8. Were the goals set realistic?

9. Why did the group not choose to throw all ve coins in the closest circle and have more

successes?

10. Why did some throwers do better or worse in their second attempts?

11. Was the thrower condent, over condent or under condent?

12. Did the team support or not support the thrower?

13. What was the objective o this game?

CONCEPTS

Based on the answers and some skilul questioning, the ollowing points should be brought out

to show how this game is co-related to the ollowing concepts:

Goals: Start with the goal that is easier (larger and closer circle).

Business: Start business on a small scale then steadily grow bigger once you gain practice andexperience.

Income groups:Customerscanbedividedintogroupsaccordingtotheirincomelow,middleorhigh.

Population size: The low income group is numerically the largest and the high income group is

numerically the smallest.

Risk: On starting a new business, targeting the high income group is a risky strategy. On the

one hand there is potential or high prots. On the other hand the market is small and substantial

investment is needed to provide products/services o high quality.

Team building: Know the capabilities o team members; trust and support the team.

Individual eort versus group eor t:The dierences between individual eort and group eortin a business can be demonstrated.

Probability o success: The ground in this game is uneven coins may roll or bounce out o the

circles. Similarly, trainees need to be aware that, in business, plans can be eected by uneven

market conditions (e.g. fuctuating prices) that can infuence the probability o success.

EXPECTED OUTCOME:

Understand the concept o setting goals

LESSONS LEARNT

The trainer should summarize the lessons learnt which are largely based on what the participants

come up with in their analysis such as:

3 In business, be very clear about setting goals.

3 Markets comprise o dierent customer segments. Each segment, like the circles in the

game, has its own challenges and benets.


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3 When starting a business, be clear about which customer segment is the target low, middle

or high income customers.

3 When choosing a segment to target, decisions should be based upon the strengths o the

entrepreneur.

3Goals help keep track o progress over time.

3 Goals oten work as a driving orce. Meeting goals provides a sense o achievement, a

reason to celebrate and stay motivated.

3 Aim to grow step by step. Start small, gain experience, then move up the ladder; add on

products or services based on an understanding o what customers need and want.

I appreciate a woman who sets her goalsclearly and achieves it. I also appreciate it

when someone plans to start smalland grow big.

Goal Setting Game

ACHIEVABLE TARGETS

During the game, Anasuya aimed three times or the circle marked 50 points, once or the20 point circle and once or the 10 point circle but ailed to get any o her coins into any circle.Jayathumbi, however, played ater watching a ew other participants. She aimed at the 10 pointcircle the rst two times and successully threw her coins into that circle. She then aimed twiceor the 20 point circle and got one coin in. However, she was not able to get her last coin into the

50 point circle. During the analysis Jayathumbi said that she wanted to start small with the10 point circle as it was very easy to get to and then gradually aim or the higher value ones.She said she did not want to take big risks.

Anasuya on the other hand said that she targeted the higher value circles as she wanted to get asmuch as she could per throw since she was poor and needed money. Later, I realized that maybeI would have earned some points i I had targeted the largest circle which was closer to me, insteado getting nothing by missing the circles which had a higher value but were urther away rom me.


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MODULE

1B

TOWER BUILDING GAME

ObjectiveTodemonstrate the challenges and benets o working in teams.

Key ConceptsTeam work; Varied roles.

Link to MoveTo eectively run a business or complete a task, members o a team will have to work together,

delegate responsibilities, and learn to cooperate.

Time RequiredFor20participants:

20 minutes to play the game and 20 minutes or analysis.

More time to be allotted or more than 20 participants.

Steps1. Divide participants into groups o our.

2. Give each group seven stones o varyingshapes and sizes.

3. Ask each group to place the stones one on

top o the other (not side by side) and make

a tower (gopuram) within a minute.

4. Note the time taken by each group in

Worksheet 3: Group Exercise. The group that

builds the tower that stands is the group that

wins.

Cooperation in a team can reap huge

benefts in Business

7stonesofvarying shapesand sizes

Stopwatch.


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Worksheet 3: Group Exercise

Group Name Group Members Time Taken


1. Was it easy to build the tower?

2. Why did one group build their tower aster than others?

3. Did everyone contribute when building the tower? I yes, how? I no, why?

4. How does the game relate to building a business?

5. Why did each group decide to play the way they did?

6. Couldthegroupshavecompletedthetaskanyfasteriftheyhadplayedinotherways?

7. What various roles did team members play?

8. How did the teams allocate these roles?

CONCEPTS

Team work: Having members with dierent abilities in a team can bring benets, as long as

there is unity and cooperation.

Varied roles: In a business organisation, dierent members play dierent roles according to

their abilities and resposibilities.

EXPECTED OUTCOME:

The trainees understand that build ing a business

enterprise needs the skills o all team members.

LESSONS LEARNT

3 People have dierent abilities.

3 Cooperationamongstmembersofateamisveryimportantinbuildingasuccessfulbusiness.

3 Each member o the team should contribute according to their specic abilities.

3 Team members should support each other.

3 Unity and commitment are required to make a business strong.

Tower Building Game


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There is danger that the women will playthe game and not understand why it

is relevant to a business. It is extremelyimportant to make this link while

analysing the game

TOWER BUILDING

Aswini is a 19-year-old girl rom Kalakeri, a village near Dharwad city, in the state o Karnataka.She used to attend school but her parents orced her to discontinue her studies. This ended herdreams o higher studies. She had undergone tailoring classes with a lady rom the village or ourmonths, but did not know how to put this skill to use. She spent her days sitting at home idle,but knowing very well that she wanted to start a tailoring business. Then she joined the MOVEtraining.

From the MOVE training she learned dierent business concepts, e.g., that it is important to x

goals to enable gradual growth. With the tower building game she realised that she could notdo a business on her own and that it was important to have a team supporting her. Accordingto Aswini, her team includes her mother, the kasuti teacher, some students and the people rom

whom she buys raw materials.She has been doing kasuti work or three months now. Her mother gave her `3000 to buy atailoring machine and she also accompanies her to the market or her purchases. Her mother saysthat she is supportive o her daughter, So that she can learn new things. According to Aswini,all this is done or her mother to ensure Aswinis nancial independence, even ater marriage.

According to Aswini, ater the MOVE training, her being able to leave the house and do kasutiwork is one o the many changes that have taken place in her lie. She says that she can now besel-sucient and in case her husband doesnt provide or her, she can work and be sel reliant. Inthe uture, she wants to open a shop rom where she plans to run a tailoring and a kasuti business.Five years rom now, she wants to have a big shop in the city.


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9

MODULE

2 A

WEDDING CARD GAME

15colouredchart

paper sheets

(3 sheets o 5

colours)

12transparent

sheets (3 sheets

o 4 colours)

3brownsheets

3gluesticks(gum tubes)

3scissors(or

blades)

3rulersorscales

3setsofmarkers/

colored pencils/

sketch pens

Currency

(photocopied

money).

Objectives Tounderstand various roles in a business organisation.

Tounderstand the importance o customers or the success o a

business venture.

Key ConceptsRoles and responsibilities; Wholesaler; Retailer; Prospective customer;

Customer; Customer needs and wants; Customers perception o

products; Customer is king; Maximum utility o raw material; Costing.

Link to MoveThis game will simulate a decision-making environment where

participants have to buy raw materials, make a product, delegate

specic responsibilities, ensure timely delivery, set reasonable prices,

negotiate, and estimate prot margins. This exercise introduces the

idea o customer orientation, which is the central ocus o MOVE.

Time RequiredFor20participants:

80 minutes to play.

60 minutes or analysis.


StepsSet Up the Companies

1. Divide the participants into groups o at least our to ve members representing companies.

2. Explain the roles and responsibilities o General Manager, Production Manager, SalesManagerandFinanceManagerofacompany.

3. Ask each group to orm a company, name the company and chose team members who

will play theroleofGeneralManager,ProductionManager,SalesManagerandFinance

Manager o their company.


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Purchase o Raw Materials

4. Give each company some money (photocopied currency notes) to buy materials based on

their requirements.

5. Trainers set up a wholesale shop where

participants can buy the materialsnecessary to make the cards. At the shop

ensure that all materials are displayed

with price tags.

6. Ask the companies to buy raw materials

rom this wholesale shop to make sample

cards. There can be cards o many

designs. (Note that this game can also

be played with other cards like greeting

cards, birthday cards, etc.)

Sample Production

7. Give the groups 20 minutes to make

sample cards to sell.

Order Procurement

8. A second trainer must act like a genuine

prospective customer speciy her/

his requirement, bargain and place

orders with the companies based on

thesamplecardstheymake.Forthis:

Each company should introduce

themselves and give reasons or

the name they have choosen.

Each company should present

its sample cards to the trainers,

explaining the eatures and giving

the prices o their product(s). This should take no more than ve minutes a company.

Thetrainerthenplacesorderswiththecompaniesonly i the sample cards satisy her/

his requirements in terms o design and quality. The price should be negotiated beoreany order is placed. More than one type o card and dierent quantities can be ordered.

Mass Manuacturing

9. Companieshave60minutestodelivertheirnalmassproducedcards.Keepthewholesale

shop open or this period so raw materials are available.

10. Each company must record the details o material purchased in Worksheet 4.


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Worksheet 4: Materials Purchased and Name o Company

Items purchased Quantity bought Quantity used Cost price Total cost price

Final Sales

11. Trainer to check the products careully. I it is seen that the nal product is not o the same

quality as the sample, then:

Feelfreetorejecttheproductandcanceltheorderor

Buylessnumberofcardsor

Negotiatealowerprice.ThishelpsthecompaniestounderstandthattheCustomerisKING.

12. Each company records details o their sales in Worksheet 5.

Total Cos t: Total Sales:

Prot* Made: ` _____________*Prot=TotalSalesTotalCost

TotalCost=Sumtotalofcostofallrawmaterialsusedforcardsofalltypes.Total Sales = Sum total o sales o all the cards o each type

Analysis and Review

13. Demonstrate with one company how to calculate the cost o producing their cards. Ask other

companies to do the same.

14.Calculateanapproximateprotforeachcompany.

15. Discuss ways by which their prots could have increased.

Ensure that hidden cost actors, like scissors and glue, are considered.

These costs per card can be calculated by f rst estimating how many cards

these materials can be used or. Then, their price can be divided across

the number o cards, e.g., i a bott le o glue costs `20 and i it can stick 40

cards, the cost o glue is `0.50 per card (`20/40 cards).

Worksheet 5: Sales o ............................. company

Card Items needed Total amount Number o Number o Total sales Reasons ortype and the spent on raw cards cards sold or each cards not

quantity material made type o card being sold? required

Note:

Wedding Card Game


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Analyse the game by asking the ollowing questions:

1. Which company actually asked the potential customer what was wanted?

2. Would the companies have been more successul i they had asked the customer what kindo card is needed and then produced exactly according to the needs?

3. How many cards did the companies accept as an order? Was it realistic in the given time?

4. What amount and variety o raw materials were purchased and how was it used?

5.Couldthecompaniesdeliverontime?

6. Price: How much is the customer willing to pay?

7. Quality: What eatures did the customer want in the product?

8. Product: What type o card did the customer want?

9. What was similar and what was dierent about the approaches taken by each company?

10. How do the prots made by the dierent companies compare?

11. Why did they choose the particular team members or the position o General Manager,

ProductionManager,SalesManagerandFinanceManager?

12. Did they actually unction in those positions?

CONCEPTS

General Manager is a person who supervises all the

unctions o the business. She is involved in all majordecisions taken in the business and is responsible or the

overall growth o the business. She is responsible or solving

any problem the business may be acing. She should help

all other managers in their work.

Production Manager supervises the production

section o the business. She is responsible or the

quality o the products and its timely delivery.


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Sales Manager is responsible or selling the products and

increasing the number o customers. She should see that

more and more potential customers become real customers

and increase the number o products sold. She is responsibleor the total sales o the business.

Wedding Card Game

Finance Manager is responsible or tracking the cost

incurred at every stage o the business and the prots

earned rom the sales. She should be able to nd

means o cutting costs and increasing the prots. Also,

she is responsible or determining the selling price o a

product/service and making maximum prots.

Wholesaler is someone who buys the product rom the producer

and sells it to the retailer. The wholesaler does not sell directly

to the customer.

Retailer is someone who buys the product rom the producer

or the wholesaler and sells it directly to the customer. In a small

enterprise, usually the producer plays the role o a retailer as

well and sells the products directly to the customers.

Potential customer is someone who can be a customer,but has not yet bought any product/service rom the

business. Potential customers can be identied based on

the needs and wants o that person.


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Customer is someone who has actually purchased at

least one product/service rom the business.

Customers needs and wants: The trainee understands the importance o meeting the customers

to know their needs and wants.

Customers perception o products: The trainee understands that the producer should make

the product according to the customers choice.

Costing: The trainee learns how to account or all costs to produce an item.

Maximum utility o raw material: The trainee understands the advantage o buying raw materials

in the right quantity and using it to the maximum.

Profts are calculated by subtracting the total costs (o production or delivery o services) rom

the total revenue generated through sales. The remaining amount is the prot. I the costs are

greater than the revenue generated, then there is no prot and the business is making a loss.

Competition: The trainee understands that markets are always competitive; there will be other

businesses oering the same product or service at dierent prices and/or qualities.

EXPECTED OUTCOME:Trainees understand that the Customer is King!

Understanding the customers needs is

required beorebusiness operations begin


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LESSONS LEARNT

3 The customers perspective is most important, and cannot be ignored. Small enterprises

who produce without knowing the customers choice may ace losses.

3 The entrepreneur should know the market and the price o competitive products.

3 Foranybusinessitisimportanttoask,Whyshouldthecustomerbuythis?WhatdoIhave

toofferthatcompetitorsarenotoffering?

3 Like in the tower building game, the wedding card game trains the trainee to work in a team.

Even in real lie business situations, skills o each member in a team must be used to the

maximum or the business.

While probing I make sure I dont givethem answers, but only help them to think

more careully so that they can give theanswers themselves.

Wedding Card Game


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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 dierent challenges which were also aced in many other villages.

Group A presented the trainer two sample cards, but he thought that neither o them was o goodquality. He said, Do you expect me to buy these pieces o garbage just because you made them?The participants were orced to sit out or the rest o the session with nothing to do because theyhad ailed to make a sample that met the standards o the customer.

Group B created the nicest, most ornate cards o all groups. It took women approximately15 minutes to draw the intricate design work on each card. Unortunately the groups representativeset the price at 80 paisa, which was actually below the production costs. The trainer readilyagreed to this price and ordered 15 cards. The group slaved away making the cards and despitetheir hard work and the outstanding quality o their product, they suered a deep loss.

These women learned a lesson they would not orget: No matter how high the quality, i thepricing is not xed correctly, they will make a loss. Only one o the our women in Group C

was working. This woman complained, These three arent working. I am the only one doinganything. Unortunately, she was not able to delegate responsibility eciently and give the otherwomen tasks to do, such as cutting and gluing. The group ell well short o the target order andthus made only minimal prots.

It was also ound that the impact o the game was dependent on simpliying the rules soparticipants could easily understand the results. In Kottur village, the women were given 200

to buy items such as glue, markers, and scissors. Because these items could be used over and overagain, it was dicult to calculate the actual cost per card and prots. The trainers attempted tocost these materials by estimating that one tube o glue could last or approximately 200 cards,so they divided the cost o glue by 200. They made similar calculations or markers and scissors.The nal gure was given to the women when the prots were calculated.

However, with such complicated calculations (which the participants were not involved in), the

participants could not understand the actual cost per card. As a result, the companies set theirprices based on random estimates and each group spent about`100 regardless o how muchmaterial they actually needed. In short, they bought materials and sold products with no clearidea o what they had actually spent and how much prot they had actually made on each card.

In contrast, in Mugad village, women were given glue, scissors, and markers or ree. Despitehaving plenty o initial capital, they bought only the amount necessary to make their samples. Theparticipants in Mugad were more aware o the expenditure on raw materials so they estimatedthe cost o production per card and set prices above that cost. This was a simpler process, easilyunderstandable by participants


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MODULE

2B

BUYING AND SELLING GAME

Steps1. Explain the basic premise o the game; two groups will set up retail shops and two groups

will act as customers and buy rom the shops. The groups who start shops will buy their

stock rom a wholesale outlet managed by the trainer.

2. Divide trainees into our groups two customer and two retailer groups.

3. The trainer sets up the wholesale shop and displays all products with price tags on them.

Prices should be slightly higher than what she paid to indicate wholesale margins.

4. Provide each group with equal amount o money (photocopied currency notes o all

values). Also, the amount given to each retailer group should be more than hal spent by

the trainer to buy materials. Hence, i the trainer spent `200, each retailer group should be

given `120.

5. Retail groups give their shops a name and display their products with price tags.

6. Ask the retailer group to estimate in advance total sales, estimated prots and enter this

inormation in Worksheet 6.

7. Give 30 minutes or retailer groups to buy their stock rom wholesale shops.

Soaps,groceries,

vegetables,

stationery,

biscuits, milk and

other products o

daily use

Photocopiesof

currency notes o

dierent values.

Objective Tounderstandtechniquesofbuyingandsellingfromwholesaleto retail.

Key ConceptsWholesale price and Retail price; Proft margin; Cost implications o

buying; Sunk costs; Distress selling.

Link to MoveMost people start income generating activities with the assumption

that production is necessary to make a prot. This exercise shows

participants that retailing is a legitimate business in itsel, that oers the

potential or substantial prot. They learn the techniques o buying and selling.

ObjectivesTo train 20 participants:

Twohourstoplay,twohoursforanalysis.

Moretimetobeallottedifmorethan20participants.


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10. Instruct retailer groups that the trainer would buy back unsold products at hal the price but

will not buy back perishable products like milk or vegetables rom them.

11. Each group should note the items bought and sold by each retailer group in Worksheet 7.

Also note the cost price and selling price o items sold.

8. Provide each customer group with same amount o money (photocopied currency notes o

all values). The customers should bargain or the best prices possible.

9. Give 30 minutes or customer groups to buy rom retailer groups. The retailer groups should

make the most o the selling time.

Worksheet 6: Estimated vs Actual Sales and ProftsRetail Expected Expected Actual Actual Dierence between Reasons orgroup sale prof t sale prof t actual and expected dierence

Worksheet 7: Details o produc ts so ld

Item Quantity Quantity Cost Selling Proft Turnover Prof t Reasons orpurchased sold price price margin not being

(%) able to sell


Analyse the game asking the ollowing questions:

1.Whataretheitemsleftwiththeretailergroups?Cantheseitemsbesoldthenextday?

2. What are perishable items and what kind o care should be taken while buying and selling

them?

3. What is sunk cost (an expenditure that cannot be recovered) and to what products does it

apply?

4. Why did the retailer groups buy the selected items? Why did they not buy other items? Why

did the customer groups buy the selected items over others?


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5. Which retail group was most successul and why?

6. Which products were most successul and why?

7. Which o the products yielded highest prots?

8. Which o the products incurred highest losses?

9. Which products sold the most in volume?

10. Which products sold the least in volume?

Using Worksheets 6 and 7, compare the actual results

with targets the retail groups had set at the beginning o

the game.

CONCEPTS

Wholesale price is set by a producer or the sale o goods to the retail sector. Wholesale prices

are based on volume sales and are set low enough to allow or a prot margin or the retailer.Retail price is the price at which goods or services are sold directly to the customer. Retailing is

to sell in smaller quantities at slightly higher prices.

Proft margin is a ratio calculated by nding the net

prot as a percentage o the total revenue.

Cost implications o buying; Sunk costs: Trainees

learn buying strategies and what to keep in mind while

buying. Sunk cost is a cost that has been incurred

and cannot be recoverd. High volumes o perishable

items can result in losses in the orm o sunk cost,

e.g., milk cannot be sold once spoilt.

Distress selling is a rapid sale o products, oten

at a loss. An example o distress sale is selling

vegetables/fowers at a lower cost at the end o

the day, because they lose their reshness and the

retailer may not be able to sell them later at all.

EXPECTED OUTCOME:

Trainees understand buying and selling techniques

and the relationship between various players

(wholesalers, retailers, etc.) in the distr ibution chainand how each works.

Customers buying rom retailers

Retailers buying rom wholesalers

Buying and Selling Game


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LESSONS LEARNT

3 The game establishes that there is a distribution chain in any business venture.

3 In business, keep the target segment in mind when stocking items. Higher volumes sold at

lower margins will be more protable.

3 Keeping a prot target can help us understand how much capital investment should be

made and what should be the minimum selling price to meet the target.

Retail and wholesale businesses do not necessarily have to be linked toones own production unit. It can be a completely independent activity.

There is a lot o proft in trading alone.Note:

I realised the high profts associated in

simple trading business.


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IN OUR EXPERIENCE THE BUYING AND SELLING GAME

In all villages, participants realised the importance and prots associated with retailing. InMandihal, two groups sold based on two very dierent philosophies. Group A said, We shouldmake 25% prot on each item. They attempted to accomplish this by any means necessary, andeven resorted to cheating. Group A charged customers the price or a 4kg packet o soap while

in act the packet contained only 2kg. The customers were urious, shouting at Group A andthreatening to go to Group B. Group A apologised prousely, and ater a lot o sweet talking,managed to get the customers to sit down again. But they did not learn their lesson. Next theyattempted to sell undergarments or almost double the price, saying there were our pieces in apacket which only contained two. 15 minutes o name-calling, accusations, and threats ollowed.Customers did not trust Group A to make air transactions, so they reused to buy rom theirshop. As a result, Group A made heavy losses. Group A cheated because they were too set on

achieving a 25% prot margin, which blinded them to the act that this margin did not matchmarket prices.

Group B, on the other hand, set their prices at one rupee above the wholesale price, and said, Takeit or leave it. They conducted business without any quarrelling, but their prot margins were tiny.

Group B did not take market prices into consideration. Instead o setting the price based on marketactors such as, What are the prices o comparable products? How much is the customer willing tospend? and What are the prices o the competitors? they set a very simple price ormula based onthe wholesale price. This strategy prevented them rom making larger prots.

However, most villages noticed a sharp increase in the prots made in just one hour o retailing

compared to the previous session o an entire aternoon spent producing wedding cards. Everygroup used dierent methods to buy materials wholesale. In Mugad, groups bought the cheapestitems rst to minimise risk. In Channapur, groups bought items such as vegetables because theywere consumed daily. Certain products such as ood, had moderate, but almost guaranteedprots, while clothing items generated the most prot when sold (in Kottur) and the highestlosses when they went unsold (in Channapur). These products were analysed later as high riskwith high gain (clothes), and low risk with low gain (vegetables).

Buying and Selling Game

Wholesale Retail


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MODULE

3A

FORMAT FREE MARKET VISIT

Notebooks

Chartpaperforanalysis

Markerpensforanalysis.

Objectives Toshifttheparticipantsperspectivefromthatofacustomertothato an entrepreneur.

Toidentifyprotablebusinessesinthemarket.

Key ConceptsThe 7Ps: Product, Price, Promotion, Place, Physical evidence, People

and Process.

Link to MoveThis is a milestone session because it is here that the initial market orientation takes place. What

participants learned in previous simulated sessions can now be observed in reality. Participants

will observe transactions not only rom the customers point o view, but also rom the sellers point

o view. They observe market dynamics. This session is also essential because participants begin

collecting the basic inormation needed to explore possible business opportunities and construct

business strategies.


30minutesforinstructions.

Threehoursforthemarketvisit.

Threehoursforanalysis.

Moretimetobeallottedifmorethan20participants.

StepsTwo market visits are needed. In the rst market visit, the trainees are not given any special

directionsorquestionnaire.ThisiscalledtheFormatFreeMarketVisit(FFMV),sincetraineesare

ree to do whatever they want. They are told to go to the market and nd products or services

that they think are protable and possible or them to do. The trainees are encouraged to ask any

question they want to shopkeepers or customers in the market place. They also identiy possible

business they could carry out.

ThesecondtimetheygotothemarketfortheFormattedMarketVisit(FMV).Aftertheanalysis

o all the inormation they got rom their ormat ree market visit, the women (with the trainers

help) list out all the inormation they need or their business. The trainees visit the market with a

prepared list o questions or the ormatted market visit.


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A: Types o Products and Services

1. Explain the objectives o the market visit. Participants need to understand the various kinds

o products and services that are available and successul in the market. This exposure

visit helps the trainees identiy existing opportunities and determine the kind o business

they can take up.

2. Tell the trainees that they should see the market place rom a trainees point o view and

gather inormation by observing or asking questions to anyone in the market.

3. Divide the trainees into groups o two or three.

4. Ater discussions with the trainees, decide on which market will be most benecial or them

to visit. The number o groups that can visit the same market depends on the size o the

market. I the market place is very small, then only one group should go there.

5. Finalisewiththematimeforthevisit.Givethegroupsacommonmeetingpointfromwhere

they can be picked up and later dropped o.

6. Each group will visit the chosen market to explore and observe important eatures o business.7. Give each group a notebook and pen to write down the inormation they collect during the

market visit. I there is no one in the team who can write, they should remember all the details

and, with some help, write it all down as soon as they come back rom the market. This will

ensure that the inormation is not lost.

B: Identifcation o possible business activities

1. Trainees identiy at least 10 dierent business which they may want to start.

2. Instruct the trainees to look or whatever they want, ask whoever they want, see all that you

can and encourage them to explore as much as possible.3. Visit each group during the market visits to see i they are comortable.

4. Ater they return, trainees should ll in the activity o the shops in Worksheet 8 along with any

other inormation they have collected.

5. Question the trainees to ensure that they have shared all the inormation they have collected.

Visiting the markets earlier will help the trainer in asking these questions.

Worksheet 8: Possible Business Ac tivities

Activi ty Location Name o shop/business Capital Profts Turnover

6. When the group returns rom the visit, ask them to draw a map o the market and mark and

number the shops they visited.

Format Free Market Visit


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7. Keep motivating and encouraging the trainees to express their observations ater the ormat

ree market visit. Explain that the ormatted market visit is planned only so that they can get

the answers to all their unanswered questions.


Choose 5 o the 10 business identied by each group or the analysis. Analyse the visit the same

day or the very next day, on the ollowing points:

1. Why did they go to those specic shops?

2. Why did they not go to the other shops?

3. What was the business activity?

4. Where was the business located? Describe the location.

5. How many people were involved in the business (owners and sta)?

6. How much was the investment?

7. What is the total sales o the business?

8. What is the total cost or the business?

9. What is the prot made by the business?

10. What is a good business or a successul business according to the trainees?

11. Why do they think it is a good business or a successul business? What is the criteria?

12. Did they see any product in the market which did not sell well during the Buying and Selling

game? How was that product doing in the market? Who are the customers or that product?

13. Analyse all the business based on the 7Ps.

CONCEPTS

Any business can be analysed keeping in mind the 7Ps:

Product Product is the commodity or service that has to be sold.

Price Price is the amount at which the product is sold. It is what the

customer agrees to pay or and the seller agrees to sell or. I both parties

negotiate well, then this can be a win-win situation.


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Place Place is where the shop or service is located. It is also

the distribution chain that reaches products to end consumers.

Promotion Promotion is the method(s) through which the trainee

attracts the customers.

People People are the individuals involved in the business.

It is important that they know their strengths and weaknesses

or the business and maximise on their potential.

Process Process is the system o steps ollowed to produce and

market the product or services.

Physical Evidence Physical evidence is the proo o the products

attributes which the person is trying to sell. It is something which is

tangible or the customer to see, smell, hear or eel and immediately

have proo o the attributes. This is a way to attract customers.

EXPECTED OUTCOMES:The trainees start seeing the markets

rom an entrepreneurs perspective rather than rom aconsumer point o view.

Selling is an important part o any business.

Service-oriented business is proftable.



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LESSONS LEARNT

3 The trainees start thinking more about marketing and service oriented work instead o

thinking only about production.

3 The trainees learn how to analyse any enterprise based on the 7Ps.

3 Trading is also a respectable business. Like in the buying and selling game, the market visits

also show that only selling or trading (retailing/wholesaling) can be an independent prot

making business. It is not only production related business that is protable. In act, at times

only trading can be more protable than production.

3 A trainee does not always have to sell a product. He can choose to sell only a service,

without any product.

With the help o the 7Ps the trainees can plan their business. By analysing

their enterprises based on the 7Ps rom time to t ime, this will help them in

making little changes in their business so that they can be more efcientand more proftable.

Note:

The trainees usually have some wrongideas about a ew business. They thinkit involves huge investment or that they

dont have the ability to do that business.I help them get over such

wrong ideas.


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A: SEEING MARKETS AS CONSUMERS

The participants gathered very little inormation other than wholesale and retail prices. Mostparticipants did not ask questions about shel-lie, stock, distribution, customer relations, marketsegments and other such inormation. They took the session as a chance to do some shopping andshared with other participants the asking price o retailers and (proudly) compared it with theprice they were able to bargain. During the analysis o the game, participants were asked abouttheir observations on other aspects o the business they had seen and they said, Oh, I didnt thinkabout that.

B: SABERA BEGUM PICKS THE RIGHT BUSINESS

Sabera is an illiterate woman rom a poor amily. She used to sell bangles earlier but lost her

business when both she and her husband ell ill and spent all their savings on treatment. Duringthe MOVE training, the group chose to go to the main market or their ree ormat market visit.It was here that she was exposed to a range o business and their unique points. She decided tomake a start with a sari business by tapping her old bangle customers. Within a month, witha capital o`500 Sabera bought three saris with which she started her new business. Havinglearnt about the importance o reaching out to customers in the MOVE training she attended,she began visiting houses in her village to inorm people about her new business and to invitethem to see the saris. Soon people started coming to her house to purchase saris. Within 10days she sold all three sarees and made a 15% prot o`80. The second time, she bought aconsignment worth `800. Her husband supported her by investing 250 in her third consignmento saris. She sold these in 22 days making a margin o 1020% depending on the price o the

sari. Today her customers are asking her to stock other kinds o garments, especially accessoriesor saris like petticoats and blouses. Sabera successully runs her sari business, making a 1015%prot margin in each business cycle. Her exposure during the ormat ree market visit made herrealise that i she put her mind to it, there were many business possibilities or her to explore. She

chose to sell saris and is doing so successully.



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MODULE

3B

FORMATTED MARKET VISIT

Notebooksand

pens

Chart/brown

paper and

marker pens.

Objective To observe market dynamics in detail from an entrepreneurs perspective.

Toidentifyprotablebusinessinthemarket.

Key ConceptsTarget segments; Types o retail outlets; Types o products; Distribution

chain; Investment and cost decisions; Customer needs and wants.

Link to Move

This session helps participants build the skills to understand the market. It lls gaps in knowledgewith primary research. The inormation they gather in this session will be the basis or uture

decisions on how to enter business.


60 minutes or instructions.

Three hours or market visit.

Three hours or analysis o each business activity.


Steps1. Analyse the inormation collected rom the ormat ree market visit with the groups and help

them identiy the missing inormation.

2. Ask the trainees to choose ve business activities which they want to take up.

3. Explain to them clearly that the inormation they collect during the market visits should help

them make decisions about the business they are going to start.

4. Ask trainees what inormation they would need to know or their business activity.

5. Help trainees evolve a ormat to collect inormation on the chosen business.

6. Each group should carry a notebook and pen to write down all the inormation. Any member

o the team can write or all the activities. I there is no one in the team who can write, they

should remember the inormation in detail to record once they return.

7.Finaliseatimeforthevisit.Givegroupsacommonmeetingpointfromwheretheycanbe

picked up and later dropped o.

8. Visit each group during the market visits to see i they are comortable.


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Analyse the market visit the same day or the very next day and get the trainees to answer the

ollowing questions:

1. What was the location o the business? Describe the location.2. How many people were involved in the business (i.e., owner and sta)? Describe the dierent

types o customers who visit the shop.

3. Fromwheredidtheshopkeeperpurchase

the products?

4. How much was the investment?

5. What is the total sales o the business?

6. What is the total cost o the business?

7. How much prot does the business make?

8. Analyse all the inormation the group

collected based on the 7Ps.

9. Ask the trainees to dene the business

activity and write it in the core o the fower

diagram.

10. Put each attribute associated with the

activity in one petal around the core.

11. Put each attribute that trainees think can

be added to enhance the value o the

business but is not presently being oered

in one dotted petal in a second row (see

foral worksheet).

CONCEPTS

Target segments are groups o customers most likely to buy product or services based on

attributes such as price or unction.

Types o retail outlets; Types o products: The trainees get an understanding o the dierent

types o shops and products that exist in the market.

Distribution chain is the chain o business through which goods or services pass until they

reach the end customer. It can include wholesalers, distributors and retailers.

Investment and cost decisions: Starting a business requires investments in materials and

equipment. Investment decisions need to be taken careully based on knowledge o the market,

so that this expenditure is not wasted. Good investments are those which will generate income

or appreciate in value over time.

Customer needs and wants: The trainees already start thinking o customer needs and wants

as they identiy attributes that are not currently present in businesses. They use their knowledge

fromtheWeddingCardgametoanalysecustomerneedsandwants.

Formatted Market Visit


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I will see that the trainees collect theinormation necessary to understand the

chosen business on their own.

EXPECTED OUTCOME:Trainees select possib le business activities

LESSONS LEARNT

3 Participants get inormation about the dierent products and the dynamics o the marketplace, thereby building their capacity or lateral mobility (switching business ventures).

3 Participants can choose where they want to position their business in the distribution chain.

3 Participants develop a better understanding o the 7Ps to later run a business.

A: RAI SGSY GROUP

In Amta, West Bengal the Rai group chose vegetable vending as an activity. As shown in thediagram below, the core o the fower was vegetable vending and each petal indicated:

1. Attractively displayed vegetables.

2. Fresh vegetables.

3. Proper weight o vegetables.

4. Moderate price o vegetables.

5. Cleanliness o the vegetables.

6. Good customer relationship.

The Trainer asked the Rai SGSY group i there were anyattributes that was not oered by shopkeepers that theymight want to provide to add value to their business.The trainees drew another layer o petals with dottedlines and members suggested additional eatures presently not oered such as:

1. Stock milk along with vegetables.

2. Stock sh but keep it separate rom the vegetables.

3. Give extra benets to loyal customers.

Stockfish

separately

Provideoff-season

vegetables

Reward loyalcustomers

Stock

milk

Givecarrybags

Option ofexchangingvegetables

Clean

Pricesmoderate

Fresh

Displayedattractively

ProperlyweighedHandle

customerswell

VegetableVending


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Formatted Market Visit

4. Give option or changing the vegetables i it is not good ater purchase.

5. O-season vegetables to be made available.

6. Give customers a carry bag.

B: URBASHI SHGIn Amta, the Urbashi SHG chose a grocery store as an activity. As shown in the diagram below,the core o the fower was the Grocery Store and the petals represented attributes as below:

1 Good quality products to be made available.

2. Variety o goods to be stocked.

3. Carry bags to be provided.

4. Credit acilities to be extended.

5. Good customer relationship.

6. Proper weight/measurement o the goods.

The Trainer asked the Urbashi SGSY group to listattributes not oered by shopkeepers that they elt theymight like to provide in their shop. The trainees drewanother layer o petals with dotted lines and addedattributes which are presently not oered:

1. Have a STD phone booth within the shop.

2. Deliver items to homes i needed.

3. Keep newspapers or customers.

4. Provide a an or the comort o the customers.

5. Give discounts on bulk purchases.

6. Keep mobile recharge cards.

The Urbashi group also said that they would keep their selling price down by taking less protsand selling larger volumes.

C: HIGHER PROFIT ACTIVITIES

Jayashri Goravanakolla is a 30-year-old woman who lives with her husband and has no children.

Beore participating in the MOVE training she had a tailoring business, with an average monthlyprot o `700 to `800. As this income was not sucient, her husband orced her to work or adaily wage. The MOVE training taught her new things and gave her the knowledge and selcondence to start a small business. She says, Now ater the training I have courage and amcondent that I can do business and earn money She also learned skills on how to attract customersand how to behave with them.

In the ormatted market visit to Dharwad she saw that there was a huge variety o businesspossibilities to choose rom other than tailoring. She also learned where to buy materials at

Give bulkdiscounts

KeepNewspapers

AddSTD

Booth

HomeDelivery

Providefan for

customers

Addmobile

recharge

Good

qualityProper

measure

ment

GivesCredit

Large

Variety

Gives

carrybagsGood

Customer

relaons

Grocery

Store


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wholesale rates. She also realised there was a demand or ready made clothes in her village andeven her tailoring customers were asking or ready to wear items they could purchase. Doingparallel business was an option as both could be done rom her home. Thereore she decided tosell ready made clothes as well.

To begin her business Jayasri took a loan o 2,000 rom her SHG and is presently earning amonthly prot o`1400 to `1500 which allows her to repay this loan. Because o the moneyshe is bringing in, her husband has started going with her to various retailers to buy clothes andhas even oered money in case she needed it. She now eels that her husband can join the clothes

business, especially since he is unemployed and works or a daily wage. She says, We can startdoing business in a big way.

Her nal message to women like her is that i they are willing to do something she can encouragethem! She is also o the opinion that to convince people to attend MOVE training all it wouldtake was to tell them the benets o the training, the prots that MOVE graduates are earningand how they are doing ater the training.


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Worksheet 9: Formatted Market Visit

1 Business activity

2 Investment Land Machinery

Working capitalTotal

3 Turnover Sales:

Per month Per year

4 Human resources: People:

Male FemaleSkills required: Individual(what you have irrespective

o what you have been taught) Technical

5 Wholesale price

6. Retail price

7 Who are the customers?How much are dierent kinds o people buying?

8 Period o sales (Daily/Weekly/etc.)

9 Where is it sold? Record geographic location, and types o storesthat sell the product (i.e., roadside vendors,shanties, ancy shops).

10 Who are the competitors?(How many and where are they?)

11 Protability? per month per year

12 What qualities o the product are thecustomers looking or?

13 Any other relevant inormation


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MODULE

4

UNDERSTANDING CUSTOMERS

NEEDS AND WANTS

Chartpaper

Markerpens.

Objectives To understand customers demands based on their needs andwants.

Key ConceptsNeeds; Wants; Market Segmentation.

Link to MoveIn the previous module, the participants observed how products are bought and sold and

shortlisted a ew products. This session asks the participants to link what they observed in the

market to the customers needs and wants or the products selected.

Time RequiredThreehours.

Steps 1.Clearlyexplaintheconceptofneedsandwants.

2. Make a list o at least three products and three services

that the trainees have seen during their visits to the market.

3. Foreachoftheproductsandserviceslisted,collectively

discuss the needs and wants that dierent customer

segmentsmightrequire.CompleteWorksheet10ona

sheet o chart paper that everyone can see.

4. Ask participants to tick o the customer wants that they can satisy.

5. Clearlyexplaintheconceptofcustomersegmentation.Thenaskparticipantstoidentifythe

customer segments or each product or service.

Worksheet 10: Needs and Wants

Product/service:

Customer needs Customer wants Can we satisy these wants? Customer segment


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CONCEPTS

Needs: The minimum attribute(s) that a customer would require rom a given product or service.

Wants: The extra attributes that are not essential but which a customer may look or in a given

product or service. It is based on these extra attributes that customers will select a particular

brand o product or particular service provider over the alternatives available in the market.It is rarely possible tosatisfy all wantsofall customers. For instance, satisfying the want

or high quality packaging may rule out the possibility o meeting the want or a low price.

Thereore entrepreneurs need to consider which wants are most important to satisy based on

an understanding o their customers priorities.

Understanding Customers Needs and Wants

Product: Detergent

Customer Needs Customer wants Can we satisy these wants? Customer segment

To clean clothes Lathers well 3 Everyone

Gentle on hands 8 Everyone

Pleasant scent 3 Middle / Upper income

Low price 8 Lower income

Service: Restaurant

Customer Needs Customer wants Can we satisy these wants? Customer segment

To serve ood Tastes good 3 Everyone

Variety o oods 8 Middle / Upper income

Hygienic practices 3 Middle / Upper income

Comfort8

Middle / Upper income Friendlystaff 3 Everyone

Fastservice 8 Everyone

Low price 3 Lower income

Customer Segmentation: Customers needs and wants relating to a given product or

service are likely to depend upon specic characteristics such as age, gender, religion, level

o income, liestyle choices (e.g., ood habits), etc. By categorising customers based on such

characteristics, we can reer to dierent market segments. Since it is very dicult to cater to

the wants o customers in all market segments, it is good practice to target one or two specicsegments only. Doing this helps entrepreneurs to have clearer business goals and to serve their

target customer base more eectively.

EXPECTED OUTCOME:

Trainees understand that

they need to ocus on satisying those wants

which are most important or the customer.


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I dont give anyclues to the women. They decide on theirown what questions they should ask the

customers to understand their wants romthe product. I I help them with clues, theywill not learn properly. I correct them later

during analysis.

LESSONS LEARNT

3 Trainees should understand that the commodity they produce or the service they provide

should always satisy the minimum needs o their target customer base.

3 Trainees should understand that dierent customer segments want dierent attributes rom

a product or service and it is not possible to satisy everyone. Thereore they should identiythe most important wants o their target customer base and nd ways to satisy them.

3 Trainees should understand that the costs o providing extra attributes in order to satisy

customerwantsmustnotexceedtheextraprotsthiswillgenerate.Forexample,itdoes

not make good business sense to provide good quality packaging i the costs are high and

customers will only pay a little extra or this eature. Better to ocus instead on satisying other

wants which give higher returns.


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Understanding Customers Needs and Wants

MY CUSTOMERS WILL COME BACK TO ME NOW

Sandhya is rom a poor amily rom Sreerampore. Ater her husband died three years ago, she gotinvolved in her ather-in-laws grocery store business. She lives in a joint amily with her son andshe supports her amily with the prots rom her store. While visiting markets during module 3 othe MOVE training, Sandhya learnt about dierent ways to attract customers. In the beginningI took this training lightly as any other training! But it was rom Module 3 onwards that I reallygot interested and started paying attention. It was Module 4 (needs and wants) that she oundmost helpul and when applied, it made a big dierence to her business. Also, the analysis o aservice oriented business with the help o a fower diagram helped me a lot.

Sandhyas grocery shop is located on the main road near a bus stand and one o her maincompetitors is positioned right in ront o her store. Her competitors business was doing much

better than her own. She began applying what she had learnt in the MOVE training especiallyon service quality, and within three months, her prots doubled. Ater training on MOVEI started studying my competitor his behaviour, what kind o products he stocked, what kind

o services he provided. I also learnt how to target customers, how to sell better, and about thevalue o time. She has started adding value to her service in little ways like keeping sucientchange. My competitor never has change, so customers are orced to buy what they do not reallywant. I even sell small quantities since I know that my customers will come back to me whenthey want large quantities as well. When there is a complaint, she exchanges the item withouthesitation,. This has built trust amongst her clientele. She now believes above all in courteousbehaviour. I might lose out on some immediate prots but in the long term, I am a gainer as

I never lose a customer. Clients come back to me now.She opens her shop on time. She makes sure that she is punctual, unlike others. Customers knowthat her shop can be relied on to be open. She even keeps her shop open on estivals when othershops remain closed. The wholesalers also know that my business is consistent and doing well

which has helped me a lot. As a result, I have started getting credit rom them, which was not thecase earlier. I make it a point to pay them back on time.

Sandhya has begun to ocus on what customers want which other shops do not provide. I cangive you an example the shop opposite did not have a ready light or cigarettes. I started keepinga lighter tied to a rope in the corner o my shop so that people could just light their cigaretteswithout having to buy matches.

Today she is doing ar better than her competitor. She has not only retained her customer basebut has also been able to attract new customers. Her business is more market oriented and clientsensitive. Her capacity to access credit has increased. With an expanded clientele her prots havedoubled rom 2,500 to 5,000.


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MODULE

5

EATERY GAME

Chartpaperorbrown paper

Markerpens.

Objectives To help participants understand the concept o service as distinct

rom a product.

Key ConceptsServices vs Products

Link to MoveThrough this live experience o running a business, participants understand several business

concepts related to service provision.

Time RequiredOnedayforthegame.

Threehoursfortheanalysis.

Steps1. Divide the number o participants into groups o six or eight.

2. Instruct the group that they have to set up eatery shops or a day. They should decide where

to set up the eatery and when to open it. They should plan and buy materials to prepare

items to sell in the eatery rom the market.

3. Participants have to orm an eatery and name it.

4.Theyhave tochooseaGeneralManager;FinanceManager;ProductionManager;Sales

Manager rom their group.

5. They have to create a plan on

Wherewilltheysetuptheshop?

Whattimewilltheyopentheshop? Whatwilltheysell?

Wherewilltheybuytherawmaterialsfrom?

Whatwilltheirspecialtyofproductsbe,ifany?

Whatarethedifferentservicestheywanttoprovideintheeatery(ambience,cleanliness,

seating, music)?

6. Ask the groups the time and place or their eatery shops so that it can be visited.


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7. Tell the group that the analysis o the game will be done the day ater the game and they should

be prepared with data as per Worksheets 11 and 12. List in the Worksheets preparations

or selling, quantity to be sold, cost price and selling price o each item individually and

estimate prot

8. Visit the shop at the time given by the group to check i the shop was set on time since,

punctuality is an important aspect.

9. Write down all your observations so that it can be shared with the trainees during analysis.

The observation points should also include:

Whatitemsaretheyselling?

Whydidtheychoosetosellthatitem?

Whydidtheychoosetosellinthatparticularplace?

Whatpromotionalactivitiesdidtheydotoattractcustomers?

Whatwastheprocessthatparticipantsunderwenttoreachthesellingpoint?

How clean is theeatery?Check for

physicalevidenceofcleanliness.For

example, i there are trash-bins in

place or whether let-overs are strewn

all over the foor and/or other suraces.

Howwastheworkdividedamongthe

group members?

Howwastheeaterymanaged?

Whichmemberswereinvolvedinthe

eatery and what were their roles?

Howwerecustomersserved?

Worksheet 11: Total Costs

Name o the company: Final item:

Raw materials Quantity Cost Quantity Closing Processing Amountbrought price used stock cost made

Eatery Game


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Analyse all the eateries set up by dierent groups.

1. Discuss all the aspects o the eateries based on notes o trainers.

2. Relate the dierent eatures o the shop with the 7Ps showing them the ollowing:

Product Mix

Product

Place

Price

Promotion

Service Mix Addition

PhysicalEvidence

People Process(evaluationhappensateverystageofaprocess).

3. Discuss the competitors around them.

4. How did each consumer behave in ront o the eatery stall? What questions were asked,

what was bought, how much?

5. Did customers give eedback on the service? (quality o ood, price, warm/cold, etc.)

6. What service strategy was used to sell? How were customers attracted? How were objections

handled?

CONCEPTSUnderstanding the dierence between products and services:

1. Products are tangible and services are intangible.

2. Products are standardised, while services are heterogeneous. Link variation to price (fower

stringing compared to bouquet).

3. Forproducts,productionandconsumptionoccurindifferentplaceswhileforservicesthey

typically occur in the same place.

Worksheet 12: Total Sales and Prof t

Items Total Selling Total Amount Stock Total Overheads Proftcost prices sold let sales


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Eatery Game

4. Products are normally non-perishable. In contrast, services are time-bound and tend to

dissipate as soon as they are delivered.

5.Customerfeedbackisimmediateforservices.

6. The scope or value addition within services tends to be higher than with products.

7. You cant keep stocks o services like you can products.

EXPECTED OUTCOME:

The participants understand

the basics o running a business

LESSONS LEARNT

3 Participants understand the concept o a service and how it diers rom products

3 They understand how to keep a variety o items in dierent quantities

3 They understand how to calculate prots on multiple products

3 They learn the importance o choosing appropriate, quality raw materials.

When the trainees make a proft rom the eatery shop, their conf dence gets

a BOOST. This is also because they do everything on their own, without

any help or advice rom the Trainer.

I dont give them any advice on whereto set the eatery or what to sell. This way

their ownership over the eatery increases.

Note:


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A DAY THAT CHANGED JAHURA BEGUMS LIFE FOREVER

Ater the death o her husband, Jahura was unable to make ends meet as he had been the soleearning member. Though her husband was a business man, Jahura was not involved in hiswork so she was clueless about how to run a business. Thereore, the MOVE training was anopportunity not to be missed.

The eatery game made a huge impact on her she elt she had the ability to run a business and

was condent about making a prot. She learned how to buy materials, how to attract customersand how to satisy them better. The real-lie experience o the eatery game made her determinedto run a successul business. That day she decided to start her own retail rice business and itchanged her lie orever.

The customers purchase the rice rom my house. I sell it by weighing the rice in ront o them.This gives them more satisaction. The customers are also happy with the quality o rice I give.The eatery game gave me the sel-belie to start a business on my own, she explained and added,I will apply or a bigger loan to expand my existing business. MOVE training has given me thecondence to run a business. Now I make a prot o `800 per month. I will be able to earn moreprot i I can expand the business, and there is ample scope or that as the demand or rice in thisarea is very high.

Documents

MOVE Manual for Commodities and Services