Session 4: Conducting Market Research Supply Chains
Danielle Pedi & Mimi Jenkins SanMark COP Prac55oner Training
Sanita5on Marke5ng Community of Prac5ce WASH Reference Group
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Session Goals • Know how and why to conduct supply chain research • Prac5ce building a supply chain map
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Step 1. Assessment and Planning - Assess market and partnership conditions. Plan and budget for your program
Step 2. Market Research - Understand poor household consumers and local businesses and supply chains
Step 3. Product Design - Design affordable, desirable sanitation product/service options
Step 4. Test Supply-side Strategy
Step 5. Test Demand Creation Strategy
Design & test supply chain & business models for product delivery
Design & test promotional & marketing materials/ tools/ activities
Step 6. SanMark Program Implementation - Piloting and roll out of SanMark supply expansion and demand creation activities
Step 7. Monitoring - Monitor for results and equity Sanita5on Marke5ng Community of Prac5ce WASH Reference Group
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What is a ‘supply chain’?
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What is a Supply Chain? A network of businesses that coordinate and par5cipate in the produc5on, delivery, and sale of a product to the consumer. Raw materials
Manufacturing
How, when and from where do supplies and material inputs reach manufacturers?
How are these raw materials converted into finished products?
Distribu4on How do products reach end consumers?
End Consumers
Typical Sanita5on Actors
Raw materials Sand suppliers Cement factories and suppliers Importers/large scale distributors
Manufacturing Masons Builders Concrete producers Plas5cs manufacturers
Distribu4on Retailers Transport services Sales/promoters Masons MFIs
End Consumers
Why?
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Supply Chain Research
• Understand impacts on THE CONSUMER • Understand what TYPES of businesses are in the supply chain • Understand how they connect to each other • Start to understand needs & characteris5cs of different business types • Make a CONCEPTUAL MAP
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How?
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1. Identify
Use key informants, observation, snow-balling, cross- check and collect pricing data along the way. Sanita5on Marke5ng Community of Prac5ce WASH Reference Group
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2. Understand
In-depth interviews, group discussions, conversations.
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3. Map
1.
Research/Stories 2.
Insights 3.
Conceptual Map
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What?
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Need to know…
•
What are the geographic locations of key markets/businesses and business networks? • For each business type, what are their approximate size, product and service offerings (sanitation- and non-sanitation), and existing customer base? • What are their typical approaches to business and financial management, human resources, cash flow and credit? • What approaches to marketing, promotion and sales are used? Sanita5on Marke5ng Community of Prac5ce WASH Reference Group
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Need to know…
•
What sanitation products, components and material inputs, are available, including prices, margins and volumes? What construction and
maintenance services/skills are available? • How do businesses link together? How do similar types of businesses compete and/or collaborate? • What is the estimated scale of market activity, including the number and geographic scope of market players and distribution channels? Sanita5on Marke5ng Community of Prac5ce WASH Reference Group
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Tips • Do the math! • Focus on solving CONSUMER problems Consumers are most important link in chain
• Triangulate, cross-check, verify
• 20-40 interviews (depending on scope)
• Stop when you start hearing the same things • Map what you see, hear • ASK: So what? • Don’t forget about transport
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From stories…
Cement depot, main border market town
To insights…
Cement dealer, remote rural district
To conceptual map…
Source: SNV Bhutan
Lets Try It - Supply Chain Mapping 1. Get into country groups 2. Choose 1 or 2 common materials in your consumer’s ideal latrine. 3. Map what you know (& don’t know) 4. Don’t forget to think about costs & prices at every step…and don’t forget transport
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