IDEI

Dutch corporate contacts reinforces market position of Indian farmers

About IDEI

IDEI is an Indian non-profit enterprise with 150 employees, committed to providing long-term solutions to fighting poverty, hunger and malnutrition. The organisation stimulates a sustainable and free market by creating demand for affordable technologies and ensuring a sustainable supply chain. IDEI has been promoting and introducing low cost drip irrigation systems in various states of India. This way they intend to develop a market for low cost drip irrigation systems for small holder farmers. Water has been a major constraint for farmers in semi arid regions of India. A change in market dynamics appeared due to the introduction of a subsidy and loan structure (GGRC). This resulted in a decrease of sales of the IDEI drip system. A major portion of the IDEI client group has therefore shifted its preference to conventional systems for reasons other than product quality or performance. The social impact of IDEI is:

• community involvement
• improving quality of life
• transfer of knowledge and skills
• positive environmental impact

Business case

IDEI wanted to win back the client group who has shifted preference to the conventional system and to add on more clients from the potential market. Therefore, the Marketing Manager of IDEI, Mr. Niraj Subrat, asked SharePeople for a team of experts with experience in and knowledge of marketing, sales and customer behaviour. Mr. Niraj Subrat found a partner in Toine van den Berk, John Merriënboer and Maria van der Heijden

With the help of the team IDEI needs to:

• reposition the product
• provide an adequate communication packag

Results

Analysis

The team of marketing experts worked on:

• Clarification of the Context and Problem
• Identification of stakeholders in sales process of IDEI's Drip system
• Field research: interviews with various stakeholders
• Real-life case of farmer meeting
• Analysis of findings
• Finalization of recommendations

The role of the dealer of the drip systems was analysed and reasons for low performance were identified. The current situation and cash flow of the farmers were analysed, next to a SWOT analysis of the Drip System.

Advice

• Price changes: with help of loans by ICICI and Rabobank Foundation and the principle of reversed auction
• Market pull (visibility, frequency of contact, membership KB club)
• 10 year package deal for KB drip (incl. SLA)
• Upgrading of the service level
• Optimizing the communication skills of personnel and strengthen promotion as a whole
• Better distribution (easy access)

Impact on the partners

Some of the recommendations IDEI already started implementing. Like working on the communication package and sequence during farmers' meeting and 10 year life projection for KB Drip. Other recommendations will be discussed during their monthly meeting and shall be taken up after discussing with field staff. They are in touch with DSM people at Delhi and will carry forward the agenda. IDEI is very hopeful of positive results. For the Dutch professionals the exchange was a great experience in which they learned a lot about business and working together in another culture.

Follow up

• Sparring partner for IDEI
• March 2007 review session by video conferencing
• Rabobank micro finance for farmers
• Direct relation with DSM (Water4life project, Fertilizers, Nutrition)
• Campaign for Butterflies telephone number