RiSE

RURAL AND URBAN INNOVATIVE SOCIAL ENTREPRENEURSHIP (RISE Ltd.) is established in January 2008 and employs 35 people. RISE aims to provide quality micro-financial and support services to the poor, especially women. They want to enable them to have better control over their life and becoming own agents of economic and social development. Amongst them the group of poor holding land up to 1 hectares is the biggest of the targeted segments of RiSE clients. RiSE also caters to the Urban areas where the clients develop economic activities related to microenterprise activities. Hence as am emerging MFI RiSE has delivered on its ability to cater well to both the rural and urban clients.

RISE's target clients are the economically active poor whose household income varies from € 40-95 per month and hence do not have access to proper formal financial services. Current annual turnover as on 31^st March 2010 is € 335,000 with 3,500 household clients. As on 30^th July RiSE had a client base of 4,642 clients with a turnover of € 428,000

Their goal for the years to come is to focus on building upon a business model that will promote social and economic sustainability to serve a larger clientele base of poor masses (6.8 Million by FY 2018). Next to that, they place emphasis on staff and client training programmes for capacity building to support growth.

 

Business case
Mr. Rupaal Singh, CEO of RiSE, wanted to make an analysis of its current marketing & sales strategy and write an improved strategy plan.

The main factors that RiSE wanted  to focus on in this analysis is the perspective of searching its niche and positioning itself in terms of what it stands for and wants to deliver to its clients. RiSE wanted to bring out clearly to its clients its operational practices and wanted  to highlight how it can make a positive impact to its clients' lives. Also, RiSE wants to have a marketing strategy towards existing and potential financial funds and sponsors as the availability of financial sources is crucial to RiSE.

In order to advise RISE regarding above mentioned topics, they asked forsupport of an experienced marketeer in the financial services sector. A professional who knows how to promote different financial products and meet the needs of (potential) customers, and who has a strong financial background.

SharePeople linked Mr Rupaal Singh with Mr. Marcus Looijestijn. Marcus is Vice President of ABN AMRO Mergers & Acquisitions. Before that he worked as a Senior Associate ABN AMRO Strategy, Marketing & Business Development. He has got vast experience with strategy development in finance, marketing and portfolio management.

Results

Analysis
Marcus and Mr. Singh worked closely together on the case.The information was mainly gathered through interviews with the CEO and other members of the RiSE organization, combined with desk research, client visits and interviews in rural and urban areas.

Advice
The expert and CEO together designed a presentation with high level recommendations how to further strengthen the organizations' marketing strategy. This included recommendations regarding: strategy for growth, marketing strategy, marketing opportunities (clients, media, TSP, funds and sponsors)

Which recommendations did the expert have?
The most important contribution Marcus had to the organization was that he raised awareness regarding the importance of brand building at this stage of their development. Important advice was to focus their approach more towards balancing their priorities.

Important recommendations were a.o.:

Confirmation of the importance of the current strategy. Growth is a vital necessity for RiSE in order to lower its operational costs per client, become profitable, attract funding, get an NBFC license/find an alternate legal provision to attract funds and to be able to diversify via partnerships

The expert also advised that the first and utmost important task for RiSE now is to attract equity. Only with equity it can attract and leverage funds to grow. The second important step is to grow its number of clients to a level where RiSE becomes a known brand and strategic partners would want to step in and join forces.

From a marketing perspective this means that first attention goes to the way that RiSE approaches possible sponsors. The pitches of the CEO should be accompanied by a professional document like a prospectus or information memorandum (IM) that contains the exact investment proposition.

Impact on the partners
Professional and personal development of the expert;

Marcus Looijestijn: "It was very interesting to discuss strategic issues with the CEO. The topics were interesting for both me as well as Mr. Singh, there was a great exchange of knowledge, vision and cultural differences"

Professional and personal development of the entrepreneur:

Rupaal Singh: "I stand satisfied with Marcus inputs as they were very relevant to our currents scenario. I learned to apply a more focused approach to brand building. Also, I got more detailed insights into the functioning of the Dutch market and understanding the professional world from a Dutch perspective"

Follow up
What will be the follow up of the programme on the short term?

Rupaal Singh will revise the Information Memorandum (Prospectus), according to the inputs agreed upon in the final presentation. Marcus would like to stay involved with RiSE, and will try to support the company from a distance in their aim to grow. E.g. he will try to set up linkages with possible investors in the Netherlands.

What are the plans for the future on the longer term?

The recommendations in the Strategy and Marketing Plan developed by CEO Rupaal Singh and Marcus Looijestijn give the organization important directions towards:

• Becoming a preferred and sustainable microfinance institution in the North and Central region effecting over 6,800,000 households by 2018 through a market-led approach. The first target now is a loan portfolio of INR. 200,000,000 (€ 3.3 mn) by 2011.
• Becoming a recognized brand and multi-product supplier
• Transforming from a not-for-profit organization in a more regulated for-profit non-banking financial institution

RiSE already started implementing the first steps towards above mentioned objectives.