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MART Knowledge Series - 2009



                      An Approach to
                             BUSINESS PROBLEM SOLUTION
As businesses become more complex, there is a need for a more comprehensive approach to business
problem solving. While current approaches focus more on problem diagnosis, the need is for effective
business problem solutions.

The accepted standard approach to business solutions starts with business problem identification, collecting and
analyzing data and information, formulating strategy and testing it through a pilot before developing an appropriate
solution. This approach can be depicted diagrammatically as follows.

                                               Business Objective          Need for clarity of problem for better
                      Business Problem                                     scoping of business objectives
                      Identification

                                          1                                 Complete information on business
                                               Information Sharing
                                                                            problem leads to clarity on research
                                                                            objective
Problem Diagnostics




                      Get Problem              Research Objective
                      Specific Data                                        Better Understanding of scope leads to
                                               Research Design
                                          2                                better research design

                                               Data Collection

                                                                           Leads to good diagnosis and understanding
                      Analyze/Interpret                                    of problem but not solution
                                              Findings and
                      Data Information                                     Recommendations are only indicative, not
                                              Recommendation
                                                                           actionable
                                          3



                                              Strategy Formulation         Leads to a step-by-step action plan
Problem Diagnostics




                                                                           Testing of strategy and taking feedback in
                      Business Problem        Pilot Implementation         real life leads to effective strategy
                      Solution
                                                                           Creates enabling environment for
                                          4   Capacity Building            workforce to appreciate, internalize &
                                                                           apply new solution

                                              Scale Up                     Solution of problem ensures achievement
                                                                           of business objectives

Market research focuses on better understanding and diagnosis of the problem. The recommendations are indicative
and do not offer an actionable solution for the client organization to implement. Yet, these steps are critical to problem
solution. But what is required is a holistic, end-to-end approach from problem identification to solving the problem.

                                                                                                                        1
MART Knowledge Series - 2009


                                  MART Approach to Business Problem Solving- The Differentiators
Some PRA Applications:
                                  There are many challenges associated with solving business problems in emerging
 Social and Resource Map –        markets. MART is a subject specialist with an in-depth knowledge of emerging
                                  markets which enables the development of solutions that are both actionable
The Social map identifies
                                  and sustainable. MART adopts an inclusive, end-to-end approach to business
different community profiles
                                  problem solving; the approach is different in the following areas.
of the village and their social
behavior. The Resource Map        Research Design
captures               various     Qualitative To Quantitative Approach
infrastructural            and     Very little hard data is available on emerging markets as they are still at a nascent
community           resources,    stage of development. Thus, each business solution needs to start from basic
highlighting ownership and        information. MART advocates a small qualitative research to identify all important
access.      This     exercise    issues. This allows exhaustive listing of information areas to be collected for
                                  gaining a more complete understanding of emerging markets and target
identifies the various need
                                                                              consumers for the product or service
gaps for each community.
                                                                              under study.
 A Seasonality Diagram is                                                     Once the areas of information are
used to gather information                                                    identified, a quantitative research can
on income flows and                                                           be conducted in targeted geographies
expenditure patterns for                                                      to provide measureable inputs for
different communities and                                                     development of appropriate business
                                                                              strategy.
occupations. The objective is
to gain insights into the                                                     MART has compiled useful rural data
variation in purchase and                                                     some of which is available to clients via
consumption behaviors.                                                        the ‘Marketing White Book’, ’The Rural
                                                                              Marketing Book’ and other publications.
 A Need Assessment Map             Participatory Rural Appraisal (PRA)
can be developed for any           There is little understanding of rural eco-systems; rural lifestyles are different,
introductory product and          income patterns and decision making behavior are distinct from urban. These need
serves to identify issues         to be fully understood before any business solution can be developed and
associated with access,           successfully implemented.
acceptability              or     Participatory Rural Appraisal (PRA) is a very successful ethnography technique
affordability. It also brings     adapted by MART from social sector to capture rural consumer behavior. The PRA
forth need gaps and helps         approach empowers the community in such a manner that they voluntarily
assess perceived need of the      participate in the research process. Here, the role of the moderator is simply as a
product      amongst      the     facilitator. PRA enables the rural community to share, enhance and analyze
community.                        knowledge of their own environment and life. The process is pictorial in nature
                                  and drawn by the community themselves, hence cross checking and validation of
 A Daily Activity Clock           data is automatic. To capture rural consumer behavior, both expressed and
captures economic and             unexpressed.
social activity in daily life.    Use of Appropriate Research Tools
This helps identify time          Respondents in emerging markets are generally less literate and have less
windows for communicating         exposure to a variety of products and services. Thus, conventional quantitative
with the community and            research tools are not always effective.
potential consumers.              More appropriate visual tools were developed by MART to capture rating and
                                  ranking responses from the less literate. Traditional rural practices of
                                  measurement have largely been a matter of approximation. Therefore, less literate

                                                                                                                      2
MART Knowledge Series - 2009


populations find it difficult to fully comprehend and respond to
numeric measures for rating.
MART has developed a simple tool to measure rating on a five
point scale using human expressions. The highest scale is
reflected with a very happy face and the lowest scale with a very
sad face. These are used as flashcards by field researchers.

Local Data Collection Teams
 Data Collection Teams are required to be particularly sensitive to
the differences in local languages, dialects, cultures and customs
in emerging markets. MART’s practice of using local teams for

data collection ensures that local sensibilities are honored.
                                                                        Faces    Face 1    Face 2   Face 3   Face 4   Face 5
Client Accompaniment                                                    Rating     5         4        3        2        1
MART strongly recommends client staff to travel with the
research team to gain a better appreciation of rural life. This interaction between the teams in the field also helps in
developing a practical strategy and working towards better solutions for the client.
Strategy Formulation
In-depth Knowledge of Emerging Markets
MART’s decades of effort in poverty reduction through Self Help Groups and local government has given it a deep
understanding of rural institutions, organizations, resources and stakeholders.
This enables MART to design effective marketing strategies.
Access to NGO/ CBO Networks
Through its 15 years of work in the social sector MART has developed contacts with a large number of grassroots Non–
Governmental Organizations (NGOs) and Community Based Organizations (CBOs) operating in emerging markets. These
NGOs help MART identify and access desired respondents for any research study.
Highly Experienced Sector Experts Empanelled
MART has a number of highly experienced sector experts available for consultation to offer a practical solution.
Pilot Testing & Scale Up
MART strongly recommends pilot testing of the strategy developed. MART has conducted pilots in small target markets
to fine tune and scale up strategies at minimal costs. The small geographies also ensure damage control in a worst case
scenario.
The MART approach ensures that not only is the acceptability of the product and service tested amongst target
consumers, but also with the proposed distribution and communication channels, the community and local government.
Thus, the pilot facilitates testing of all components of the eco-system. A complete documentation and blueprinting of
the refined strategy post the pilot learning’s is developed and provided to ensure successful replication and scale up.
Capacity Building
MART recommends a proper immersion for better appreciation of the new strategy, internalize and develop the
required skills to implement it. MART has an in house training division which has already built capacity of 5000 staff of
client organizations. MART’s commitment can continue until the Clients business objectives have been achieved.

  MART—UNILEVER         Retraining Program
  Unilever recognized that the Sales force in Rural needed to be retrained to focus on ‘Activation’ - facilitating Retailers
  with additional merchandising, POP usage and customer management skills. A total of 120 Officers and Management
  in Sales & Marketing participated in training events across the North, East and West.

                                                                                                                               3
MART Knowledge Series - 2009


 Business Problem Solving—HPCL Rasoi Ghar Case Study
  MART was approached by HCPL to provide an end-to-end solution for development of their entry strategy into rural
 markets for LPG. The challenges were:
  - To discover and overcome the barriers to purchase faced by consumers unfamiliar with LPG and with access to cheap
 cooking fuel alternatives such as firewood.
 - To cultivate a more positive product/ brand image for LPG amongst rural communities
 - To create value in rural consumers minds for a higher cost, but cleaner, faster, more convenient cooking fuel option.

 The following showcases how the MART approach was applied to solving this business problem.

 1                                                                                   The Rasoi Ghar model has been
       Business Problem             To grow LPG customer base as urban               designed to be low– cost, replicable
         Identification             market is reaching saturation levels.            and sustainable.
 2                                  Research Objective:                               HPCL makes a onetime donation
      Get Specific Problem          To assess acceptability of LPG as a cooking        of Rs 8,000 for the basic
             Data                   fuel and check affordability                       equipment such as LPG cylinders,
                                                                                       stoves and work counters
                                   Findings                                           Local Panchayat provides a small
                                    Negligible penetration in rural                   room to house the community
                                    Affordability of 14.2 kg cylinder at Rs 265       kitchen
                                     a major issue                                    One woman from local Self Help
  3                                 Availability poor in villages                     Group     (SHG)    is    appointed
                                    Myths on safety (cylinder burst) & food           caretaker to maintain the area and
      Analyze & Interpret            taste (smells of gas)                             collect the nominal charge of Rs.
      Data/ Information            Recommendations                                     2/- per hour from users.
                                    Introduce 5kg cylinder at an affordable Rs       The model is self sustaining as the
                                     99                                                money collected from the 20 odd
                                    Establish extension counters in small             users pays for the refill cylinders
                                     towns/large villages                              and an honorarium of Rs 400 per
                                   Create awareness for 5 kg cylinder                 month to the caretaker.
                                     through Haats                                    An evaluation by NCAER showed
                                                                                       that over 80% users were fully
  4                                Pilot                                               satisfied with the Rasoi Ghar and
                                    Conducted in one district each in 3 states        6% of them had already acquired
       Business Problem
                                    30 extension counters opened                      their own LPG connections.
           Solution
                                    Awareness creation in 30 Haats
                                    Off take not as expected – myths still         This model has won the RMAI 2006
                                     persisted
                                                                                    Gold Award and the Special Jury
                                                                                    Award for the best rural initiative.
                                    New Approach: Rasoi Ghar Model
                                     To help women overcome myths without
                                      risk of investing in new connection, a new
                                      concept of “pay & use” community kitchen
                                      was introduced
A-32, First Floor, Sector -17,       PPP models with SHGs, Panchayat and HP
Noida, UP -201301
Ph: +91-120-2512140
www.martrural.com                    Scale Up
contact:                              1500 community kitchens established in
shivani.bhatt@martrural.com
                                       UP, MP, Orissa
                                      10,000 more planned
 4                                    Many dealer extension counters opened in
                                       small towns

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An approach to business problem solution

  • 1. MART Knowledge Series - 2009 An Approach to BUSINESS PROBLEM SOLUTION As businesses become more complex, there is a need for a more comprehensive approach to business problem solving. While current approaches focus more on problem diagnosis, the need is for effective business problem solutions. The accepted standard approach to business solutions starts with business problem identification, collecting and analyzing data and information, formulating strategy and testing it through a pilot before developing an appropriate solution. This approach can be depicted diagrammatically as follows. Business Objective Need for clarity of problem for better Business Problem scoping of business objectives Identification 1 Complete information on business Information Sharing problem leads to clarity on research objective Problem Diagnostics Get Problem Research Objective Specific Data Better Understanding of scope leads to Research Design 2 better research design Data Collection Leads to good diagnosis and understanding Analyze/Interpret of problem but not solution Findings and Data Information Recommendations are only indicative, not Recommendation actionable 3 Strategy Formulation Leads to a step-by-step action plan Problem Diagnostics Testing of strategy and taking feedback in Business Problem Pilot Implementation real life leads to effective strategy Solution Creates enabling environment for 4 Capacity Building workforce to appreciate, internalize & apply new solution Scale Up Solution of problem ensures achievement of business objectives Market research focuses on better understanding and diagnosis of the problem. The recommendations are indicative and do not offer an actionable solution for the client organization to implement. Yet, these steps are critical to problem solution. But what is required is a holistic, end-to-end approach from problem identification to solving the problem. 1
  • 2. MART Knowledge Series - 2009 MART Approach to Business Problem Solving- The Differentiators Some PRA Applications: There are many challenges associated with solving business problems in emerging Social and Resource Map – markets. MART is a subject specialist with an in-depth knowledge of emerging markets which enables the development of solutions that are both actionable The Social map identifies and sustainable. MART adopts an inclusive, end-to-end approach to business different community profiles problem solving; the approach is different in the following areas. of the village and their social behavior. The Resource Map Research Design captures various Qualitative To Quantitative Approach infrastructural and Very little hard data is available on emerging markets as they are still at a nascent community resources, stage of development. Thus, each business solution needs to start from basic highlighting ownership and information. MART advocates a small qualitative research to identify all important access. This exercise issues. This allows exhaustive listing of information areas to be collected for gaining a more complete understanding of emerging markets and target identifies the various need consumers for the product or service gaps for each community. under study. A Seasonality Diagram is Once the areas of information are used to gather information identified, a quantitative research can on income flows and be conducted in targeted geographies expenditure patterns for to provide measureable inputs for different communities and development of appropriate business strategy. occupations. The objective is to gain insights into the MART has compiled useful rural data variation in purchase and some of which is available to clients via consumption behaviors. the ‘Marketing White Book’, ’The Rural Marketing Book’ and other publications. A Need Assessment Map Participatory Rural Appraisal (PRA) can be developed for any There is little understanding of rural eco-systems; rural lifestyles are different, introductory product and income patterns and decision making behavior are distinct from urban. These need serves to identify issues to be fully understood before any business solution can be developed and associated with access, successfully implemented. acceptability or Participatory Rural Appraisal (PRA) is a very successful ethnography technique affordability. It also brings adapted by MART from social sector to capture rural consumer behavior. The PRA forth need gaps and helps approach empowers the community in such a manner that they voluntarily assess perceived need of the participate in the research process. Here, the role of the moderator is simply as a product amongst the facilitator. PRA enables the rural community to share, enhance and analyze community. knowledge of their own environment and life. The process is pictorial in nature and drawn by the community themselves, hence cross checking and validation of A Daily Activity Clock data is automatic. To capture rural consumer behavior, both expressed and captures economic and unexpressed. social activity in daily life. Use of Appropriate Research Tools This helps identify time Respondents in emerging markets are generally less literate and have less windows for communicating exposure to a variety of products and services. Thus, conventional quantitative with the community and research tools are not always effective. potential consumers. More appropriate visual tools were developed by MART to capture rating and ranking responses from the less literate. Traditional rural practices of measurement have largely been a matter of approximation. Therefore, less literate 2
  • 3. MART Knowledge Series - 2009 populations find it difficult to fully comprehend and respond to numeric measures for rating. MART has developed a simple tool to measure rating on a five point scale using human expressions. The highest scale is reflected with a very happy face and the lowest scale with a very sad face. These are used as flashcards by field researchers. Local Data Collection Teams Data Collection Teams are required to be particularly sensitive to the differences in local languages, dialects, cultures and customs in emerging markets. MART’s practice of using local teams for data collection ensures that local sensibilities are honored. Faces Face 1 Face 2 Face 3 Face 4 Face 5 Client Accompaniment Rating 5 4 3 2 1 MART strongly recommends client staff to travel with the research team to gain a better appreciation of rural life. This interaction between the teams in the field also helps in developing a practical strategy and working towards better solutions for the client. Strategy Formulation In-depth Knowledge of Emerging Markets MART’s decades of effort in poverty reduction through Self Help Groups and local government has given it a deep understanding of rural institutions, organizations, resources and stakeholders. This enables MART to design effective marketing strategies. Access to NGO/ CBO Networks Through its 15 years of work in the social sector MART has developed contacts with a large number of grassroots Non– Governmental Organizations (NGOs) and Community Based Organizations (CBOs) operating in emerging markets. These NGOs help MART identify and access desired respondents for any research study. Highly Experienced Sector Experts Empanelled MART has a number of highly experienced sector experts available for consultation to offer a practical solution. Pilot Testing & Scale Up MART strongly recommends pilot testing of the strategy developed. MART has conducted pilots in small target markets to fine tune and scale up strategies at minimal costs. The small geographies also ensure damage control in a worst case scenario. The MART approach ensures that not only is the acceptability of the product and service tested amongst target consumers, but also with the proposed distribution and communication channels, the community and local government. Thus, the pilot facilitates testing of all components of the eco-system. A complete documentation and blueprinting of the refined strategy post the pilot learning’s is developed and provided to ensure successful replication and scale up. Capacity Building MART recommends a proper immersion for better appreciation of the new strategy, internalize and develop the required skills to implement it. MART has an in house training division which has already built capacity of 5000 staff of client organizations. MART’s commitment can continue until the Clients business objectives have been achieved. MART—UNILEVER Retraining Program Unilever recognized that the Sales force in Rural needed to be retrained to focus on ‘Activation’ - facilitating Retailers with additional merchandising, POP usage and customer management skills. A total of 120 Officers and Management in Sales & Marketing participated in training events across the North, East and West. 3
  • 4. MART Knowledge Series - 2009 Business Problem Solving—HPCL Rasoi Ghar Case Study MART was approached by HCPL to provide an end-to-end solution for development of their entry strategy into rural markets for LPG. The challenges were: - To discover and overcome the barriers to purchase faced by consumers unfamiliar with LPG and with access to cheap cooking fuel alternatives such as firewood. - To cultivate a more positive product/ brand image for LPG amongst rural communities - To create value in rural consumers minds for a higher cost, but cleaner, faster, more convenient cooking fuel option. The following showcases how the MART approach was applied to solving this business problem. 1 The Rasoi Ghar model has been Business Problem To grow LPG customer base as urban designed to be low– cost, replicable Identification market is reaching saturation levels. and sustainable. 2 Research Objective:  HPCL makes a onetime donation Get Specific Problem To assess acceptability of LPG as a cooking of Rs 8,000 for the basic Data fuel and check affordability equipment such as LPG cylinders, stoves and work counters Findings  Local Panchayat provides a small  Negligible penetration in rural room to house the community  Affordability of 14.2 kg cylinder at Rs 265 kitchen a major issue  One woman from local Self Help 3  Availability poor in villages Group (SHG) is appointed  Myths on safety (cylinder burst) & food caretaker to maintain the area and Analyze & Interpret taste (smells of gas) collect the nominal charge of Rs. Data/ Information Recommendations 2/- per hour from users.  Introduce 5kg cylinder at an affordable Rs  The model is self sustaining as the 99 money collected from the 20 odd  Establish extension counters in small users pays for the refill cylinders towns/large villages and an honorarium of Rs 400 per  Create awareness for 5 kg cylinder month to the caretaker. through Haats  An evaluation by NCAER showed that over 80% users were fully 4 Pilot satisfied with the Rasoi Ghar and  Conducted in one district each in 3 states 6% of them had already acquired Business Problem  30 extension counters opened their own LPG connections. Solution  Awareness creation in 30 Haats  Off take not as expected – myths still This model has won the RMAI 2006 persisted Gold Award and the Special Jury Award for the best rural initiative. New Approach: Rasoi Ghar Model  To help women overcome myths without risk of investing in new connection, a new concept of “pay & use” community kitchen was introduced A-32, First Floor, Sector -17,  PPP models with SHGs, Panchayat and HP Noida, UP -201301 Ph: +91-120-2512140 www.martrural.com Scale Up contact:  1500 community kitchens established in shivani.bhatt@martrural.com UP, MP, Orissa  10,000 more planned 4  Many dealer extension counters opened in small towns