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SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP1 Theory of Change Get Grounded Social Enterprise Design.

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Presentation on theme: "SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP1 Theory of Change Get Grounded Social Enterprise Design."— Presentation transcript:

1 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP1 Theory of Change Get Grounded Social Enterprise Design

2 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP2 Is the idea a concept? Social Enterprise

3 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP3 Understand: Nature of social problem Needs/limitations of clients

4 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP4 Where to begin Clarify your business and its goals Build scenarios Play it out your idea Identify deal breakers What will make or break your business Money, laws, partners, etc. Identify key design influencers Competitors, industry dynamics, regulatory environment, demand, required resources Reality Test Objective feedback Quick Market Test Benchmarks

5 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP5 Pare it down Scope For most SEs scope is a practical issue of $ Location; (other resources) have’s have nots; Time Strategy Low hanging fruit Window of opportunity Proof of concept/display Inflection point for impact Assumptions Informs market research

6 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP6 Social Enterprise Business Concept Discussion

7 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP7 Best way to learn about markets? Start selling Test market Pilots


9 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP9 What is a Value Proposition? Identifies target market opportunity Explains cost and benefits how that combination is superior to other choices A value proposition is NOT a mission statement an elevator pitch = A sales pitch; Unique Selling Proposition

10 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP10 For: List target customers or beneficiaries. Group them and ultimately define THE customer or beneficiary. Who: Define the need or opportunity. What is critical issue? The:Name your product, service or concept. Place the product, service, or concept into a generally understood category That: Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit Unlike:List the competitors and competitive alternatives – Our:Differentiate the product, service, or concept. Set it apart from the competition. Creating your Value Proposition Asserts the VALUE of the offering POSITIONS the value

11 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP11 Example: IDE India For: small scale rural farmers using surface irrigation Who: lose over 50% of usable water to surface runoff annually The: IDE-India low-cost drip irrigation system is an advanced irrigation device That: inexpensively and completely eliminates water loss from surface irrigation Unlike:currently used, expensive and large-scale drip systems Our:product is a customized, modular and scalable system that consistently reduces water loss and increases farmers’ yields For: List target customers or beneficiaries. Who: Define the need or opportunity, i.e. what critical issue for customer or beneficiary? The: Name the product or service or concept and place the product, service, or concept into a generally understood category. That: Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit Unlike:List the competitors and competitive alternatives Our:The primary differentiation of the product, service, or concept.

12 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP12 Marketing Mix in SE Context Availability - Product Product/service does not exist Collateral free micro-loans Eyes on Four Paws Affordability – Price Product/service exists but is too expensive moneylenders (interest can be 200% of loan) Aravind

13 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP13 Marketing Mix in SE Context Access – Distribution Product/service exists but customers do not have access Banks and formal financial markets NOTE: access to markets or undeveloped markets often major barrier for SE clients. Vision Spring AWARENESS - Promotion Product/service exists but customers do not know that it exists Information on meetings in markets Kickstart

14 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP14 SE Marketing Considerations Educational marketing Market development Undeveloped/fragmented markets, poor market infrastructure Barriers to reaching clients through traditional marketing vehicles: Literacy, language, social & physical isolation, fear and distrust, etc.

15 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP15 More… Communications /PR efforts to educate SE stakeholders: Community, donors, public, etc. Demand Imbalance Wants/inability to pay High costs Marketing cost/demand imbalance major reason for private sector market failure Cultural context


17 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP17 Your marketing message is not your mission Why will a customer buy your product or service more than once?

18 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP18 “Baking with a difference” All-natural bakery products from scratch. We mix small batches of fresh, premium ingredients and finish each product by hand to create irresistible desserts. Rubicon stands for more than fabulous desserts: we are part of a nonprofit organization, Rubicon Programs, that helps individuals in the San Francisco Bay Area overcome economic and social hurdles. Rubicon provides training, housing, employment and support services to people in need. You can feel good about buying Rubicon products because you in turn support your community.Rubicon Programs

19 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP19 Customers buy Benefits FeaturesBenefitsFeaturesBenefits High in proteinGood nutritionWorking capital loans Vehicle to grow business Slightly sweet flavor Kids love it; easy for parents Weekly repayment Easy to pay back 100% naturalPeace of mindCollateral freeAccess Expiration dateGuaranteed Freshness Solidarity groupsPeer support Plastic containerConvenient reusable Short loan cyclesLower risk Produced by low income Haitians Feels good; make a difference Easy applicationLow stress TOLPA PBMicrofinance

20 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP20 #1 Marketing Vehicle How to incite?

21 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP21 Most common price strategy challenge for a social enterprise? Inability to Pay Third party payer Payment plans

22 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP22 Watch out for subsidies in price! Volunteer time ED + time on SE Wage premium Wastage Lower employee productivity Time spent on employee personal problems/social programs Higher insurance rates Supervisory staff (i.e. job coaches) turn over Time for SE fundraising

23 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP23 SE Distribution Distribution strategy is often a key for social enterprises that serve clients with barriers to ACCESS: Markets, Jobs, Information, “public services” – health, education, water, utility etc.

24 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP24 Distribution - Eyeglasses Method/market Rural poor Urban poor Factory Workers ChemistPartner NGOs Mobile vans X X “Vision Guardians” XX Micro-entrepreneurs XX Chemists X Direct Sales & Franchise partners XXXXX

25 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP25 Distribution Channels Scojo India HQ Partner Organization Partner Vision Entrepreneur End Customer District Coordinator Vision Entrepreneur End Customer Pharmacy/Retail End Customer Manufacturer (China) VE Channel Franchise Partner Channel Wholesale Channel

26 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP26 SE Marketing Pitfalls Confuse marketing message and mission Confuse need and demand Assume customer loyalty can be built on social good instead of quality Build it and they will come – failure to market Lack capacity/acumen - inability to deliver on basics Failure to listen to customers/watch the market & incorporate feedback Inappropriate marketing vehicles for reaching customers Confuse “payer” & “user” / clients & customers

27 SKOLL CENTRE FOR SOCIAL ENTREPRENEURSHIP27 SE Marketing Practice Creative/unconventional and “traditional” marketing approaches Take business to clients – emphasis on distribution Price and payment of services based on clients’ abilities to pay or third party payer Quality, Consistency, Reliability are king Brand Market penetration is key - Test market new products Accurate price Flexibility and responsiveness Social benefit + Mission leverage

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