MARKET	
  SYSTEM	
  DEVELOPMENT	
  	
  
FACILITATED	
  INTERVENTION	
  OPTIONS	
  
THAT	
  BUY-­‐DOWN	
  RISK...
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Link	
  to	
  national	
  and	
  international	
  expertise	
  via	
  volunteers	
  or	
  consultants	
  (fo...
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Intervention options in market systems development

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Intervention options in market systems development

  1. 1.       MARKET  SYSTEM  DEVELOPMENT     FACILITATED  INTERVENTION  OPTIONS   THAT  BUY-­‐DOWN  RISK  OF  MARKET  ACTORS  TAKING  ON  NEW  BEHAVIOURS   (Illustrative  list)     ______________________________________________________________________   Note:  It  is  important  to  align  interventions  to  the  behaviour  change  that  you  want  to   see  in  business,  which  are  in  turn  aligned  to  the  higher-­‐level  systemic  change  goal.       CAPACITY-­‐BUILDING:   • WHAT:  Facilitate  and  cost  share  capacity  building  on:     -­‐ New  business  models  (including  new  distribution  and  promotional  models)   o promotional  tactics  that  drive  sales  and  loyalty  (for  input  firms)   o possible  dealer/distribution  models  (for  agro-­‐equipment  dealers)   o delivering  extension  messages  cost  effectively  to  farmer/suppliers/customers  (for   input  firms,  agro-­‐equipment  dealers,  aggregators)   o sales  tactics  (for  ICT,  radio)   o shifting  to  service  platform  for  sales  (for  input  firms)   o shifting  to  broker-­‐based  business  model  (for  aggregators)     o building  alliances  for  content  that  is  relevant  to  agribusiness  segment  (for  ICT,  radio)   -­‐ Effective  business  management   o basic  business  (for  local  service  providers)   o running  a  service  business  (for  local  service  providers)   o farming  training  and  information  (for  farmers)   -­‐ Applying  performance  based  incentives   o for  farmer/suppliers  (for  aggregators)   o for  staff  (for  ICT,  radio,  agro-­‐equipment  dealers,  input  firms)   o for  distributors/dealers  (for  input  firms,  agro-­‐equipment  dealers)   • HOW:  Facilitate  capacity  building  through:   -­‐ Cost  sharing  capacity  building  with  market  actors  -­‐  who  would  ultimately  recognize  the   commercial  rationale  for  taking  on  this  function  themselves  (as  they  would  benefit  by  the   improved  operations  of  the  other  market  actors)   o E.g.  aggregators,  transport,  nucleus  farmers  capacity  built  by  buyers,  financial   service  institutions  and  firms  -­‐  who  see  these  as  clients   -­‐ Organizing  internships  to  support  capacity  building  of  mid-­‐level  management  (for  buyers,   aggregators,  ICT,  radio,  agro-­‐equipment  dealers,  input  firms)   -­‐ Providing  one-­‐on-­‐one  consultative  support  and  training  to  support  upper  and  mid-­‐level   management     -­‐ Local  training  services  supported  by  international  experts  (e.g.  for  agricultural  financial   service  staff)     Kenya  Markets  Trust  2013  
  2. 2. -­‐ -­‐ -­‐ Link  to  national  and  international  expertise  via  volunteers  or  consultants  (for  buyers,   aggregators,  ICT,  radio,  financial  service  institutions  and  firms,  agro-­‐equipment  dealers,   input  firms)   Discounts  on  accessing  information  and  inputs  (for  local  service  providers)   Cost  share  development  of  service  certification  to  secure  return  on  training  investments  (for   input  firms)   RESEARCH:   • Cost  share  market  research  including  client  segmentation  and  prioritization  (for  financial  service   institutions  and  firms)   • Production  zone  prioritization  and  research  (for  buyers)   UPGRADING:   • Facilitate  and  cost  share  access  to  communications  technology  for  financial  and  internal   management  upgrading,  including  information  flow,  supplier  payment,  and  inventory   management  (for  buyers,  aggregators,  agro-­‐equipment  dealers)     • Cost  share  aggregator  upgrading  (for  buyers)   • Costs  share  access  to  communications  technology  for  marketing,  portfolio  management,  and   customer  service  (for  input  firms,  financial  service  institutions  and  firms)   DEVELOPING  NEW  BUSINESS  MODELS  &  PRODUCTS:   • Cost  share  assistance  to  develop  dealer/distribution  networks  (for  agro-­‐equipment  dealers,  input   firms)   • Cost  share  development  and  roll  out  of  new  products  (for  financial  service  institutions  and  firms)   • Technical  assistance  and  cost  share  assistance  to  develop  outreach  business  models  (for  ICT,   radio)   • Cost  share  roll  out  of  mobile  money  services  (for  financial  service  institutions  and  firms)   • Costs  share  access  to  entrepreneurial  opportunities  on  the  input  and  services  side  (for  agro-­‐ equipment  dealers;  aggregators)   • Development  of  services  market  for  smallholders  (for  buyers)   FACILITATING  LINKAGES:   • Facilitate  links  to  or  alliances  with:   -­‐ services  relationships  (for  farmers)   -­‐ inputs  relationships  (for  farmers)   -­‐ buyer/market  relationships  (for  farmers)   -­‐ financial  services  (for  buyers,  aggregators,  ICT,  radio,  agro-­‐equipment  dealers,  input  firms,   local  service  providers)   SUPPORTING  PERFORMANCE-­‐BASED  INCENTIVES:   • Cost  share  development  and  roll  out  of  performance-­‐based  incentives  at  multiple  levels  of  supply   chain  (for  buyers)   FACILITATING  TRUST:   • Facilitate  trust  on  purchases  and  contractual  agreements  (for  local  service  providers)   Kenya  Markets  Trust  2013  

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