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INPUT	
  SUPPLY	
  SYSTEM	
  	
  
CASE	
  STUDY	
  
Market	
  System	
  Development	
  
Case	
  Study	
  from	
  the	
  Ke...
 

DEVELOPMENT	
  
ORGANIZATION	
  

MARKETS	
  

NGO	
  

FINANCE	
  

CAPACITY	
  

INPUTS	
  

Typical	
  Development	
...
 

MARKETS	
  

CUSTOMERS	
  	
  
(POOR	
  FARMERS)	
  

FINANCE	
  

CAPACITY	
  

INPUTS	
  

Typical	
  Input	
  Supply...
 

Market	
  Systems	
  Development	
  Model	
  
INPUTS	
  &	
  CAPACITY	
  

Feedback	
  
loops	
  from	
  
farmers	
  

...
 

Intervening	
  in	
  Market	
  Systems	
  

ICT	
  /	
  	
  
Finance	
  
SUPPORT	
  FIRMS	
  

CUSTOMERS	
  	
  
(POOR	...
 

Intervening	
  in	
  Market	
  Systems	
  
Feedback	
  	
  
loops	
  

ICT	
  /	
  	
  
Finance	
  
SUPPORT	
  FIRMS	
 ...
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Kenya Input Supply System Development

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Kenya Input Supply System Development

  1. 1. INPUT  SUPPLY  SYSTEM     CASE  STUDY   Market  System  Development   Case  Study  from  the  Kenya  Markets  Trust  
  2. 2.   DEVELOPMENT   ORGANIZATION   MARKETS   NGO   FINANCE   CAPACITY   INPUTS   Typical  Development  Model   •  NGO  staff  provide  inputs  and  equipment   •  NGO  works  with  community  members  to   represent  farmers  or  give  out  samples   (paid  or  volunteer)   •  NGO  staff  provide  technical  assistance   •  NGO  staff  provide  training   •  NGO  sets  up  demonstra7on  plots   •  NGO  provides  vouchers  for  inputs   •  NGO  provides  loans  or  links  to  MFIs   •  NGO  buys  products   •  NGO  links  farmers  to  buyers   •  NGO  sets  up  producer  groups    POOR     FARMERS  
  3. 3.   MARKETS   CUSTOMERS     (POOR  FARMERS)   FINANCE   CAPACITY   INPUTS   Typical  Input  Supply  Model   •  Agrodealer  provides  inputs  at  store  only   •  Inputs  could  be  expired  or  inappropriate   •  Agrodealer  runs  no  special  promo7ons   •  No  inten7onal  capacity  building   •  Agrodealer  gives  advice,  oEen  incorrect   •  No  financial  services  extended   •  Agrodealer  sell  for  cash  only   •  No  explicit  links  with  producer  groups  or   markets   INPUTS   AGRODEALER  
  4. 4.   Market  Systems  Development  Model   INPUTS  &  CAPACITY   Feedback   loops  from   farmers   New  distribu7on  channels:   •  Agrodealer  sets  up  village  agents   •  Village  agents  give  hands-­‐on  technical  advice   •  Agrodealer  runs  village  promo7on  events   •  Agrodealer  builds  capacity  of  preferred  stockists   •  Agrodealer  sets  up  buying  clubs     New  marke7ng  strategies:   •  Agrodealer  sets  up  customer  loyalty  clubs   •  Agrodealer  sponsors  rural  radio  agric  shows   •  Agrodealer  sets  up  sms  promo7ons/market   research   •  Agrodealer  runs  demonstra7on  plots   CUSTOMERS     (POOR  FARMERS)   MARKETS   FINANCE   Agrovet  bundles  sales  with  services   INPUTS   AGRODEALER   •  Agrodealer  provides  financing  op7ons     •  Agrodealer  provides  new  payment  methods   •  Agrodealer  sets  up  inputs  buying  clubs  with   producer  groups     •  Agrodealer  links  farmers  to  buyers   • Management   improvements   &  staff  training   • Business-­‐to-­‐ business   training  
  5. 5.   Intervening  in  Market  Systems   ICT  /     Finance   SUPPORT  FIRMS   CUSTOMERS     (POOR     FARMERS)   NGO   DEVELOPMENT   ORGANIZATION   Buyer   BUYERS   INPUTS   AGRODEALER  
  6. 6.   Intervening  in  Market  Systems   Feedback     loops   ICT  /     Finance   SUPPORT  FIRMS   CUSTOMERS     (POOR     FARMERS)   NGO   DEVELOPMENT   ORGANIZATION   Buyer   BUYERS   INPUTS   AGRODEALER  

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