CSR Market Access Process

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(No Transcript)
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The Integra Market Access Program
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Market Access More Critical than Financial
Access? Launching the Debate
MFC Bucharest May 22-25, 2005 Mirka Vácvalová,
Allan Bussard - SK Florica Chereches, Eniko
Malacea - RO Zdravka okic - SB
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1. Introduction Why Market Access? 2.
Understanding the Market Access Development
Process3. Country Specific Market Access
Experience - SK, RO, SB, (BG)4.
Discussion/Debate
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1. Why Market Access?

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Debate proposition
Market Access is critical for our future ability
to fulfill our mission

Market Access is an unnecessary distraction from
our core financial services business
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Client Perspective

• One client who is ready for Market Access
  services tomorrow. Why?

One client who will never use Market Access
services. Why?
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Seminar Goals

• 1. To address the question, Why is Market
  Access growing in importance?
• 2. To outline a potential Market Access
  development strategy.
• 3. To share lessons from the Integra Market
  Access development experience.

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Issues

• Is MA limited to a small number of clients?
• Can MA be run as a separate profit centre?
• Can MA replace the need for credit?
• Relationship between MA and Fair Trade?
• How to develop adequate expertise in a wide range
  of products/services?
• Wont MA happen automatically, without our
  intervention?
• Is MA a distraction?

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2. Understanding the Market Access Development
Process

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Integra Slovak MED program for women at risk By
July 2003, 624 women in program. They had become
challenged entrepreneurs and needed a different
type of assistance from Integra
Vision To improve economic standing of
clients, and improve their lives.
Women _at_ Risk
MED Programme Objectives
To provide women clients in Slovakia with the
capacity to start their own business.
MEDs achievements to date

• 22 training/lending cycles
• 624 women involved
• 15 locations served

Challenges Opportunities moving forward
Challenged Entrepreneurs

• Changing business environment
• Globalisation, radically new retail landscape
  meant closed markets
• EU accession and new competition

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In 2003, Demand for training and BDS
growingDemand for credit dropping
Number of clients trained/ loans disbursed per
annum

of Clients
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Need to move beyond training and credit to
Business Development Services

• Clients women at risk, priority start ups
• Environment transition economy, new realities
• Risk uncompetitive businesses, default

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HR Development -BDS -IT skills -Communication
skills -Mentoring -Thematic training

• Market Access Services
• Brand
• Consulting
• Retail
• Wholesale

• Financial Services
• Microcredit
• Banking services
• Public programs

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Purpose of the Integra Market Access Program
We will empower clients succeed and be
competitive in an increasingly demanding retail
market We will help women build their
businesses by finding and providing suitable
channels for their products We will help
clients improve the range and quality of their
products We will bring a unique offering to
the public through our brand We will do this
in a way that contributes to Integras self
sustainability
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The Market Access Cycle
Source Tradecraft, UK
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Market Access cycle1Identifying Needs and
Opportunities

• What is the current scope of the organizations
  activities?
• What clients needs do the current activities
  meet?
• Where does Market Access fit in and what added
  value does it bring?

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Most clients Proximity Services, Retail and
Product companies. Product companies, often
remote from consumers/end users were the ones
that required market access assistance most

• Comments
• Proximity Services, Retail and Product
  micro-enterprises represent almost 90 of all
  Clients
• Product companies have the most difficulties
  finding a market for their goods
• Retail and Proximity Services micro-enterprises
  benefit from being in direct interaction with
  their consumers
• Food and Food Service micro-enterprises represent
  a further 10

Micro-Enterprise per industry segments (2003)
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Informal initiatives 1999 - 2003

• Shell Trial Shell Slovakia provided retail
  space for MED clients
• Seasonal Sale Events small-scale sales
  initiatives (conference bazaars, Christmas
  markets, etc.)
• Occasional Export of products Integra acting as
  an intermediary between a client and a overseas
  customers

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Conclusions

• Market Access complements Integras current
  activites creates a unique end-to-end
  microenterprise development offering
• 27 of current clients can use MA (producing
  clients - the primary MA target group)
• A shift of demand from credit provision to BDS
  underlines the need for MA
• Some previous experience with market access
  provision greatly appreciated by the clients

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Market Access cycle 2 Getting the business right
- What? To Whom?

• Synergies with existing program?
• Value proposition?
• Financials feasibility?
• Business case?

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Shelf-Life Study Autumn 2003

• three month study conducted by ADP in Slovakia
• analysis of Slovak market opportunities and
  demands (Research, Retail Panel)
• Match clients needs, offer and capabilities
  (Client Panel) with the market demand
• Identify most suitable strategies
• More information at http//shellfoundation.org/cou
  nterbalance

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Market Access Process

• Retail Analysis
• Market statistics
• Macroeconomic trends
• Market needs and drivers

• Agreed concept
• Channel Strategy
• Detailed design
• Operational requirements
• Marketing Mix
• Detailed business case

Value Proposition Development
Concept A
Retail Concept Development

• Consumer Analysis
• Consumer research
• Consumer segmentation
• Consumer needs analysis

Concept B
Operational Feasibility
Concept C

• Business Case
• Benefits Realisation
• Financial Analysis

Concept D

• Portfolio Analysis
• Client portfolio analysis
• Gap analysis
• Capability analysis

• Numerous proposed concepts
• Brainstorming and validation
• Concept examples
• Gift
• Mikrofund

• Test and Validate Concepts
• Benefits?
• Feasibility?
• Financial rationale
• Gap analysis

• Primary and secondary research
• Analysis, brainstorming and trend-spotting

• Detail role of Integra
• Gain retailer and client buy-in
• Agree next steps

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What is happening in the marketplace?
Channels
Channel
Description
Trend
Modern Retail
Centralised purchasing
Branded stores
Part of a chain
Expect modern professional suppliers
Wide assortment
Tough to do business with
High quantities / Low Prices
High volumes needed
Traditional Retail
Independent stores
Specialisation increasingly important
Limited assortment
Differentiation is key
Buy from suppliers
Buy from wholesalers
Finding the right partner is hard
Direct to Consumer
Its what a lot of you currently do
Very flexible
Small volumes
Limited business complexity required
Open air markets
Wholesales

Specialisation increasingly important
Act on suppliers behalf to sell products to
small and medium retailers
Differentiation is key
Finding the right partner is hard

Food Services
Restaurants
Bars, Cafe
Catering
Services

Charge a fee for doing work
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Emerging consumer patterns?
Demographic macro economic trends
Facts
Consumer trends
Consumer groups
Population Trends

• Stagnating population
• Women outnumber men
• Women outlive men

• Increasing number of female senior consumers -
  likely to be widowed in majority living away
  from family
• Need to cater for own needs
• Would tend to shop locally

Senior citizens
Working mothers
Top earners wives
Working Women

• Women participate more in the active workforce
• More so in big cities

• Women spend more time at work and less time at
  home
• Hence less time devoted to cooking and other
  household tasks

Urban average working couples
Productive Population

• Economically active population is declining
• Post-productive population increasing

• Less and less people have to care for more and
  more

Young single urban professionals
Rural families, just getting by

Families

• Number of marriages decreases number of
  divorces increases
• Births are decreasing

• More and more people leading single lifestyles
• Hence only having themselves to look after

Unemployed
City teenagers
Accommodation/Living Patterns

• Number of family houses decreases - Number of
  flats increases
• Household size decreases Living space increases

• More people living in flats
• People are getting into home deco, home
  entertainment etc.
• People have better access to transport, shops,
  leisure venues

Tourists
Managers-on-the-road ()
Families-on-w/end ()
Leisure

• Tourism, entertainment and generally leisures
  share of wallet increases

• Consumers more interested in travelling
• More aware of offers / more demanding
• Also greater influx (exchange) of tourists

Truckers ()
() Shell-specific
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Consumers identified as offering a good fit for
micro-enterprise products are not price sensitive
but care strongly about quality, brand and
convenience
Who are our consumers?
M.E. Fit
Consumer groups
Group Description
Importance of
Price
Quality
Choice
Convenience
Brand
Senior citizens
Senior citizens (majority female) living away
from family
H
M
L
H
M
L
Working mothers
Educated females with families, actively working
and spending less time at home
H
H
H
H
M
L
L
Top earners wives
Professionals in high-paid positions wives,
mostly unemployed
H
H
H
H
M
Urban average working couples
Professional couples (no kids) living in
Bratislava and (big cities
L
H
H
M
M
M
Young single urban professionals
Young single professional Bratislavians, living
in flats
L
H
H
M
H
M
H
L
L
M
L
Rural families, just getting by
Families living in rural Slovakia (e.g. mountain
regions), with lower average disposable income
L
H
M
M
M
M
L
Unemployed
Out of work as a result of the restructuring of
the economy
City teenagers
Kids teenagers, living in Bratislava and big
cities, with time and money to spend
M
M
H
M
H
L
Tourists
Visiting Bratislava and other tourist destination
or on business
L
M
M
H
H
H
L
M
M
H
M
H
Managers-on-the-road ()
Families-on-w/end ()
M
M
M
H
M
L
Truckers ()
M
M
M
H
M
M
High
Medium
Low
Key
() Shell-specific
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There is a great mix of businesses amongst the
Integra Client portfolio. Integra Slovakia
decided to focus its effort on gift/souvenir
makers, small start-ups and aspirational
producers
What are our products?
Integra Focus? (L / M / H)
Client groups
Group Description
Small producers with shop
Small producers operating own workshop and own
retail shop
L
Small producers without shop
Small producers distributing on their own to
local traditional retailers
M
Key
Gift / souvenir / home deco producers
Mainly small scale producers of decorative and
gift items (Art)
H
High
Food producers food services providers
Small businesses with products/services in the
food sector
L
Medium
Non-food, non-gift producers
Producers of non-food, non-gift items (e.g.
clothes)
M
Low
Large volume producers more channels
Producers of larger volumes/ range with a wider
choice of retail channels and wider consumer base
M
Start-up micro-enterprises
Micro-enterprises that have just started up and
have not established market presence yet
H
Exceptional product high aspirations (export)
Exceptional (quality, uniqueness) product or
service providers with high export
potential/aspirations
H
Proximity service providers
Providers of proximity services Local reach
L
L
Specialised service providers
Providers of specialised services further reach
(due to uniqueness)
Small/medium retailers
Owners of small/medium retail outlets, operating
mainly locally
L
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Market Access cycle 3 Getting the concept right
- How?

• What are the best channels and supporting
  strategies to achieve the program goals?
• or
• How to link the market, the consumer and the
  product?

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Potential MA concepts (internal process)

• Integra _at_ Shell
• Integra Wholesaler
• Integra owned Integra Store
• Consumer Catalogue
• Integra Brand
• Consulting Services
• Client owned Integra Store
• Independent Wholesaler
• Corporate Gifts Catalogue
• Online Store

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Integra _at_ Shell
Potential Concept Evaluation sheet
Concept Description

• Integra works with Shell to offer more m-e
  products at Shell outlets by providing solutions
  to the challenges identified in the Retail Trial
• Active Selling
• Ordering Catalogue
• Payment Terms Facilitation
• Distribution
• Supplies and development for fast-food services

Approach / How it works

• - Active Selling Client comes to Shell outlet to
  personally sell products (or promote services)
  for 2-3 days, and receives payments directly
• Shell Ordering Catalogue widely distributed to
  Shell outlets and provides product, pricing and
  ordering information
• Payment Terms Facilitation TBD (more favourable
  terms, loans)
• Distribution Centralised/ Co-ordinated
  distribution of products through 1/Shells own
  wholesaler 2/ an independent wholesaler, 3/
  Integra wholesaler
• Fast-food service Integra wholesaler delivers
  products and supplies for fast-food service,
  Integra provides technical assistance (training
  for staff, quality control, new concepts
  development).

Targeted market
Whom does the Concept benefit?
Strategic issues

• Managers on the road
• Convenience-seekers, walk-in Shell fuel consumers
• Travelers in search of last-min gifts for family
  and friends

• Expected Hurdles
• Limited number of products suitable to offer -
  Product inconsistency
• Frequent need of updating the Catalogue
• Agreement in payment terms
• Clients difficulty to adjust to the business
  cycle
• Uniqueness Active-selling idea

• Shell-trial existing participants
• Existing clients not initially selected for trial
• New clients offering arty or souvenir type of
  products, plus clients offering fast-food related
  supplies

Financial Sustainability
Stakeholders (other than Clients)
Risks

• Shell Slovakia (on-board)

• Benefits
• Client Increased penetration of Shell consumer
  segment
• Shell CSR, increased sales, improved food
  service
• Integra CSR, relationship w/ Shell
• Costs
• Upfront Catalogue creation
• On-going Distribution costs, Financing costs
• Financial profile
• Break-even business (?)

• Lack of central resources for good execution
• Low sales

Output indicators targets

• of Clients participating XXX by 2005
• avg Sales increase XX by 2005
• avg Profit increase XX by 2005

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Three Focus Groups Client, Retail and Integra
management. Questions

• Would this channel reach you? Other clients?
• What specific challenges would this concept help
  you with?
• Please describe how this concept meets your
  expectation of Integra services?
• What does not meet your needs? What
  issues/problems would you see with this concept?
• How would you modify this concept to better
  reflect your needs/expectations?

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Focus Group results
Client Reach
1 (Low) 2 3 4 5 (High)
5/7
Integra _at_ Shell
7/7
Integra Wholesaler
4/7
Independent Wholesaler
7/7
Integra Store
7/7
Client CSR Store
7/7
Consumer Catalogue
x/7
Corporate Gift Catalogue
7/7
Online store
7/7
Integra Brand
7/7
Consulting
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Conclusions wholesale and store can be
sustainable. Client consulting will need a
subsidy.
Financial projections for individual channels
Integra Wholesaling
Integra Store
Integra Consulting
, 000

• Average 30 margin
• Assumed all products bought are sold
• Store is located centrally 25m2 (rent
  10,000SKK per m2)
• 5-9 visitors buy between 1 and 2 items per
  purchase

• Initially 1consultant 2 consultants in yrs 2
  and 3
• Consulting is offered in units of 15 hr, 1-1
  sessions per client
• fee of 12/session is charged

• Operates form small rented property (15 m2)
  extra space rented for storing (20 m2)
• Based on 12 margin
• Average price per item to Retailers 7

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Selected Concepts Final
Wholesale Fill the gap in logistics and
distribution for large retail outlets primarily
Shell Retail Facilitate financial terms between
clients and large retailers (acts as a buffer)
Generate some profit to sustain other concepts
Integra_at_Shell Enhance relationship with Shell
Slovakia Additional outlets for products Leverage
brand and consulting to develop range
offered Leverages wholesale for
distribution Promote store in outlets
Store Provide an outlet for client
products Generate some profit to sustain other
concepts Can be franchised to other
locations Promotes Integra and its partners
Consulting new/improved products and services
to the store, wholesale and Shell Retail
outlets Communicate branding standards to clients
and help apply Address client challenges with
Integra_at_Shell Help increase production volumes
consistency for wholesale and large retailers
Branding umbrella fair trade brand for client
products tool to promote certain values and
standards Support store, wholesale, Integra_at_Shell
and potential extensions Provides a platform for
Integra and donors communications
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Implementation Time Plan
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Fair Trade and the Ten Senses Brand
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Fair trading with Integra...

• Fair trade is an innovative, market-based
  approach to sustainable development. It strives
  to improve the working and living conditions of
  producers and workers in economically
  disadvantaged regions by creating market access
  for their products at fair conditions.
• The Integra Market Access Program is a
  financially viable tool to improve and expand the
  microentreprenuersaccess to the market in order
  to secure both business survival and the
  well-being of the entrepreneur.

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Fair trading with Integra...

• Why we began to think about Fair Trade as a
  component of our market access program?
• Vision and mission - islands of integrity
• Target group - socially excluded
• Adequate product volumes

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Fair trade is about...

• Providing market access opportunities to
  disadvantaged small producers, especially in the
  South countries
• Building long-term trading partnerships
• Paying a fair price in the local context
• Creating direct links with small producers
  without unnecessary middlemen
• Business capacity building consulting, credit
  access, marketing and managing skills building
• Advance payment provision
• Building democratically-run businesses
• Community strengthening

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What do fair trade and a microentreprise
development market access program have in common?

• Target group /small producing individuals or
  groups/
• Complexity of provided assistance /skills
  training, credit access, consulting, market
  access/
• The need of the target group /how do I find a
  channel for my product? How do I achieve and
  sustain high quality of my products? How can I be
  sure I am getting a fair deal? Who can assist me
  in getting fair conditions from big retailers?/

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Success of fair trade initiatives rests on a
strong fair trade brand recognition

• Fair trade brand/label together with a public
  awareness raising lead to consumer recognition of
  fairly traded products
• Fair trade brand is more than a commercial brand
  - it is loaded with a strong philantrophic
  message
• Fair trade brand is more than a product brand
  it tells the story of the product who it was
  made by, under what conditions it was traded, how
  is the profit shared...etc.

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Products traded under the traditional
South-North fair trade partnerships are
recognizable by

• The Fair Trade label or brand logos of
  fairly trading organizations

www.ifat.org
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Integras fair trade brand

• Can Integra create a fair trade brand for
• its trading activities that
• combines business success and social
• responsibility?

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TEN SENSES BRAND CRITERIA DEFINED

• Ten Senses Ltd is a social enterprise which is
  deeply committed to the principles of sustainable
  development in its business operations.
• The following set of criteria defines the
  principles Ten Senses Ltd. seeks to comply with
  in all its business operations and can be held
  accountable against.
• Social Inclusion
• Ten Senses Ltd will values people as much as
  profit. The profit generated by its business
  activities will be re-invested into creating more
  business opportunities for vulnerable groups.
• Ten Senses Ltd will invest into development of
  its staff and apply equal opportunity employment
  policy.
• Ten Senses Ltd will promote women
  entrepreneurship.

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INTEGRITY

• Ten Senses Ltd will strive to behave ethically
  in all situations related to its business
  operation.
• Ten Senses Ltd will meet legal requirements in
  all aspects of its business operation.
• Ten Senses Ltd will strive to achieve high
  quality in all aspects of its operation.
• Ten Senses Ltd will be accountable to all its
  stakeholders and will seek to take into account
  their voice.
• Ten Senses Ltd will submit to regular financial
  and social audits of its operations.
• Ten Senses Ltd will strive to promote ethical
  principles throughout the whole supply chain.
• Ten Senses Ltd will work in partnership with
  their suppliers to achieve consistant quality in
  all aspects of their business operations.
• Ten Senses Ltd. will pay its suppliers a fair
  price which in the regional or local context is
  one that has been agreed through dialogue and
  participation. It provides fair pay to the
  suppliers and takes into account the principle of
  equal pay for equal work by women and men.

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SOCIAL INCLUSION

• Ten Senses Ltd will values people as much as
  profit. The profit generated by its business
  activities will be re-invested into creating more
  business opportunities for vulnerable groups.
• Ten Senses Ltd will invest into development of
  its staff and apply equal opportunity employment
  policy.
• Ten Senses Ltd will promote women
  entrepreneurship.
• Ten Senses Ltd will promote the principles of
  fair trade and actively seek to create sale
  opportunities for suppliers from disadvantaged
  communities.
• Ten Senses Ltd will encourage community
  involvement among its stakeholder group.

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ENVIRONMENT

• Ten Senses Ltd will promote sustainable
  development through its business activities.
• Ten Senses Ltd will prioritize involvement with
  business partners and suppliers that have
  environmental protection policies and practices.
• Ten Senses Ltd will promote the use of organic,
  recyclable and energy-efficient methods of
  production and materials.

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Criteria for Ten Senses Suppliers

• Ten Senses Supplier will endeavor to meet all
  legal requirements in all aspects of their
  business operation.
• Ten Senses Supplier will create a safe and
  healthy working environment for their employees.
  The participation of children (if any) does not
  adversely affect their well-being, security,
  educational requirements and need for play.
• Ten Senses Supplier will continuously work on
  improving the quality of their products and
  services.
• Ten Senses Supplier will strive to apply
  responsible and environment-friendly methods of
  production.
• Ten Senses Supplier will strive to behave
  ethically in situations related to their business
  operation.
• Ten Senses Supplier will strive to actively
  participate in the development of their
  communities.
• Ten Senses Supplier will not discriminate against
  any minority or vulnerable group in any aspect of
  their business operation.

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• So what are the TEN SENSES?
• 1.The Sense of Integrity
• 2. The Sense of Equality
• 3. The Sense of Creativity
• 4. The Sense of Environment
• 5. The Sense of Community
• 6. The Sense of Quality
• 7. The Sense of Fair trade
• 8. The Sense of Entrepreneurship
• 9. The Sense of Mystery
• 10. The Sense of Fun

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Integra Market Access Brand

• A new umbrella brand distinguishes Integra
  fairly traded client products
• Emphasizes the CSR/fair trade proposition to
  consumers and retailers
• The brand values reflect and are reflected into
  how Integra and clients conduct business
• Owned by Integra, awarded to selected
  products/producers

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Brand Applications

• Ten Senses Ltd. Integra-owned commercial
  company
• Ten Senses Shop a retail outlet selling
  products of Integra and other fair trade
  organizations under fair conditions
• Ten Senses Consulting product development and
  quality consulting. MA consulting with other
  MFIs.
• Other retail and wholesale activities /supplying
  retails chains, participation at sale events and
  fairs, etc./

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3. Country Specific Market Access Experience -
Serbia, Romania, Slovakia

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MARKET ACCESS PROGRAM IN SERBIA

• Current situation, opportunities and challenges

Zdravka Soskic Integra Partner Serbia Executive
Director
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Current activities

• Staff training on Market Access (MA)
• Identification of potential MA clients from
  current portfolio
• Presentation of client products for international
  sales
• Participation of Integra Serbia staff in the
  international MA team
• MA strategy for Serbia being developed

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Current outcomes

• 24 clients (23) produce items for sale
• 11 - food products, 13 - non food
• 3 clients currently ready for MA program
• 5 clients will need consulting help
• e.g. marketing, product positioning, branding,
  promotion, keeping quality standards
• 41 clients ready to produce by order

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Emerging MA strategy

• Possible channels of distribution
• export to Ten Senses International
• Integra retail shop
• shopping malls
• Involving a client with a shop selling products
  of small producers

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Clients challenges

• Lack of selling place
• High rent for business
• High prices of raw material
• Unfavorable taxation policy
• High marketing expenses
• Advertisement

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Integra Challenges

• Good client products
• Enough variety of products
• Staff with appropriate skills
• Constraints with regard to staff and financial
  capacity
• Legal environment
• Political instability
• Low purchase power of the population

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Examples of clients products
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Olivera
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Tanja
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Ana
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MARKET ACCESS

• Romania Experience

Eniko Malacea Integra Romania
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Channels for 2005
CLUB INTEGRA TRAINING CONSULTING CENTER SALES
REPRESENTATIVE
MORE TO COME...
Preparation for BRANDING and for STORE Concepts
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Club
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Consulting
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Sales Representative

• Participates at Fairs Trades in the name of
  Clients
• Addresses Hyper and Supermarkets in order to
  establish business relations
• Partner with Corporates in CSR
• Represents the Integra Clients commercial
  interests
• Sales agent for clients products
• Participates at negotiations
• Helps promote products and services
• Seeks new markets
• Commission based

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Industries

• Handicraft (painted furniture, pottery, cards,
  toys, decorations)
• Agriculture
• Beekeeping
• Trade (construction matterials, textile, flowers)
• Tourism (pensions, travel offices,
• Services (bookkeeping, hair stylist, advertising,
  garden interiors design)
• Manufacturing (shoe, textile, linens)
• Editors, printing companies
• Insurance

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Products
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Client Stories

• PRAKTIKUM SRL (pillow cleaning and trade service)
• MADAME VANILLE (clothes manufacturing and store)

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Future Plans

• Branding
• Catalogue
• Store
• Fair Trade
• CSR

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Market Access Strategies for the Market Access
Program, Slovakia
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Integra _at_ Shell MA Strategy

• A large multi-national company providing sale
  opportunities for small local producers within
  their retail network in Slovakia.
• The Pilot Phase (2001-2003) of the cooperation
  highlighted the following challenges
• distribution (clients not able to deliver to
  Shell retail outlets)
• product quality and range
• Shell retailers buy-in

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The Integra _at_ Shell Strategy a new approach

• Integra role as wholesaler and distributor
• Economic value for all participants no charity
• Ten Senses Client Product Catalogue for Shell
  retail network (with the support of the local
  Shell company)
• Taking orders, contacting suppliers, delivering
  orders
• Under the new system, Integra has started to
  distribute to 2 Shell retail outlets offering the
  products of 12 clients

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MA Consulting Strategy

• Objective to help clients achieve and sustain
  high product quality and make them more
  competitive through
• New product development
• Existing product quality improvement
• Product range development
• Packaging
• Company marketing promotion tools (logos,
  branding materials, etc)
• MA Consulting contributes directly to Ten Senses
  channel sustainability.

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Consulting Clients

Current Clients of the MED program
New Clients

• Non-niche food

Low fit with Market Access

• Proximity Services

• Retail stores

• Small producers fitting the MA target group
  criteria
• Service providers needing market access-related
  consulting

• MikroFond clients who can meet market access
  standards
• Shell Retail Suppliers

High fit with Market Access

• Ethnic goods producers
• Souvenir/ Gifts producers
• Previous Shell Participants
• Clients able to fit with both traditional
  MikroFond selection criteria and new Market
  Access standards and needs

Consulting Clients
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MA Consulting Process
Further complexity
Market Access Demands
Client Selection
Intro Meeting (objectives / planning / financials)
Consulting (sessions)
Yes?
No?
Abandon Client
Sustainability Principle Client should have
learned /developed /advanced after Consultants
departure
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MA Consulting Results To-Date

• 16 individual consulting sessions for 10 clients
  with a professional designer (a fee-based)
• 33 clients attending product development seminars
  (a fee-based)
• Resulting in gt improved product packaging
• new product display fixtures
• company brand applications
• new product designs

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Individual consulting sessions
81
Examples of new product designs resulting from
the consulting processjewellery display fixtures
82
beeswax candle packaging
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Are producers the only potential clients of the
Market Access Consulting?

• Service providers have their specific market
  access needs
• Example of an MA consulting assistance for travel
  service providers setting up an association and
  helping the members market promote their
  businesses. 12 clients participating.
• www.liptovholiday.com

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Ten Senses Shop Strategy

• Integra owned and operate the Ten Senses branded
  shop. The shop will sell the micro-enterprises
  products alongside other products either locally
  made or imported.
• Special space will be devoted to fair trade
  products imported through the network of fair
  trade importers or directly from fair trade
  producers with whom Integra has established
  trading partnerships.
• The offer has a distinct philanthropic consumer
  value proposition.

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The Ten Senses Shop

• Profit generating projected annual turnover
  after the first year of operation EUR 195.000
• The high-end location must be matched by high
  quality of the offer
• The Shop as well as Shop Suppliers will be
  committed to the Ten Senses Brand values
  (formalized by singing a Brand Agreement and
  regular Brand criteria adherence audits)

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Partnering with larger retailers(using the CSR
proposition, Integra approaches larger retailers
operating on Slovak market to provide sales
opportunities for small producers)

• Shell Slovakia provides free shelf space within
  their Select Shops retail network in Slovakia
• TESCO Stores Slovakia provides free space for
  sales events within the network of TESCO
  hypermarkets in Slovakia
• Polus City Center, a Bratislava shopping mall,
  provides sale space at their annual seasonal
  events (Christmas and Easter markets) for Integra
  clients (at commercial rates but giving the
  Integra clients preference when making
  reservations for the highly competitive space)
• To-date, 55 small producers
• participated in the projects under these
• partnerships.

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Thank you

• More information at
• www.shellfoundation.org
• www.integra.sk
• http//integraromania.ro
• www.integra-bds.bg