Potential Target Groups
This strategy targets microenterprise producers (or their associations) who are manufacturing cultural products (crafts) and those who trade or retail these crafts.
Note: this service is particularly relevant for rural producers attempting to reach urban markets.
Purpose and Rationale of Service
The purpose of this activity is to link craft producers with middle-class, urban consumers who value culturally-based products, particularly when private-sector, wholesale marketers offer low prices for products and when producers face multiple barriers in reaching urban markets.
When is This Activity Appropriate?
This activity is appropriate for linking SEs with urban markets when:
• Producers are located in rural areas;
• Producers face social barriers in marketing face-to-face with customers;
• Wholesale markets do not function well—there are few wholesalers and they offer producers low prices;
• There is demand for culturally-based products among middle-class consumers who are also price-sensitive and
socially aware; and
• There are numerous associations or NGOs working with artisans to facilitate the production of marketable products.
Methodology
• Assess the demand for culturally-based products in urban areas;
• Select a city in which to test market a festival;
• Identify an NGO to manage the festival;
• Create a name for the festival and develop a standard look and marketing materials;
• Identify and procure a regular site for the festival;
• Publicize the festival among producers, associations, and non-government organizations involved in the production of
culturally-based products;
• Publicize the festival among consumers;
• Organize the physical space and accommodations for the producers / sellers;
• Organize training courses and workshops for the producers / sellers;
• Hold the festival;
• Evaluate the festival by interviewing both consumers and producers / sellers at the festival; and
• Re-design the prototype festival as needed and replicate in other cities.
Finance and Cost-Recovery Mechanisms
Costs can be recovered by charging sellers a fee to participate in both the festival and workshops. In some cases, government may subsidize festivals.
How Should the Program be Evaluated?
• Overall number of sales at the market,
• Sales per vendor
• Number of customers attending and the percentage who purchase items, and
• Cost-recovery of the festival.
Note: see introductory section to the BDS guide for general principles on evaluation.
Potential Impact
Increased sales and revenue for SEs
Length of Intervention
A single festival can be developed in about six months. A program to establish festivals in many cities, including the development of a prototype and a strong brand name, may take several years.
Illustrative Programs, Sectors and Regions
Gram Shree Mela in India—in ten years, this program:
• Assisted 100,000 rural producers to access urban markets in 12 cities;
• Generated $4 million in cumulative sales and around $1 million in annual sales by 1997, its tenth year;
• Cost around $1 million cumulatively ($250,000 in 1997);
• Showed a sales-to-expense ratio of approximately $4:$1;
• Demonstrated that 63% of customers attending the markets purchased products, and that 60% returned to shop
again; and
• Found that 60% of the trainees were “satisfied” with the training workshops offered.
Where to get more information
Gram Shree Mela in India—see the SEEP Microenterprise Marketing Study at www.seepnetwork.org/marketing.htm
Lessons Learned
• Assess the market prior to program start-up to determine the best location, level of interest, and an appropriate public
relations strategy;
• Continue customer surveys as a regular part of the festival and use the data to improve on the model;
• Develop the model in one city, replicate gradually, and document lessons learned along the way;
• Develop a brand name and generate publicity and a strong identity around the name;
• Work with other organizations that are building the capacity of the artisans, but only one program should focus on the
festivals; and
• Start charging fees immediately and develop a business plan for sustainability early—once subsidies are in place, they
are hard to remove.