bringing community-based enterprises to the mainstream market

8/9/2019 Bringing Community-based Enterprises to the Mainstream Market

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Bringing communityBringing community--based enterprises to thebased enterprises to the

mainstream marketmainstream market

Upland Marketing Foundation, Inc.Upland Marketing Foundation, Inc.

(UMFI)(UMFI)


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UMFI HistoryUMFI History--TimelinesTimelines

198919891992 Upland Marketing Program of Upland NGO1992 Upland Marketing Program of Upland NGOAssistance Committee/Philippine Business for Social ProgressAssistance Committee/Philippine Business for Social Progress

Land Tenure, AgroLand Tenure, Agro--forestry, Marketingforestry, Marketing

Program MandateProgram Mandateaddress the marketing concern of uplandaddress the marketing concern of uplandcommunitiescommunities

19921992--19941994

Training, Information Dissemination,Training, Information Dissemination, LinkagingLinkaging DIDDID

NOT WORKNOT WORK 19951995--19981998

Trading and BrokeringTrading and Brokering Limited SuccessLimited Success

19991999--20012001

Marketing ArmMarketing ArmSales DistributorSales DistributorAccessed MainstreamAccessed MainstreamMarketsMarkets

2002 onwards2002 onwards

Value Chain ManagementValue Chain Management Growth and ExpansionGrowth and Expansion


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UMFIUMFI

VisionVisionCommunityCommunity--Based EnterprisesBased Enterprises asas mechanismsmechanisms forfor locallocaleconomic developmenteconomic development in marginalized communities throughin marginalized communities through

the generation of income and employment opportunities that arethe generation of income and employment opportunities that areanchored on theanchored on the processing / value addition and marketingprocessing / value addition and marketingofoflocal raw materials into high value and marketable products tolocal raw materials into high value and marketable products tolocal and mainstream marketslocal and mainstream markets

MissionMission Provider of affordable access to appropriate technology,Provider of affordable access to appropriate technology,

financial resources, and growingfinancial resources, and growingmarkets to community basedmarkets to community basedenterprisesenterprises

Provider of High QualityProvider of High QualityHealthy products to theHealthy products to theconsumersconsumers

Advocate of Fair Trade in the mainstream marketsAdvocate of Fair Trade in the mainstream markets


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UMFIUMFIs Current Operationss Current Operations Established partnershipsEstablished partnerships

with 110 communitieswith 110 communities

nationwidenationwide Distribute 8 CBE productsDistribute 8 CBE products

to 300 retail outletsto 300 retail outlets

nationwide (SM, Ever,nationwide (SM, Ever,ShopwiseShopwise Supermarkets,Supermarkets,RobinsonRobinsons, 7s, 7--11, Mini11, Mini--stops)stops)

6 yrs of Sustained Growth6 yrs of Sustained Growth

Total Sales over 6 year =Total Sales over 6 year =PhP 60.1Million = $PhP 60.1Million = $1.3M1.3M

1.8

5.6

10.8 10

17

25.7

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006


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UMFI Development ModelUMFI Development Model

Community-Based Enterprises

TECHNOLOGYAppropriate

Efficient

Edge

Vehicle for Local Economic Development

From Poverty to Sustainable

Economic Development

FINANCIAL

RESOURCESTimely

Adequate

Stability

MARKETSDefined

Stable

Growth


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Enterprise Development FrameworkEnterprise Development Framework

CBEs MarketUMFIQuality

ProductsFair Price

Better Y

Market Industry

Information Intelligence

TechnologyProduct DevelopmentBusiness/Management Systems

Financial ResourcesEquipment/Facilities UpgradeWorking Capital

Core

Stable

Well Packaged

Competitive

MARKETABLE

BeneficiariesBusiness

Partners

TrendsConsumer PreferencesCompetition/ Prices

Finished Products

Service ProvidersSuppliers/ Sources

15-25%

Link-up Outsource


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Barriers of EntryBarriers of Entry

1. Lack of1. Lack ofaccess to theaccess to the

marketmarket

Price is high, uncompetitivePrice is high, uncompetitive

Lack of knowledge on how to openLack of knowledge on how to open

channels to the marketchannels to the market

Product positioningProduct positioning

Licenses and permitsLicenses and permits--expansionexpansion

2. Inappropriate2. Inappropriate

technologytechnology

No to limited skills of the productionNo to limited skills of the production

workersworkers Absence of production and qualityAbsence of production and quality

control systemscontrol systems

No or lack of available processingNo or lack of available processingequipments, facilities and water systemsequipments, facilities and water systems

Limited sources of packaging materialsLimited sources of packaging materials

and suppliesand supplies

Seasonality of raw materialsSeasonality of raw materials


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3. Limited3. Limited

financialfinancial

resourcesresources

Limited working capitalLimited working capital

No to limited financialNo to limited financial

resources for facilities andresources for facilities and

equipment upgradesequipment upgrades


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UMFIUMFIs Evolving Strategiess Evolving Strategies

Enterprise DevelopmentEnterprise Development Value Chain ManagementValue Chain Management

Research, Studies

Assessments,

Analysis

Input

SourcingProduction Distribution

Sales and

Marketing

Customer

Service /

Market

Feedback

Market

Community

Industry

Technology

Raw Materials

Production Inputs

Quality Control

Standards

Costs/Pricing

Skills/Systems/Structure

Open Channels

Logistic Support

Sell and Collect

Channel

Maintenance

Feedback

Addressing the bottlenecks along the chain

Deliver/MdseAdvertise/ Promote

Identify and build the Core Business

Follow through

Link up and/or Outsource to create Business is partnership


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UMFIsUMFIs Innovations: Lessons LearnedInnovations: Lessons Learned

1.1. Constant Monitoring and Assessment of theConstant Monitoring and Assessment of the

environmentenvironment2.2. Hiring competent peopleHiring competent people

3.3. Transparency with partner communitiesTransparency with partner communities

4.4. Benefits of organizingBenefits of organizing5.5. Learning organizationsLearning organizations


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Primary Clients:Primary Clients: CBEsCBEs in Sustainable Developmentin Sustainable Development

Sustainable Forest/Resource Management

-Non Timber Forest Products

Sustainable Agriculture

- Use of appropriate Farming Technology

- Organic Farming

- Non Destructive/ Environment Friendly

Sectors in Partnership

- Indigenous Communities- Agrarian Reform Communities

- Coastal Communities

- Micro-Small Enterprises


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Project SitesProject Sites

BaguioIsabela

Nueva VizcayaNueva Ecija

PangasinanMindoroCamarines Sur

Palawan

Sorsogon

Antique

CebuSamar

ZamboangaSurigao del NorteBukidnonDavao del Sur

South Cotabato


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UMFI ProductsUMFI Products


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Healthy RiceHealthy Rice--organic riceorganic rice

BeforeBefore AfterAfter


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Healthy Rice New LabelHealthy Rice New Label


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Newly launched inNewly launched in--house brandhouse brand


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Healthy rice at the selling area of the supermarket

Sta. Lucia East Mall

Cherry Foodarama

Access to the Market


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UMFIs Facilities

Warehouse

Food Laboratory

Repacking Area


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SkillsTraining of

CBEs

Access to processing tools and

equipment upgrade

Access to Technology

bringing community-based enterprises to the mainstream market

Documents