Capturing Coral Reef and RelatedEcosystem Services Project

EbBDEcosystem-based Business Development Approach for

Coastal CommunitiesWorkbook

Author: Dr Anna Phelan, The University of Queensland

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook2

EbBD Approach 3

Step 1. Environmental and socio-ecological challenges 4

Step 2. Regional and/or global examples 5

Step 3. Likely adopters/local champions 6

Step 4. Sustainable livelihood pathways 7

Step 5. Complementary industry sectors 8

Step 6. Value capture 10

Step 7. Market access 12

EbBD workshop, Selayar Photo: A Phelan

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook 3

EbBD Approach

to help support sustainable

livelihoods and local economic development

as part of an overall sustainable

development strategy

The use of ecosystem services

and biodiversity

Complementary Industry Sectors

Ecosystem Services

Market AccessValue Capture

Regional and Global Success Stories

Sustainable Livelihood Pathways

Local Environmental Challenges

Likely Adopters

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook4

Site, location, or regency you would like to focus on

Step 1. Environmental and socio-ecological challengesIdentify some of the key environmental and socio-ecological challenges at this site. These challenges can be general or specific. Assessment of challenges can be made through direct observation, research, previous studies, and/or community feedback and consultation.

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook 5

Step 2. Regional and/or global examplesIdentify several case studies, examples or initiatives addressing similar environmental and socio-ecological challenges. Examples of replicable solutions can be derived from known success stories and similar projects conducted by your and other organisations, as well as from online cross-sectoral learning platforms such as:

• http://panorama.solutions/en

• http://seaknowledgebank.net/

• http://www.theblueeconomy.org/cases-1-to-100.html

• https://global.nature.org/initiatives/natural-climate-solutions/ncs-case-studies

• https://www.worldwildlife.org/initiatives/oceans

Initiatives, examples or success stories that offer potential solutions at selected site area:

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook6

Step 3. Likely adopters/local championsIdentify individuals, organisations, institutions and businesses likely to embrace a new opportunity or champion a potential solution.

This can be done through a systematic interview process or an ad hoc approach; the idea is to identify key individuals and/or organisations who understand local challenges and are most likely to embrace change through a collaborative process.

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook 7

Step 4. Sustainable livelihood pathwaysBased on the potential solutions identified in Step 2 and likely adopters identified in Step 3, make a list of sustainable livelihood pathways that have the potential to allow ecosystems and local economies to mutually reinforce one another at the selected site.

Examples of sustainable livelihood pathways include but are not limited to:

• Local managed marine areas (LMMA), community-based natural resource management, sustainable tourism, community-based tourism, small scale production, waste management and recycling, small-scale farming, small-scale fishing, sustainable aquaculture, handicrafts, artisanal livelihoods, cooperatives, women’s groups, small-scale home industries, scientific support (MPA, catch limits), strategic coastal planning, ccommunity-based implementation and enforcement, exclusive fishing zones for artisanal fleets, vessel licence, commercially sponsored supply chain management.

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Step 5. Complementary industry sectorsIdentify two, three or four mutually reinforcing key value sectors that enhance primary income and support sustainable coastal ecosystem management. These sectors should reflect local livelihoods and the sustainable livelihood pathways identified in Step 4.

Guiding criteria

Does the value sector… ✔ Enhance primary income

✔ Have a business angle and/or financial viability

✔ Provide sustainable revenue streams

✔ Offer respect for and encouragement of equitable participation of local community

✔ Help in the conservation of natural capital and promotion of living cultural heritage

✔ Offer education to visitors about culture and nature

✔ Demonstrate or can integrate good management practices

✔ Support local economic development through diversification of employment

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For each value sector consider:

• Who are the key beneficiaries and stakeholders?

• What pathways link it to, or complement the other sectors?

Beneficiaries

Beneficiaries Beneficiaries

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook10

Step 6. Value capture

Value created by producer

Value created Value captured

costs middleman aggregator

Supply chain mapFor each value sector or product, what does the existing supply chain look like?

– – – =

Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook 11

Shortening the supply chainWhat improvements can be made to shorten the supply chain?

• Management improvements

• Infrastructure improvements

• Equity improvements, particularly in regards to the middlemen

Adding valueWhat improvements can be made to increase value in market price?

• Processing

• Quality

• Scalability

• Decreasing cost of production

• Increasing sales/revenue through additional products and services

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Step 7. Market accessWhat markets are the producers currently able to access? What opportunities are there for direct sales? Are they selling to the right customers?

What markets would they like to access?

What are the skills, experience and capacity needed to access new markets?

What infrastructure and/or technology is needed to access new markets?

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Making your product stand out from the crowd ✔ Branding

✔ Effective promotion and marketing

✔ Consistent quality

✔ Certification

✔ Fair trade

✔ Sustainable packaging

✔ Understanding different grades/products for different markets

Marketing tacticsKey questions to consider to best meet your customers’ needs:

ProductWhat are you selling, including all of the features, advantages and benefits that your customers can enjoy from buying your goods or services?

PriceWhat is your pricing strategy for your products and services? What are your profit margins and payment methods? How much are your customers prepared to pay?

PromotionWhat promotional activities do you need to do in order to make your customers aware of your products and services, including advertising, sales tactics, promotions and direct marketing?

PlaceWhere are your products and services seen, made, sold or distributed? How do customers access your products?

PeopleWhat type of customer service do the staff and salespeople who work for your business provide? Does your staff have the right training?

ProcessWhat are the processes involved in delivering your products and services to the customer? Are they efficient? Is your business ‘easy to do business with’?

Physical evidenceWhat do your customers see when interacting with your business? What does your brand, packaging, website, shop look like? What information or messages do they convey?

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Knowing your target marketUsing the examples in the table below create your own marketing action chart.

Customer characteristics Market segments Marketing strategy Potential cost Predicted impact

• Age

• Location

• Gender

• Income

• Mindset

• Travelers interested in nature

• Sustainable seafood suppliers

• Domestic tourists

• Advertising

• Social media

• Branding

• Social media = XX new clients

• Brochures = XX new customers

• Website = XX new sales

Business and market development support

Capacity building — understanding your strengths and weaknesses, what should you focus on first?

• Quality control

• Hygiene

• Licensing

• Working with others to establish standards

• Small business enterprise management skills

• Getting more value from existing markets, while building new ones

• Technical production, processing

15Capturing Coral Reef and Related Ecosystem Services Ecosystem-based Business Development Approach for Coastal Communities: Workbook

Notes

Capturing Coral Reef and Related Ecosystem Services (CCRES) is a regional technical support project that seeks to unlock the value of ecosystems for coastal communities in the East Asia-Pacific region. CCRES will develop knowledge products — which inform the design of global, regional and national projects, plans and policies — and technical models and planning tools which assist with preparation of community-based coastal resource management plans.

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Contact Dr Anna Phelan Business School The University of Queensland T: +61 7 3443 2015 E: a.phelan@business.uq.edu.auVisit www.ccres.net

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018Cover: Healthy ecosystems create

resilient coastal communitiesPhoto: A Phelan