Selecting the Best Product or Enterprise Option with the Clients
Figure 13. An example of a marketing matrix.
costs involved in producing and bringing the product to market against the income that will be received. The market facilitator should ensure that this analysis is done in the simplest and yet most conclusive manner (Figure 14). Gross margin analysis is a fairly simple way to compare profitability of an enterprise across different types of products. “Gross margin” is the final income after all production costs have been subtracted from the sales income. The profitability of an enterprise is a very important selection criterion. In some cases, this exercise must be undertaken over several years, as some enterprises only show profit after 2 or 3 years.
Discard option 3: Final enterprise assessment by working or farmer group The final selection of the most suitable product to develop into an enterprise should be determined through dialogue between working and producer group members. The facilitator can use either “product cards” or a “summary sheet” so that it is simpler, particularly for farmers, to compare the enterprise options against their constraints and opportunities. The marketing committee member should present the information to members for discussion and the final selection of one or two options that will be developed further into new
business options. If the farmers fail to come to a consensus in selecting a product, the facilitator can use several methods, listed below, to arrive at an agreed choice. Other criteria that are specific to farmers’ interests can also be included to provide a common appreciation of how a decision is being made and guide the final selection of a given product option for agroenterprise development. • • •
Weighting and giving scores to various options. Using the one-man one-vote criterion. Applying pairwise ranking to the products.
These methods can help farmers make a decision agreed on by all members. This exercise should be facilitated so that all present feel satisfied with the outcome. Because of the significance of this exercise, the facilitator should ensure that it is done thoroughly and that the farmers understand that a clear decision is being made. Through this process, the working group or farmer group will assess the different enterprises and justify their preferences. Going through this exercise significantly improves the group’s understanding and assessment of the various enterprises.
75