Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

Table of Contents
Vision....................................................................................................................................................... 3 Mission .................................................................................................................................................... 3 Objectives ............................................................................................................................................... 3 Target Clients .......................................................................................................................................... 4 Product .................................................................................................................................................... 4 Value Proposition .................................................................................................................................... 4 Performance Criteria............................................................................................................................... 4 Analysis of the Organisational Functions ................................................................................................ 6 Operations .............................................................................................................................................. 6 Process of Credit Delivery ................................................................................................................... 6 Appraisal Process ................................................................................................................................ 7 Presentation of Report to the Credit Committee ............................................................................... 7 Human Resources ................................................................................................................................... 7 Employee Recruitment ....................................................................................................................... 7 Employee Capacity Building ................................................................................................................ 8 Employee Engagement ....................................................................................................................... 8 Marketing ................................................................................................................................................ 8 Product ................................................................................................................................................ 9 Place .................................................................................................................................................... 9 Promotion ......................................................................................................................................... 10 Marketing Strategy Evaluation ............................................................................................................. 11 Functional benefits ........................................................................................................................... 11 Process Benefits ................................................................................................................................ 11 Relationship Benefits ........................................................................................................................ 12

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

To study a non-profit organisation, it is critical that we understand belief and values embedded in the culture of the organisation. The Vision and Mission reflect the principles the organisation was founded upon and gives direction to the people associated with it.

Friends of Womens World Banking, India was promoted in 1982 by SEWA Bank, as an affiliate of Womens World Banking, a global network created to focus on the need for womens direct access to financial services.

Vision
A society based on equity and social justice where women are active partners in holistic development.

Mission
The organizations mission is to provide financial and capacity building services to organizations promoting livelihoods and self-reliance of poor women.

Objectives
1. To promote the livelihoods of the end clients by expanding its outreach to more and more institutions. 2. Making the target clients sustainable through institutional capacity building and working capital loans. 3. Making the target clients bankable. With respect to the target clients the organization has following objectives in hand that it tries to follow throughout.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

Target Clients
The organisation defines its clients as follows: The organizations aims at establishing community owned enterprises These community based organizations should be such that profits are shared among the different members of the community The members of the community wherein profits are shared are primarily women Excludes Private Limited companies and partnerships, and mostly focuses on cooperatives.

Product
It is a package of both the below but the latter is not a necessary part of the package: Working Capital Loans Institution and Capacity Building (ICB) support (technical assistance, business development, market linkages)

Value Proposition
The following value proposition is provided by the product Credit for traditionally unbankable clients Customized: The loan product along with ICB support is customized for each client (with regards to the amount and timeliness of credit and other support to be extended) Cheap Credit: Loans are provided at very low interest rates.

Performance Criteria
We identified the following parameters as the ones that can be used to measure the performance of a non-profit organization like FWWB.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

Turnaround time this is one of the most crucial parameters as lower the turnaround time greater is the efficiency. This is because speedy sanction of loans reduces the overall turnaround time and also helps in timely action in case of defaults from the end-consumer.

Ability to attract clients if it is able to attract many clients then it can be said to have a better performance. The number of clients matter but the quality of bankable clients also matter.

Performance of clients The clients performance is the organizations performance. So if the client is disbursing loans effectively and also taking care of timely supervision and recovery then this also in effect improves the efficacy of FWWB.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

Analysis of the Organisational Functions

Our intention while studying the organization was to look at Operations, human resources as well as the marketing aspect of the organization.

Operations
Process of Credit Delivery
As the turnaround time for delivering credit is one of the key criteria for performance, we decided to analyze the operations of FWWB in order to seek improvements in this area. # 1 Activity Appraisal a. Receipt of Application b. Prelim Application Check for approval c. Send detailed application d. Receive Detailed Application e. Desk Appraisal f. Travel Planning and Approval g. Appraisal Visit Approval a. Prepare and Present Report of Credit Committee b. Modifications in Report c. Sent for approval to Program Committee Disbursement a. Send Agreement and Sanction Letter b. Agreement Received with documents c. Transfer of Money Total Time Manpowe r 3 1 3 3 2 2

2 days If approved 15-30 days 7-8 days 0-10 days 3-7 days 5-30 days

If approved

If required 2-3 days 1 Amt > 10-15 days 10lacs If approved 1 day 7-10 days 2-3 days 45-120 days

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

We identified the following bottlenecks in the operations:

Appraisal Process
The appraisal stage at present can last up to over 50 days. Although there is a shortage of manpower, the appraisal process can be shortened by adopting a more aggressive approach. We recommend combining the Desk Appraisal and the Appraisal visit. After a preliminary check, the team can visit the client organization to access detailed reports and perform the appraisal. This also reduces the time taken in communication between FWWB and the partner organization.

Presentation of Report to the Credit Committee

As the Credit Committee consists of the high level officers in the organization and a lot of the work involves travelling outside Ahmedabad, it is difficult for them to find a convenient time to have such a meeting, FWWB conducts a meeting once a month and reviews all reports in the previous month. However, this means that a report may lie idle for approval for up to a period of a month. It is recommended that meetings be scheduled at least once a fortnight unless there are no reports pending.

Human Resources
We are also putting the organization under the HR scanner and try to analyze what all problems are faced by the organization. The following emerged as critical:

Employee Recruitment

The organization currently takes fresh recruits from entrepreneurship, rural development and agriculture institutes. Many a time, there seems to be a lack of professionalism in these young recruits.
Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb 7

This seems to be a problem with no quick fix. However, the organization may tie up with various management institutes to offer limited period job offers where the institute can pay the difference amount between the expected salary and that offered by FWWB.

Employee Capacity Building

At present, there is no policy for capacity building of employees. This is one of the loopholes that we found in the organization. It is highly recommended that FWWB creates a policy for such capacity building (in various areas: management, communication, finance) through various institutes

Employee Engagement
The work involved and the culture of the organization leads to a high level of employee engagement. Additionally, it may allow its employees to represent FWWB in various forums (local conferences, events at educational institutes). This may further help in boosting their morale.

Marketing
We decided to evaluate FWWBs marketing tactics through the 4P framework, namely - Product, Pricing, Place and Promotion. Out of these, we will examine Pricing separately as it forms a primary function provided by FWWB and is not just an instrument of strategy.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

Product
The loan product offered by FWWB is usually funder-specified. That implies that FWWB is limited in the customization of loans to meet demand from potential consumers. This is both because of regulatory structures and guidelines, as well as standards adopted by its parent donors, investors and organizations. Thus, there is not much scope to innovate in this category. Our recommendation is for FWWB to explore the option of combining term loans with working capital loans as a new product for potential clients who have greater expansion plans. From the funder aspect, FWWB will have to identify and market itself to potential new funders with adequate risk appetites and flexibility in investment time periods to allocate funds for term loan disbursement. These could potentially be venture capitalists, hedge funds with a Fund-of-funds structure, and even sovereign wealth funds of different countries. We dont feel that FWWB should explore the option of a crowdsourcing model of funding as done by Kiva. This is because uptil now, this model has mainly worked for micro-loans, and hasnt worked for aggregated loans (larger loans created by combining multiple smaller sources of funds). Also, the amount of funds and loans pledged under such models has gone down post the recessionary environment in the developed world.

Place
FWWB has been able to build significant geographical coverage so far in India. However, the brand recognition is low among target consumers. FWWB should consider focusing on fewer states, with higher concentration of aware consumers, and use a potential ink-blot strategy to cover most districts in these states. These states could be Gujarat and neighboring states. Also, FWWB could potentially partner with the Bihar government in reaching out to potential entrepreneurs interested in starting up ventures in that state. This
Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb 9

could be a win-win situation if the Bihar government, agrees to provide risk mitigation and underwrite any bad/defaulting loans.

Promotion
Currently, FWWB has no defined promotion activities in place. They rely mostly on word-of-mouth publicity about their activities among the academician/NGO networks. Additionally they depend upon eminent personalities to promote their clients. While this approach has low costs, it does serve to limit the reach and awareness about FWWB among the target consumers. Our recommendation is for FWWB to adopt a lead farmer approach. This works by identifying a lead farmer in each geographical unit, who is then given training and incentives to carry out promotion activities. This farmer could also be the beneficiary of our funding. Another recommendation is to approach Corporate channels with wider rural distribution networks. This could be marketed to them as a way to provide a value added service (of finance and ICB) that can be bundled with their existing product offerings.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

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Marketing Strategy Evaluation

To analyze the efficacy of FWWBs overall marketing strategy, we decided to follow the framework given in the Marketing in 3-D article in The Mckinsey Quarterly, 1999. In this article, the authors- Court, French, Mcguire and Partington, argue that contemporary offering. Let us evaluate FWWB on these three dimensions. marketing needs to incorporate functional, process and relationship benefits for customers to value a brand as well as build a differentiated

Functional benefits
The main functional benefits provided by FWWB are in terms of providing access to cheap credit, at rates much lesser than commercial rates. Additionally, there is a much higher rate of customization offered by FWWB vis--vis other institutional credit providers. Finally, FWWB often provides credit where credit facilities are either non-existent or potential customers are not eligible to be considered for traditional credit offerings (because of poor credit history, quality of collateral, etc.)

Process Benefits
Currently, FWWB provides a personalized form of interaction with each consumer. There is a continuous process of communication with loanees, and application and appraisal-related support from organization employees is provided through telephone and e-mail.

The proposed benefits should be oriented towards increasing ease of transactions and reducing transaction time. Thus, FWWB should look at providing all application forms online, for easy download by consumers. Also, standardized forms for appraisal and review processes could also be provided online. In addition, sample completed forms should be provided along with checklists.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

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Relationship Benefits
FWWB has a very powerful brand name and reputation among the investment and donor community and networks. Thus, FWWB funded enterprises often find it easier to raise additional rounds of funding from these sources. Investment providers will often consider an FWWB investment in an enterprise as an indicator of quality. Thus, FWWB provides an important element of trust and credibility to its funded enterprises, which it can then leverage into greater financing to scale up and grow rapidly. Additionally, their brand name also helps in creating easier market linkages for the partner organization, which can help them achieve faster disbursal, economies of scale, and lower costs of operations. We propose that FWWB should also provide customized credit referrals for organizations who reach self-sufficiency. These would help them get credit from formal financial institutions as well.

Based on the Marketing Toolkit given in the reading, we recommend the following1) Creating an opportunity mindset- Dedicate human and financial resources to develop and implement marketing strategies 2) Multiply consumer contacts by encouraging increased feedback from customers from formal and informal channels 3) Customer data should be mined to the maximum extent possible for insights on customer behaviour and preferences. For this purpose, client intractions should be recorded and tracked as far as possible. 4) Alliances should be explored with new, innovative partners in terms of financial, technological and distributive flexibility. 5) Systems and processes should be increasingly upgraded and automated for increasing efficiency, bringing down costs, and providing innovative solutions to consumers.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

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Thus, to conclude, we can use the 3 Rules for Marketers to suggest the following: 1) Building a 3D opportunity portfolio by emphasizing functional, process and relationship benefits 2) Delivering portfolio on technology backbone by increasing online interactions between FWWB and clients, as well as regular updation of the MIS software and systems. 3) Spending Funds where they work hardest Here, we have identified that the main bottleneck for FWWB is human resources and lack of adequate talent. Thus FWWB might want to allocate greater financial resources to recruiting quality talent as well as increase compensation budgets.

Conclusion
The organisation is involved in a sector where competition does not provide the greatest threat. It is the need of the product which drives the market. However, we would like to emphasize that it is here that the importance of marketing as a tool to bridge the gap between demand and supply is most felt.

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

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References
Annual Report, FWWB India 3D Marketing, the McKinsey Quarterly 1999 We would like to thank the following for their encouragement and willingness to be part of this project: Ms. Anshu Bhartia, Chief Executive Officer of FWWB, India Mr. Sridhar Reddy, Senior Program Manager, FWWB, India Ms. Suhani Avarani, Employee, FWWB, India

Group 6| Abdul Rahiman|Akash Bansal|Manju Bala Pauria|Smruti Soni|Sushain Sharma|Shrey Deb

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