Market creation toolbox

MARKET
CREATION
TOOLBOX
Your guide to entering developing markets
DESIGNWITHPEOPLE

CopYright ©
Di international Business
Development 2011
AuThOrs
marie louise mølleBæk larsen
anDreas FlensBorg
AcknOwLedgemenTs
sara Ballan, prosper nYavor,
patriCia riChter, louise koCh,
peter helk, Christian Friis BaCh,
Birgitte holst-Jensen, h.g.
muriuki, lilian oDhek.
design
branko bobić
prinT
kailow express

pick the correct answer.
Do you want a share of tomorrows markets?
are you ready to challenge business as usual?
Does your company have an entreprenurial drive?
Yes!
Yes!
Yes!
no.
no.
no.

if you answered this toolbox
will help you get started!
7 Business
model dimensions
understanding the market
the Business model Dimension section
will help you understand how markets in
developing countries challenge your traditional
business model and inspire you to
generate new and better business models.
Yes!
15 Toolbox
Activities
getting on the ground
Developing appropriate products and business
models requires local market information,
primarily from future end-users. the
toolbox activities will guide you through
hands-on activities that can help you obtain
this information.
10 participatory
market research cases
making the link
to help you understand how the activities
can be applied in the real world, the Cases
section shows you how different types of
companies used the activities to develop
their business models.

preFAce
JAcOB kJeLdsen
director
di international Business development
the words of kishore mahbubani, the singaporean professor,
can make alarm bells go off “Europe just doesn’t
get it. it does not get how irrelevant it is becoming to
the rest of the world. and it does not get how relevant
the rest of the world is becoming to its future. the world
is changing rapidly. europe continues to drift.”
not only is europe faced with this brutal reality, but in
particular companies are failing to look into the markets
of tomorrow – more specifically, the markets found
in asia, africa and latin-america. Companies must position
themselves at an early stage in these markets to
secure competitive advantage.
however, developing markets are unchartered territory
for many companies. it is our experience that compa-
nies are often unsure about the specific potential for
their business – and as importantly – how to get started.
. the ambition of the market Creation toolbox is to
help your company get started!
in many cases getting started is not a complicated process.
it often comes down to applying sensible business
approaches and ensuring a strategic fit between
the objectives of your company and the market.
DiBD and our many partners in the markets of tomorrow
have extensive experience in developing business
projects for developing markets, and we hope that the
market Creation toolbox will inspire and guide your
company to take part in the rapid change.

TABLe
OF CONTENT
inTrOducTiOn
the markets oF tomorrow
toolBox aBC
BaCkgrounD oF the market Creation toolBox
struCture oF toolBox
Business mOdeL dimensiOns
rapiD market assessment
Customer Base anD enD-users
inCluDing enD-users
DistriBution sYstem
priCing anD FinanCing
marketing anD CommuniCation
serviCe anD maintenanCe
cAses
aak (aarhuskarlhamn)
vestergaarD FranDsen
ngos
innoaiD street FooD
DanisCo
Copenhagen Business sChool
worlDBarrow
arla
gunDFos liFelink
innoaiD amBulanCe
8
8
10
12
13
14
16
20
24
30
36
42
46
18
18
22
26
28
32
34
38
44
48
50
52
54
58
58
60
62
64
66
68
70
72
74
76
78
80
82
84
86
AcTiViTY TOOLBOX
FaCilitation aDviCes
TOOLBOX AcTiViTies
Deep Dialogue
selF-DoCumentation
aCtivitY map
soCial map
resourCe Flow
Follow anD oBserve
learning BY Doing
Customer segmentation
Creating sCenarios
ranking values
priCe mapping
Designing value propersition
prototYping
ConCept assessment
proDuCt in market

8
THE
MARKETS OF
TOMORROW
Growth! This is the
keyword for the
emerging regions of the
world, as the low- and
middle-income classes
rapidly evolve.
Think of Rwanda, Cambodia or Peru, and for many,
images of helpless poor people waiting for handouts
come to mind. For years, low-income regions have
had the image as a worthy destination for corporate
donations and as non-viable commercial or unethical
markets where companies strip the needy of their
last cents. The strong images of despair are real, but
show only a small part of life in developing countries.
a growing number of companies no longer consider
those in developing countries as helpless poor people,
but as active consumers with needs, desires and significant
collective purchasing power. Three key drivers
are motivating these corporate first movers: the market
potential, the innovation potential and the CSR
potential.
The CSR potential
Making a difference
Many companies engaging in BOP-markets find that prioritizing
sustainability creates more durable business models. They are
able to leverage this value in the short term as part of their CSR
profile. Development impact is difficult to quantify and seldom
black and white. However, many agree that companies can play
a necessary and positive role supporting economic and social
development. Poor people often face a “poverty penalty,” which
means they pay high prices due to market inefficiencies. By leveraging
technology and knowledge, companies can develop
products and services that make a difference and challenge monopolies.

The innovation potential
A SPACE FOR
innOvaTiOn, ReSeaRCh
and diSRuPTiOn
While growth rates are undeniably high, so are entry costs. Products,
services and business models need to be adapted to the
realities and needs of developing markets. This process is not
only a sunk cost, but can constitute a vital innovation driver that
benefits new and traditional markets. For example, GE Healthcare
has successfully developed a low-cost electrocardiogram
machine for the Indian market, which has subsequently been
marketed in the U.S. with great success – and done this without
losing substantial revenue on their existing products in this category.
In other words, they have taken advantage of reverse innovation.
This challenges conventional wisdom that innovations
originate in rich countries and are then sent downhill to developing
countries.
The market potential
gROWing By THE DAy
While markets at the top of the economy pyramid are largely
saturated, markets in developing countries are often underserved.
At the same time, developing countries are enjoying the
most spectacular growth in history.
Annual economic growth 1980 - 2016
10
9
8
7
6
5
4
3
2
1
0
-1
-2
-3
-4
-5
1980
1982
1984
1986
1988
1990
1992
1994
World
advanced economies
emerging markets
Source: www.imf.org
1996
People living at the base of the world’s economic pyramid (BOP)
make up 72% of the 5.6 billion people recorded in national
household surveys. Collectively, these people are estimated to
represent 51% of global gross domestic product (GDP) in 2014.
At the same time, the middle-income class is growing fast in
many developing countries. Shaping the preferences of today’s
low-income consumer is an investment in the middle-income
class of tomorrow. The speed at which these developments are
happening is a force to be reckoned with, as it represents a development
of markets that unquestionably holds an opportunity for
companies willing to take a look and rethink business as usual.
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
inFOBOX The BaSe OF The PYRaMid COnCePT
The notion of BOP (Base Of the Pyramid)
markets was first coined by C.k.
Prahalad in the book The Fortune at the
Bottom of the Pyramid. he argued that
companies should sell to the poor since
the world’s economic base consists of
4 billion potential customers that live
in underserved and inefficient markets.
as a response to this book, a number
of authors have debated the theory,
questioning both the size of the market
and the ability for multinationals to
alleviate poverty. Since Prahalad’s
initial work, the debate has evolved
continuously, resulting in an identification
of best practice and pitfalls newcomers
can learn from.
9

10
TOOLBOX
aBC
Is this toolbox for me?
Where do I start and
how do I use it? This
chapter introduces the
toolbox basics.
What can i use the Toolbox for?
While entering new markets always requires tough learning and
adaption, it is our experience that many of the obstacles and
misunderstandings that make the difference between success
and failure are avoidable. Often the problems occur far away
from the target markets in corporate headquarters where wellmeaning
business professionals develop products and business
models that look great on paper, but seldom work on the ground.
A key reason is that rarely are developing markets merely entered;
instead, they need to be created. This Toolbox will help you
understand how this is done.
Based on best practice from successful business ventures, the
Toolbox stresses the importance of on-the-ground business
model development involving local stakeholders. In short: participatory
market research. Depending on the company, type of
product and time frame, this can be either a long or short process,
but it will probably require you to leave your comfort zone
and seek information and ideas directly from and with your target
market. This Toolbox is designed to help you with this task.
Who can use the toolbox?
The Toolbox is designed primarily for business professionals who
are entering developing markets for the first time. The activities
are relevant for business professionals across industries and
company sizes, B2B as well as B2C. However, companies that
directly or through local businesses reach low-income end-users
will benefit more than companies who, for example, invest in
large-scale infrastructure projects through governments or international
organizations.
BOP projects are typically initiated in one of the three areas indicated
on the figure on the opposite page. However, objectives,
as well as company stakeholders, often change along the project
process.
inFOBOX FROM MaRkeT enTRY TO MaRkeT CReaTiOn
until recently, few kenyans would have
known how to answer a market survey
about mobile banking. however, a huge
number of kenyans have leapfrogged from
not even having a bank account to using
technology that is more advanced than
in many developed countries. Through
brave innovation, mobile operators and
banks have created a new market from
scratch. This ability is key to many BOPbusiness
ventures. Large companies, such
as Procter & gamble (P&g), Johnson &
Johnson and Philips have failed because
they focused on perceived “needs,” such
as clean water, but failed to understand
how a market for clean water can be
created. in other words, how the value
proposition for clean water translates into
something people are willing to pay for.
One of the main ambitions of this Toolbox
is helping your company understand these
dynamics.

Sales and business development
Projects often focus on generating a short-term return. The
projects typically involve minor adaptations and are based on
introducing products or solutions to existing markets. The Toolbox
can be used to understand current market dynamics and
develop appropriate business models.
innovation and R&d
Projects focused on generating a medium to long-term return.
The projects typically involve considerable innovation and R&D
efforts, such as new products or services. The Toolbox can be
used to understand the needs and demands of local markets,
which feeds into the innovation process.
Sustainability department
Projects focused on short-term and long-term return. The Toolbox
helps companies understand how CSR objectives can be
linked with business objectives.
Corporate Social Responsibility
BOP
Business
development
Project
Sales
Research and development
idea
generation
Concept
development
Project
definition
Pilot
Project
When do i use the toolbox?
To reap the benefits of the Toolbox, it is suggested that it is used
in the initial stages of the project development process and when
additional information needs to be obtained and ideas generated.
The Toolbox is primary developed for you to use at the
stage where you already have an idea or product as a reference
point, which could have a potential in the emerging market of a
developing country.
Once you have your reference point, it is time to decide how you
are going to explore the potentials for your idea or product and
consequently develop an appropriate business model. This is
where the Market Creation Toolbox comes into play.
Market
Launch
inFOBOX YOuR OWn WORST eneMY
This Toolbox can help you on the
ground, but it does not elaborate about
creating a supportive internal framework.
however, this should be a high priority!
While understanding and operating
in a foreign and complex market is
challenging, it is our experience that
BOP-projects are often challenged as
much from within. in many instances,
BOP-business development does not fit
into the company’s usual structure and
processes. Often BOP-projects require
more patience, explanation and resources
than normal projects. To justify these extra
requirements at the management level, it
is often necessary to highlight the shortterm
value (e.g. related to innovation,
CSR, employee retention) and to ensure
that the project group has enough internal
leeway to adapt and adjust the business
model along the way.
11

12
BACKGROUnD OF THE
MaRkeT CReaTiOn
TOOLBOX
The information and knowledge of the Market Creation
Toolbox rests upon research and practical experience.
The description of the Business Model Dimensions is the
results of numerous of observation from working with
companies in the field, as well as a review of the body of
knowledge on BOP business models. The description is
not exhaustive, but provides companies with inspiration
and highlights of how well-known dimensions of
a business model differ in developing markets.
The Toolbox Activities have been designed based on research
and analysis conducted in connection with several
design and innovation projects. Research, stakeholder
workshops and pilot tests were undertaken in Denmark,
Asia and West Africa to assess methods and guidelines
within participatory development work, BOP projects
and market research. Conclusions from the analysis
highlighted a need for a set of well-described activities
that could support companies with practical
guidelines on how to undertake market research in
developing countries with a strong inclusion of target
groups.
Besides the research and analysis, a number of design
and business consultants have tested the Toolbox Activities,
and their relation to the Business Model Dimensions,
in actual field research. Through their professional work
they have conceptualized, tested and assessed the Toolbox
Activities to ensure their relevance and applicability
for market creation projects. Therefore the Toolbox Activities
have been created by combining best practices
and methods from participatory development work and
design with market research activities already known
and used by many businesses. This ‘methodology’ of
the Toolbox has been labeled as ‘participatory market
research’, which defines the approach companies
should apply to develop successful commercial projects
in developing markets.
inFOBOX COnFedeRaTiOn OF daniSh induSTRY (di) inFOBOX DESIGNWiThPEOPLE
The BOP Learning Lab was initialized in 2007
and focuses on engaging danish companies
in development markets, with a specific
focus on low- and middle-income markets.
The BOP Learning Lab has assisted a number
of companies in developing BOP strategies
from conceptualization to implementation in
different developing countries of the world.
di international Business development (part
of the Confederation of danish industry or di)
runs the BOP Learning Lab. Since 2007, the
Learning Lab has build up unique competences
and delivered high-quality results for a number
of large danish companies exploring the
potential of low- and middle-income markets.
The BOP Learning Lab draws on the expertise
of di international Business development, a
business consultancy unit with +15 years of
expertise in developing and emerging markets
and offices in india, China, Brazil and Russia.
DESIGNWiThPEOPLE offers consultancy
services to ngOs and businesses in planning
and undertaking participatory field research
and design activities in low-income countries.
The organization offers professional
consultancy services to ngOs and businesses
based on several years of experiences in
managing and undertaking participatory
design and innovation activities in both asia
and africa. experiences include both local and
global activities to develop and assess new
innovations for ngOs and private companies.
Through the voluntary organization innoaid.org
new networks and innovative methodologies
are continuously created through student
involvement and local co-creation to facilitate
innovative aid solutions.

STRUCTURE
OF TOOLBOX
The Toolbox should not necessarily be read chronologically
from the first to the final page. When reading the Business
Model Dimensions or cases, you can access the Activity Toolbox
to enhance your understanding of how to apply the Toolbox
Activities to your own projects.
It is important to note that the Toolbox is not an A-Z guide,
but aims to help your company get started. This also means
that the Activities are meant as inspiration and need to be
adapted to the specific conditions of your company.
Get inspired
You can use the section on Business
Model Dimensions to get inspired on
what to include in your participatory
market research
Make The Link
You can use the case section
to understand how the Toolbox
Activities have been used in actual
participatory market research
do it Yourself
You can use the Activity Toolbox get
advice on facilitation and access a
large variety of tools that can produce
valuable information and knowledge
13

14
BUSINESS
MODEL
DIMENSIONS
AND CASE
COLLECTION
BUSINESS MODEL DIMENSIONS
RAPID MARKET ASSESSMENT
CUSTOMER BASE AND END-USERS
INCLUDING END-USERS
DISTRIBUTION SYSTEM
PRICING AND FINANCING
MARKETING AND COMMUNICATION
SERVICE AND MAINTENANCE
16
18
20
22
24
26
28
18
22
26
28
32
34
38
44
48
50
CASES
AAK (AarhusKarlhamn)
VESTERGAARD FRANDSEN
NGOs
INNOAID STREET FOOD
DANISCO
COPENHAGEN BUSINESS SCHOOL
WORLDBARROW
ARLA
GUNDFOS LIFELINK
INNOAID AMBULANCE
This section will inspire you
on topics that can guide your
participatory market research
Photo to the right, shows the Toolbox Activity
Price mapping taking place in participation
with a group of farmers.

16
RAPID
MARKET
ASSESSMENT
To successfully design your
Business Model Dimensions,
you need to understand
the existing market and
get access to the right
information and knowledge.
As illustrated in the introduction, the use of the Toolbox
focuses on the initial part of the project development
process. The rest of the chapters in this section
on business model dimensions are actual dimensions
of a business model, whereas this chapter will show
you how to take the very first step, making it possible
to initiate the development of a BOP project. The
rapid market assessment will give an overall estimate
of how to proceed with the project, as it will provide
you with the knowledge and information you need in
the decision-making process.
Where to start?
When your company has decided to go into a new market or
country, the process typically begins with a market assessment,
feasibility study or market entry analysis. Applying such tactics
can produce efficient results in developed markets, but in BOP
markets, investigating and gathering information and data can
be a very complicated task.
Visits to small shops,
although some are hard
to find, can provide
useful information
This means that traditional approaches and relying on
desk research will not get you very far, as access to market
information and knowledge is typically very poor. However,
as with any other market study, the process will begin with a
consultation of secondary information sources, but you must
be aware of the constraining factors that limit the reach of the
secondary information.
A predominant reason for the poor access in developing
countries is the informal economies. The size and structure of
the informal economy is a factor of considerable proportions,
which contributes to an inherently different business
environment. Typically, the informal economy is not taxed,
monitored by government or included in the GDP, unlike the
formal economy. In some cases, 70% of the workforce earns
their living in informal markets.
The benefits and drawbacks of an informal economy are
many, and your company must understand the markets in
this informal economy to achieve success. As you will see in
the description of the next business model dimension, the
population living in the informal part of the economy can be
included as part of your business model with great advantages.
The informal economy is often one reason why information
and knowledge can be very difficult to access.
Even though many developing countries have national bureaus
of statistics and other information agencies, the availability of
sector-specific data concerning production value of certain
goods can be very low. Due to these factors, the rapid market
assessment focuses on supporting the limited available data
with on-the-ground participatory market research.
INFOBOX WHERE TO FIND YOUR MARKET INFORMATION
World Resources Institute: Large online collection of articles,
blogposts and debates on BOP.
UNdata: Access to useful databases such as OECD Data,
FAO Data, WHO Data, International Financial Statistics and
UN Procurement Statistics.
Doing Business Index (World Bank): Provides objective
measures of business regulations for local firms in 183
economies and selected cities at the subnational level.
Growing Inclusive Markets (UNDP): Case study bank of
120 inclusive business models from over 40 countries and
collection of 1,000 inclusive business models from all regions
and sectors.
Index of Economic Freedom: Covers 183 countries across
10 specific categories of freedom, such as trade freedom,
business freedom, investment freedom, and property rights.
Corruption Perceptions Index (Transparency Index):
Measures the perceived level of public sector corruption in
178 countries.
Global Peace Index: Measure of global peacefulness by domestic
and international conflict, safety and security in society,
and militarization in 153 countries by taking into account
23 separate indicators.
Asian Development Outlook and African Economic Outlook:
Comprehensive analysis of macroeconomic and development
issues of the two continents.
Various sources of information: BOP Learning Lab
Denmark,Center for Sustainable Global Enterprise at Cornell
University’s Johnson School of Management, William
Davidson Institute, Gapminder, Endeva, World Governance
Indicator, Journalists Without Borders, Eurostat.
Visits to specific stores, for example local pharmacies,
during field research can produce valuable knowledge

On-the-ground understanding
of existing market
To develop your successful BOP business model, it is very
important to understand the existing market at an in-depth
level. A comprehensive understanding of the existing market
will help you to understand how existing problems and needs
are addressed, thereby allowing you to position your solution.
The most effective approach in establishing this understanding
is to be present in the market, making it possible to see the
conditions on the ground and meet the different stakeholders,
especially those in your designated target group.
However, local presence is not only important in relation to
meeting your designated target group. At times, you need to
go to the to the source to acquire secondary information and
data, as the availability varies to a very high degree and often
cannot be acquired on the Internet. At times, countries collect
The target group
segmentation is useful in
documenting your visits and
talks with various target
groups that could become
potential consumers. Upon
returning from the rapid
market assessment, the
segmentation will help you
decipher between different
groups.
CUSTOMER SEGMENTATION
Page 72
Deep dialogue is vital when
arriving to an emerging
market, as it supports the
first contact with your target
group. This activity assists in
“getting the ball rolling” as
the interviews and contacts
you make are bound to
spread and grow.
DEEP DIALOGUE
Page 58
and store data and information, but due to constraints on
resources, the information is never disseminated.
Therefore, it is highly recommended to meet with government
offices (e.g. statistical bureaus, information offices of
ministries, research centers, etc.) and NGOs as these types
of organizations typically run large programs with monitoring
and evaluation requirements, making it necessary to collect the
needed data and information.
Meet the end-users on their home ground
Perhaps the most important reason as to why you and
maybe an entire team should go to the market is to meet
the potential customer of your products or services. As
mentioned, information is difficult to access. So for knowledge
about consumer preferences, etc., which stresses the need for
companies to go to the market at a very early stage, it otherwise
becomes very difficult to conduct enlightened decision-making.
ACTIVITY TOOLBOX SELECTED ACTIVITIES THAT YOU CAN APPLY TO THE RAPID MARKET ASSESSMENT DIMENSION?
Selling the product literally
means that you sell your
product or put it up for
sale to get an immediate
response from potential
buyers. The activity
generates important
knowledge, not just in
relation to consumer
feedback, but also from
shop owners, as they will let
you know whether there is a
market for your product or
service.
PRODUCT IN MARKET
Page 86
Resource flow can be used
to generate an estimate
of the input and output
at a general level of an
organization, such as a rural
health clinic, allowing you
to acquire some numbers
about available medical
supplies and staff (inputs)
and treated patients
(outputs). This could be
valuable information in
assessing the potential
market.
RESOURCE FLOW
Page 66
INFOBOX OPTIMIZE YOUR DATA COLLECTION
ViewWorld is a smartphone- based app that easily and
effectively collects and reports text, data, photos, video,
sound, barcodes and GPS coordinates. The approach is
to use the ViewWorld web interface to create, import and
export data forms to and from smartphones. The ViewWorld
App can be used for market research allowing better and
easier collection of data and knowledge.
ViewWorld is developed in cooperation with DanChurchAid,
Danish Red Cross, CARE Denmark, International Media
Support and Rockwool Foundation. ViewWorld is a system
thatcan help organizations, associations and businesses
collect, aggregate and present data.
Follow and observe is very
useful when you want to
get a better understanding
of the informal market.
As it is very difficult to
obtain specific data and
information on the informal
market, this Toolbox Activity
is used in situations such
as visiting different types of
sales outlets, asking about
pricing and distribution, etc.
FOLLOW AND OBSERVE
Page 68
Ranking values can be used
to understand how people
perceive the characteristics
of products when they
must prioritize them. This
approach is very useful
for creating a platform for
dialogue. The exercise could
state something that is
obvious, whereas people’s
real opinion is revealed in
the subsequent dialogue.
RANKING VALUES
Page 76
17

18
CASE:
RAPID MARKET
ASSESSMENT
This case focuses on how AAK
(AarhusKarlshamn) made a
rapid market assessment of
an edible oil market.
This case will highlight:
The ability to conduct a rapid market assessment to estimate
the potential for a company in a market.
How you do a rapid market assessment using the Toolbox
Activities: Customer segmentation, Follow and observe and
Ranking values.
Market overview
Based on desktop research, the overall market potential
for edible oils was established. UNdata, such as FAOstat,
proved to be a reliable source and general internet research
generated a list of relevant stakeholders, such as private
companies and government research institutions. A number
of telephone interviews provided further insight, especially
concerning the informal market, which is essentially what
attained the largest potential.
Digging into the informal market
As the largest potential was estimated to be in the informal
market, it became apparent that participatory market
research, using the Toolbox Activities, was required. The
Toolbox Activities assisted in collecting the necessary
information and knowledge. To effectively do this would
require an involvement of the future end-users of the product,
which meant that valuable insight on how to generate the
business model could be collected at the same time. Prior
to the study, the team selected a number of suitable Toolbox
Activities and made the necessary preparation, such as
developing different focus materials, e.g. picture cards for
ranking the characteristics of a product.
1
CASE RAPID MARKET ASSESSMENT
2
FOLLOW AND OBSERVE
Based on research prior to the field research, it was very
evident that the informal market had to be examined closely,
as the majority of the consumers were represented in this
market, especially wholesale vendors. An important part of
the rapid market assessment focused on identifying the markups
every time an edible oil product changed from one market
participants to another.
By following and observing the different actors in the market, it
was possible to establish how many times the product shifted
hands 1 , and by using the Toolbox Activity Deep dialogue
in different shops, the mark-up and different products were
identified 2 . This means that a rough estimate was generated
in terms of the product’s value when entering the country
(established from desktop research and visiting the National
Bureau of Statistics) until it was in the hands of the end-user.
As the product in focus was edible oil, the follow and observe
method also permitted the research to ask operators of
street kitchens and restaurants about how they used different
products.

RANKING VALUES
Another important part of the participatory market research
was the prioritization of product characteristics, especially in
relation to the nutritional value of different products in the
market. The three largest customer segments, street kitchens
and low- and middle-income households, were presented
with 20 different picture cards 3 , all indicating different
characteristics of edible oil, such as taste and durability.
Furthermore, a number of local products were used at the
focus group 5 , including the locally manufactured red oil 6 .
The groups prioritized very differently, with the street kitchen
initially focusing on nutrition, but ultimately deciding on price
8 . Middle-income consumers heavily emphasized the need
for nutritional value 4 . However, the researchers remained
skeptical, as later research on brand preferences showed a
bias toward a very unhealthy national brand. An interesting fact
was that the low-income households perceived edible oils with
added vitamins or no cholesterol as something exclusively for
the rich people.
3
4
6
5
7
8 9
CUSTOMER SEGMENTATION
An expected output of a rapid market assessment is an
identification of multiple customer segments. As noted earlier,
the primary customer segment, wholesale vendors and
street kitchens, were examined and detailed information was
collected and compiled into “personas.” The different personas
then represent a typical customer from the examined segment.
The most attractive customers identified, were female middleclass
consumers 9 and street vendors 8 .
Important as it is to visit the street vendors at the shops, it is
equally important to invite them to a location where they are able
to share their thoughts and ideas with similar shop owners 3 .
The persona description also contains the preferences of the
different consumers based on the ranked values, e.g., what is
the prioritization of the different product characteristics. An
important part of the customer segmentation is that it is an
ongoing, cross-cutting activity, which involves a combination of
notes and photos over time 7 .
19

20
CUSTOMERS
AND END-
USERS
Select your customers and/
or end-users and understand
when people are willing to
pay to solve a need.
Identifying, building and maintaining a customer
base among lower- and middle-income classes is a
daunting task, but it can yield substantial returns
for a company. When you are faced with the task
of selecting and building a customer base, and the
subsequent development of the business model dimensions,
you can use this chapter for inspiration on
how to navigate safely through the development. A
key factor to keep in mind is that the basic needs of
your target should not be misinterpreted as market
demand.
Identifying and selecting your customer base
When highlighting the potential of BOP markets, the huge
number of people is typically emphasized and this leads to the
conclusion that tremendous opportunities exist. It is true that
opportunities exist, but you must remember that companies
operating on these markets use different sales channels and
very seldom sell directly to the consumer. Although many
companies do not sell directly, it can be very important to
establish a direct relation to your company’s end-users.
This relations is equally important from the initial contact is
established to the go-to-market strategy is launched.
The rapidly evolving middle income class: Lives in brick
houses, dresses nicely and has a daily job
Concerning the selection of markets and potential consumers,
past experiences have shown that companies selecting the
most impoverished target groups in rural areas encounter a
more difficult start-up process. Contrary to this, you have a
higher chance for success (also towards the people living at
the very base of the pyramid) if you choose peri-urban and
urban areas and integrated resourceful local organization, such
as co-operative groups. However, this depends on your sales
strategy, as the choice of sales channel will determine the type
of end-users that your company will address.
Different types of customer bases
As in any other market, your company can sell the products on
a business-to-business (B2B) or business-to-consumer (B2C)
basis; however, other relevant approaches exist.
For instance B2N, also referred to as business-to-NGO,
exemplifies the opportunity of selling to NGOs, such as The
International Committee of the Red Cross, e.g. the company
Grundfos LIFELINK, establishes an agreement with Red Cross
concerning the delivery of the water service provision system.
Besides the large number of NGOs, the United Nations
supplies to developing countries throughout the world, which
makes the UN a very attractive customer.
Another example is B2G, or business-to-government, which is
typically based on tender issues by local governments. If you
decide to bid on government tenders, you can typically gain
an advantage by getting acquainted with the World Bank’s
tender processes, as the majority of all governments have
implemented the procurement processes of the World Bank.
The need for end-user education
The rapid market assessment will assist you in understanding
the different customer bases your company can target.
Regardless of which customer base your company decides to
focus on it will entail a certain degree of education of the enduser.
In the case of Grundfos LIFELINK, the company needed a
plan for how to educate their target group on how to use their
product.
The need for education is tied to the importance for companies
to ensure that the end-users perceive the value proposition the
right way. An imperative step in the development of the value
proposition is to understand the difference between needs and
markets.
Visiting local communities can change your perception
and enhance your understanding of future end-users
Unmet need is not a market
At times, companies misunderstand and confuse the needs
of the consumers and interpret this as market demand. The
problem arises when you translate basic needs, such as lack of
medical services, water, food, etc. As noted in the introduction,
many companies have failed even though they used sensible
strategies. However, it is typically not a question of which

strategy to apply but spending the necessary resources in
developing the appropriate value proposition.
To do this, you need to get an in-depth understanding of the
people living at the base of the economic pyramid. Below are
a number of aspects that companies must bear in mind for a
better understanding of their target group:
Trap for the altruistic: Companies tend to confuse need
with demand (who can use the product, rather than who can
buy it).
Cash flow blindness: Products that appear inexpensive by
Western standards cost two weeks’ salary in a developing
country.
“It’s-being-sold-on-credit-so-they’ll-buy-it”: Company
sales and profits are realized on the basis of increased debt
and loans for the consumer.
Follow and observe can be
used to get out among our
future customers. Go to a
local community and talk
or observe people in their
everyday lives. If you are
developing a business model
for a new food product, it
can be useful to observe
how people prepare their
food or how they shop.
FOLLOW AND OBSERVE
Page 68
Deep dialogue is very useful
in collecting the insights
of people regarding their
perception of a product and
whether they would actually
pay for it. The activity is
important in determining
if the company can offer
anything of commercial
value to potential end-users.
DEEP DIALOGUE
Page 58
Quality standards: Consumers and workers conduct their
lives with dignity and demand both respect and quality from
service providers and employers.
Financial constraints: Low and fluctuating incomes and
limited access to credit or insurance drive the consumers to
be smart shoppers and risk-adverse investors.
Process of developing an
open-ended value proposition
To get an in-depth understanding of your target group, you
should apply an open-ended process. The process is open in
the way that you, in close collaboration with your target group,
allow them to define the value proposition, thereby encouraging
them to establish a perception of how the product makes sense
ACTIVITY TOOLBOX SELECTED ACTIVITIES THAT YOU CAN APPLY TO THE CUSTOMERS BASE AND END-USERS DIMENSION?
Activity map is used to map a
typical day of your end-users.
You develop a set of pictures
illustrating the typical
activities of a day. (You
will have gained additional
insight after following and
observing, as well as deep
dialogues.)Then your target
group maps out their day and
you will have a platform for
dialogue, which can provide
valuable insight in how value
is created.
ACTIVITY MAP
Page 62
Learning by doing follows
the idea of submerging
yourself in the community
to better understand
the way people perceive
and understand things
around them. This is an
explorative task and does
not necessarily focus on
any research questions or
products, but is an activity
designed to make you
understand the living in the
local community.
LEARNING BY DOING
Page 70
in their everyday life. This approach has been well examined by
Erik Simanis (2010) in his work with the Solae Company, which
was part of the BoP Protocal project.
For this to be successful, you must submerge yourself in the local
community and include your target group. The next chapter will
provide you with inspiration on how this can be done.
Designing the value
proposition to include the
potential customer in the
design of your product or
service. Prepare different
materials, such as pictures
or prototypes, to facilitate
feedback from the target
group. Recognize the
importance of an openended
value proposition
where people develop
their own perception of the
product’s value.
DESIGNING VALUE PROPOSITION
Page 80
Concept assessment is
used when you have an
idea or product that you
want to present to your
designated target group.
The assessment activity will
provide you with information
and knowledge, which can
be used in the iteration of
your idea or product.
CONCEPT ASSESSMENT
Page 84
21

22
CASE:
CUSTOMERS
AND END-USERS
This case focuses on how
VestergaardFrandsen’s
strategic partnerships ensure
inclusion of the end-users.
This case will highlight:
The need to establish close relations with your end-users
although they are not the customer base.
How strategic partnerships can ensure inclusion of the
end-users through the activities “Learning by doing” and
“Designing of value proposition.”
VestergaardFrandsen (VF) has turned corporate social responsibility
into their core business of creating life-saving products
for the most vulnerable. Innovative products and concepts
are developed under their unique Humanitarian Entrepreneurship
business model, such as a thin sheet of woven shade cloth
impregnated with insecticide that is installed on the walls of
a house to offer protection against diseases like malaria and
dengue.
While the end-users are people living at the BOP target, customers
are primary public agencies (government agencies,
NGOs, etc.) or larger private industries interested in running
community-based malaria control programs.
Strategic partnerships are formed with potential customers
during the early research and development to prove
the safety of the product and create evidence of impact
on malaria. While the marketability of the products depends
largely on the ability to prove the life-saving advantages, VestergaardFrandsen
also undertakes local field research to address
the product’s usability and acceptability among the endusers
– key factors for the actual ratio-of-use.
1
CASE CUSTOMERS AND END-USERS
2
4
LEARNING BY DOING
In the focus country, a rural community was selected as a research
site. A local company that ran a malaria control program
provided the access to the site. The product development consultant
from VF was welcomed to the community by the village
chief. The consultant expressed interest in staying overnight two
days in the community during the first week, showing full respect
for the local conditions, and the chief honored the request
by handing over a local abandoned house 2 3 that was
then renovated. The house and a few overnight stays did not
only create direct access to the community but was further
useful for the research to undertake most of the initial tests of
fixing methods 12 13 and acted as a local storage facility. In addition
the possibility to stay overnight provided an opportunity
to test other VF concepts and products with target-users and
potential customers, as well as discover new opportunities by
spending time in the community in the evening, observing
the local behaviors at the time when the malaria-infected mosquitoes
often bite.
3
5

DESIGNING OF VALUE PROPOSITION
Bed nets are frequently used inappropriately by the end-users
who instead catch fish with the net, decorate with the packaging
or get cash from selling the bed net on the market rather
than using it as intended to cover their beds. This behavior challenges
the value proposition of the product, especially the way
end-users experience the product must be attractive so misuse
is avoided. Misuse is particularly problematic if health awareness
is low.
To design the durable lining product VF needed to create attractive
experiences for the locals. A number of local research and
design activities were undertaken: samples of the durable lining
product were “forgotten” in the village and later people were observed
using the durable lining product to screen their windows
for insects 9 ; many houses were visited to identify that if the
wall lining was blue, it would have great aesthetic value for those
who could not afford painting 7 ; developed acceptability and
durability surveys after the first pilot tests revealed that the durable
lining killed and physically screened for other rodents; 11
and that the transparency of the textile enabled personal paintings
on the wall to still be seen 10 . These local experiences are
now part of the product’s design and used in marketing to appeal
to the locals.
6
11
7
9
8
10
CONCEPT ASSESSMENT
In addition to the textile technology, a second design challenge
was to ensure that the durable lining product would be fixed on
the walls throughout the expected efficacy period of three years.
A large variety of fixing and adhesive products were purchased
in the U.S. and locally, and tested systematically on a variety of
rural walls 12 13 .
To assess the textile, end-users were presented with small material
samples 6 and pictures of the installation during interviews.
They shared initial skepticism because the textile was similar to
that used in grain bags. Later, full room-installations were undertaken
locally to assess the training needed for locals to manage
the installation 5 8 . The full-room installations were also used
so that the community could assess the product in use and for
VF to observe the local adaption 14 .
An “Acceptability, Durability and Impact on Malaria” survey was
developed to guide later product assessment trials through secondary
partners. The survey was tested before being finalized.
The test included surveys with households that were intentionally
given non-impregnated durable lining. The test answers proved
inefficient in producing the correct answers. To avoid misleading
answers the survey now includes observations and activities that
can reveal insight beyond people’s answers, including the use of
locals in the community as assistant researchers to tap into local
knowledge and attitudes 15 .
12
14
13
15
23

24
INCLUDING
END-USERS
Create mutual value by
including end-users in your
business model – employ
your customers and let them
access new markets for you.
In continuation of the previous chapter on customer
base, you must be aware of the added value of cocreating
with and including local communities in
the business model. Co-creation – an expression for
development process with mutual benefits – is used
from the very early stages of the project development,
beginning when you establish contact with the
target groups to the implementation of your business
model, where the target group is included, such as
distributors. Regardless of how you cooperate with
the target group, a certain degree of education is usually
required.
The idea of inclusion
A business model dimension that differs greatly in low-income
markets is generating “inclusive business models.” The idea is to
include the potential consumer into the business model, thereby
enhancing the overall likelihood of a successful and profitable
business venture. The inclusion can happen in various ways in
the value chain, such as inclusion of consumers, producers, business
owners or employees.
Community inclusion
The notion of community inclusion lies at the very heart of the
market creation strategies, whereby you identify a community,
which becomes the base of your initial business concept. The
process of establishing contact with a community and subsequently
reiterating your ideas with the community can also be
referred to as the co-creation process. Through this process,
you develop and qualify the value proposition that your business
model will ultimately deliver to the consumers.
The time spent on the community inclusion is not a given from
the beginning and cannot necessarily be scheduled, as it requires
you and the company team to submerge yourselves in the community
and literally become part of the everyday lives of the
potential consumer – what can also be described as participatory
market research. For example, the Solae Compay, a Dupont
subsidiary, took a project team to the slums to live and work together
with the target group. The project was a Base of the Pyramid
Protocol project as developed by the Center for Sustainable
Global Enterprise at Cornell University. The result was several
potential business models and concepts, ultimately ending up as
a successful adoption of a soy protein product.
This, the end result of community inclusion, is a comprehensive
understanding of the lifestyle of the target group of your company,
which means valuable information and knowledge that will
allow you to generate a successful business model.
Co-created fridges
Companies that have gone through seeding, or participatory
market research, have gained new insights that allow them to
generate non-traditional business models, such as the Indian
company Godrej and Boyce. The company manufactures a wide
range of appliances, but had only succeeded in penetrating 18%
of the Indian market with its refrigerators.
The company decided to start a project that would address
this challenge and conducted detailed observations and openended
interviews with rural and semi-urban people who typically
earned $125 to $200 a month. The results showed that the target
groups shared or rented fridges on a communal basis, which
did not meet their needs. However, the reason they did this was
not obvious. The observers found that most fridges contained
only a few items, as the users tended to buy small daily quantities
of vegetables and milk. Moreover, as electricity was unreliable,
the little food that was stored was put at risk. The overall
indications were that the fridge, as we knew it, did not propose
INFOBOX IMPLICATIONS OF INCLUSIVE BUSINESS MODELS
The inclusion of the target group in the business model
is often seen as a positive – and at times necessary – aspect
of the business model. However, before you decide
on including your target group, it is useful to be aware of
the economic lives of lower- and middle-income classes.
The reality that these income brackets are faced with can
challenge the idea of inclusion.
For example, your business model may assume that it is
positive to offer people an occupation, such as through
employment or entrepreneurship. If this approach is favored,
you should be aware that microenterprises are unable
to take advantage of economies of scale, but economists
do not necessarily understand why. Many point to
the lack of credit or systematic informality as the barriers
keeping entrepreneurs from scaling up a 1- or 2-person
operation, and they leave it at that. However, other reasons
are also possible, as it appears that some entrepreneurs
consciously choose to engage in multiple occupations
as a way of hedging against a downturn in any one
field – similar to how a sophisticated investor diversifies
his or her portfolio:
Risk spreading is clearly one reason why the low- and
middle-income classes, who might find risk especially
hard to bear, tend not to be too specialized in any one
occupation. They work part-time outside agriculture to
reduce their exposure to farming risk, and keep a foot in
agriculture to avoid being too dependent on their non-agricultural
jobs. You should also note that for many entrepreneurs,
this is a survivalist strategy and not necessarily
the most profitable solution.
Invitations to people’s homes can be an eye-opener in
relation to the country’s cultures and norms

the typical value proposition to these Indian people – so why rent
or share a fridge?
The team concluded that what this group needed above all else
was to stretch one meal into two by preserving leftovers and to
keep drinks cooler than room temperature. Clearly, there was no
reason to spend a month’s salary on a conventional refrigerator
and pay steep electricity prices to get the job done. Nor was the
solution a cheaper conventional fridge. The unmet job required
an entirely new product, supported by a new business model.
After initial participatory market research indicated that low-end
refrigerators were not the right approach, the team prototyped
a unit from the ground up and tested it in the field with the consumers.
The test included 600 women, gathered to participate
in a co-creation event. Working with the original prototypes and
several others that had followed, the women collaborated with a
Social mapping is a
very important activity
to conduct in the early
stage of your business
model generation. The
activity allows you to
map the local community
and get acquainted with
relationships between
key stakeholders, such
as consumers and
shopkeepers.
SOCIAL MAP
Page 64
Customer segmentation
will help you understand
who is actually a consumer.
The activity supports other
activities, such as deep
dialogue. In this case,
it useful to generate an
overview of the different
target groups that you are
observing.
CUSTOMER SEGMENTATION
Page 72
team on every aspect of the product’s design. The result was a
red, portable, 8 kilogram, low-energy fridge at $69, which is half
the cost of a basic refrigerator.
Owner-scheme and supply chain integration
Yet another way to include the BOP segment in the business
model is to encourage ownership, as the South African company
Mondi Recycling, which successfully reconfigured its entire supply
chain of used paper, did by outsourcing an essential link of the
recovery process to former employees through an owner-driver
scheme. The scheme was developed as the company could reduce
its costs and increase productivity by paying its transport
service providers on a volume basis rather than a fixed salary
basis. The service providers were then in charge of dealing with
the more than 12,000 hawkers, which the used paper industry
relies on.
ACTIVITY TOOLBOX SELECTED ACTIVITIES THAT YOU CAN APPLY TO THIS INCLUDING END-USERS DIMENSION?
Creating scenarios can be
very useful in this context as
you can use it to exemplify
how your target group
should be included, such as
making a picture showing
your business model that
depicts how your target
group will be involved.
This can generate valuable
feedback.
CREATE SCENARIOS
Page 74
Ranking values can be
used for various things. For
example, in the early stages,
it can be used for general
feedback on different
concepts for your business
model and, at a later stage,
you can use it to rank the
importance of the different
dimensions of the business
model in relation to when
your target group should be
included.
RANKING VALUES
Page 76
This example addresses the sourcing of raw materials; however, you
can also consider including the target group as part of the sales or distribution.
Regardless of how your inclusive business model will look, it
is imperative that people are educated, whether they assist in producing/supplying
or are consumers your product.
Prototyping is an important
activity, as a deep
understanding of local
needs and markets does
not ensure that you will
translate these into the
right solutions. Include
your target groups or local
manufacturers to get
inspiration by sharing their
ideas and feedback on your
solutions.
PROTOTYPING
Page 82
Deep dialogue can be
used to get comprehensive
insight into the dynamics
of a community from the
individual’s perspective.
This can be a determining
factor in understanding how
and why a potential target
group should be included in
the business model.
DEEP DIALOGUE
Page 58
25

26
CASE:
INCLUDING
END-USERS
This case illustrates how
NGOs planned and collected
insight from field research
through local partnerships.
This case will highlight:
The potential to undertake participatory market research
through local partnerships and collect feedback through
digital media.
How you can ensure end-user inclusion through the Toolbox
Activity: Deep dialogue.
Using smartphone to plan research
Through a partnership with IBIS, the company Worldbarrow
collected information on their target groups by using the
ViewWorld product (read about ViewWorld on page 17).
Information was collected through a customized survey,
which generated a valuable overview of local farmers and
their characteristics. The information helped Worldbarrow
identify participants to work with and prepare activities to
address market opportunities for an innovative wheelbarrow.
Identify opportunities through
local partners
The organization access2innovation collects insight on
local conditions, needs and opportunities through NGO
partnerships. The NGOs ActionAid and CARE undertook local
research, addressing renewable energy, water, sanitation and
food, at their own centers and in target communities within
one month. Research was undertaken after initial training on
the “Deep dialogue” activity. The feedback and insight were
communicated digitally to access2innovation who will use
the material to support and identify opportunities for new
commercial solutions that can reduce poverty.
1
CASE INCLUDING END-USERS
2
DEEP DIALOGUE
Pre-survey in cooperation with NGO
Worldbarrow developed a digital survey from the ViewWorld
website that included questions to characterize the farmers,
optional questions on local types of crops and transport,
and open-ended questions to ask what farmers would use a
wheelbarrow for.
Effective market research
Through IBIS, “Deep dialogue” was undertaken with 20 farmers
during one day by using a smartphone with the survey form 2 .
Answers, notes, pictures and GPS coordinates were recorded
directly on the smartphone to develop a profile of each farmer
3 . The report of the survey was printed 7 and helped the
researcher to later identify and involve the same farmers in
participatory market research activities 5 . The pre-survey
also made it possible to adapt market research activities based
the on initial knowledge of the farmers’ business and initial
feedback on the prototype.

3
5
4
6
DEEP DIALOGUE
access2innovation facilitated a workshop for both CARE and
ActionAid to inspire and guide how to undertake research and
needs identification through deep dialogues. Both NGOs were
given the “Deep dialogue” activity description and asked to
collect insight through questions, observations, pictures and
video 4 . ActionAid used deep dialogues to specifically identify
opportunities for renewable energy at one of their local training
centers 6 while CARE was asked to identify local challenges in
general by exploring one of CARE’s communities 8 .
After one month, both NGOs delivered information from
research through reports with pictures and quotes 10 from
the target group, videos communicating local conditions 6
, interviews with target group representatives and pictures
showing local conditions 9 . The material illustrated what topics
and challenges the local partners considered important and
relevant. Based on this material, access2innovation will address
the need for further research and map potential needs that can
hold the interest of industries.
7
9
8
10
27

28
CASE:
INCLUDING
END-USERS
This case focuses on how
InnoAid included the endusers
to develop solutions
for street food businesses.
This case will highlight:
The need to undertake local field research to understand
end-users of the solutions and include them into the design
process to assure that solutions are acceptable and
affordable.
How you can create a strong inclusion of the end-user
through the Toolbox Activities: Value ranking and Prototyping.
InnoAid started an innovation project to work together with
NGOs and workers’ unions to co-create with the street food
vendors a set of educational, financial, social and technical
solutions to sustain and improve their businesses.
Understanding local needs and priorities
Through the use of Toolbox Activities with the vendors themselves,
it was discovered that their needs and priorities differed
from those discovered through the initial desk research.
While publications focused on challenges related to unhygienic
conditions and urban development, the vendors prioritized
day-to-day challenges, such as how to avoid harassment from
local authorities and maintained their pride about being individual
and diverse businessmen.
Creating access to the end-users
Local influential leaders played an important role in the
beginning to create access to the end-users. It was discovered
through initial research that to create access to work
directly with the vendors, local “hawkers’ unions” had to be
approached to introduce the research to local leaders of the
vendors.
1
CASE INCLUDING END-USERS
RANKING VALUES
Developing material
Prior to the field study, a list of fourteen different values relevant for
the purchase of street food was defined in collaboration with a local
partner. The values were all defined as negative values of the street
food business that could prevent customers from purchasing the
food at a particular stand, including “dirty water,” “angry vendor,”
“old food” or “costly.” Aspects were represented with a short title in
English and the local language and large pictures that wereas glued
on heavy-duty cardboard to be re-used in several sessions and in
rough environments 3 . On an A3 paper 2 a scale was made with
an arrow from “High: The value that would stop the customer from
purchasing food at a street vendor” and “Low: the value less important
for the customer when purchasing street food.”
Inclusion of vendors and consumers
The first ranking of values was done by approaching customers
during lunchtime at the street food vendors. Individual consumers
were introduced to the activity, and by using the ground or a small
table, consumers were asked to rank the values on the A3 paper.
The activity created much attention from other consumers who interrupted
the activity with their suggestions for the ranking, generating
valuable discussions that revealed differences and arguments
for consumers’ prioritization when purchasing street food. For the
customers, the vendor’s behavior, tastiness of the food and hygienic
conditions were much more important than price.
Individual street food vendors were asked to rank the values according
to their idea on what they thought consumers prioritized or disliked
the most when looking to purchase street food. The vendors
were approached during midday or late afternoon when their businesses
were quiet.
Dual use
Customers’ and vendors’ rankings provided quantitative insight
when comparing ranking of the same aspects among the vendors
and consumers as well as qualitative insight by addressing notes
from the discussions and dialogue during and after the activity.
Looking at the consumer as well as vendors’ perceptions of the customer
gave deep and very relevant insight for the project to address
solutions prioritized by the consumers and addressing the attitude
of the vendors. There were several differences on what the consumer
valued and what the vendor thought his or her consumers valued.
These differences became relevant when designing messages
in the educational material on how the vendors could improve their
businesses by looking at new value propositions.
The activity was very simple, but with the vendors, who mostly had
very limited formal education and were unfamiliar with participatory
activities, it provided the right level of abstraction for them to understand
and be able to reflect on their ranking of values.

2
3
PROTOTYPING
Conceptualizing
Fifteen pictures were selected of current local kiosk designs taken
during the first field visit and printed in A4 and laminated. Eight key
aspects were defined that were important to address in the design
of the kiosk, such as mobility, storage and durability. For each key
aspect a paper card was made listing different types of solutions to
consider, such as for “mobility” addressing the need for wheels, a
mechanism to push or pull, solutions on how to remove the kiosk
to clean the area, etc.
Two workshops, each with five vendors, were arranged through the
vendors’ union. During a workshop, one of the activities was to address
the design of the kiosk. The laminated pictures were presented
to the group. The pictures included were intentionally, local street
kitchens, but not from their own street to avoid critiques becoming
too personal and sensitive. The paper cards were used to structure
the activity and solicit ideas from the vendors on the technical design
by only addressing one aspect at a time. Ideas were shared and
developed by using the pictures as a reference of current good and
bad existing solutions. The researcher and vendors used the laminated
pictures and other paper to draw new, detailed solutions 4
5 . The drawings, especially on the current design, were very useful
for the design team to further develop solutions.
Detailing
Design ideas from the vendors used by a group of design and innovation
engineers who developed an improved modular kiosk that
could be adapted and manufactured in accordance to the vendor’s
financial capabilities to invest in a new solution and the specific type
of foods sold. For further feedback, a concept catalogue was developed
to show the use, variety and specifications of the design
through 3D drawings and taken to India for further feedback from
the vendors, unions and consumers 7 . In addition, the kiosk design
was printed in black and white to invite selected vendors to detail
the design by coloring and detailing the illustration of the kiosk 6
. Allowing the vendors to design and detail the print-outs provided
insight, such as the looks of the menu and the meaning of the colors.
Prototyping
The revised concept catalogue, based on the vendor’s feedback, was
used to present to three local blacksmiths for additional comments
in relation to the manufacturing aspects 7 . Two of the blacksmiths
were contracted to manufacture a 1:1 prototype to both gain insight
on local manufacturing skills, how detail solutions were made, how
to communicate technical designs for local manufacturing and to
be able to estimate the cost. The prototypes were afterward lent
to two street food vendors who are currently using these to provide
additional feedback in relation to usability and durability 8 .
4
5
7
6
8
29

30
DISTRIBUTION
SYSTEM
Often distribution is the
determining factor for a
successful BOP business
model. Costs can easily
increase, however, this also
creates strong incentives for
innovation and, as a result,
sustains competitiveness. Approaches such as micro-franchising, piggy-backing, product
bundling and back-loading are examples of alternative distri-
Many companies have experienced that the distribution
and organization of the supply chain, is the
determining factor enabling and sustaining the business
strategy. The reasons that this business model
aspect draws a high degree of attention are e.g. the
lack of efficient infrastructure, unorganized market
structure or high costs or operating in rural areas.
The size and organization of the informal markets
typically suggest that companies must develop innovative
practices to enable a profitable supply of their
products to the consumers.
Make use of alternative distribution
channels
Successful BOP-business models are often ascribed to innovative
distribution forms and creative use of supply chains. The evidence
of the need for innovation in this context is demonstrated
by the different types of distribution observed in BOP-markets.
Distribution in rural areas is very
different to urban areas
bution channels applied to cost-effectively reach consumers of
lower- and middle-income classes.
Aligning market strategy
and distribution strategy
An important factor in determining how the consumers should
be reached is whether a company is entering or creating a market.
In relation to market creation strategies, distribution is a
critical success factor, due to what can be defined as the “margin
game.”
In short, this can be explained using Procter & Gamble as an
example. The company, which marketed a sachet product, soap,
relied on very large volumes and small margins. It can be discussed
if the product qualifies as a “BOP product” when looking
at whether it has any social impact for the BOP, however it is undeniable
that through the packaging and distribution approach,
commercial success has been achieved. However, this approach
is based on the contingency that an existing market can be entered,
which results in the possibility of realizing profits on small
margins.
INFOBOX VARIATION OF SALES POINTS AND DISTRIBUTION FORMS
Sales points exist in myriad types in developing countries, especially
due to the size of the informal sector. Below is a list of the
many types of sales observed:
Shelf shops: Small shops along the road are found in urban
and rural locations. The shops are very often combined with
street kitchens and evidently have irregular opening hours.
Supermarkets: Fully equipped supermarkets, as we know
from developed countries, are in many developing countries.
However, the prices typically exclude the lower-income
classes.
Motorcycles: Often used for distribution, the motorcycle is
also used as a sales platform, sometimes as a rebuild model
with a load, thereby allowing more space.
Bicycles: Bicycles are more than often rebuilt, such as with
boxes in front or back. The bicycles are very popular for distribution
or sales due to the low costs and large area coverage.
Pushcarts: The carts offer high volumes and are often used
for heavy-duty items, such as cement or liquids. However,
the radius is rather limited due to the slow speed.
Head baskets: A popular way of transporting goods is by
carrying a container or basket on the head. People will usually
sell directly from these basket, thereby making it a small
shop.
Lack of access to transportation can produce creative
results, such as this gigantic running wheel

Contrary to this strategy, a company can decide to create the
markets, which means investing in the framework needed for a
successful commercialization, e.g. the cost of changing the lifestyle
of the consumer, so they can adopt the company’s product.
Essentially this requires higher margins, because the distribution
and marketing of the product is higher. Companies must be
aware of this factor when determining the ideal distribution and
supply chains.
Micro-franchising
Determining the ideal distribution strategy evidently relies on the
type of product or service the company is trying to market. For
some companies, micro-franchising has been a successful approach
in reaching consumers. Examples include FanMilk, which
pioneered bicycle and push cart distribution of ice cream at mass
scale, making it possible for the company to realize substantial
sales. However, the use of alternative transportation was only
part of the success. Another important factor was the integration
The social map can be used
as an exercise that draws
out the hierarchy in a local
community and reveals who
the decision makers are.
This is relevant in relation to
distribution as it allows the
company to determine how
the local community can
be included in the business
model.
SOCIAL MAP
Page 64
Follow and observe can be
used to track products and
people, such as by physically
following the process,
thereby understanding
the intricacies and risks of
distribution in the informal
market.
FOLLOW AND OBSERVE
Page 68
of micro-franchising, which means that entrepreneurial individuals
can rent, for example, a bike and choose, on their own, the
markets where they want to sell.
These micro-franchisees can realize higher profits than if the
company invests in identifying and going to the same markets.
Other business companies have tried to adopt the micro-franchising
in the business model; however it is contingent upon
important factors such the dilemma between social objectives
and profitability, meaning how poor can the people included are
allowed to be. If they are too poor, they will not be able to pay the
franchisee fee, which translates to poor sales for the company.
Integration of service provision
Building on the same critical factor as FanMilk, in terms of access
to markets, the company Essilor has developed an innovative
approach in creating access to new markets. The company
is a manufacturer of eyeglasses and through the exploration of
the BOP market they found that even if the people could afford
ACTIVITY TOOLBOX SELECTED ACTIVITIES THAT YOU CAN APPLY TO THE DISTRIBUTION SYSTEM?
Creating scenarios involves,
e.g. a company presenting a
fictive distribution scenario
for a group of people,
thereby gaining valuable
feedback on how companies
can shape the distribution.
CREATE SCENARIOS
Page 74
Ranking values is a very
useful exercise, which
can assist companies in
prioritizing the value of
different manners, for
example, if people would
pay for service provision as
part of the distribution.
RANKING VALUES
Page 76
the eyeglasses, it does not necessarily entail that they would buy
them for the simple reason that they cannot access the product.
This meant that the company had to find a way for the distribution
of a product that goes hand in hand with a service
that requires on-site equipment and expertise. Namely they
needed to test people to conclude what types of eyeglasses
were needed. The solution was to create a mobile clinic that
would reach the consumers at their location, thereby creating
access to the market.
Back-loading
Back-loading occurs when empty freighters move across the
country, thereby providing an opportunity for transporting goods.
DHL in Kenya has had great success with delivering goods to remote
farmers, using the empty trucks that pick up the produce.
The empty trucks have opened up as a business opportunity for
not only DHL, but also several other companies that supply farm
inputs to the farmers.
Price mapping is very
useful in determining the
different costs that a target
group encounters, such as
throughout a given supply
chain. The activity can
then assist in assessing the
different mark-ups in the
supply chain.
PRICE MAPPING
Page 78
Concept assessment
involves testing your idea
or distribution on your
target group. For example,
if you can conceptualize
a distribution setup, you
use the activity to receive
feedback and gain valuable
information as to whether
your concept is feasible.
CONCEPT ASSESSMENT
Page 84
31

32
CASE:
DISTRIBUTION
SYSTEM
This case focuses on how
Danisco closely examined an
existing distribution system.
This case will highlight:
The need to investigate how the distribution system works
to estimate how to develop a distribution scenario that
would cost-effectively reach the farmers.
How you can explore a distribution system through the
Toolbox Activities: Follow and observe, Price mapping and
Ranking value.
Informal market channels
A very large quantity of the milk is supplied through informal
market channels, such as small outlets or markets, and
informal processes also influence the organization of the
milk collection at the farmer level. Large, industrialized milk
processors exist, with a demanding value chain, such as
depending on the season the infrastructure makes it easy
or difficult to collect the milk from the farmers. Combined,
these factors create a market that is complex to operate in,
especially for the farmer himself.
The people in focus
The farmer procures his products in numerous ways, through
co-operatives, manufacturers and small shops. This indicates
that the farmer is not waiting to be taken by the hand but is
a thrifty and entrepreneurial individual. The majority of the
farmers are looking to grow the farm, but the complexity
of the market, most often the low access to information
regarding sales prices and prices on farm inputs, obstructs
him or her from developing the business.
CASE DISTRIBUTION SYSTEM
1 2
RANKING VALUES
Prior to the field study, 20 small pictures were printed that
showed the different aspects of a farming business. At workshops,
the farmers and the informal traders were asked to organize
and prioritize the different features of their businesses (e.g.,
the value of durability) 1 , which indicated to the researchers
how they valued and prioritized the different features/aspects of
their businesses 5 .
The activity was very fruitful in revealing how these potential
consumers made business decisions, such as at community
meetings 2 ; again, this provided value information for the value
proposition of the product.
This information could in turn be related to how the product
should be distributed. For example, when looking at existing
consumption habits and patterns, it became possible to estimate
whether traditional distribution through an importer would
be relevant, or if it was more efficient to develop an alternative
distribution scenario based on where other goods, such as daily
food products, were bought.

3
5
FOLLOW AND OBSERVE
The researcher literally followed the farmers and informal
traders for a day 12 , to and from the points of milking, pick-up,
transportation, and delivery at the dairy. The arrangement to
follow the milking from A 8 to Z was easily organized through
a local dairy, as was focus group meetings with the farmers.
However, it should be noted that the farmers showed significant
signs of bias, as the dairy quality control representative followed
the researcher to the locations. However, following the supply
chain of the milk supply proved many valuable learning’s, such
as how the milk is bought and sold on the informal market or
how the milk is being handled 4 .
Altogether, the insight generated was used to determine where
the weak points of the current distribution system, e.g. such as
the current storage containers, which were not approved by the
authorities 6 .
4
6
11
7
9
8
10
PRICE MAPPING
The participatory consumer research also contained an
activity that encouraged the farmers and the informal traders
to disclose buying and selling prices, as well as different types
of incurred costs, (e.g., materials and fees) using simple cardboard
paper 11 .
The activity was carried out on-location at the cooperative 10 .
Altogether, this information established an overview and, more
importantly, a reference point for discussion 13 . This made
it possible to discuss the economic value to be derived from
the introduction of the product. Hence, this activity turned out
to be useful for numerical information that could be used to
estimate how consumers can benefit economically.
To extract information the farmers were asked to fill out a
questionnaire 9 . In relation to the distribution of the product,
this information was very valuable to determine how best
to achieve a cost-effective distribution while attaining the
economic value that the farmers had expressed.
12
33

34
CASE:
DISTRIBUTION
SYSTEM
This case focuses on how
students mapped current
infrastructures for delivery of
products and services.
This case will highlight:
The need to understand local infrastructures and how
these can act as opportunities and barriers for new types of
healthcare services.
How you can explore a distribution system through the
Toolbox Activities: Follow and observe, Deep dialogue, and
Activity map.
Four master’s students from Copenhagen Business School
undertook a six-week project for a pharmaceutical company
to research about how to create access to new healthcare services
through micro franchising. Toolbox Activities were used
to map current infrastructures for the supply of medical drugs
and services, and to understand the pivotal role of local entrepreneurs
in delivering service to the patients.
Informal provision of health care
The great number of unqualified healthcare practitioners with
little or no formal training is a challenge for Indians seeking
quality health care. These practitioners are often the first point
of contact for a patient, as they are considered a trusted neighbor
who offers very low prices for attractive treatments. While
NGOs are starting to recognize the unqualified practitioner’s
skills to reach out into the community, and are providing them
with training and/or incentives to do referrals, companies are
often facing great challenges in their local programs since they
sidestep this important social actor.
Student projects based on empirical data
The students completed 10 days of field research with a consultant
to meet with different local healthcare programs and local
organizations that could share insight on current challenges
and opportunities from different standpoints and give access
to local communities, local practitioners and patients.
1
CASE DISTRIBUTION SYSTEM
2
FOLLOW AND OBSERVE
By walking through different residential areas where lowerincome
residents lived, worked and commuted, the team got
up-close impressions of the urban conditions and local health
services. With no predetermined plan, the group easily identified
local diagnostic and health clinics, pharmacies and micro-entrepreneurs.
The lack of a firm plan provided the group the possibility
to observe the target groups in their daily lives, without the
bias of an organized event where a local contact could serve his
or her interests. Most people and institutions welcomed the students
and the informal dialogues provided valuable knowledge.
Through the contacts established with local NGOs and government
initiatives it was possible to visit the slum dwellings and
nearby rural villages where it was more difficult to access without
someone from the community itself. The team followed a local
health worker and observed the conditions in the communities
2 . The activity provided the unique opportunity to gain insight
into local infrastructures and the role of the informal health practitioners
7 .

DEEP DIALOGUE
To prepare for the local dialogues, a research diary was developed
for each primary target group: patients, health professionals
and entrepreneurs. Valuable dialogues were created spontaneously
in different locations, such as on the streets 3 , in shops,
private households 4 9 , clinics, offices and during health campaigns
5 . The use of audio recorders was helpful in hectic environments.
Meeting patients at their homes revealed insight into
their socio-economic conditions.
Different profiles of the patients were developed through the
research diary and later used to develop solutions on how to
bring healthcare services closer to the patient. Patients revealed
an interest not only in affordable drugs, but also the delivery of
additional valued services. Dialogue with pharmacies gave an
understanding of current supply and sales of drugs, and services
provided, such as local home delivery. Dialogues with local entrepreneurs
provided insight into the characteristics needed for
local distribution models and services offered to the customers.
3
8
4
6
5
7
ACTIVITY MAP
30 small pictures were printed before departure, symbolizing different
types of symptoms, treatments, types of transport and
daily activities and healthcare practitioners.
During deep dialogue session with patients the images were displayed
to the patient, who, with the help of a timeline on a piece
of paper, told his or her typical daily activities 6 . The activity
map changed according to the level of involvement of the patient
and the space available for drawing. Variations of the diagram
included the use of two different cards to refer to activities that
happened daily or occasionally.
The activity proved to be, apart from a great icebreaker, also a
way for the patient to open up and communicate his or her emotions,
and through them articulate on the challenges posed in his
or her everyday life by the disease 8 . It gave insight into the patients’
daily and weekly treatment activities that communicated
a great need for better access to health care.
9
35

36
PRICING AND
FINANCING
Setting the correct price for
products and ensuring that
people can access finance are
key priorities in these markets.
Although the situation has looked gloomy, the circumstances
in developing countries are slowly
changing. Still, many people are living in extreme
poverty, but as conditions improve, so do two of the
key factors determining the success of multinationals
in BOP markets: pricing and financing. Determining
and charging the right price and relying on available
finance for the consumer has become a reality. Companies
should beware of the common traps when
developing BOP projects and the innovative methods
applied to ensure success.
Poverty trap: People pay more for less
A commonly known fact about consumers in lower- and middleincome
classes is that they are sometimes trapped in poverty
and basic goods, such as food products, energy, education and
health services, are overpriced.
The trap occurs as these basic products and services cost more
– at times more than in developing countries – than they should,
thereby obstructing people’s consumption habits. For example,
water in Bangladesh is estimated to be more expensive for the
BOP segment than in Copenhagen.
Informal shops’ administration of cash is
very different to formal markets
Furthermore, it is often the BOP segment, and perhaps most
often, that pays higher prices for basic goods and services than
wealthier consumers – either in cash or in the effort they must
expend to obtain them – and they often receive lower quality
as well. For example, the most common energy source used for
cooking in Sub-Saharan Africa, charcoal, typically has a higher
cost per meal than would electricity or liquefied petroleum gas if
these energy sources could be accessed.
However unfair these situations might be, it sends an unambiguous
signal that these segments have a disposable income that
can, at times, sustain the costs brought upon them. In other
words, it can be deducted from the observed examples that their
purchasing power is low and that they are paying more for less.
This evidently opens up the doors for companies, provided that
needs are not misinterpreted with demand.
Small quantities: Good or bad?
BOP markets are often linked to sachet products. A good example
of a successful sachet product is Arla’s milk power products,
widely sold in Africa. In one instance, when marketing the product
in Congo, the company observed that sales were poor on the
cheapest of their products. Through research it was found that a
different and former brand had been cheap and of very low quality,
therefore, the consumer connected low price with low quality.
The result was that the high-end product in Arla’s product range
became very popular.
The high impact and success of sachet products is highly related
to the nature of people’s cash flow. Because the informal
economy, most often, does not operate with monthly pay slips
and credit lines the cash flow is more volatile and can change
quickly from day to day. This means that people tend to prefer
purchases in small quantities so cash flow is freed up.
However, this has a severe impact on products or services that
have higher costs, but is better economically in the long term.
For example, during field research, a Danish medtech company
found that the most commonly used products were very cheap
(USD 0.50) and of inferior quality to the company’s own products.
Contrary to this, the company observed that its products
were also on the market, although access was very low and the
average cost (USD 5.4-10.8) was much higher than the commonly
used product. However, participatory market research
revealed that even though the product prices were very different,
the total cost for the user differed, resulting in the cheaper product
having higher costs.
Popularity of mobile phones have meant that
pricing information must be very visible
The reason was that due to very poor quality, the product’s
consumption rate was significantly higher (approximately five
products a day) than the company’s own product (one to two
products a week). This example shows why low pricing does not

necessarily free up capital or works in the favour of the consumer.
Furthermore, it emphasizes why innovative financing models
are needed to assist the consumers in accessing better products
and services.
Financing schemes:
Enabling consumers to buy
Companies and communities have invented multiple ways to
ensure that people do not lack access to their products due to
financial capabilities. Some of the approaches observed include:
Financing schemes for ongoing services: Financing schemes
for ongoing services is widely applied – the best known example
being prepaid credits for mobile phones. The rapid
expansion and adaptation of mobile phones in developing
countries is intertwined with the company’s ability to put a
vendor on street corners where people can access the fi-
Concept assessment can
provide considerable insight
into the e.g. financial
aspect of your solution.
For instance, the concept
might involve a financing
scheme as part of the
purchasing. The activity can
provide valuable insight into
whether the target group
finds it attractive.
CONCEPT ASSESSMENT
Page 84
Follow and observe can be
used to visit a number of
stores, together with your
target group. This will allow
you to understand how
they look for products or
services, as well as collect
price information. You can
also visit the bank together
with a local.
PRODUCT IN MARKET
Page 86
nancial means (airtime credit) to use the products (mobile
phones/sim card). Grundfos LIFELINK, as mentioned earlier,
has managed to introduce a token where people can transfer
mobile payments, and thereby use the token to pay for
services. The technology is very applicable, as it is more flexible
as a device than transferring from the mobile phone to
pay for the service.
Cross-financing: Cross-financing builds on the concept of
subsidizing costs of a product by the earnings from another
product, thereby catering for very different segments based
on price and overall experience of the product. An example
is AravindEyecare, which subsidizes 70% of all the poor patients
they treat for cataracts. Regular patients are charged
USD 350, which means that the hospital can offer the operation
at USD 30. Evidently, the cross-financing only works
because of very well-developed cost structures, such as the
procedures and routines of the surgeons.
ACTIVITY TOOLBOX SELECTED ACTIVITIES THAT YOU CAN APPLY TO THE PRICING AND FINANCING DIMENSION
Resource flow can provide
details on the input and
output of a household.
For example, does the
household have a loan and
what is the loan financing?
Similar to this, you can map
the income and expenses
of a shop, which can then
be cross-referenced to price
lists of the shop.
RESOURCE FLOW
Page 66
Ranking values is useful in
getting people to prioritize
the different characteristics
of a product or service,
such as whether they value
price over taste. It could
also be how much they
would sacrifice to buy the
product, such as giving up
other purchases to buy the
company’s product.
RANKING VALUES
Page 76
Group financing: Group financing is a very popular financing
method in rural areas, where people come together and pool
their capital for investments. Typically, this type of financing
emerges when there is no access to formal institutions, such
as a microfinance institution.
Microloans: Microloans have become very popular as a
method to increase access to financing for people. It can be
questioned whether microloans have succeeded in reducing
poverty, but it remains a complementary solution for companies
in extending their products, which can benefit individuals
or communities.
Self-observation can assist
you in getting an insight into
details that would usually
not emerge when you are
physically present. For
example, you can instruct
people to note the prices
of a number of relevant
purchases, e.g. every time
they buy groceries.
SELF-DOCUMENTATION
Page 60
Price mapping is a
particularly relevant
activity in relation to this
business model aspect,
as it can extract price and
cost information of a group
of people. Through the
activity, you gain a better
understanding of the
economic value proposition
of your company.
PRICE MAPPING
Page 78
37

38
CASE:
PRICING AND
FINANCING
This case focuses on how
Worldbarrow sourced
relevant price information.
This case will highlight:
The benefits of introducing a prototype to a local community,
as part of relevant price information, which can be
used for the business model generation.
How you can explore pricing and financing through the
Toolbox Activities: Resource flow, Price mapping, Assessing
product, Product in market and Self-documentation.
Price determination
There are different methods in determining a product’s price;
however, in BOP markets, pricing products can be particularly
difficult. A specific factor for the wheelbarrow product, which is
designed specifically for farmers, was that cocoa farmers are
trapped in a low cash flow trap – after they sell the harvest,
time surpasses before the payment is received. By this time,
they will have spent the most cash on fertilizers and pesticides.
Small returns also count
Even though such factors play a considerable role, the farmers
are very conscious about the financial opportunities of a wheelbarrow.
The wheelbarrow would increase their carry load and
speed, thereby liberating resources, which could be allocated
elsewhere, such as nurturing a large farm or attending to secondary
income opportunities. The small returns on a wheelbarrow
would be sufficient to finance the actual purchase, as the
farmer’s overall income would be increased.
1
CASE PRICING AND FINANCING
2
RESOURCE FLOW
The activity addressed both expenses and income of a farmer’s
household and business to understand the distribution of spending.
An elderly farmer was asked to be the first participant due to his
good English skills. The farmer was very thorough and wrote down
his types of resources, from church offerings to pesticides 7 . Participants
later had less confidence and used the categories from
first exercise.
The activity proved very time-consuming since it invited farmers to
proudly share insight on their crops 3 , use of pesticide and showing
their farming tools. The farmers ranked the resource categories
in accordance to their relative yearly cost 4 , and afterwards
they tried to define the annual spending on each of them, in local
currency, with the help of others observing the activity 2 .
The resource flow communicated clear examples of the fact
that local spending is not always rational from our point of view.
Through the activity, valuable insight on local spending and revenue
was found, as well as a local vocabulary of local resources
that proved useful later.

8
3
5
4
6
7
PRICE MAPPING
The participatory consumer research also contained an activity
that encouraged the farmers and the informal traders to disclose
buying and selling prices, as well as different types of incurred
costs, (e.g., materials and fees) using simple cardboard
paper 11 .
The activity was carried out on-location at the co-operative 10 .
Altogether, this information established an overview and, more
importantly, a reference point for discussion 13 . This made it
possible to discuss the economic value to be derived from the
introduction of the product. Hence, this activity turned out to be
useful for numerical information that could be used to estimate
how consumers could benefit economically.
To extract information, the farmers were asked to fill out a questionnaire
9 . In relation to the distribution of the product, this
information was very valuable to determine how best to achieve
a cost-effective distribution while attaining the economic value
that the farmers had expressed.
9
11
10
12
39

40
13
CASE PRICING AND FINANCING
PRODUCT IN MARKET
The activity commenced by preparing various pictures indicating
people’s positive or negative opinion of the product 13 . These
were later attached to the product itself. However, before that,
the researchers visited a number of shops.
The selection of the shops was spontaneous, as the shops are
typically very small and pre-arranged appointments are difficult
to make. However, it would be possible to coordinate with a local
partner to visit a number of selected shops for a more structured
approach. Additional value can be achieved if the researchers
pick a non-traditional shop, to allow for feedback from not-soobvious
customer segments.
In this case, a shop that dealt in hardware supplies 17 was chosen
and the researchers agreed with the manager of the shop
that a product be presented at the front of the shop with the
printed picture attached to it 14 . In addition to this, he was given
a number of questionnaires 18 for his clients to fill out. Instead of
merely handing him the questionnaires, the researchers carefully
instructed him on what each question addressed, etc. 15 . When
clients filled out a questionnaire, they received a free pen 19 .
The product remained in the shop for three days and upon
return, the researchers had a short informal meeting with the
manager 16 . The activity provided insightful knowledge concerning
his clients’ responses to the product, such as the price, what it
could be used for and the general appeal.
The manager of the shop was very interested in including the
product in his stock and found the price to be attractive. It was
agreed that the manager receive the product, which can also be
useful if the researcher should return again, as this will generate
new insights.

14
19
SELF-DOCUMENTATION
Prior to departure, 20 disposable cameras were prepared with
a list of nine different pictures to be taken by the farmers themselves
22 .
Each of the selected 20 farmers got a disposable camera with
an exercise to take a minimum of nine types of pictures within
two days. Most farmers had never used a camera before, so
it got a lot of attention, making them proud to be participants.
They were clearly informed about the purpose of the cameras
21 . The farmers were in control of the activity and the outcome
15 16 was very explorative 20 . The activity was launched by letting the
21 22
farmers take 10 pictures, thereby trying out the camera – this
17 18 also allowed them to chose motives of other things that had a
23 24
personal value.
Pictures were developed after the field research and grouped according
to themes identified among the pictures 23 . More than
half of the pictures were directly relevant to the project, while the
remaining photos were of children, local activities, the researcher,
etc., and gave insight into what the farmer valued. Pictures revealed
alternatives uses of the wheelbarrow not revealed during
own observations, and insight on local farming tools, road conditions
for the wheelbarrow, how farmers used the prototype and
their general living conditions 24 .
20
41

42
MARKETING
AND COMMU-
NICATION
In developing markets,
alternative methods must be
used because the consumers
are hard to predict.
The perception of marketing and packaging has
had, in many cases, to be altered when operating on
markets in developing countries. Applying the same
approaches as in developed markets usually has
drawbacks, as people’s valuation of the products and
services are very different. Typically, this is a result of
a very different behavior due to the circumstances in
which the people live. Consumers use the products
in new ways, which means that the marketing and
packaging sometimes do not correspond with the expectations
of the consumers.
Communicating the value proposition
The value proposition of a product is difficult for foreign companies
to communicate in developing countries, as people’s behaviors
are based on a different set of principles than in developed
countries.
The result of this behavior can be observed in different ways,
such as the notion of irrational spending. Irrational spending occurs
not only in developing countries, but it is much more difficult
to determine the cause of the irrationality due to low access to
information. An example of irrational spending is the high pro-
Alternative product value is often observed, for example
by using windscreen wipers to transport fish
portion of income used on alcohol and gambling, even though
basic needs have not been met. As previously mentioned, the
disposable income can be difficult to estimate and a reason for
this is that consumption is at times irrational.
This is evident in the marketing and packaging of intimate health
products, such as continence care, where women at times are
more occupied with the design of the product – that it looks feminine
and discrete – than the actual functionality of the product.
The organization Ecotact, a provider of sanitarian services in areas
with poor access to sanitation, has had success in completely
leaving out the core of the product: access to toilets at a central
location (similar to that of a small shopping center). Instead, the
organization focused on the services surrounding the toilets,
which were access to clean water, showers, washing clothing,
but also less traditional services such as internet access, shoe
shining and convenience stores. Eventually, religious and political
leaders, actually making the toilets chic, have endorsed the
Ecotact toilets.
Inclusion of the end-user is the answer
These examples demonstrate a fundamental issue: Companies
need to find out exactly what the challenge is for the individuals
and find out how they think it should be solved. This emphasizes
the importance of including the local community in the development
and execution of packaging and marketing strategies.
Creating alliances and co-creating with the local community will
significantly increase the likelihood of success. Therefore, the
company should focus on studying and learning the behaviors
of the local community and integrate this behavior into the business
model.
Alternative product value
For companies, the value of a product might be apparent and
easy to understand. Even for products that are easy-to-use and
serve a specific purpose, people can and will adapt the use of
the product. For example, a manufacturer of mosquito nets, observed
that the communities in which their nets were used to
protect the people from getting malaria, the nets were instead
being used as fishing nets.
Similarly, a Danish company observed, during field research, that
battery acid plastic containers were being used for transporting
dairy products. Altogether, these examples point towards first
of all the necessity for companies in conducting field research
as it brings about very important information and knowledge on
product use. Second, it shows the creativity and lack of knowl-
Typical packaging in developing countries comes
in small quantities and bright colors

edge – in this case related to packaging – of the local population,
thereby giving away important information on how the product
value is interpreted and in which way it should be marketed.
Social change campaigns
To meet the challenges of making people understand the value
of the product or service, you can apply a number of non-traditional
marketing strategies and techniques. A common marketing
strategy is social marketing, which highlights the benefit
of the product from a social perspective, as well as a financial
perspective. For example, the sales people are instructed to emphasize
the health benefits of a food product, thereby providing
an incentive to buy besides the price. In large scale, companies
can organize for social change campaigns, typically together with
government and/or NGOs.
ACTIVITY TOOLBOX SELECTED ACTIVITIES CAN YOU APPLY TO THE SERVICE AND MAINTENANCE DIMENSION?
Deep dialogue is effective
in acquiring a deep
understanding of people’s
perception of how companies
communicate to them, such
as in terms of the channels
used for marketing or the
packaging of the products.
The activity is also applied
as a general activity that can
generate necessary insight
and contacts for conducting
other activities.
DEEP DIALOGUE
Page 58
Target group segmentation
can be used in the process of
developing your marketing
and communication for
the business model. When
conducting your participatory
market research you should
simultaneously segment
your target group. At a
later stage, this will allow
you to determine how
totailor the marketing and
communication, which can
be developed using other
Toolbox Activities.
COSTUMER SEGMENTATION
Page 72
The message of the campaign can then support the usage of the
company’s product. P&G did this in a campaign that had a positive
approach related to their products. The company has developed
a successful clean-hands campaign with Safeguard soap
that combined a message about bacteria with upbeat commercials
of healthy, happy children washing their hands and playing.
Grassroots marketing techniques
The idea of grassroots marketing builds on the idea that a company
should tap into the collective efforts of brand enthusiasts.
For example, the Solae Company made community theaters
and community cooking expos in the efforts to introduce the
company’s soy products. The key aspect in these techniques is
that they include the people of the local community and allow
them to experience the value of the product.
Designing value proposition
is very important when
you need to understand
how your marketing and
communication is perceived.
The activity focuses on
including the end-users’
perceptions of marketing,
such as assessing whether a
local community theater is
effectively communicating
the value proposition. It could
also be simpler things, such
as an assessment of the words
used to describe the value
proposition.
DESIGNING VALUE PROPOSITION
Page 80
In addition, the company is accumulating learning in terms of
how the product creates value for the people involved in conducting
the grassroots marketing, and how the local community
receives the output from the marketing activities, such as the
community cooking expo.
Selling the product can give
you answers as to whether a
given marketing technique is
working. By placing a product
in a shop and providing the
necessary training to the
personnel, you will receive
very specific feedback, which
can assist you in deciding how
to market to the target group.
PRODUCT IN MARKET
Page 86
Prototyping assists you in
including the target group in
the actual design of marketing
techniques, packaging of your
product or communication
channels. This can be a very
effective method in drawing
on unique knowledge in the
community. For example, if
people think that the best way
to communicate your product
is by using very special local
words, this can contribute
significant value to the
marketing.
PROTOTYPING
Page 82
43

44
CASE:
MARKETING AND
COMMUNICATION
This case focuses on how Arla
obtains end-user feedback on
milk powder packaging.
This case will highlight:
The need to go into dialogue with end-users to obtain insight
on their perception of products and get their ideas.
How you can get this insight on product packaging using
the Toolbox Activities: Deep dialogue, Customer segmentation
and Designing the packaging
Getting the packaging right
As in other markets, the packaging is very important in developing
markets, especially in rural areas, as it can be the only
channel of communication to the end-user. In this case, it was
important to obtain the initial feedback from the end-users as
the company was working with an assumption that the endusers
considered the product as something for children. With a
set of research questions on these topics, the market research
was launched.
Identifying the customer segments
As part of the packaging assessment, it was important to estimate
what type of customer segments the current products
were targeting. Generating an overview of this made it easier to
test the packaging of the milk powder product, thereby comparing
the different target groups to understand what differs
between Arla’s product and existing products.
1
CASE MARKETING AND COMMUNICATION
2
DEEP DIALOGUE
The focus of the field research was defined prior to departure as
well as three target groups: children, women and men living in
small communities.
Upon arrival, the researcher visited local shops, roadside entrepreneurs
and others to identify where similar products were sold
and to approach the customers.
The researcher started very informal dialogues with the customers
at the place of purchase to address a few key questions on
when, why and what milk they were purchasing. While some
people had no time to talk, most people showed interest and
took time to share their preferences and habits of drinking milk.
No questionnaires were used, but the focus framed the dialogue
and notes were taken afterwards. Similar informal deep dialogues
were done with people in their private households, facilitated
by a local partner.
Being at the point of sale it was possible for both the customer
and researcher to use the products displayed as reference in the
discussion – addressing the different product brands, type of
packaging, price and quantity.

CUSTOMER SEGMENTATION
An activity was prepared to structure and further elaborate on
selected deep dialogues with people in shops or at their private
households. An A4 template was developed to address key aspects
during the dialogue and to later structure notes, looking at
“what, why, how, where and when you buy milk.”
Included in the template was also the customer’s priority of various
products. Ten locally purchased products along with Arla’s
own samples were presented and the participant was asked to
rank a top five based on his or her own personal preferences.
The activity still provided valuable insight for marketing, such
as differences in purchase patterns, point of purchase, product
preference and the influence of local radio on which product customers
would buy.
Through the activity, it was found that to address the value of
milk for children, there would be a great difference between targeting
teenagers compared to when the mother would purchase
milk for their kids.
3
4
6
5
7
8 9
DESIGNING VALUE PROPOSITION
A local shop owner was approached on the street with his five
friends and they were invited to a focus group activity on the
street. The scope was to understand participants’ perceived
value of milk and how this could be communicated through the
packaging material.
An A3 illustration with pictures of each locally available milk
product along with a picture of Arla´s own product was shown.
The group was asked to review the illustrations and write on the
images their interpretation of what the images tried to communicate.
After the group had written keywords, such as “health,
strength, peace, for kids,” the group was asked to select the keywords
that were attractive to them and to explain why.
From selected keywords, the group was again asked about how
the packaging should look in order to attract them. The group
used the included illustrations to highlight details, such as attractive
names, images, messages etc.
45

46
SERVICE AND
MAINTENANCE
Creating a service and
maintenance setup around
a product can enhance the
overall value.
Many good intentions and projects have stalled or
failed because they lacked the necessary service and
maintenance dimensions. Products that are delivered
as part of a service system still remain uncommon
in developing markets, but with the fast rise of
information and communication technology, products
are increasingly supported by a service system
that eases access and payment. Maintenance remains
a vital part in BOP projects, as conditions are
harsh and access to educated workforces is low.
The dualistic nature of maintenance
Maintenance is a very complex aspect of the business model.
There are many factors in developing countries that challenge
the companies operating there, such as the level of education,
the access to necessary components in case of breakdowns or
the financial means required to maintain the product.
Evidently, these factors make it difficult to market products that
require frequent or advanced maintenance. However, some
companies also perceive this challenge as an opportunity to
innovate and, for example, to develop high-end products with
Wells in villages might look like any ordinary well, but
in some cases they are businesses with cashflow and
employees
low or no maintenance requirements. At times, this can go
against the business model of some companies, as the revenue
streams come from the maintenance and after-sales services
and not the product itself.
An example of product innovation, which typically cannot
function without a maintenance component, is hospital
equipment, such as a cardiovascular electrocardiogram. The
company GE, as mentioned in the introduction, has made an
effort to develop a low-cost and mobile electrocardiogram for
rural locations in India. The result was that doctors in urban
locations, which have the skills to use the product and can
access the necessary maintenance and service, could visit
patients and make on-site diagnoses. The product has since
been sold in China and the United States, which makes it a case
of reverse innovation, where the framework and circumstances
of the developing country creates a fertile breeding ground.
Interlinking the service and the product
A successful model in selling the product of your company is to
link it to a service, where the two co-exist. A successful approach
is that of E Health Point, which a for-profit social enterprise. E
Health Points are units owned and operated by Healthpoint
Services India that provide families in villages and smaller towns
with clean drinking water, generic medicines, comprehensive
diagnostic services and advanced tele-medical services that
“bring” a doctor and modern, evidence-based healthcare to their
community. By offering drinking water and other daily needed
services, the E Health Point links people to the healthcare
services, by providing them an incentive for daily visit.
The practice of microfinance institutions is an example of how
the loans are combined with enterprise development services,
if the borrower is a small business. The ability to provide
different services is a popular way of competing against other
microfinance institutions.
Selling the product by the service
While companies can increase ease of use and access through
product innovation, such as in the GE example, another
approach is to ensure that the value of the product is realized
through a service system surrounding the product.
Grundfos LIFELINK, mentioned in earlier chapters, focuses on
selling a water service platform in which Grundfos LIFELINK
performs the role of technology provider. In market terms, the
problem is not that there is a need for water, but rather there
are no existing solutions – particularly solutions delivered by
NGOs – have succeeded in delivering a continuous supply of
water on a commercial basis. In particular, the systems break
down due to lack of maintenance and non-existent access to
services.
Nice clothing is not an obstacle if it means business, as
this woman who owns and sells second-hand spare parts

The Grundfos LIFELINK’s project builds on an innovative model
where the community invests in a water service platform.
Besides the installation and technology, the company also
has a contract that offers 15 years of after service. The after
service is paid through the consumption of the water, which has
a metering device installed, ensuring that Grundfos LIFELINK
receives its yearly fee. The example shows how the service
rather than the product itself can sell a homogenous product,
safe drinking water.
Educating the local workforce
In projects, the level of success has often been determined
by the ability to deliver service and maintenance. A typical
drawback of projects in developing countries is the lack of
ACTIVITY TOOLBOX SELECTED ACTIVITIES CAN YOU APPLY TO THE SERVICE AND MAINTENANCE DIMENSION?
Price mapping can be useful
in different ways, such as
in a method for people to
communicate the economic
value of a service, such
as veterinary services for
farmers.
The activity then becomes
a platform for dialogue,
and different topics can be
explored based on the prices
that have been mapped. E.g.
if level of service is reflected in
the price of the product.
PRICE MAPPING
Page 78
Follow and observe can shed
light on the perception of
service and maintenance in
a local community, such as if
you follow people around and
observe the different things
they regard as a service and
when a certain component
requires maintenance.
The activity gives you a quick
insight into a community and
their ways of doing things,
such as accessing service and
maintenance. This knowledge
can be very useful when you
design the business model.
FOLLOW AND OBSERVE
Page 68
skilled labor, both at the vocational and managerial levels.
Some companies confronting this problem realized the value
of educating the local workforce as part of the business model.
For example, Kuyasa CDM project retrofits solar water heating,
insulates ceilings and installs energy-efficient lightings in 2,300
homes. To realize this project, it was necessary to educate a
small local workforce of local craftsmen. Besides installing the
technology, they were also able to ensure maintenance in the
future.
Localizing service systems
When developing services, your company can gain additional
value by including your target group in the development.
In terms of maintenance, it can also be advantageous to
Prototyping lets you include
the target group in the
design of the service and/
or maintenance procedures.
Including your target groups
especially in maintenance – if
your products require such – can
be particularly useful as they
will contribute with valuable
information. This could include
how often maintenance is
required for similar products
and how they would like to
access maintenance – can they
handle it themselves, or would
your company have to carry out
the maintenance?
PROTOTYPING
Page 82
involve the local workforce. They are typically knowledgeable on
local conditions and can assist in assessing if the local community
possesses the required maintenance skills.
For example, the organization InnoAid focused on developing
a bicycle ambulance adapted for local conditions. However, the
adaptation not only focused on the needs of the end-users, it also
focused on the maintenance, as this is vital if the ambulance is
to be used in emergency situations. To accommodate this critical
issue, local craftsmen were involved in the process of constructing
the ambulance, thereby ensuring that the construction was not
too advanced for other workers in the community to maintain, if
necessary.
Create scenarios for people to
better understand the different
concepts and ideas that you
would like them to provide
feedback on. For example, if you
are planning to launch a service
that will make it easier for
people to access the internet in
rural areas, provide people with
examples of how the internet
can be used. The activity lets
you present people with fictive
situations, such as pictures
of a countryside and people
accessing the internet, thereby
letting them imagine what you
are trying to offer.
CREATING SCENARIOS
Page 74
Concept assessment is useful if
you have developed a concept
or product and need feedback
from your target group. For
example, you have developed
a conceptual model of how
to easily clean and restore
a component of a product
by using local resources and
to validate this concept you
need feedback from the local
community.
The activity assists in collecting
this feedback, so the concept
can be improved or discarded.
CONCEPT ASSESSMENT
Page 84
47

48
CASE:
SERVICE AND
MAINTENANCE
The case focuses on how
Grundfos LIFELINK delivers
safe drinking water through
an innovative service delivery
platform.
This case will highlight:
How product and service can be intertwined to deliver a
greater value to the consumer.
How you can explore the need for setting up a value-adding
service system, using the Toolbox Activities: Price mapping,
Prototyping and Follow and observe.
Accessing water through a service platform
Grundfos LIFELINK, a subsidiary to Grundfos, offers a water
service system, which includes an energy-efficient pump, solar
panels, money transaction service system and a 15-year-long
service and maintenance contract. After mapping the initial
outcome of the pilot project, it remained clear that many access-to-water
projects fail because of the lack of maintenance.
Therefore, the company wanted to integrate a maintenance
component into the business model.
Commercial sustainability
Next, the solution had to be commercially driven so as to allow
for continuous maintenance, which challenged the company to
think up an innovative method for paying for the safe drinking
water. The solution proved to be mobile payments, as this type
of transaction could also set aside money, which would be used
for the service and maintenance. This way, the company is not
only selling a pump, but a complete service platform, which can
be installed in areas without access to electricity and still ensure
that the company receives its fee for delivering maintenance
upon request.
1
CASE SERVICE AND MAINTENANCE
2
PRICE MAPPING
Determining the price for water would seem to be a straightforward
task. However, as the team ventured into this topic, it
turned out to be more complex than anticipated. As part of the
research, the different price points of water access were investigated
through group interviews 6 . This revealed that people
paid an average of 10-15 cent per liter for water that was picked
up from the nearby river 2 .
However, upon more research, it turned out that people had a
very different perception of the price of tap water. They based
the price on the price of tap water 3 in urban areas and were
expecting to pay no more than 2-3 cents. This insight meant that
the service dimension of the business model had to be very innovative
if water was to be affordable. This called for the introduction
of the mobile payment system combined with low maintenance
to keep the cost very low.

FOLLOW AND OBSERVE
The toolbox activity was used to gain insight into how the target
group accessed water. The team would literally follow the target
group to determine when and how water was being picked up,
such as with bicycles 7 . Different groups, such as women 8
and farmers 4 , were selected and in addition to following the
process, the team also observed the target group’s behavior. Observing
potential end-users can yield great results, as a lot of the
knowledge needed for the business model can be tacit.
An important part of the following and observing of the target
group is the trust and confidence gained when spending time
with people. In this case, the activity provided insight into how
the service system could address some of the challenges that
people were faced with as a result of poor access to water. Also,
by observing people, it became apparent that mobile payment is
an integrated part of the everyday life. By using already accepted
technology, a community can accept the introduction of new
products, such as the provision of safe drinking water.
3
8
4
6
5
7
PROTOTYPING
The prototyping established its roots back in 2005, as the company
sold 25 solar-driven pumps to UNICEF. In 2009, the company
mapped the outcome of the project and found that only
nine pumps were still active.
This led the company to develop a new, innovative system 9
that involved the end-user in the design of the prototype. Workshops
and actual testing have provided valuable insights when
developing the prototype 6 5 . An important part of the prototype
development was to understand the challenges people
faced, such as how water was fetched. The Toolbox Activity Observe
and follow provided insight into how people fetch water
by digging deep holes and letting groundwater fill the hole 1 ,
which together with Toolbox Activity Price mapping assisted the
development of the prototype.
These activities lead to the integration of a mobile payment
transaction system, which was tested extensively, ensuring that
this dimension of the business model was designed correctly.
9
49

50
CASE:
SERVICE AND
MAINTENANCE
This case focuses on how
InnoAid addressed service
and maintenance aspects of
a rural ambulance.
This case will highlight:
The need to design service and maintenance aspects together
with local stakeholders to address the sustainability
of a rural ambulance concept.
How you can develop solutions for service and maintenance
through the activities “Creating scenarios,” “Prototyping,”
and “Concept assessment.”
Making maintenance feasible
The organization InnoAid identifies and develops innovative
projects in low-income markets. Through local partnerships, a
project was formed to develop an innovative rural emergency
health transport system. Four students were involved from the
Technical University of Denmark to complete local field research
to prototype the initial concept for the product and service solutions.
The prototype was manufactured based on the widely
popular bicycle van rickshaws that minimize manufacturing
costs, allow for easy access to spare parts for maintenance, and
create a sense of familiarity for the driver and for the patients.
Reformulating the project
challenge from product to service system
Local doctors and NGOs communicated a great need for a bicycle
ambulance to access remote villages and provide safe
transport for people to the nearest health clinic for a minimal
fee. Local research, in contrast, revealed that the targeted customers
did not perceive a need since it was commonly accepted
that an emergency trip to nearest health clinic could worsen the
patient’s health conditions, or even have deadly consequences.
It was found that there was a great need to address the services
surrounding the emergency bicycle, as it would have to be marketed
as a full-service product and not just a product reflecting a
single trip transport to a nearby health clinic.
1
CASE INCLUDING END-USERS
2
CREATING SCENARIOS
“If road conditions were improved, then what would be the
challenge of offering an attractive transport of patients from
their home to the local health clinic?” Similar hypothetical scenarios
were created and presented in small focus groups with
local women health workers to address additional problems and
challenges relevant to the project 2 .
By excluding the primary challenges of the poor road conditions
in the scenario, participants were forced to think of possible secondary
challenges. Through the use of scenarios, the students
were able to focus on a discussion that addressed relevant challenges
not initially revealed during dialogues.
The students facilitated the first focus group while one of the local
participants from the first workshop facilitated the next workshop,
allowing the students to stay in the background to observe
and document learning 3 . By making questions less abstract
and addressing specific situations, important challenges were
identified that the locals initially perceived as secondary and unimportant.

PROTOTYPING
A local blacksmith was hired by the partner NGO to manufacture
an ambulance prototype with the students using supplies
from a local bicycle shop. Students developed 3D sketches and
technical drawings that were adapted through dialogue with the
blacksmith 4 . With the help of the blacksmith, they adapted
the ideas to the local van rickshaw and included a suspension
system with locally available spare parts. The design was further
optimized during an iterative problem-solving process between
the students and local manufacturer during the manufacturing
11 . The prototyping gave valuable insights into local skills, daily
activities of a local blacksmith and visitors’ first impressions of
the design. Through the prototype, initial manufacturing and
maintenance costs were both estimated. Local school kids were
invited to draw and color an ambulance, which gave insight into
important details, such as logos and colors 5 6 7 .
The prototype was used as a requisite in three role-plays to prototype
the service-delivery system. Local participants played the
role of driver, helper and patient and tried out an emergency situation
before they were included as a focus group to discuss the
needs for a service delivery system 12 .
3
8
4
6
5
7
CONCEPT ASSESSMENT
Critical feedback about durability and need for maintenance was
obtained through dialogue with the local blacksmiths as well as
by looking at similar products in use, such as the local van rickshaws.
By showing local residents only the frame of the 1:1 prototype,
they gave a lot of feedback related to appearance, such as the
need for colors and aesthetically to look “less rural.” The finalized
prototype was assessed for its usability and acceptability through
actual use by both locals and the students to get hands-on experience
1 9 . Different routes were mapped in the area to use
the ambulance on the variety of roads. Vibrations on the stretchers
were assessed by using an app for iPhone that collected data
for later analysis and to ensure the design complied with health
and safety standards 10 .
Discussions about the service delivery addressed an overall challenge
to communicate and build services to improve the current
situation while not creating expectations of convenience similar
to an urban minivan-ambulance that would not be sustainable or
functional in the rural context.
9
11
10
12
51

ACTIVITY
TOOLBOX
FACILITATION ADVICES
DEEP DIALOGUE
SELF-DOCUMENTATION
ACTIVITY MAP
SOCIAL MAP
RESOURCE FLOW
FOLLOW AND OBSERVE
LEARNING BY DOING
54
58
60
62
64
66
68
70
72
74
76
78
80
82
84
86
CUSTOMER SEGMENTATION
CREATING SCENARIOS
RANKING VALUES
PRICE MAPPING
DESIGNING VALUE PROPERSITION
PROTOTYPING
CONCEPT ASSESSMENT
PRODUCT IN MARKET
Matrix to the right shows
the Activity Toolbox Overview
White circles indicate the activities that can
be applied to the business model dimensions.
Small green circles indicate the participatory
market research cases that contextualize how
activities has been used to collect insight within
a specific business dimension.

RApID mARkeT
ASSeSSmenT (PAGE16)
CASe (PAGE 18)
CuSTOmeRS AnD
enD-uSeRS (PAGE 20)
CASe (PAGE 22)
InCluDIng
enD-uSeRS (PAGE 24)
CASe (PAGE 26)
CASe (PAGE 28)
DISTRIbuTIOn
SYSTem (PAGE 30)
CASe (PAGE 32)
CASe (PAGE 34)
pRICIng AnD
fInAnCIng (PAGE 36)
CASe (PAGE 38)
mARkeTIng AnD
COmmunICATIOn
(PAGE 42)
CASe (PAGE 18)
SeRVICe AnD
mAInTenAnCe (PAGE 46)
CASe (PAGE 48)
CASe (PAGE 50)
Deep
DIAlOgue
Self-
DOCumen-
TATIOn
ACTIVITY
mAp
SOCIAl
mAp
ReSOuRCe
flOw
fOllOw &
ObSeRVe
leARnIng
bY DOIng
COSTumeR
SegmenTA-
TIOn
CReATIng
SCenARIOS
RAnkIng
VAlueS
pRICe
mAppIng
DeSIgnIng
VAlue pROpeRSITIOn
pROTOTYpIng
COnCepT
ASSeSSmenT
pRODuCT In
mARkeT
53

54
FACILITATION
ADVICeS
The toolbox activities support participatory market research
that will challenge you to leave the hotel to discover the context
of your target group first hand. Identifying and creating markets
in low-income countries require participation and strong inclusion
of your target group during the research. You should not
only observe or interview your target group, but through your
facilitation have them participate actively in communicating
valuable and deep insight.
To successfully use the toolbox activities, it is important that you
pay attention to a number of aspects that are of high importance
when undertaking field research in low-income-markets.
These include:
Flexibility and the right approach to plan the field
research
Making sure you are ready and packed for the activities
Adaptation and detailing of activities which are relevant
and useful for the specific context
Selecting appropriate participants for your field research
– who to choose, for what, and when
Building skills and the right attitudes as facilitator
Having tools to motivate participation of people who are
not familiar with market research activities
Knowing how to undertake activities in a focus group
Having tools on how to provoke opinions from your
participants
Knowing the challenges and opportunities of using
interpreters
plAnnIng
FIELD RESEARCH
geT fOCuSeD
Develop a clear goal of what the expected outcome should be
of the field research to gain specific knowledge relevant for the
dimensions of your business plan.
Define the challenge(s) that your field research will address
and ensure you:
Write the challenge narrow enough to make the focus of
your field research manageable.
Write the challenge broad enough to allow you to discover
the areas of unexpected value.
Be open to challenges. During the field research, what you
learn may cause you to elaborate, or even fully rephrase, the
defined challenges and opportunities.
Define your target groups, e.g., from their role within the value
chain that you are examining or types of people within a specific
income segment.
eSTAblISH pARTneRSHIpS
Look for local partners prior to the field research who can help
you to make arrangements for the local research and give you
advice on the appropriateness of your planned activities by using
their network and cultural insight.
Consider which types of local partners you wish to engage, such
as consulting companies, research institutions, small- or medium-sized
businesses or NGOs. Consider that:
Students can be helpful to engage as local researchers
NGOs can be valuable partners due to their local network
and insight on local challenges, but they often have little time
to undertake new activities if the scope of the field research
is not aligned with their development activities
Align expectations with partners. Be careful to build expectations
from the local partners so that they will not only assist field
research, but also become the future business partners.
pRepARe A SCHeDule
Develop a schedule for your field research, listing the specific
appointments and activities you will undertake.
Include time and flexibility for new appointments and for you to
visit local sites first identified upon arrival. It is advised to keep the
end of the schedule free of other appointments, as some local
appointments are first made once you are in the country.
Include flexibility in the program. Make room for activities
to take longer than planned, for the agenda to be
changed due to sudden unpredictable happenings, and
be open to whatever else awaits.
When working in communities, there will often be a codeof-conduct
on how to be welcomed that should be respected
and may take time to adapt to. It often involves
meeting with the chief and elders of the village or community
to present your mission and request for collaboration.
This is followed by the elders introducing the village
and their interest to participate in your field research. Ask
your local partner if you should bring a local present for
the chief or elders when greeting the community – this
can include local snaps to nuts and fruits, but the gift is
often very dependent on the specific context.
Consider that local researchers or the target groups may be able
to undertake some activities by themselves, giving you time
to do other activities such as partnership meetings while the research
is being done.
DeVelOp mATeRIAl
Select, adapt, and prepare toolbox activities and visual or
physical material such as pictures, prototypes, post-it notes and
pens to support the undertaking of the activities.

ReleVAnT ACTIVITIeS
& MATERIAL
Keep it simple – Do not make activities very sophisticated or
difficult to understand and use. Developing a simple activity will
efficiently give you valuable information and the participant will
build confidence to participate and share additional insight. For
example, one simple activity would be asking your participant to
sort 15 images showing different types of products according to
his or her perceived values. Complex activities will take time and
may lead to misconceptions that will affect the outcome negatively.
Prepare material that takes into consideration your target
group’s ability to read and write and language preferences.
Your local contacts can advise you on whether
material should be written or needs to be primarily visual.
Develop visual material
Avoid symbolic images or exaggerated drawings to show a
concept, since they can often divert the activity to irrelevant
discussions. The more you can present your idea or scenario
in realistic way, the better – consider the use of pictures, 3D
drawings, small models, or prototypes.
Find pictures from the same or similar context. For the
development of a water supply system in rural India, look for
images that picture a rural Indian setting and include images
of Indian people and technologies that are currently used in
India.
Try to limit the details of the surroundings shown on an
image. These details may become the center of the discussion
but are irrelevant. For example, participants who discuss
the shape of the houses or kitchen utensils, which they
are not familiar with, on a picture that is supposed to obtain
feedback on a cooking stove only.
Use the same type of illustrations. Use illustrations from
the same type of country, and show products that are in the
same condition such as all drawings or picture of products
that are all new or all used to avoid people expressing preferences
for the ones that look new instead of addressing the
design itself.
Glue or tape image on heavy paper to avoid the images
flying around when outside or inside where there is a fan.
Another alternative is to use “Sticky Gum” as a solution.
No.
pACk YOuR SUITCASE
Video camera and camera
(consider a smartphone instead)
Notebook, post-its and pens
Small gifts for participants
(could be common goods purchased locally)
Yes!
SeleCTIng
PARTICIPANTS
Look for people within your target group who are used to expressing
their opinions and who seem to be most open and
capable to purchase, use and adapt new solutions. These
types of people are not only suitable participants in research but
can also be considered as local researchers and/or facilitators
who can later become early adopters or lead users of your solution.
To identify suitable participants, look for local administrators,
opinion leaders, farmers, local entrepreneurs, teachers, or
women representatives of local ‘Self Help Groups’.
To avoid the pitfall of creating a market for the “few” current
primary customers, try to identify people who could
be future consumers or lead users to inspire others to
use and value your solution.
Respect the differences of people when organizing and inviting
them for group activities. Consult local partners on how to organize
the groups and create an environment where participants
feel free to speak and express themselves.
Consider how different social status, gender, occupation,
and age can affect the dynamics of the group, e.g., including
opinion leaders, such as the chief or local administrators,
may deter others from speaking freely.
Consider using your time and resources to undertake your
toolbox activities with different types of target groups, because
the groups you have defined are not the only relevant
groups – the current non-user of similar solutions may become
your next customer.
Consider involving young people in supporting their parents’
participation in activities or involve them as local researchers.
Young people often have an interest to express themselves. They
can be included as “young journalists” or “detectives” by giving
them the materials needed to collect data from their community
or household.
55 55

56
fACIlITATIOn
Completing the toolbox activities and getting the most out of
them greatly depends on your personal behavior and attitude.
Coming in as an outsider, foreigner and professional, you
will be challenged in your personal ability to facilitate activities
where you will act as the interested student who wants to learn
from your participants, and not become the expert who “knows
best.” Emphasize that there are no wrong answers.
In any introduction, it is a good idea for you to make
clear that you are there to learn and to not give out
gifts, since peoples’ interactions may be influenced by a
perception that you will be a source of charity or funds.
Because you are unfamiliar with the context and are foreign
to the locals, it is good to spend some time in the
community or with the same local people for them
to open up and share their true and honest opinions.
Within a few hours in a community, you will experience
people starting to open up and show interest in your
work and your presence will be less intimidating.
Three good pieces of advice from Participatory Rural Appraisal
(PRA) and Participatory Learning and Action (PLA):
1. Show interest in learning. Your participants should feel
that they are being looked upon as the experts, and they
should feel that their feedback is valuable to you, even if it is
negative. Do not correct participants but rather try to understand
their perceptions and why they perceive things differently
than you.
2. Do not rush or interrupt but instead give the participants
time to sit down, listen, think and discuss instead of interrupting
when people are trying to concentrate on a task such
as making a map or diagram.
3. Have critical self-awareness and be open to embrace and
share errors or mistakes. Keep developing and adapting the
research activities based on your experiences
Consider using local facilitators while you take on the role as
observer by supporting the local facilitators when needed.
mOTIVATe
PARTICIPATION
Involve people at a time and place that is convenient for them.
Show appreciation for people’s participation by giving
some type of allowance. Activities take time from their
family, work and other activities, so some compensation
should be provided for their time. However, allowance
should not be a source of bribery or a primary motivator.
Provide drinks and snacks during the session and consider
giving them a sample of your product or a similar
product on the market.
Listen, share and learn during the activities. Be open by sharing
your own experiences and giving time to listen and learn from
your participants. By doing this, you recognize their knowledge
and make them feel relevant as participants.
Consider including a local competition. Adapt research activities
so that they end with a local competition where participants
present their material developed from an activity, such as
a prototype, and are evaluated and given a prize by you and a
local jury.
Make toolbox activities fun and interactive to create
a more informal environment where participants enjoy
themselves and where it is not “wrong” or “inappropriate”
to express needs, critiques, sensitivity or “crazy” ideas and
to share personal insight on sensitive topics. Role-play is
a good and fun method to boost the self-confidence of
people and fun for others to see and comment upon.
Consider sharing what you learned from a community in a
local newspaper or radio program to make your participants’
needs and desires heard, for the participants to be proud of their
contributions, or to mobilize others to participate.
Use local indicators and terminology in your activities to build
understanding:
Include local measures, from “inches” to “head baskets.”
Ask your participants to define the local criteria they will use
to assess a solution.
Ask your participants to share their perception of the meaning
of, e.g., happiness, status, and development to discover
that they may be very different from your assumptions.

fOCuS gROupS
pARTICIpAnTS: Depending on the activity, 4-10 participants
plus you and a translator/facilitator.
TIme: One to two hours depending on the activity, at a convenient
time for the participants so they do not feel rushed.
wHAT: Define a clear purpose of the focus group session and
the types of people who should participate. Local partners can
help you to find and select your participants.
wHeRe: Find a place near your participants that is large enough
for everyone to sit down, see and hear each other.
InTRODuCTIOn
Start with a warm-up activity to create an open and informal
setting during group activities, e.g., break down barriers with a
practical task, such as asking people to reorganize the place for
the group activity. The task will also reveal who is an initiator and
who is more passive.
Explain the goal of the meeting and the “rules of the game”
such as that no opinions will be judged, that every comment is
welcome, and that all participants are asked to contribute actively
to the session. Make sure that people understand the goal for
the outcome of the session and how they can benefit from this.
Ask people to introduce themselves only by name to avoid
preconceived perceptions or hierarchy within the group.
fACIlITATIOn
Consider addressing questions by including a bowl or box
with questions written on small notes that you wish to address
during a focus group. Ask a participant to randomly pick one of
the questions to read out loud so the participants feel they are
part of structuring the session and not to be shy to speak to the
group.
Try to involve passive participants by asking them a direct
question or help them when undertaking the given activity.
Include questions that each participant shall write his or her answer
on a card and give to you anonymously to make sure that
all participate and address sensitive topics in a sensitive matter.
pROVOke OPINIONS
To get the attention of your participants and motivate them to
share opinions during an activity you can consider including
either provocative or mismatching prototypes or scenarios.
Provocative content will make your participants feel uncomfortable
and they will therefore start to transform the presented
material into something that they find more appropriate and
through this develop new solutions that they accept. Keep in
mind that provocation can be sensitive and make sure it is only
used to bring inspiration to the session.
uSIng An
INTERPRETER
Where an interpreter is needed, you should spend a minimum
of 10 minutes before any activity to share the content and the
“rules of the game” of the activity.
Make sure that the interpreter is informed that you
would like participants to participate openly and actively
during the activity and that the interpreter should not
answer in place of the participants.
Facilitating activities through a translator will take time, and it can
be good to use the same translator when repeating the activity
elsewhere so that no additional training is needed.
57

58
DEEP
DIAlOgue
Semi-structured interviews
obtain deep insight into
individuals’ knowledge,
needs and experiences.
The activity guides you on how to undertake and motivate
semi-structured interviews with individuals from
your target group. Preparation activities, such as making
a diary of questions and various visual materials to support
the communication, will ensure that the activity will
spark a structured and motivated dialogue. Supplement
your quantitative market surveys with this activity to get
a deeper and more varied insight into your target groups,
which is critical to identify real opportunities and understand
current challenges.
OuTCOme
Deep insight into your target group’s:
Personal knowledge, attitudes, perceptions, and
experiences
Experienced (and perceived) needs and challenges
Daily life, context and networks
TYpe Of ACTIVITY
Interview
Observation
Focus group
fOllOw THeSe STepS:
STep 1: Generate a list of key topics that you would like to
address in your research, what knowledge you will like to gather,
and the type of target groups that can provide you with this insight.
Draw on your organization’s in-house knowledge, desk research
and expert interviews.
STep 2: Prepare your “Research diary” 3 for each selected
target group you plan to have an informal interview with
and include:
1. Questions to obtain general information about the person
2. Research topics under which you will organize questions
3. Notes on how you wish the dialogue to happen, e.g.,
whether the person will show you around, demonstrate a
product, engage in an activity, or see visual material you
have prepared. 2
STep 3: Arrange individual meetings with selected people from
your target groups at a time and place convenient to them. Meet
people in local settings where they are at ease and are relevant to
your research. 5 6
STep 4: Set the stage by introducing the program for the activity
and how the research will be used. Make sure that people give
their consent. While you and a translator will focus on creating a
dynamic dialogue, it is recommended to have another person who
will focus on taking notes and/or recording the session.
STep 5: Show interest by first asking questions related to the
person’s background before you address the research topics. Use
your diary of questions to facilitate the dialogue. Avoid leading
questions but rather use open-ended questions encouraging
the interviewed person to provide in-depth answers. Feel free to
pose new questions and not necessarily follow the order of the
questions in the research diary.
STep 6: Motivate interaction by asking the interviewed person
to enact a scenario or process or to use a product available in
the environment, such as showing how a basket is used to carry
goods. Make use of activities included in your “Research diary”
to obtain answers through more than just a question, such as by
demonstrating a product or using visual material 1 .
STep 7: End the dialogue session when you have no more
questions or when you feel that you may delay the person in
undertaking important personal activities.
STep 8: Try to document the key points you learned right after
the interview and add any additional questions or comments in
the “Research diary” for the next interview.
STep 9: Assess insight from the deep dialogues to develop a
profile of your target groups’ characteristics.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Consider training local people to undertake the deep dialogue and
report findings to you. Local researchers could be skilled people from
the community, students, people from an NGO or a research consultancy
(See case on page 26).
gOOD pRACTICe
To build your local network, you can ask the interviewee to
suggest people who should be included in the research.
Test the content and length of the “Research diary” on one or
two people and adapt it before using it for the local dialogues to
make sure you will have time to get answers to all your relevant
questions. Have a general flow and structure to your “Research
Diary.” Indicate the most important questions in your “Research
Diary” for you to incorporate at the time of the interview.
Do not try to control the dialogue too much, but remember
to listen and follow topics that seem interesting to the person
interviewed.
Consider hiding your list of questions to help build a dynamic
dialogue. Learn the key questions by heart or keep a short list of
overall questions in your notebook during the activity. 4 6
The “Research Diary” can be a good framework for the complete
field research, so include other activities in this toolbox
that can bring answers to a number of the included key questions.
wATCH OuT
Verify information – Ask different types of questions and confirm
by drawing, showing pictures or using the environment as reference.
Keep the interviews short – If the interview is long, participants become
tired and lose interest, which will negatively affect the outcome.
uSe In COmbInATIOn wITH
Self-documentation (page 60)
Follow and observe (page 68)
Customer segmentation (page 72)
Creating scenarios (page 74)

1
geT STARTeD wITH THe RApID VeRSIOn
List your relevant key questions in a notebook, like a checklist, before going to
the field for your interviews. Print out illustrations in colors that will help you
to explain your ideas and consider if there would be local products that you
could include in the dialogue as specific references to your ideas or questions.
Arrange to meet people at work, at the market or at home. Be open to
where the dialogue may take you. Keep in mind your key questions you want
answered and consider how to explain abstract questions through a story (see
Creating scenarios page 74).
CASe DeSCRIpTIOnS
Including end-users (featuring NGOs, page 26)
Distribution system (featuring CBS, page 34)
Marketing and communication (featuring Arla, page 44)
2 3 4 5 6
ReSeARCH DIARY
TARGET GROUP:
INTRO & GENERAL QUESTIONS:
1. RESEARCH TOPIC 1:
1.1. KEY-QUESTION 1 TO ANSWER
1.1.1. SUB
QUESTIONS:
1.1.2. ACTIVITY
TO HELP ANSWER
SUB-QUESTIONS:
pARTICIpAnTS
Works well with individuals, a single household or a small focus
group of two to four people.
TIme
Two hours to develop “Research Diary” and template for debriefing.
One hour maximum for each deep dialogue.
mATeRIAlS neeDeD
“Research Diary” or similar question guide
Notebook and a template to note what you learned
Printed images relevant for the key-topic you will research 1
Camera, dictaphone , video camera, smartphone
59

60
SELF
DOCumenTATIOn
Give your target group the
tools to document their needs
and aspirations on their own.
The activity provides an alternative insight into local conditions,
undisturbed by an outsider’s presence. Invite your
target group to become active researchers of their own
daily practices and experiences by using templates and
tools you have developed. The material and insights collected
are a valuable basis on which to start a focus group
discussion and to dig deeper into conditions, needs, and
opportunities. Complete this activity when you want to
know your target group on a deeper level but do not have
the time to spend with them.
OuTCOme
Deep insight into daily practices and experiences
Focus on research and visual material reflecting your
target groups’ own priorities and perceptions
Discover concerns not expressed honestly in your
presence
Insight that does not require your presence
Quantitative and qualitative insight over a longer
period of time, such as by using mobile phone for selfdocumentation
TYpe Of ACTIVITY
Target group’s own interview, observations, and design
fOllOw THeSe STepS:
STep 1: Define a short list of research components where
insight may be communicated best by people themselves.
STep 2: Review the list of questions and select or create the
appropriate number and type of self-documentation activities,
such as reflection; type of information that you would like people to
document; type of data (visual 1 /written/reflective, qualitative
4 /quantitative 5 ); the skills and types of people you would
like as participants, e.g., skilled people from community or young
people who like to share their story; time frame for the activities.
STep 3: Design the self-documentation activities and easyto-follow
instructions and adapt them to the context of use.
Instructions can be a simple day-to-day diary listing the
activities and/or reminder of daily activities sent out to people’s
mobile phones. Keep it simple: the participants are more
likely to complete a limited number of specific and easy selfdocumentation
activities. Use illustrations rather than text at
places where illiteracy is high.
STep 4: Identify, recruit and instruct people from your
target group on how to undertake the self-documentation.
During a focus group session, show them how to do the selfdocumentation.
Bear in mind that self-documentation takes time
and skills, therefore you should consider how to compensate
people for their effort. Select participants who may not only
be consumers but skilled people from the community that you
recruit and train to be local researchers, or who will support the
locals in their self-documentation.
STep 5: Supervise and follow-up on people’s self-documentation
if needed, possibly through a local researcher. Consider designing
activities so that participants continuously report insight back in a
convenient way instead of only at the end of the research period.
STep 6: Review your target group’s reportage and identify
differences and trends within the material 3 . Validate findings
by completing a deep dialogue with a few selected people
who are part of the reportage. If there is time, then present
findings anonymously through personas and scenarios for your
target group to validate and elaborate on during a focus group
discussion.
STep 7: Develop relevant material that can communicate
diversity and trends from the reportage. Consider developing
posters of all the material collected with images and drawings
made by people and your comments and additional notes from
the following focus group discussion.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
SELF-DOCUMENTATION ACTIVITES – examples
Camera and a list of 10-15 pictures that participants should take
1 2
SMS questions sent to participants mobile 5
Drawings for people to add detail, write on, and color 4
Ask people to collect specific products available in household or
market to address local purchase habits 6
gOOD pRACTICe
Select people of different gender, age, status and profession
to undertake the self-documentation in order to capture very diverse
viewpoints and perspectives.
Be inspired by local technologies and ways of communicating
when selecting or adapting the self-documenting activities, e.g.,
does everyone have mobile phones and a camera?
Make the self-documentation tools look attractive and reward
participation so that it is desirable to be a local reporter/
researcher.
Communicate clearly to the participants when they need to
deliver their “documentations” and make a local person who
is known among the participants responsible for the collection.
Ensure that people know whether they will get a copy of their
drawings or pictures or it will only be for your research.
Collect names and records of all participants in order to find
them for later collection.
Make sure that if you involve local researchers that they are
fair, unbiased and have no stake in the research results.
wATCH OuT
Inform participants of the intended use of the insight that will be
generated and what they should document to limit the possibility
of people misusing the templates, e.g., to take family portraits rather
document than local activities.
Understand relevant dynamics and power relations in the research
area before selecting local researchers or people involved in
reportage, because local perceptions that you are showing favoritism
can be damaging to your reputation.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Follow and observe (page 68)
Customer segmentation (page 72)
Creating scenarios (page 74)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Following an interview, ask the interviewee to undertake a few activities in
his or her own time until you will meet later the same week. Activities might
include: getting the number of the house owner to send him a daily mobile
message asking about his daily spending; ask the housewife to collect and
bring the types of cooking oil she uses; or ask the young girl to write her
ideas on how to improve the local water pump after she has talked with her
community during the week. Upon meeting again, your participants will bring
you deep insight on which to base a deep dialogue.
CASe DeSCRIpTIOnS
Pricing and financing (featuring Worldbarrow, page 38)
pARTICIpAnTS
You may encounter that not all participants report back their selfdiscovery
activities or understand the activity in order to deliver valuable
insight. Therefore, it can be good to invite 10-20 participants to
undertake the activities for variety.
TIme
Preparation depends on the template you use. 1-30 days for participants
to undertake the activity depending on the scope and content of
the activity. 1-2 hours for focus group discussion following the review
of people’s reports.
61

62
ACTIVITY
mAp
Assist groups or individuals
in mapping what they do
during a day or week to better
understand the local practices
and lives of the local people.
The activity invites your target group to share their process
of daily activities during an interactive session with you. Participants
will make a simple map that represents their activities
within a given timeframe, such as “yesterday’s schedule.”
The activity is a good introduction into the current local
practices and lets you understand the journey of a day or a
specific activity to identify opportunities on which improvements
could be made.
OuTCOme
Identify and obtain target groups’ assessment of:
Daily activities
Products and services used
Stakeholders involved
Resource flow
Local value chains and sales channels
Current challenges and desired solutions
Identify hot-spots
TYpe Of ACTIVITY
Interview
Focus group
fOllOw THeSe STepS:
STep 1: Define the type of local activities you wish to
understand. The activity could be “local water collection” and
wanting to understand aspects such as “water technologies,
stakeholders, resources and related emotions.”
STep 2: prepare by printing images that can symbolize
variations, e.g., different water collection technologies, “smiley”
emoticons, resources such as “liters of water” and “money.” Use
the web to find generic and inspirational images. 2 5 6
STep 3: Invite one to three people with similar profiles to a
session and start by drawing a timeline on paper or on the
ground. Give the introduction “This is Yesterday” and indicate
time of day on the timeline.
STep 4: Start broad by giving participants the possibility to talk
about what they typically do during a day, then direct the dialogue
to specific activities of interest. Ask people to make use of the
printed images and place them along the timeline, symbolizing
the activities they do during a day. 1
STep 5: Focus on specific activities when a typical day has been
outlined by asking deeper questions like “who else was involved”
or “how do you feel about…” and invite people to detail their
map by using the images 6 . Motivate people to draw or write
new variations of activities if your selection is not sufficient or
representative 3 .
STep 6: facilitate a dialogue by continuously asking questions
to help participants elaborate on their typical activities. Share
your understanding of the activity map that was made to make
sure you have the right understanding. Ask what happens in the
time between the included activities on the map.
STep 7: Ask participants how they would like to make
improvements by using the map as a reference 4 , e.g., how
time could be minimized if some services were available at the
same place instead of having to travel to several places.
STep 8: Document the activity map with video and pictures.
Write down if new stakeholders were identified and your five key
points you learned from the session, including facilitation advice
for next session.
STep 9: write a short story that represents each of the types of
activities identified so what you learned can be used as scenarios
in research toolbox activities.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOnS Of THe ACTIVITY
Map a process: Develop an activity map of a process rather
than a daily schedule, e.g., the process of cocoa farming. Create
an activity map with a small group of cocoa farmers to address
relevant aspects of the activities such as locations, stakeholders
and resources.
Choose to further develop the same activity map with other
stakeholders involved in the process to map a complete value
chain, e.g., the process of activities that follow when the farmers
have sold the cocoa.
Address the past: Map activities and major events in the past.
For example, invite opinion leaders to map the major events or
challenges in the past for the community and learn how they
overcame the events to bring inspiration for your new solution.
gOOD pRACTICe
Select pictures appropriate for the local culture and which
people can relate to in the local setting. 5
Invite several participants to make one activity map together
since a group will generate valuable discussions for you to listen
in on, e.g. when they disagree on which and when activities are
done. It is much harder to get an individual participant to “think
out loud” during the mapping.
Limit the time of the session by having a focus on mapping activities
for “one day.” Then ask how activities differ throughout a
week to avoid participants mapping repetitions.
wATCH OuT
The value of the session is in the dialogue during the activity mapping,
the questions raised and people’s interactions. The value is not
necessarily in the final physical activity map developed. Therefore, it is
important to make time for questions during the mapping session
and for a follow-up dialogue.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Follow and observe (page 68)
Customer segmentation (page 72)
Creating scenarios (page 74)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Before an interview, list in your notebook the types of daily activities
you would like to understand better through your target group. As an
icebreaker for a dialogue ask the interviewee to explain what he or she
does during a day. Draw a line in your notebook, indicate morning and
evening, and ask questions to outline the day with specific activities
by asking what, when, how, and who? Write the activities along the
“timeline.” You may ask about specific activities, try to recount the day
to confirm the contents, and ask how the activity map illustrating a day
differs from a week/month/year.
CASe DeSCRIpTIOnS
Distribution system (featuring CBS, page 34)
pARTICIpAnTS
Works well with individuals, a single household or small focus group
of a maximum of four people.
TIme
Thirty minutes to two hours per session, depending on the group
size and number of aspects you will address.
mATeRIAlS neeDeD
Facilitation guide listing type of activities and questions
Printed images relevant for the focus
Pens and small pieces of white paper to draw and write on
Camera, video camera or smartphone
Notebook and pens
63

64
SOCIAL
mAp
Focus group activity that
allows your target group to
map the relationships between
relevant individuals and
organizations.
Use the activity early in your research to identify relevant
stakeholders and locations for your business case through
deep dialogues. Ask participants to map out the people to
they are related to through their business, community or
daily activities. Use the map as an analytical tool to address
local socio-economic relations. The social maps represent
participants’ perceptions of, for example, the organization
of a community.
OuTCOme
Your target group’s definition of a community and what
services should be provided
Identify target groups and individuals
Networks and relations
Power structures, such as mapping the decision-makers
in a community
People’s perceptions of each other
Insight for target group analysis and segmentation
TYpe Of ACTIVITY
Interview
Focus group
fOllOw THeSe STepS:
STep 1: Define the type of networks you would like to understand,
whether they relate to a specific community, business or activity. To
understand a local market it could be relevant to e.g. understand
social structures of a selected community as well as the network
for a local micro entrepreneur.
STep 2: Develop material that can help you and your target
group develop the social maps, such as: a list of possible
stakeholders; a list of the type of relations you would like to address
and analyze; small pieces of paper in different colors and shapes
(square and circular); printouts of iconic illustrations of men and
women; pictures illustrating different types of relations (e.g.,
money, resources, trust).
STep 3: Identify and invite selected people whose networks
you would like to understand, such as inviting village elders
and community representatives to create a social map of their
community or a vendor who sells dairy products in the community.
STep 4: Identify individuals and organizations relevant to your
target group by asking the participants to draw the community on
the ground using colors and local materials. For example, if the
activity is done with a local entrepreneur you can ask him or her
to map the stakeholders that are involved in his or her business
while you create a simple map using pieces of paper to represent
each stakeholder. A method to elaborate on the social map is to
ask questions such as: “Is this all the people in our community –
what about the school and health clinic?” or “Who removes your
waste?” or “Where did you get the kiosk from?”
STep 5: Create the social map by using the ground or a large
piece of paper, place pieces of paper to represent each stakeholder,
and write their characteristics. For a social map of the community,
the mapping will be done according to the physical layout of the
community, although with a vendor it may relate to the time of
day when he has contact to his customers. Use existing maps as
reference if they exist. For example, an NGO might have previously
created a map. 1 2 3
STep 6: Ask participants to indicate specific relationships
according to their perception of who has no access to safe water,
who is often sick or who has an outstanding loan. Consider asking
participants to map stakeholders in accordance with subjects
like wealth, power, trust, friendship, communication, etc., by
rearranging pieces of papers that each represent a stakeholder. 4
STep 7: Establish new contacts by asking if participants can
introduce you to, or give you contact information for the different
types of stakeholders so that you may involve them in a similar
session to confirm the relations or identify a different set of
meanings.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Use the activity on a household level to identify social relations
within and near the family, such as who is responsible for the
household resources and making decisions, and who might be the
potential end-user of a product or service. 6
Use a local map of the area to map larger areas of social classes,
farming practices, distribution chain, etc. 5
Use existing community maps to identify key-stakeholders within
a community, differentiation between individuals or commercial
or social hot spots. 1 2 3
Use a circular diagram illustrated on a poster or in the soil to map
and analyze relations between stakeholders.
gOOD pRACTICe
Develop your own social map and grow your network through
your initial local contacts that can refer you to their local contacts.
Try always to ask questions that can reveal people’s opinions
about each other.
Undertake the mapping in the relevant context, for example at
the business, place of activity or given community.
Verify the map and your understanding. This can be done by
summing up your interpretation of the map and let participants
correct you or confirm.
Invite people to highlight other differentiations or relations
than the ones you ask for and suggest – you may not understand
all types of local dynamics.
If using existing maps, try to understand what indicator people
already use to diversify the community.
wATCH OuT
Be sensitive about how to identify relations in a community map by
not asking directly “who is poor or rich?” but think of what could be
used as indicators instead.
The maps do not necessarily represent reality but may say more about
the perceptions of your participants.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Activity map (page 62)
Follow and observe (page 68)
Customer segmentation (page 72)

2 3 4 5 6
POWER
NETWORK
PROCESS
SITUATION
1
geT STARTeD wITH THe RApID VeRSIOn
Ask your focus group to indicate different types of stakeholders on a
geographic map that you printed by using a program like Google maps
or that the community had. Indicate actors or stakeholders – people,
objects, organizations – by adding small post-its and asking questions to
make sure stakeholders of your interest are included. When stakeholders
have been mapped, then reorganize the stakeholders and draw lines in
between them on a sheet of paper in accordance to a relevant analysis
such as power/influence, a process (flow chart), relations or relative
influence. Retell the situation mapped to the focus group to ensure you
have understood and to address if any stakeholders are missing.
pARTICIpAnTS
Works well with a focus group of local opinion leaders or e.g. representative
from local women groups.
TIme
Execution takes ½ – 2 hours depending on the scale of mapping (community
vs. activity) and the number of participants.
mATeRIAl neeDeD
List of possible types of stakeholders
List of different types of relations
Pack of small papers to write on
Printed illustrations of men, women, and types of relations
Pens, notebook, camera, video
65

66
RESOURCE
flOw
Activity that will give you
insight into the ingoing and
outgoing resources of a local
system such as a household or
business.
With this activity you will engage selected people from your
target group to map out their ingoing and outgoing resources
in relation to a system, such as the household or business
income and expenditure. During a small focus group session
or individual dialogue, you will ask people to communicate
their flow of resources by addressing one type of resource
at a time and then listing the resources on a template developed
by you. The participants will prioritize the resources.
The participants will be asked to indicate who typically manages
the types of resources.
OuTCOme
Source and type of household income and spending
Decision maker and manager of resources
Resources used to purchase, use and maintain a system
as well as the perceived value and outcome of the
system
Ways of financing the resources and how they are
prioritized
TYpe Of ACTIVITY
Interview
Focus group
fOllOw THeSe STepS:
STep 1: Select up to three types of systems of local resource
flow that you would like to understand. In a project with a focus
on farmers, it could be relevant to address the resource flow of the
farmers’ household as well as the famers’ crop-business.
STep 2: Develop an A3-size worksheet for each system with
illustrations, e.g., one picturing the household and one picturing
a local business. Prepare small pieces of paper and develop your
own list of possible types of resources related to the systems
in categories like “medicine, education, clothes, etc.,” for the
household and “crops, farming tools, transport, etc.,” for the
faming business. Consider printing images to represent some of
these resources. 3
STep 3: Invite selected people from your target group to a focus
group 1 5 or individual session. You may do the activity with five
farmers working on the same farm, followed by individual sessions
with each of the five famers and their families to understand their
household economy.
STep 4: Introduce what will happen in the session and the
systems that will be addressed.
STep 5: Focus on income by asking participants to list everything
that generates money for the household/business. Write each of
the aspects on separate pieces of paper and place them on the
right side of the worksheet. Use your list of resources to devise
examples of resources that can generate income. You may also
have printed some illustrations to visualize resources. 2 3
STep 6: Set focus on expenditures by asking participants to list
everything that costs money for household/business on separate
pieces of paper, and place them on the left side of the worksheet.
Use your list of resources to come up with examples of resources
that are expenses. 6
STep 7: Rank resources by asking participants to rank the pieces
of paper cards according to what provides the largest income and
what costs the most. If participants are able and willing, ask them
to estimate resources in quantity and price – this can be time
consuming but may change the order of the ranking by addressing
each aspect specifically. 6
STep 8: Identify the person(s) responsible for the resource(s) by
asking the participant(s) to tell who controls which resources listed
within the business or household – you can list the names directly
on the papers. 2
STep 9: Address purchases and investments by asking how often
mapped products and services are bought as well as the reasons
for the frequency of purchases, such as due to limited durability or
large consumption.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
If the system is a product-service system such as provision of water
from a public water pump, the activity could be done near the pump
with five people who all use the same water pump. Set focus on output
and outcome by asking participants to list everything that the water
pump delivers, such as income, liters of water, health, experiences
(such as exhaustion), time consumption, etc. Then focus on inputs by
asking participants to list everything that the water pump requires for
upkeep, use and maintenance, such as: expenses, time, education,
transport, etc.
gOOD pRACTICe
Arrange a second session with the “passive participants” to
crosscheck and compare stories, e.g., between women and men if
the first session is dominated by certain people.
Conduct the session close to the chosen system, such as at
the household to make it possible for participants to demonstrate
how both the resources and the system works. You will also be
able to observe and ask about resources that might not have been
included for example by addressing the household’s spending on
electronics.
The pieces of paper where people have written additional resources
can be used in later Resource flow activities. For example the
pieces can provide a reference point for the participants, such as a
farmer that have written different types of farming tools in a local
language. These papers can be used in future sessions with other
farmers.
People could rank the resources in accordance to their relative size,
then work together with the participants to quantify resources in
local currency – this might be what they are spending and earning
on a weekly, monthly or yearly basis.
wATCH OuT
The activity can be time-consuming so be clear about how much detail
you want about each type of resource. For example, whether you
will only classify spending on “food” or “groceries” and not address each
type of grocery as this is not relevant for your solution.
It can be a sensitive subject for people to “reveal” their spending to others
in their community so evaluate with local partners who to include
in an activity.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Activity map (page 62)
Follow and observe (page 68)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Bring 20 green and 20 red A6-size pieces of heavy duty paper and a
picture to illustrate the system that you wish to map the resource flow,
e.g. a house or a given type of work. Ask someone who can read English
from the community to write in the local language on the cards the type
of categories that are relevant for local input and output, guided by your
interest. Map the resource flow in sessions with either a household or
one from a given profession. Let the participant first review the cards
made and motivate the person to write more if needed, then ask
the participant to prioritize the cards in accordance to the amount of
resources and then ask him or her to quantify the resources.
CASe DeSCRIpTIOnS
Pricing and financing (featuring Worldbarrow page 38)
pARTICIpAnTS
Works well with individuals, a single household, or small focus
group of maximum of four people.
TIme
½ – 1.5 hours per session depending on the group size, number
of systems to address, and the detailed level of the resources to
map.
mATeRIAl neeDeD
List of possible types of resources related to each system
Small pieces of paper to write or draw on (25 min. per session)
A3 paper to arrange the paper listing resources
Pens, notebook
Camera, video or smartphone
67

68
FOLLOW
& ObSeRVe
Unplanned visits and walks
in selected places to identify
and discover current local
conditions and interactions.
The activity helps you to get into the local context to identify
relevant stakeholders and obtain deep insight on your target
group’s local conditions. Follow and observe selected people
from your target group in their activities, environment,
or during the specific use of a product. The activity invites
you to ask questions along the way to obtain deeper insight.
However, the activity stresses to collect and analyze insight
based on observations to get beyond what people say, to understand
what they do and feel.
OuTCOme
Establish contact with relevant stakeholders
Insight into local conditions, such as the infrastructure
Identify sales and distribution challenges
Insight into actual use of products or services
Innovative opportunities to address the gap between what
people say and do
TYpe Of ACTIVITY
Interview
Observation
fOllOw THeSe STepS:
STep 1: Define who, where and what could be relevant for
you to observe and discover. A good idea is to have a plan for
a combination of visits: e.g., the village where farmers live, the
farm where the farmers’ undertake their daily work, the farmers’
travel to market using your wheel barrow prototype, the nearby
town where farmers’ tools can be bought. Develop a list of key
research topics that you would like to observe and discover, e.g.,
in relation to products, people and environments.
STep 2: Plan visits with local partners who can make
arrangements with local contacts. Make sure to have a plan that
you can Follow and observe activities on a day when they would
naturally happen, e.g., going to the market or selling a given crop.
STep 3: Complete the activity by following your contact through
an area 1 4 . Observe, meet people, ask, listen, discuss and
identify problems and solutions 3 5 . The areas that turn out to
be most interesting may first be discovered during the walk, so
be open to change course or extend your walk.
STep 4: Take time to stop and talk with people you meet on
the way – you may use your notes from the “Deep dialogue”
activity as inspiration for your questions. Pay attention to identify
possible gaps between what people say and what you observe
them doing when you ask them about their activities 2 . Be
aware that people are not expecting you, so ask if they have time
to answer questions, ask if it is okay for you to observe them, and
explain how you will use the information 5 .
STep 5: Continuously document your observations and tasks
by writing notes, taking pictures or recording video 2 6 . Both
contextual and detailed pictures as well as video are important
communication material for others in your project team to
visualize the challenges and opportunities. Your smartphone
can easily and discretely take pictures and record video as an
alternative to larger equipment.
STep 6: Consider following and observing other stakeholders
than your target groups, e.g. understand what people purchase
when they are wealthier than your target group or why some
people in a community do not share the same challenges or
needs.
STep 7: Collect contact information for the people you meet if
they are interested in being included in later activities relevant to
your field research.
STep 8: Sum up your observations and interview by writing
down your initial impressions to ensure they are considered in
later analysis.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOnS
Assess your own or similar products by following people and periodically
asking them questions such as ”Why do you do that?” or ”How
did it feel to…?” or “Could this be easier?” Consider presenting a number
of exercises that you can ask your participants to try out while using
your product and then observe them in action. 2 .
Understand local distribution systems by following one aspect of the
distribution for a day or be open to follow different stakeholders to
gain insight on the various stages of the distribution.
gOOD pRACTICe
Trust and build trust with the people you meet. Be explorative
and not afraid to follow the lead of a local or to approach people
in a local shop, because they will usually welcome your interest.
Include the activity on one of your first days to collect your own
initial learning’s before doing other activities.
Ask for a local community map for you to use as an icebreaker
for an introductory dialogue and to plan the visit through the community.
Communicate what types of people you would like to meet
or specific sites of interest you would like to visit.
To avoid affecting people’s behavior by your mere presence,
consider installing a camera to record observations at a given
place. The recording can be used as a basis for a deep dialogue.
Consider structuring your observations by dividing them into:
1. Environments where you make the observations
2. people involved in activity
3. Objects people interact with
4. Messages that are being transferred during the activity
5. Services that enable the activity
wATCH OuT
Make sure that your local contacts show you places that represent
local conditions and not only the areas where NGOs are giving special
attention in a program that may not show the full scale of local development
challenges.
People may stop all activities due to their curiosity of your presence.
Tell them to continue their work, as you would like to learn from them.
Not all people would like you to take their picture without permission,
so try to ask first or be very discrete.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Activity map (page 62)
Social map (page 64)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Plan to walk around and make observations of sites and people on the
first days upon your arrival. Make time to change direction or search
for people you met during your walk. When finding relevant places or
people, be prepared to undertake observations and interviews in the
moment. People are more open to allow you to observe, follow and
interview them if you explain to them that their participation will be
anonymous, or you buy something from their shop or give them a free
sample of the product they will need to use during the observations.
CASe DeSCRIpTIOnS
Rapid market assessment (featuring AAK, page 18)
Distribution system (featuring CBS, page 34)
Distribution system (featuring Danisco, page 32)
pARTICIpAnTS
Observe and follow one or a very small group of people. If you are in a big
group, then try to divide into smaller groups in order to explore different
areas or Follow and observe different people.
TIme
Walking communities or to follow the activities of a supply chain can take a full
day, while observing the use of a product can take as little as 1/2 an hour.
mATeRIAl neeDeD
List of target groups, areas, situations or products you wish to observe
Notebook and pens (may include a template to structure observations)
Camera, video or smartphone
Map of the area can be a good idea
69

70
LEARNING BY
DOIng
Go the extra mile, spend time
with people from your target
group, and participate in their
daily activities.
Honesty, reflections and good ideas are often expressed
while people work together or during informal chats in the
evenings. Follow and participate in local daily activities to
build your own experience of the daily life challenges and
create an informal environment for dialogue. Consider the
value of spending time with your target group in the evening,
night, and early morning to discover their use of services and
products, and what new challenges they may face at a time
when research is rarely done. Build empathy and interest for
your research, and show respect for local conditions by arranging
a homestay for one or two nights in the community.
OuTCOme
Build trust and respect in the community to accelerate
other activities
Insight into needs and desires outside of the “opening
hours”
People’s honest ideas, feelings and critiques
Everyday life and activities
Time and place to undertake other activities at a time
when people are not busy with other daily activities
TYpe Of ACTIVITY
Interview
Observation
fOllOw THeSe STepS:
STep 1: Consider homestay if you need to build trust with one
community or a local household to be allowed to undertake a
number of activities or to gain insight into their life from morning
to evening.
STep 2: prepare by making sure you will have clean drinking
water, some nutritional snacks, protection against local diseases,
and required sleeping equipment.
STep 3: Identify who could arrange for the homestay through
relatives of your local contact, the NGO, or community chief of
a local community. Depending on the given community, safety
and climate, you may consider bringing your own tent, 1 finding
accommodations in a public building 2 , or sleep in a private
home.
STep 4: Show appreciation in your gesture and openness of
the limited facilities available. Give only small gifts of, for example,
household supplies, as appreciation for the people hosting you.
STep 5: participate in the daily activities and express your
interest to not be treated as an “outsider” by the community
but your interest is to learn from them. The homestay is a good
chance to undertake some of your other research activities.
STep 1: Define the kind of daily activities or processes that are
relevant for your research and how you may be able to work
alongside your target group to experience and observe 4 .
Examples could be learning to understand the cooking culture
by helping a woman in the full cooking process from purchase of
ingredients to the cooking itself, or to understand a consumer’s
reason to purchase specific products by becoming a sales
assistant in a small roadside shop 4 .
STep 2: Start by arranging the possibility for you to work with a
local through your local partners; or approach a shop during your
first days to ask if you can work there; or seek permission to set
up a small road side table, purchase some local products, and
sell them along the street. If you are positive, open-minded and
show interest, most local people will find your interest amusing
and allow you to undertake the work alongside of them.
STep 3: Observe, interview, and interact with the people you
are working with on a very informal basis during your activities
to tap into their current situation and request for changes. Have
a list of important key questions in your notebook, such as a
discrete checklist of the key research-aspects to address. Keep
in mind that you are new to these activities and your personal
challenges might not be the same as your local target group’s.
HOme STAY wORk AlOngSIDe
VARIATIOnS
Homestay can have great value even when only spending one or
two nights locally. Depending on your target group, people will most
likely give you the possibility to stay in some of their best facilities.
The conditions may not be much different than the nearest lodge or
hostel, but may give you a very different experience.
gOOD pRACTICe
Be prepared to participate in local social activities that you may
not have planned on but may happen during your stay, such as
to be invited to a local wedding, Sunday church 3 or a funeral.
When you are presented with a variety of the local foods, drinks
and snacks, try to taste before saying no to anything or be very
diplomatic in your rejection, saying that you have allergies, certain
beliefs, etc. 6
Roles are reversed when you work alongside the locals. You will
not be the expert but trying to learn how to undertake local daily
activities and through this learn about their problems. Let your
target group become the teacher and you “the student.” 5
wATCH OuT
Ask your target group how you can participate in their daily activities
– if it is related to their work, then make sure you do not endanger
their work by taking too much time, lowering the quality, or acting
like the expert rather than the student.
The experiences you have when working alongside locals are not
necessarily the same as your participants, since you are inexperienced
and may not do the task correctly. It can be a good idea to
share your experiences during the activities to hear whether your
participant shares the same experiences.
It is a honor to be invited to spend the night in a community or with a
local family. Do not expect that the allowance is guaranteed and it
is therefore a good idea to get advice or help from your local partner
on whom to ask for permission. Be modest and show appreciation
when sharing your interest to spend the night near your target group.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Concept assessment (page 84)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Consider during what times people would be using your product or
service. If it is relevant, then arrange to also undertake Follow and observe
activities and Deep dialogue during the later evening or early morning.
This may only be feasible if you spend the night locally, so explore this
possibility through your local partner, a trustworthy contact or someone
from a local community committee.
To get into the mind-set of your target group, then put yourself in their
place by asking a person from your target group if you can work alongside
him or her for a few hours. Share your experiences of the work with your
“co-worker” to start a dialogue on his or her experiences. Consider offering
a few hours to help in a local shop where you will get an opportunity to ask
consumers to reflect on their choices at the moment of purchase.
CASe DeSCRIpTIOnS
Customers and end-users (featuring Vestergaard Frandsen, page 22)
pARTICIpAnTS
Best to have one or two primary people of your target group who you work
alongside and/or one family that you stay with overnight.
TIme
Depending on your interest, working alongside can take from 1 hour to a full
day and overnight stays from 1 night to longer stays of several months.
mATeRIAl neeDeD
List of questions you can ask when working alongside
Notebook, pen, camera or smartphone
71

72
COSTUMER
SegmenTATIOn
Research and analysis activity
to identify specific attributes of
a target group that are similar
and dissimilar to other groups,
and to identify and customize
your markets.
The activity provides you with templates on what type of information
can be relevant to collect about your target group
in order to understand their similarities and differences
as customers and end-users. Based on the target group’s
characteristics, you will be able to segment these in accordance
to your parameters. The parameters to segment target
groups should be relevant for you to address the opportunities,
size and challenges of the market.
Target group segmentation is an activity that helps you create
a market for a target group of relevant market size, as
well as being able to estimate and draw the characteristics
of future market segments.
OuTCOme
Structured insight into your target group
• Knowledge, attitudes, and practices
• Opportunities and challenges
Aspects that define differences within your target groups
Segmentation of target groups
TYpe
Interview
Focus group
fOllOw THeSe STepS:
STep 1: List the type of information you would like to collect about
your target groups such as information about demographics,
behavior and lifestyle. Consider including people who may not be
current consumers of similar services but are relevant for future
markets 1 3 . Develop your questions as a questionnaire or
have a more open format for your dialogues 1 4 , addressing
the aspects shown in the illustration 2 .
STep 2: Plan how you will collect the information: through
deep dialogue, self-documentation, larger surveys using local
researchers, or during your visits to a community where you can
collect some of the information using other activities, such as
“Ranking of values.”
STep 3: Collect information on your different types of target
groups through local researchers or by yourself.
STep 4: Review information gathered and assess the need to
define new types of target groups if the ones initially defined do
not reveal the actual differences within your group. For example,
it could be that gender does not represent any clear differences in
attitudes and values in comparison to social classification or level
of education.
STep 4: Develop material that can summarize the characteristics
of different target groups. Consider to arrange learning’s from
similar people in one format to create a “Persona” 4 that is
a fictive but representative person-profile that can represent
someone from a given target group. Make the personas personal
by giving them a name as well as including quotes and pictures to
visualize what you learn.
STep 5: Define meaningful and actionable segmentation
attributes of your target groups, such as demographics that affect
consumer needs (gender, age, belief, status, profession, rural/
urban), behavior (such as open to change/content, user, non-user,
etc.), or lifestyle characteristics.
STep 6: Develop a digital or physical map where you place your
target groups in accordance to two of the segmentation attributes.
It can be interesting to develop different maps based on different
segmentation attributes – some attributes may be relevant
for marketing while others relate to, for example, pricing 5 .
Depending on the data available, you can indicate an estimated
size of each target group. Segmentations can be used to focus on
whom to create a market for and who could be future customers/
end-users.
STep 7: Analyze the segmentation in relation to relevant
key questions for your market creation – e.g., whether you are
developing solutions for the right target groups, what to focus on
in marketing, and if there are current non-users that could become
future users.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOnS
The activity set focuses on segmentation that is based on qualitative
data where aspects such as target group’s behaviors and attitudes are
addressed. Information on demographics and lifestyle may be available
online or through local agencies in to be able to undertake segmentations
with some significant evidence.
Target group segmentation could also be done without developing
elaborate “Personas” but through a workshop where local opinion
leaders or representatives of various groups both outline the different
types of, for example, consumers and their attributes by which they are
grouped and segmented. It is a good idea to crosscheck analysis and
assumptions by following up with a deep dialogue with people from the
clustered target groups.
gOOD pRACTICe
Developed “Personas” 4 can be useful material for your design
team to make sure the solution is developed with their characteristics
in mind. The profile can also be used in other field research activities,
such as inviting locals to develop ideas for service-delivery
to this type of target group.
Consider how other activities can provide valuable insight to develop
the “Personas,” e.g., by learning about peoples’ values through
the “Value of features” activity or daily activities by creating an “Activity
map.”
wATCH OuT
Be aware that your segmentation and profile of target groups will
be strongly influenced by the few individuals you include in
the study 1 3 . It can be a good idea to undertake deep dialogue
with the same type of people in places or regions to see if there
are any differences. Crosscheck your assumptions by presenting
findings to local NGOs or grassroots organizations.
For markets where the customer and consumer are not the same,
such as the case of relief products, it is relevant to undertake two
target group segmentations to address both purchase and consumption
patterns.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Self-documentation (page 60)
Activity map (page 62)
Designing value proposition (page 80)

2 3 4 5
peRSOnA
CARACTeRISTICS
WHO?
AWARENESS?
WHAT&HOW?
WHEN?
WHERE?
WHY?
pRODuCT
& VALUE RANKING?
AFFORDABILITY?
1
geT STARTeD wITH THe RApID VeRSIOn
Define who could be your potential customers, e.g., the “rural/urban
mom and rural/urban teenage girl” for a beauty product. Print pictures
of different beauty products or bring your prototype. Develop a onepage
“Persona” template similar to 4 listing topics 2 and space for
your notes. Use the persona when you undertake deep dialogues. After
collecting the information, compare what you have learned and see if
you need a more appropriate way to differentiate your target group, such
as by behavior and motivation (“teenage/adult feminine and teenage/
adult natural”). Visit a local shop that sells beauty products and ask the
shopkeeper to share experiences on what and how to sell to each of the
Personas. During the dialogue, try to do a target group segmentation e.g.
based on the Persona’s willingness to buy new products such as yours.
CASe DeSCRIpTIOnS
Rapid market assessment (featuring AAK, page 18)
Marketing and communication (featuring Arla, page 44)
pARTICIpAnTS
From 10 – several hundred people depending on the scope, use of information
and resources.
TIme
1 hour for Deep dialogue, 1-2 hours for segmentation activity with focus group if
Personas were developed beforehand.
MATERIAL NEEDED
Template to develop the “Persona”
Notebook, pens, camera, video, computer
Paper cards, poster to make the segmentation
SeTTleD
COnTenT
ReSIgneD
pROuD
TRADITIOnAlS
ReSIgneD
pOOR
RuRAl
pOOR
elITe
uppeR
mODeRn
fAmIlY
lOweR
up &
COmIngS
pOSITIVe
STRuggleRS
Open TO
CHAnge
73

74
CREATING
SCenARIOS
Build situational stories to
make it easier for your target
group to understand abstract
questions and for you to
communicate what you have
learned to your project team.
This activity is a guide on how to build scenarios or situational
stories to contextualize your questions. Scenarios
are good to use for deep dialogue or focus group meetings
and can be used in situations where you want your target
group to understand a complex situation or question. Creating
scenarios can also be useful for you to triangulate your
findings. Develop a story that sums up your understanding
and then present it to your target group for clarification and
feedback. Creating scenarios can help you to compile and
easily communicate your findings from the research to your
project team. Scenarios can be both fictive and realistic and
presented through storytelling, an illustration, a diagram or
other visual material.
OuTCOme
Story or illustration of a situation you would like to
communicate.
Information on your target group that is easy to access,
understand and use within your project team.
Tool for you to make abstract questions easier to
understand for your target group.
TYpe Of ACTIVITY
Development of communication material
(Activity to support) Focus group sessions
(Activity to support) Deep dialogue
fOllOw THeSe STepS:
STep 1: Review your key research questions for your field trip
– are there any that might be complex to explain and would be
more easily expressed through creating a scenario or telling a
story? Scenarios can become relevant if you want to talk about
sensitive topics, desires for the future or a product that does not
exist.
STep 2: Draft a simple story line for the scenario that may
be a situation, a small story, or a set of different scenarios to
address and elaborate on the same question. Contextualizing is
important and it is good to build the scenario using local words
and images of the conditions. Consider whether you will include
fictive people with names in your scenario or include your target
group as the people in the scenario. It is often easier for people
to be open, critical and subjective if the scenario includes fictive,
but realistic, characters.
STep 3: Consider how you will present the scenario depending
on your available time, facilitation skills and target audience.
While you may try to explain the scenario in words, it is often
a good idea to include a few illustrations or the surroundings
to support your storytelling and for people to understand the
situation. 1 5 6
STep 4: Develop the material that can support others’
understanding of the scenario, such as:
Notes in your book about the story line and key questions
A few cards with basic illustrations or writing that may, in
combination, become different scenarios 3
Picture, diagram or drawing 5 6
A short movie clip from earlier research done elsewhere
STep 5: Use the scenario to tell a story – be descriptive, specific
and open to elaboration on the story with input from people who
will try to reflect themselves in the story and adapt it to their
situation. 1 4
While you can present a full story to them, you may also give
a more general and less detailed story for your participants to
discuss. You could present the beginning of a story that includes
some of the local dilemmas and ask your participants to develop
the continuation of the story. Peoples story can be presented in
a focus group. Give people time talk and to interpret the story. 2
STep 6: Document the discussion of the scenario and outcome
by taking notes and video 2 . Consider making illustrations that
shows your participants greater detail of the scenario so that
they can confirm or elaborate on what they see. 4
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Create scenarios to present the relevant information you have
learned from your field research to your project team using pictures,
video, quotes and personas.
Scenarios can be prepared from home and planned to clarify abstract
key questions or, in other cases, developed “on the spot” during
an activity where you face the challenges in getting participants to
give answers to abstract questions.
Create scenarios for your target group to “fill in the gaps” of a story.
Present the “beginning” and “the end” on two separate papers, which
could be scenes of “now” and “future” or “without” and “with” scenarios,
and ask the participants to come up with realistic and/or “outrageous”
ideas about what has happened in between.
gOOD pRACTICe
When a translator is needed, ask around if there is anyone who
is good at storytelling who might also be good at presenting
your scenario and facilitating the focus group session. 4 6 You
can also ask if there is anyone who likes to draw who may assist
you in creating illustrations. 4
Use material from people’s “Self-documentation” activities,
pictures, notes and other material from your first days of field
research to create new or more descriptive scenarios.
Make your questions less abstract by creating a “sacrificial
concept”: Turn abstract questions into concrete, scenariobased
questions with two options, for example: “If you had to
choose between…”
Addressing the future can be difficult, so instead of asking your
target group “what will the solution be?”, create a scenario
where the solution already has been implemented and ask your
participants, “(Imagine) What has the solution done to make
them…”
wATCH OuT
Build realistic scenarios that people can relate to. If you address solutions
that do not exist, then try to describe a fictive family.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Self-documentation (page 60)
Customer segmentation (page 72)
Price mapping (page 78)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
When facing abstract questions during a deep dialogue or focus
group activity, try to think of how you can contextualize your question
by telling a fictive story your participants can relate to. Rephrase your
question into a story and consider making a few simple drawings to
support the content of your story.
Develop three daily-life scenarios that visually and structurally
communicate your field research and what you have learned to your
project team. Personalize and contextualize each story by including
pictures you have taken.
Scenarios can be based on relevant forecasts, such as different
scenarios on how to create a market and how your product will be
put into use to create value for your consumer.
CASe DeSCRIpTIOnS
Service and maintenance (featuring InnoAid Ambulance, page 50)
pARTICIpAnTS
One person to develop the scenarios, maybe with the help of local artist. Scenarios
can be presented to individuals or a smaller focus group.
TIme
From 5 minutes to 3 hours of preparation
mATeRIAl neeDeD
Illustrations, drawings, or cards to write on
Notebook and pens
Camera and video (or smartphone)
75

76
RANKING
VAlueS
Challenge your target
group to actively value and
rank products, services
or detailed aspects of a
solution in accordance to
their perceived value.
The activity prepares you to develop material for an individual
or focus group session where participants will rank a number
of alternative products, services or aspects relevant to your
research. By asking people to prioritize, participants will start
a mental evaluation process to both address what “value” in
general means and how different solutions or alternatives are
rated on a scale that is predefined or defined by the participants
themselves. The activity is simple in its format but can lead to
valuable discussion between participants when they have to address
their own as well as common perception of value and how
this is embedded in a given number of alternatives.
OuTCOme
Value Proposition and consumer expectations – what and
how people value and prioritize
Differences between individuals and target groups
People’s perceptions, knowledge and understanding
People’s valuation of products and services
Diagram that can be used for quantitative studies
TYpe Of ACTIVITY
Interview
Focus group
fOllOw THeSe STepS:
STep 1: Generate a list of topics that you would like people’s
perceived valuation of. A topic could be “considerations when
buying street food.” Select one or two topics and generate a list of
maximum 25 different alternatives or solutions within each of the
topics, e.g., “price, hygiene, location.”
STep 2: Develop and write one small paper cards, each of the
alternatives or solutions. Depending on literacy levels and your
time, consider printing images to symbolize the options or to
develop a list of the alternatives and then ask a local contact to
write the paper cards in the local language. You could evaluate the
alternatives using a scale shaped like a pyramid, a line or a circle.
STep 3: Invite one or several people from your target group to
participate. Present the topic, quickly go through the alternatives
you have brought, and show the scale on which they should
rank the alternatives 5 . Motivate participants to include new
alternatives they value under the topic given, by including a new
paper card.
STep 4: Ask the participants to rank the alternatives. 1 2 3
4 You should act only as facilitator and give participants freedom
to undertake the activity themselves. Try to only have one activity
at a time and sit in the background to observe and listen.
STep 5: Clarify and support the understanding if needed. If you
have not defined the scale of what is “high value and low value,”
then ask participants to define this, giving valuable insight into
their way of perceiving value.
STep 6: Review the final rankings of the alternatives and ask the
participants to talk about their priorities. 1 6
STep 7: Follow-up by addressing some more general questions,
either from the session or that you have prepared beforehand. If
you had asked participants to rank, for example, different labels
of milk products, then you could ask them to rank in accordance
to what they consume the most and what the unit price is – you
may find that there are different perceptions on “quality” and
purchasing value.
STep 8: Repeat the session with others from the same target
group but also try to address the possibility of other relevant target
groups, e.g., asking the street food vendor about his priorities to
see if they align with the consumers.
STep 9: Document the process with notes/video and take
pictures of the final ranking of paper cards. Write down the key
points you learned from the session and if any new options were
discovered. 1
STep 10: Assess the variation in priority within a specific target
group and among different target groups.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Some alternatives may be more costly than others so consider a
ranking activity where you give people real or fictive money to “buy” a
number of the alternative – but they have to rank and prioritize, as
they will not be able to afford them all.
Start with a “Value ranking” activity before a focus group discussion
on value creation and perception since this may seem very
abstract to your participants at first. Invite participants to present their
value ranking to each other and then start a deep dialogue about values
at a point where the participants have been actively and mentally
involved in expressing their own values.
gOOD pRACTICe
Review your printed images with a local partner or someone
with local knowledge to know whether participants will understand
the images or not.
Include a name of the value on the image and an ID number
that you can write down to easily record the ranking for a later
comparison. Ask a local contact to write in local language the
meaning on the picture.
Consider undertaking the same Ranking values activity with
other participant than your customers as it may be relevant to
address other decision makers ranking of values for you to create
a market – e.g., the consumer of candy may be kids but it will be
the mother making the decision to purchase.
Make sure you meet participants at a place where there will be
space to sit with the cards.
wATCH OuT
Try to do the activity in a quiet place since your presence will
create a lot of attention and others will come to interrupt with
their opinions. This is especially important with women.
The cards might be misunderstood and this could affect the
rankings. Motivate the participant to feel free to continuously review
and change the ranking order while explaining the ranking
to a focus group.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Customer segmentation (page 60)
Creating scenarios (page 74)
Designing value proposition (page 80)

1
geT STARTeD wITH THe RApID VeRSIOn
Develop a list of 5-10 values that you have thought to be possible
unique selling points for your solution, e.g., for a radio to last for
five years, have digital screen, available in three colors, etc. In
addition, generate 10 alternative values that you think may affect
your customers’ choice of what to buy, such as transportable on
bike, price, waterproof, connects to car, plays tapes, etc. Invite five
boys and five girls, divide them into two groups, and have them
undertake the ranking of values in the groups. Ask participants to
include other values that you may have forgotten. Have each group
present their rankings, talk about the differences in their rankings,
and their reasons for the rankings. Write the values in English and
also the local language on post-it notes and ask participants to rank
them on a poster.
CASe DeSCRIpTIOnS
Rapid market assessment (featuring AAK, page 18)
Including end-users (featuring InnoAid Street Food, page 28)
Distribution system (featuring Danisco, page 32)
pARTICIpAnTS
Individual or small focus group of maximum of seven participants in each group.
TIme
From ½ – 2 hours depending on discussion that will follow the ranking
mATeRIAl neeDeD
Illustrations, drawings, or cards to write on
Paper to write a scale
Notebook, pens, camera, video, or smartphone
2 3 4 5 6
77

78
PRICE
mAppIng
Organize a group session
where your target group maps
economic information that
is then used to identify value
propositions.
The activity provides you with tools on how to involve your
target group in mapping different types of economic information.
The map allows you to do simple analyses together with
your participants and address their capacity to invest in new
solutions and, through this, also address value proposition
from an economic point of view.
OuTCOme
Current prices on the market
Target groups’ financial liability and cash flow
People’s spending and if they pay more for less
Value proposition
People’s current skills and priorities in making budgets
TYpe Of ACTIVITY
Observation
Interview
fOllOw THeSe STepS:
STep 1: Decide on what type of revenue and cash flow you wish
to map with your target group to identify value propositions and
opportunities for investments. Participants could map prices of
competitive products, their own type of spending’s, and what
values they see in the competitive products, or map the cash
flow of your target group’s household to understand their liability.
STep 2: prepare the aspects you wish to address by writing
each one on a color paper card and have a local assistant write
the meaning in the local language. 1
STep 3: Select and invite selected people from your target
group to a session where you will brief the participants on the
content and purpose of the focus group. It should be at a place
where you can use the wall for the mapping so everyone can see.
STep 4: Break the ice by asking people to write their names
on paper cards, have them introduce themselves, and stick the
nametags in a row on the wall. 1 2
STep 5: Ask participants for their inputs on an aspect that
should be relatively easy for them to indicate – such as the name
and price of a product they own and serve a similar purpose as
your solution. Place a card with the name of the aspect on the
wall and ask the participants to write their individual answer on a
new paper card and stick it underneath their name. 1
STep 5: Allow participants to discuss and help each other to
write the cards. 3 Clarify the meaning of the cards by asking
participants to elaborate verbally on what they wrote on the card.
4
STep 6: Address new aspects by, for example, asking the
participants to write other products they know on the market
on a new card. Have them list the product names as well as the
estimated price in local currency.
STep 7: Continue the mapping on the wall with other, maybe
more complex aspects for people to share insights on. Try to
develop an order of aspects where the former map can help
participants give input to the next. Address products, spending,
values, profits, etc. 5
STep 8: End the mapping by drawing some conclusions related
to individual revenue streams or general observations that can
lead you into asking how new investments could support their
economy in relation to the functionalities of your product. Take
pictures of the map and notes from the discussion. 6
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Use the Toolbox Activity “Activity map” to map a distribution chain
or service delivery before making the price mapping activity. This way
you can use the activities map to address the expenses and revenues
for each of the distribution activities, e.g., to address the cash flow of a
milk farmer from cow to point of sale. 6
gOOD pRACTICe
Consider giving selected participants a list of things they should
write down the price and amount of a few days before the activity.
This gives them time to collect some information from
the market as well as address the household economy with the
household members since it may be difficult to remember if not
being prepared.
The activity works well in groups if you only address a few aspects
to map as it may be a very time-consuming activity.
Make use of paper cards in various colors to provide a visual
structure of the mapping, e.g., aspects in one color, spending in a
different color, and revenue in yet another color. 5
Complete a few “Resource flow” activities with similar target
groups and hang the posters that came out of this activity up on
the wall before you start the price mapping activity. Use these
posters as a point of reference when you undertake the price
mapping since the posters will list a number of local type of
spending’s you may wish to address during the price mapping.
See Resource flow poster on the upper left on picture 5 .
Use scenarios when you have more complex questions that you
wish to ask to your participants.
wATCH OuT
It may be sensitive for people to map their revenue stream in front
of others. Their rough estimation may result in showing false revenue
that exposes them to the village. Therefore, it is important to emphasize
that numbers are relative and address the need to complete the
activity in small groups in enclosed areas.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Resource flow (page 66)
Creating scenarios (page 74)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
What will be the type of value propositions of your product? –
Productivity, business, status, convenience, health? List a number
of aspects that can structure a session where you will first map your
target groups current spending’s, then values and lastly challenges
to provide you the insight and basis to address what value your
product should be able to deliver. Invite five people from your target
group to a session where you guide them to indicate on cards oneby-one
their individual answers to your questions by starting with
general and easy questions before you ask deeper questions about
resource flow and pricing.
CASe DeSCRIpTIOnS
Distribution system (featuring Danisco, page 32)
Pricing and finance (featuring Worldbarrow, page 38)
pARTICIpAnTS
Group session of maximum five people within the same type of target group.
TIme
Should take maximum 2 ½ hours, including some snacks and a break. Time
needed will largely depend on the number of participants, number, detail of aspects
and the complexity of your questions.
mATeRIAl neeDeD
Paper cards in various colors, Sticky Tack to stick them onto the wall
Pens for each of the participants
Camera and notebook
79

80
DESIGNING
VAlue
pROpeRSITIOn
Co-creation activity to
design products and services
according to your target
group desired benefits.
This activity focuses on first identifying what values and experiences
your target group would want to include in your
product and service. You will then invite selected people from
your target group to a small co-creation activity where they
will be asked to create ideas and concepts of how you should
translate the value into specific solutions. Local perceptions
of products and services can differ greatly from your own.
Therefore, a dialogue on how your target group experiences
design is relevant to both design of the marketing and packaging
material and well as the product itself to make sure it
will communicate value through the right messages and design
features.
OuTCOme
What people perceive as important values and how they
think it should be integrated in a new product
Concepts of marketing and packaging material to
communicate the desired experiences
Concepts of product solutions that can give the user
desired experiences
TYpe Of ACTIVITY
Focus group
Co-creation
fOllOw THeSe STepS:
STep 1: prepare relevant questions and visual material that
focuses on the type of product or market you target. If your ideas
are in the very early stages, print out a picture of or purchase
similar types of local products. For example, designing mobile
phones for women could mean collecting different local mobile
phones, other technologies popular for women, or women
products popular in general. If you have a prototype, then illustrate
or bring it along with “similar” products purchased locally. Develop
two simple illustrations of different scenarios: one with a woman
looking angry with a mobile phone and a woman who looks happy
about a mobile phone. Seek inspiration from illustration 4 .
STep 2: Invite people from your target group for a small focus
group session. Try to invite people with similar characteristics such
as age, gender, income level and maybe profession. 1
STep 3: Present the pictures and products 5 as if you are
interpreting the pictures together with your participants. It
is important to not tell anything about specific use, price, or
perceived values of the products, including your solution. End your
presentation by presenting the two scenarios where you ask open
questions about why they think the women are having different
experiences while looking at their phones.
STep 4: List people’s comments to the scenarios on paper cards
or a poster. Continue to talk about people’s experiences and
values by showing the other pictures and products to get more
ideas from people about what is a good or bad experience about
mobile phones and why certain products are so valued 2 3 . You
can also ask leading questions by addressing relevant topics such
as status, safety, durability, beauty, etc.
STep 5: Review the list of experiences generated and invite
participants to add more experiences if any are missing.
STep 6: Focus on what to co-create, e.g., packaging material (can
be good if your product is a service and less tangible), or co-create
a physical product.
STep 7: Invite your participants to share ideas about how to
design the packaging material or product in accordance to the list
of desired experiences developed in step 5 – the ideas can relate
to the choice of materials, information given, size, color, features,
etc. List the ideas next to the desired experiences. Motivate the
participants to suggest different ideas and list them all even though
they may be different. Invite participants to sketch or draw on the
pictures you have brought for the changes they desire. 3 6
STep 8: Invite participants to detail their ideas for a group
presentation. This could be done as a one-hour session or a
several day task. People could go home to their families and,
with the help of their children, draw the product they would value.
Subsequent to this, the target group would present the results at
a group presentation.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOn
Invite people to design the packaging material by giving participants
a white poster or a paper box that they can then decorate and
draw on to present their ideas for the packaging, giving insight on key
messages, slogans, illustrations that communicate value, etc.
Have people use the product for several days with no or little
introduction to the product to find out how people will make use of
the product. Your target group may use your product in unexpected
ways and therefore give insight on unexpected product values
or challenges (See case of Vestergaard Frandsen page 22).
Try to repeat the activity with different types of target groups to
map differences. If possible, consider having the different groups
present their final ideas to other target groups to get feedback and
start a discussion about how to meet different values or the need
for a selection of products and services.
gOOD pRACTICe
Look for people who like to draw in the community, they could be
kids, and include them as participants or to support participants
in visualizing their ideas.
Make sure not to “sell” your solution when you introduce it but
be very general and only tell what people can see themselves.
Ask participants in the end of the activity when people have listed
their own values whether they also see the values of your solution
that you had initially designed for.
Consider including some physical products that people can
touch and use in order to look for additional values and use as a
reference to support your target group to explain the values they
find in your product.
wATCH OuT
Not all people may like to be involved in an activity where they
have to be very creative. Therefore assess the interest and skills
of your participants in making drawings or prototypes and design the
activity according to this level of creativity and interest. Consider involving
a local artist to support.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Self-documentation (page 60)
Creating scenarios (page 74)
Concept assessment (page 84)

2 3 4 5 6
“IT IS GREAT!
I WILL BUY IT!”
“I DON’T LIKE
I WILL NOT BUY!”
1
geT STARTeD wITH THe RApID VeRSIOn
Prepare an A3 paper where you include images of locally available
products similar to yours – it can be images of products in use,
packaged or an advertisement. Select pictures where the products
are in similar conditions, such as all being new. Print also 2 images
that expresses “to like” and “to dislike” 4 . Arrange to meet four
people from a specific target group and ask them to share their
insights on what a person like themselves would like or dislike with
the type of product you are developing and what he or she may look
for when deciding on the purchase. Then ask them to share ideas
about how the product should be designed to comply with these
values and be attractive for them to buy.
CASe DeSCRIpTIOnS
Customers and end-users (featuring Vestergaard Frandsen, page 22)
pARTICIpAnTS
Four to six people in a focus group
TIme
From 2 hours per workshop, depending on the group size and number of aspects
you will address.
mATeRIAl neeDeD
Images or products similar to yours
Two Scenarios on a A4 paper – can be as simple as (4)
Questions or notes to address specific values you will talk about
Pens, paper, paper boxes to draw and create ideas
Notebook, camera, video, smartphone
81

82
PROTOTYPING
Give your target group the
opportunity to prototype
solutions derived from local
needs, skills and resources.
The activity supports a creative and practical process where
your target group becomes active participants in converting
identified needs and challenges into conceptual or physical
solutions. Address important aspects such as local acceptability,
manufacturing, service and maintenance. Your target
group can provide great insight for the design and prototyping.
A deep understanding of local needs and markets does
not ensure that you will translate these into the right solutions.
Include your target groups or local manufacturers to
share their ideas on detail design or overall solutions to inspire
your product design.
OuTCOme
Conceptual, detail or complete solutions presented through
physical models or drawings for product assessment
Prototypes with focus on local service delivery, maintenance,
cost, sustainability, materials
Local skills for manufacturing
Ideas on what to name and how to brand your solution
How locals translate needs and values into concrete solutions
TYpe Of ACTIVITY
Focus group
Observation
Co-creation workshop
fOllOw THeSe STepS:
STep 1: Decide on what level you would like to involve people in
the design of your solution, e.g., to design concepts 11, detail part
of your solution 8 , address local manufacturing 1 2 or develop
the marketing.
STep 2: Develop material to inspire what type of solutions
participants should prototype as well as material that can enable
people to communicate their ideas to you. Consider how you can
help participants to deliver relevant ideas and creations:
List of challenges and opportunities you have identified
that people can consider when prototyping; this could be
developed as a persona (see “Creating scenario” activity)
Sketches of existing solutions or your initial ideas that people
can detail 7
Manufacturing manual to build and detail specific prototypes 1
STep 3: Involve people from your target groups depending on
your ideas about the prototypes. Some examples include:
End-users: by promoting a drawing competition to gain insight
on appearance 4
End-users: by providing sketches of your ideas for people to
color and detail in a focus group session 7
End-users: by giving them a pack of different modeling
material for them to have on days on their own to develop 3D
prototypes they can later present 9
End-users: by giving them initial prototypes or product
samples to further develop or change 8 10
Local manufacturers: who you will show drawings or
manufacturing manual to construct the solutions using local
process and materials 1 2 3 5
STep 4: Support the prototyping by being available to help and
consider involving kids or a local artist to communicate visually the
ideas that people have for prototypes. For local manufacturing,
develop 3D sketches or manuals beforehand and observe and
follow the prototyping for a continuous dialogue and discussion on
the design.
STep 5: Invite the focus group and local community to present
and assess the prototypes for you to collect additional comments.
Try to conclude on the important design aspects mentioned
through this dialogue, perhaps by trying to illustrate the new details
or conceptual solutions that come up. Elaborate on the concepts
by creating scenarios with the product for people to clarify and
elaborate on their intended use and value of their solution.
STep 6: Document the activity and prototypes developed through
video, pictures and notes as material for your further design
process.
pRepARATIOn eXeCuTIOn DATA COlleCTIOn
VARIATIOnS
It can be easiest to present prototypes of service solutions through
a poster, a role-play or enacting a scenario 6 . For inspiration, see
the case of InnoAid Ambulance.
gOOD pRACTICe
Include local materials that enable participants to create models
of their ideas and solutions. Select materials based on local
availability but consider including clay, paper, cloths, sticks, recycled
material such as cans, etc. Provide some material but also
motivate people to use what they find appropriate.
Support participants’ creativity and skills to develop models of
their ideas by involving local artists. Local artists can be contracted
to help participants in making the models whether the
artist is a painter, blacksmith or ceramicist. Inform participants
that local artists will be available and that they can get support
from these artists to make their models. It is important that participants
still take the lead in the modeling and that it is not the
artists’ ideas but participants’ ideas that will be communicated in
final models.
Plan the participants’ creations to be evaluated and presented
to a local “jury” to not only motivate people for the chance of
“winning” but to learn more about the criteria upon which the
local jury will evaluate participants’ creations.
wATCH OuT
Involve people in prototyping activities that match their skills and
time available so participants will not be overwhelmed by the challenges
presented to them. Consider what material can be developed
to support the process while still not giving too many boundaries that
would prevent the expression of new ideas.
Greatest value of the activity is not the prototype itself but the reasoning
and ideas behind the prototype– remember to capture the
reasoning and ideas!
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Customer segmentation (page 72)
Concept assessment (page 84)

1
4
7
2
5
8
3
6
9
geT STARTeD wITH THe RApID VeRSIOn
Print out a black/white outline, sketch of your solution or illustrations
of existing solutions and invite people in a focus group to color and
detail the drawings based on their personal preferences – make
sure that participants present their ideas that went into the design.
Consider giving people time to go home, detail the drawings, and
return two days later for a presentation and talk.
During a product assessment activity or when people are giving
feedback on your ideas and solution, then ask them to suggest
what a better solution might look like – making 3D models by using
material from the surrounding area 3 or making drawings in your
notebook. Ask people why they would recommend this solution.
CASe DeSCRIpTIOnS
Including end-users (featuring InnoAid Street Food, page 28)
Service and maintenance (featuring InnoAid Ambulance, page 50)
pARTICIpAnTS
The number of participants depends largely on whether you are opening up the
competition for people to submit their drawings. There could also be people working
closely with a local manufacturer to develop a 1:1 prototype.
TIme
Depends largely on what type of prototype will be developed.
mATeRIAl neeDeD
Material to present your scope of the prototypes, such as a list of needs to
prototypes solution for, 3D drawings or a manufacturing manual
Material to develop prototypes or identify manufacturer that will use his own
materials available
Video, camera, smartphone
Notebook and pens
10 11
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84
CONCEPT
ASSeSSmenT
Your target group’s critical
assessment of your concept or
solution.
The activity can give you ideas on how to obtain local feedback
on your concepts to be able to further detail and develop
the solution to meet local needs and markets and forecast
the later local use of and interest in your product. The activity
is relevant when you have developed a concept or prototype
and you would like your target group’s assessment of the concept.
Concept assessment can address local available solutions
for your target group to identify weaknesses and needs
for improved solutions.
OuTCOme
Feedback on your solutions from your target groups about
aspects such as usability, acceptability, affordability and
durability
Ideas for re-design or further detailing
Ideas for services or new solutions
TYpe Of ACTIVITY
Interview
Observation
Focus group
fOllOw THeSe STepS:
STep 1: Develop visual material that best describes your
concepts and solution. It is good to illustrate a variety of solutions
or detail solutions that are different to force people to distinguish
and select their preferences. Consider purchasing or illustrating
local existing solutions to use as a reference in your activity 1 .
Service solutions are best presented through illustrations, video, a
scenario or a role-play. 2 5
STep 2: Develop a list of aspects to assess such as related
to product appearance, affordability, availability, acceptability,
durability, usability, etc. 3
preparation
STep 3: Plan a focus group. Before showing your solution, ask
participants to mention and assess where there are existing
solutions that target the same needs – you may have some
pictures or samples of these.
STep 4: Present and explain your solutions by only introducing
the functionalities and not trying to “sell the product.” Capture
the participants’ first impression by asking: “what would you use it
for?” or “why is it better or worse than other solutions?” or “what
would you change?” or “what does it remind you of?” or “what
does is cost?” 4
STep 5: Structure feedback: Present functionalities of the
concept or catalogue of various concepts one-by-one. Display an
illustration of each concept on the wall or make them available
on a table. Present the assessment aspects you have defined
one at a time and ask people to assess your concepts based on
the appearance of the products in relation to affordability. Create
scenarios for people to understand better your illustrated ideas or
questions. 4
STep 6: Document feedback by writing on the illustrations about
the concepts or on post-it notes. Feedback on the aspects can be
a rating of your different concepts or statements on what to keep,
add or change. 1
STep 5: Diversify people’s way to assess by initiating different
activities, such as: have someone use your product by themselves
for a period of time; Follow and observe people using the product
and give them specific tasks to undertake; assess the product
by addressing specific assessment aspects defined in step 2;
undertake deep dialogue at the place where similar products are
sold to have some initial market assessment. 4 5 6
STep 6: Develop and present to your target group your
understanding of how the solutions could be improved based on
the participants’ assessments to understand if you are translating
feedback into the right changes.
STep 7: Document people’s interactions with your physical
prototypes on video and pictures for later assessment.
pRepARATIOn If YOuR SOluTIOn IS COnCepTS: If YOuR IDeA IS A pRODuCT:
VARIATIOn
If you have a 1:1 prototype, try to give it to people with no
prior introduction or even intentionally “forget” a sample of
your product in a community. Make a visit several days later to
see what potential end-users have used it for when they have not
been given any information from your side.
Try to use your product yourself under the local conditions as
this may foster new insight on how to improve the product.
Test your prototype under extreme conditions to identify weaknesses.
gOOD pRACTICe
Make sure to emphasize that your target group should feel free
to speak honestly and critically, as you are not there to impress
them with a finished solutions but to learn how to improve
your product.
Consider getting help from local contacts to identify opinionated
people. In a focus group, you could provoke discussions by
having people from different target groups represented who may
not intend to use the product the same way.
Consider including illustrations or pictures from a similar village
and not just from the ones you will visit to make sure that critical
feedback does not become personal or sensitive.
wATCH OuT
Pay attention to the level of abstraction, size, choice of materials,
and possibility for participants to adapt to the prototypes. Would you
like people to give inspirational feedback on your prototype at an early
stage of your project or critical feedback to finalize details of your
product?
Develop appropriate illustrations. It can be difficult for participants
to fully understand abstract and symbolic illustrations and prototypes,
because participants may try to understand the concept too literally.
If you, on the other hand, present a very detailed “new and shiny”
prototype, they will be too overwhelmed by the details to address the
concept as a whole or not be critical to important details, as it looks
“modern and high-tech.”
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Activity map (page 62)
Follow and observe (page 68)
Creating scenarios (page 74)
Prototyping (page 82)

2 3 4 5 6
1
geT STARTeD wITH THe RApID VeRSIOn
Laminate 5-10 illustrations, through pictures and drawings, which
can present a solution in already in use or for sale. 1 Include five
bullets for each product specification and functionality. Write the
aspects you would like to assess about your solutions based upon
on separate paper cards. On each paper card, list five key questions
and a scenario that can elaborate on the aspect.
Present the concepts to a focus group of different end-users. Ask
participants to assess the concepts by addressing one aspect at a
time that you have written on your cards. Write the feedback on new
cards and place next to the concepts. Finalize the talk by having the
target group rate their comments based on their importance.
CASe DeSCRIpTIOnS
Customers and end-users (featuring Vestergaard Frandsen, page 22)
Pricing and finance (featuring Worldbarrow page 38)
Service and maintenance (featuring InnoAid Ambulance page 50)
pARTICIpAnTS
Different activities can be undertaken with up to 10 people in a focus group.
TIme
Depends largely on how the activity is performed but a focus group would take
45 minutes – 1½ hours. User-tests can be done during several days but do not
require your full participation.
mATeRIAl neeDeD
Material presenting your concept (illustrations, prototypes, etc.)
Pictures or samples of local products targeting same market (optional)
Notebook (including your assessment aspects and questions)
Different colors of paper cards and pens
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PRODUCT
In mARkeT
Display your prototype at a
local point-of-purchase for
your target customers to
assess the product and the
shopkeeper to co-create a
sales strategy.
The activity can help you to create an early and motivated
dialogue with potential local retailers or entrepreneurs who
might already sell products and services to your targeted customers.
You will engage a local salesperson to display and
collect feedback on your prototype or visual material from
his or her regular customers. After several days, you will collect
customers’ feedback and invite the salesperson to share
ideas on how to optimize the design and market based on the
experiences gathered through the dialogue with customers.
OuTCOme
Characteristics of target customers
Potential point of customer purchases
Indications of margin and sales price
Thoughts on marketing – how to brand the product
Requests for further re-design of prototype to meet
customer needs and values
TYpe Of ACTIVITY
Interviews
Target groups’ own activities
fOllOw THeSe STepS:
STep 1: List types of relevant point-of-sales, such as specific
business, places or entrepreneurs who currently reach out to your
target customers.
STep 2: Brainstorm on how you can best present and display
your prototype or solution at the point-of-purchase.
1:1 functional prototypes allow customers to see, touch and
test the use of your prototype 1 .
Packaging material is important because service solutions
are often intangible. Customers often assess food products
or services by their packaging materia
Posters or promotion material are often used to
communicate and sell service solutions.
STep 3: Develop a short questionnaire for the customers to fill
out. Include maximum 10 key questions that the customer can
answer by yes or no or a check the box 4 . Include questions
related to the price, comparison to other products in the shop,
and level of interest in the product. Make space for customers to
illustrate ideas on how to improve the design.
STep 4: Develop visual material to attract the customer’s interest
and motivate them to assess your product. It is a good idea to
develop three to six short questions and illustrations relevant to
your questionnaire. Either stick them on your package or poster,
or print out and hang on your product 3 5 . Visualizations may
communicate “I like” or “I do not like” or “I would like to change”
or “The price is..?”
STep 5: Visit on your own or with a local partner relevant local
markets and point-of-sales. Present your prototype – start to
assemble it together 2 . Ask a few questions to understand the
business, current products, and customers. Introduce your market
research scope and present your interest in displaying your
solution for customer feedback. If the person in charge seems to
show interest and an understanding of the activity then ask for the
possibility to display the product there for a number of days.
STep 6: Introduce the questionnaire by reviewing it together.
Ask the businessperson or entrepreneur to help their customers
to give feedback on the questionnaire. 1 Inform them that your
prototype is still under development so it should not be sold to any
customers.
STep 7: Help to display your prototype and material at a place
where it is easy to see and close to any similar products.
STep 8: Plan how many days the prototype will be displayed to
customers for feedback. Plan for a minimum of three days.
STep 9: Revisit the point-of-sale to follow-up on the activity or
to review the questionnaires. Start a deep dialogue about the
feedback and how to market the product as well as what changes
there should be to the solution. 5 6
pRepARATIOn
eXeCuTIOn
DATA COlleCTIOn
VARIATIOn
The potential point-of-sale may not be an established shop but a
local health worker offering healthcare services from home, an ice
cream vendor on his bike, a street vendor, or a place that may not
sell similar products but where people often go, such as the collection
point where farmers weigh and sell their crops.
A small roadside vendor may not have time, employees or interest
in having their customers spend time to answer a questionnaire. Develop
a small list of key questions, along with the display of the prototype
for the shopkeeper to ask more randomly when customers visit.
Offer to give the vendor a notebook to take relevant notes during the
days of the activity.
gOOD pRACTICe
Do not be afraid to approach local shops but do not take for
granted that they will be interested in participating. You will get
further by being open and showing interest in and respect for
their current practice.
Undertake the activity at more than one type of potential
point-of-sale to validate research already obtained insight or
to identify diversity. In a shop that is very busy, consider if there
would be a student worker who you could involve to ask customers
for their feedback.
Create incentives to encourage the point-of-sale and customers
to participate. Giving small gifts, such as free pens or key
rings, to customers participating and for the shopkeeper the prototype
displayed can be enough for them to feel motivated and
feel your appreciation.
Ensure to communicate that critical feedback from the customers
is valued to improve the solutions and that you are not
only looking for the positive, pleasing comments and answers.
Make sure you inform the shopkeeper that your solution is a
prototype and not ready to be sold. The shopkeeper may see the
interest and want to participate later, but needs to know that it is
not happening “tomorrow.”
wATCH OuT
Not all shopkeepers will be interested in participating. You should respect
this. Also consult the shopkeeper about where to display your
product so you are not just intruding on his or her business.
uSe In COmbInATIOn wITH
Deep dialogue (page 58)
Concept assessment (page 84)

1
geT STARTeD wITH THe RApID VeRSIOn
Bring up to five samples of your prototype or images of your solution.
Develop a list of 10 easy, formulated key questions that you would
like to get feedback on in relation to the customers’ perception of
your product. Look for local shops or vendors selling products to
your target group, approach them, and ask if they would like to help
you to collect feedback on your solution for four days. In return, the
customers will get a free pen after answering 10 questions. The shop
or entrepreneur will be one of the first to receive a free prototype
(or another PR gift). Arrange to come back at the end of your trip to
meet the entrepreneur for a talk about the customers’ feedback and
their personal recommendations on how to reach the customers and
market the product.
CASe DeSCRIpTIOnS
Pricing and finance (featuring Worldbarrow, page 38)
pARTICIpAnTS
Two to six local shops or roadside entrepreneurs
TIme
0.5 – 1 hours to introduce activity to local shopkeeper
Three to 14 days for the activity (not by you but by the shopkeeper)
1 hour for the follow-up dialogue with the shopkeeper
mATeRIAl neeDeD
Solution represented through prototype, package or poster
Printed visual image cards to hang on the prototype
Questionnaire or other type of material for customer feedback
Pens – many pens are needed if given as reward to participating customers
Camera and notebook
2 3 4 5 6
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