Case Study A on Managing Momentum

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TASK SHEET (7a): MANAGING MOMENTUM FOR DESIRED SYSTEMIC CHANGE AND IMPROVED PERFORMANCE? You have entered into the agriculture inputs market with an offer to agro-vets to improve their customer orientation and buying experience in exchange for a loyal customer base and more sales. The input supply market has about 50 viable agro-vet retailers that could evolve into retail chains with multiple stores and strong customer oriented strategies. The structure of your initial support to agro-vets was 75 per cent cost share on promotional discounts and substantial technical assistance including 75 per cent cost share of the training and first year’s salary of a new position of agent managers. In exchange, the agro-vets agreed to pay the other part of the cost and to manage and lead the process of change inside their firm. You have been working with 3 agro-vet firms for six months and you observe that they are investing and showing excellent signs of buy-in and ownership. Their sales have increased especially in the more rural smallholder farming areas that previously were not seen as having many high potential customers. Another 8 agro-vet retailers who have expressed their interest in MAP support have contacted you. “I didn’t believe the rural market offered any prospects until I saw with my own eyes my competitor’s success” said one. “I talked to an agent and I was so impressed by his knowledge of the retail market that I’ve set aside money to hire my own agents” said another. You are overjoyed by this response but if these newly interested 8 agro-vets are added it will expand the program to 11 agro-vets. You need to think through the implications of how this might affect – if at all -- your offer and support to all 11 agro-vets. TASK: Should the project adjust its initial offer to new adopters?

Transcript of Case Study A on Managing Momentum

Page 1: Case Study A on Managing Momentum

TASK SHEET (7a): MANAGING MOMENTUM FOR DESIRED SYSTEMIC CHANGE AND IMPROVED PERFORMANCE?

You have entered into the agriculture inputs market with an offer to agro-vets to improve their customer orientation and buying experience in exchange for a loyal customer base and more sales. The input supply market has about 50 viable agro-vet retailers that could evolve into retail chains with multiple stores and strong customer oriented strategies. The structure of your initial support to agro-vets was 75 per cent cost share on promotional discounts and substantial technical assistance including 75 per cent cost share of the training and first year’s salary of a new position of agent managers. In exchange, the agro-vets agreed to pay the other part of the cost and to manage and lead the process of change inside their firm.

You have been working with 3 agro-vet firms for six months and you observe that they are investing and showing excellent signs of buy-in and ownership. Their sales have increased especially in the more rural smallholder farming areas that previously were not seen as having many high potential customers.

Another 8 agro-vet retailers who have expressed their interest in MAP support have contacted you. “I didn’t believe the rural market offered any prospects until I saw with my own eyes my competitor’s success” said one. “I talked to an agent and I was so impressed by his knowledge of the retail market that I’ve set aside money to hire my own agents” said another.

You are overjoyed by this response but if these newly interested 8 agro-vets are added it will expand the program to 11 agro-vets. You need to think through the implications of how this might affect – if at all -- your offer and support to all 11 agro-vets.

TASK: Should the project adjust its initial offer to new adopters? If it should why and how? If not why not?