Harvard Case - Kariyon: From an Ephemeral, Solidarity-based Initiative to New Consumer Behaviour Habits
"Kariyon: From an Ephemeral, Solidarity-based Initiative to New Consumer Behaviour Habits" Harvard business case study is written by Magali DUBOSSON, Laurence CASAGRANDE-CAILLE. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Jan 22, 2023
At Fern Fort University, we recommend that Kariyon transition from a solidarity-based initiative to a sustainable, scalable business model by focusing on a clear brand positioning, targeted market segmentation, and a multi-channel marketing strategy. This will involve leveraging technology, building brand equity, and fostering customer loyalty to drive sustainable growth and impact.
2. Background
Kariyon, a social enterprise in the Philippines, initially emerged as a response to the COVID-19 pandemic. Its mission was to provide essential food and supplies to vulnerable communities through a network of volunteers and donations. This solidarity-based approach proved successful in the short term, but faced challenges in long-term sustainability and scalability.
The case study focuses on Kariyon's transition from this initial phase to a more sustainable business model. The key protagonists are the founders and core team, who are passionate about their mission and committed to finding a way to make Kariyon a lasting force for good.
3. Analysis of the Case Study
To analyze Kariyon's situation, we can apply a framework that combines strategic, marketing, and operational perspectives:
Strategic Framework:
- SWOT Analysis:
- Strengths: Strong community engagement, positive brand image, established network, commitment to social impact.
- Weaknesses: Limited resources, lack of formal business structure, reliance on donations, potential for competition from established players.
- Opportunities: Growing demand for healthy and sustainable food options, increasing awareness of social responsibility, potential for partnerships and collaborations.
- Threats: Economic instability, competition from established food retailers, potential for negative publicity, difficulty in scaling operations.
Marketing Framework:
- Market Segmentation: Identify target customer segments based on demographics, needs, and preferences. This could include low-income families, health-conscious individuals, and socially conscious consumers.
- Brand Positioning: Develop a clear and compelling brand positioning that differentiates Kariyon from competitors and resonates with target customers. This could focus on ethical sourcing, community impact, and healthy food choices.
- Consumer Behavior Analysis: Understand the motivations, needs, and purchasing habits of target customers to tailor marketing efforts effectively.
Operational Framework:
- Product Development: Focus on developing a range of products that meet the needs of target customers and align with Kariyon's mission. This could involve sourcing locally produced, organic, and sustainable ingredients.
- Pricing Strategy: Develop a pricing strategy that balances affordability with profitability and sustainability. This could include tiered pricing, value-based pricing, or a combination of both.
- Product Distribution: Explore various distribution channels to reach target customers effectively. This could include online platforms, partnerships with local retailers, and direct-to-consumer sales.
4. Recommendations
1. Develop a Clear Brand Positioning:
- Focus on the 'Triple Bottom Line': Highlight Kariyon's commitment to social, environmental, and economic sustainability.
- Emphasize Community Impact: Showcase the positive impact Kariyon has on local communities and the lives of farmers and producers.
- Promote Healthy and Sustainable Food Choices: Position Kariyon as a provider of nutritious and ethically sourced food options.
2. Implement Targeted Market Segmentation:
- Identify Key Customer Segments: Focus on low-income families, health-conscious individuals, and socially conscious consumers.
- Tailor Marketing Efforts: Develop specific marketing messages and strategies for each target segment.
- Utilize Data Analytics: Track customer behavior and preferences to refine segmentation and targeting strategies.
3. Develop a Multi-channel Marketing Strategy:
- Leverage Digital Marketing: Utilize social media, content marketing, email marketing, and search engine optimization to reach target customers online.
- Build Partnerships: Collaborate with local organizations, NGOs, and retailers to expand reach and brand awareness.
- Engage in Community Outreach: Organize events, workshops, and demonstrations to connect with potential customers and showcase Kariyon's mission.
4. Implement a Sustainable Business Model:
- Diversify Revenue Streams: Explore options beyond donations, such as product sales, partnerships, and government grants.
- Optimize Operations: Streamline manufacturing processes, improve supply chain efficiency, and reduce waste.
- Invest in Technology: Utilize AI and machine learning to optimize pricing, inventory management, and customer relationship management.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: Kariyon's core competencies lie in its community engagement, social impact, and commitment to healthy and sustainable food. These recommendations align with this mission and leverage these strengths.
- External Customers and Internal Clients: The recommendations address the needs of both external customers and internal stakeholders, including farmers, producers, and employees.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Kariyon from established food retailers.
- Attractiveness: The recommendations focus on creating a sustainable business model with potential for long-term growth and profitability.
6. Conclusion
By implementing these recommendations, Kariyon can transition from an ephemeral, solidarity-based initiative to a sustainable, scalable business model that creates lasting impact. This will involve a shift in focus from solely relying on donations to creating a diversified revenue stream, building a strong brand, and engaging with target customers through a multi-channel marketing strategy.
7. Discussion
Alternatives:
- Continuing with the current model: This would be unsustainable in the long term and limit Kariyon's potential for growth and impact.
- Focusing solely on donations: This would make Kariyon reliant on external funding and limit its control over its future.
Risks:
- Competition from established food retailers: Kariyon needs to differentiate itself and build a strong brand to compete effectively.
- Economic instability: Kariyon needs to develop a resilient business model that can withstand economic fluctuations.
- Negative publicity: Kariyon needs to be transparent and accountable in its operations to avoid negative publicity.
Key Assumptions:
- Continued demand for healthy and sustainable food: This assumption is supported by growing consumer awareness and trends.
- Support from local communities: Kariyon's strong community engagement is a key asset and will be crucial for its success.
- Availability of resources: Kariyon needs to secure funding and resources to implement its growth strategy.
8. Next Steps
Timeline:
- Month 1: Develop a detailed business plan outlining the proposed strategy and key milestones.
- Month 2: Conduct market research to identify target segments and refine brand positioning.
- Month 3: Develop a marketing plan and launch initial marketing campaigns.
- Month 4: Begin implementing operational improvements and diversifying revenue streams.
- Month 6: Evaluate progress and adjust strategies based on data and feedback.
By taking these steps, Kariyon can transform itself from a temporary response to a lasting force for good, empowering communities and creating a more sustainable future.
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Case Description
In March 2020, when Swiss citizens were subjected to semi-confinement measures to protect them from the rapid spread of COVID-19, Oliver Price, a young entrepreneur in the canton of Fribourg, decided to launch a web platform to support local businesses that had been forced to close. The goal of this platform, originally called Support for Fribourg Merchants, was to serve as an intermediary between those businesses and consumers wishing to help them by purchasing vouchers that could be redeemed when normal life resumed. This solidarity-based initiative was a resounding success, and when the semi-confinement mandated by the Swiss government came to an end, the platform professionalized and continued to innovate. But could a spontaneous act of solidarity be transformed into a sustainable local business?
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