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EXECUTIVE SUMMARY 1. 2. 3. 4. 5.

Title: Organisation: Reporting Officer: Faculty Guide: Student’s Name:

Preparation of a framework for mutual marketing (OAC) Ankuram Sangamam Poram Mr. A.Murali, HoD, Livelihoods and Business Services Group Prof. L.K.Vaswani Vijay Kumar Tangirala (24011)

Objectives of the project: • • • • •

Exploration of the concept of Mutual Marketing Concept promotion among the members Conducting a pilot test Identification of issues arising out of the pilot test Recommendations

Scope of the study: The pilot test has been conducted at the two MACs of Chinthalapudi and Amaravati. The products were restricted to Detergents and chilli powder. Methodology • Literature review • Regular discussions with the personnel of livelihood department. • Conducting a pilot test • Discussions with the field staff and the members. • Conducting a staff conference where issues and the possible recommendations were discussed. Sources of data: • Internet • Field staff of ASP • Staff of LABSG in ASP The findings 1. Mutual Marketing is an arrangement whereby two or more organizations mutually promote their products or services. 2. The following are some of the issues that ASP needs to focus on when it implements the Mutual Marketing mechanism: • If the product needs to be sold through the retailer, there should be some margin for him. This requires the maintenance of two prices, one rate at which the product is sold to members and another rate at which the product is sold to the retailers. This may be difficult to implement. • As far as possible the profits should be shared by a group of members. • As long as the original member producer gets the price at which she intends to sell to the members, one should not be concerned whether a buyer member is reselling the product to outsiders at a higher price. • The same credit pattern can be followed as in the case of Rice Credit line. • The issue of logistics needs be given special focus. • For the standardization of quality, the proportion in which different ingredients have to be mixed has to be documented and every producer should be made to adhere to this. Some of the findings of the pilot test are as follows: • Falsification of assumption that price is more important than quality • Low price packs should be introduced in case of products where competitors are not offering such low-price packs.

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The MAC staff has an important role to play in the promotion of the Mutual Marketing concept.

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