demand for shelter
in an environment of limited resources and seemingly unlimited access to
information. New technologies and products that utilise industrial wastes and
resources that can be regenerated continue to appear on the horizon. Consumers
are generally oblivious to choices and products often fade into oblivion.It would be worthwhile to record small successes and analyse what has worked. The "Market Push" approach has scored huge successes with Concrete Blocks. The push agents have been machine manufacturers and distributors. Even though initial market penetration was slow, a large price-sensitive market continues to grow catering to diverse market segments. Micro Concrete Roofing Technology has achieved major successes in rural markets through such an approach with micro-entrepreneurs leading the charge.
The "Market Pull" approach has also achieved limited success with marketing of wood substitute board materials and decorative tiles. Closer home, Micro Concrete Roofing tiles have been marketed in well developed urban markets of Chandigarh and Goa by high profile entrepreneurs. They have demonstrated the power of advertising by capitilising on their existing brands. The buyer is directly influenced by the offer of a total roofing solution; tiles, installation, water proofing and finishing. The market size may initially appear to be limited; the profit margins are huge.
Another approach that has been successfully deployed involves directing of marketing efforts to emergency situations arising out of cyclones, earthquakes and environmental regulations. Prefabricated concrete elements and lightweight steel girders were used effectively in the aftermath of Latur and Tehri disasters. Production and use of building elements on a large scale helped in accelerating acceptability among consumers. Naturally, such an approach is being followed for promoting flyash bricks and ferrocement roofing channels in cyclone shattered Orissa where the demand is astronomical and supply of natural materials limited.
The lesson for effective "Promotion" is to achieve small successes and avoid large failures. Diverse market segments and user groups need a diversity of market promotion approaches. Market development to create "Pull" needs large financial outlays but the payoffs are large. Existing production and marketing companies offer the opportunity to support existing and known brands. However, such an approach continues to overlook the large rural market .
Promotion in less developed markets needs sustained support for "Push". It arises from the fact that habits do not change as fast as technologies do. Finance for small scale entrepreneurs can accelerate market expansion. Returns on investment are very steady and competition unavoidable. Multiplication is achieved through consolidation and growth of entrepreneurs. The payoffs are huge in terms of affordable shelter. Such experiences abound in Bihar, Uttar Pradesh and Andhra Pradesh. A major problem is lack of information and customer awareness. Pushing for promotion with customer ignorance is a dangerous recipe for managing change towards sustainability. It isn’t sustainable.
Will somebody invest in demand creation, customer awareness and push for promotion? The lead article on Market Creation Approach to Development provides some clues. q
