Creating effective new value propositions for ethical companies
Solidaridad Success Story
Summary
Solidaridad is an international network organisation with partners all over the world. Their goal is to promote equitable trade especially in the arena of common commodities such as coffee, cotton, tea, fruit and vegetables and more. To do this they work on both sides of the ethical supply chain both with smallholder farmers and with some of the largest multinationals in the world promoting fairer partnerships.
Supported significantly by the Dutch government they were keen to explore how to adapt their business model and create clearer value propositions for the commercial companies they work with. With these they hoped to secure more support from these businesses and so reduce dependence on this institutional funding.
=mc consulting was their training partner in this journey.
If you’re interested in our free guide to using the Business Model Canvas and Value Proposition development click here.
The Challenge
Solidaridad works with smallholder farmers and others to improve their economic and social situation. They also work with key actors in the food, garment, and mining supply chains, promoting production that respects people and the planet. This means they need to engage with businesses, especially big business.
In the early 1990s, the Fairtrade approach gained a high profile, especially in Europe, but ended up creating only a niche market, insufficiently supported by consumer preferences. People said they wanted to buy fairly traded goods but often opted to support other cheaper unfairly traded brands.
This changed in the late 1990s and early 2000s, when Corporate Social Responsibility (CSR) became a driver for strategic choices in companies, Solidaridad responded with new certification strategies, not targeting consumer choices but aiming for responsible corporate behaviour instead. These CSR and certification initiatives led to gradual change. But businesses needed to see real bottom line benefits to fully embrace ethical supply chain approaches.
In 2020 Solidaridad was keen to develop new key value propositions that would actually engage corporations — specifically to see the direct commercial value in engaging with Solidaridad and changing their practices. The agency already had some successes in this area but were keen to develop more. They approached the =mc team to run a development programme including pre-consultancy research followed by training which would help their teams to develop such value propositions and embed them in their business model.
How we helped
=mc consulting developed a training programme to be run in Holland involving staff members from across Solidaridad various programmes and business areas.. In preparation =mc undertook a literature and competitor review to establish how Solidaridad‘s value propositions compared to other agencies like Fairtrade Foundation and Rainforest Alliance.
The programme itself explored:
- What is a value proposition?
- How to identify and target decisions makers and influencers
- How Solidaridad could improve its current value propositions
- How Solidaridad could develop new value propositions
- How to the price and market these value propositions
- How to build B2B customer journeys
The model we used was an adapted version of the Strategyzer Business Model Canvas we have developed.
The Impact
For participants the training programme offered a very high level of challenge and a powerfully different way of thinking about the agency’s relationship with businesses. Working in small groups the team developed new propositions for major companies like Heineken and C&A.
We also developed a new customer journey to take the commercial customers from acquisition to partnership.
Who else have we helped?
=mc consulting has worked with a number of agencies on new business models and value propositions. You might want to talk to us about the International Step by Step Association, British Red Cross, UNICEF International, MSF/DWB USA, International Diabetes Federation, Frontline AIDS, Edinburgh Zoo, Bristol Museums and Galleries, Soi Dog, and South Downs National Park Authority.
Free guide
If you’d like to know more about the business model canvas and value proposition development you might be interested in this helpful step-by-step guide to using these frameworks here.
Next Steps?
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Clare Segal, Director
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