New Product Launch
New Product Development for Microfinance: Design, Testing, and Launch
Technical Note Number 2
New Product Development for Microfinance: Design, Testing, and Launch
by
Monica Brand ACCION International
October 1998
This work was supported by the U.S. Agency for International Development, Global Bureau, Economic Growth Section, Microenterprise Development Office, through funding to the Microenterprise Best Practices (MBP) Project, contract number PCE-C-00-96-90004-00.
i
ACKNOWLEDGMENTS
This research was supervised by Maria Otero, Executive Vice President of ACCION International and a research leader on the evolution of credit methodologies for the Microenterprise Best Practices project. The author would like to acknowledge the invaluable insight and guidance provided by her colleagues at ACCION—Carlos Castello, Sonia Saltzman, Cesar Lopez, and Steve Gross—in creating and editing this document. In addition, special and sincere thanks go to Craig Churchill (Calmeadow), Beth Rhyne and Heather Clark (USAID Office of Microenterprise Development), Robin Bell (Development Alternatives, Inc.), and all the banks, CDFIs, and MFIs (listed in Annex A) that were so generous in sharing their experience and time. In spite of these valuable contributions, this work is the responsibility of the author and, as such, any omissions or errors are strictly her own.
ii
iii
PREFACE
This technical note, the second of two on new product development,1 describes the process microfinance institutions (MFIs) must undertake to expand their product lines. The note picks up after the MFI has evaluated the feasibility of introducing a new product and is ready to proceed with the development process, which includes design, testing, and product launch. Specifically, this note illustrates how MFIs:
#
Gather the institutional resources and commitment necessary to successfully design, test, and launch the product; Undertake preliminary market research to segment
Technical Note Number 2
New Product Development for Microfinance: Design, Testing, and Launch
by
Monica Brand ACCION International
October 1998
This work was supported by the U.S. Agency for International Development, Global Bureau, Economic Growth Section, Microenterprise Development Office, through funding to the Microenterprise Best Practices (MBP) Project, contract number PCE-C-00-96-90004-00.
i
ACKNOWLEDGMENTS
This research was supervised by Maria Otero, Executive Vice President of ACCION International and a research leader on the evolution of credit methodologies for the Microenterprise Best Practices project. The author would like to acknowledge the invaluable insight and guidance provided by her colleagues at ACCION—Carlos Castello, Sonia Saltzman, Cesar Lopez, and Steve Gross—in creating and editing this document. In addition, special and sincere thanks go to Craig Churchill (Calmeadow), Beth Rhyne and Heather Clark (USAID Office of Microenterprise Development), Robin Bell (Development Alternatives, Inc.), and all the banks, CDFIs, and MFIs (listed in Annex A) that were so generous in sharing their experience and time. In spite of these valuable contributions, this work is the responsibility of the author and, as such, any omissions or errors are strictly her own.
ii
iii
PREFACE
This technical note, the second of two on new product development,1 describes the process microfinance institutions (MFIs) must undertake to expand their product lines. The note picks up after the MFI has evaluated the feasibility of introducing a new product and is ready to proceed with the development process, which includes design, testing, and product launch. Specifically, this note illustrates how MFIs:
#
Gather the institutional resources and commitment necessary to successfully design, test, and launch the product; Undertake preliminary market research to segment