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Market Expansion

Camarines Sur

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Market Research Tools

1. Secondary data gathering

2. Individual Interviews with:a. Microfinance clients

b. National Disaster Coordinating Council (NDCC) officials

c. Barangay Officials

3. Competition Analysis Matrix

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Secondary Data Gathering

• Population per barangay and municipality based on the National Statistics Office’s census

• Demographics, geography and major industries of the province

• List of registered businesses in the city or municipality

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Interview with MF Clients

• Interview questions– What are the financial services being offered

in the MFI that you like/dislike?– What made you stay with/leave the MFI?

• Includes both current and former members of MFIs

• Information required in the competition analysis matrix was also used as interview questions

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Interview with Barangay Officials

• Interview Questions– Are there microfinance institutions present in the

area? What MFIs are present and where are they based? Is the barangay hall used for the MFIs’ center meetings?

– Have there been any complaints from any of the MFIs? If so, how often does this happen?

– If we are to arrange an orientation for all the female residents, will you be willing to support us?

• Interviews lasted for a maximum of 30 minutes

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Interview with NDCC

• Describe the calamities that have happened.

• Which barangays are most affected after a calamity?

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Competition Analysis Matrix

• What terms and characteristics of the competitors’ products, that seem to be successful, are appropriate for our market?

• What are the systems being used by the competitors to deliver the product?

• What is the product’s position in the market? What market segment is the product aimed at?

• How is the product marketed to the public and perceived by the public?

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Competition Analysis Matrix

• The objective of this research tool is to identify the financial services (savings, loans, and insurance) being offered by the MFIs in Camarines Sur.

• Sources of information:– Clients (current and dropouts)– MFI Staff

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Area Selection

• The research team selected the following municipalities to be included in the survey: Libmanan, Cabusao, Sipocot, Pamplona, Ragay, Caramoan, Lupi, Presentacion, Calabanga, Siruma, Tinambac and Garchitorena

• The research team visited each accessible (reached within an hour by transportation; no security threats) barangay

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Barangays VisitedLibmanan Cabusao Sipocot Pamplona Ragay Caramoan

Total Baranggays 75 9 46 17 38 49Visited Baranggays 32 9 26 16 20 28Island Baranggays 0 0 0 0 0 0Security Problem 0 0 0 0 0 0Potential Barangays 75 9 46 17 38 49Visit Rate 43% 100% 57% 94% 53% 57%

Average MFI/Bgy 328% 333% 171% 350% 220% 111%

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Barangays VisitedLupi Presentacion Calabanga Siruma Tinambac Garchitorena

Total Baranggays 38 18 48 23 44 23Visited Baranggays 25 17 40 1 36 7Island Baranggays 0 0 0 0 0 0Security Problem 0 0 0 0 0 12Potential Barangays 38 18 48 23 44 11Visit Rate 66% 94% 83% 4% 82% 64%

Average MFI/Bgy 150% 183% 408% 300% 245% 100%

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Barangays Visited

• 62% of the total barangays were visited

• The average MFIs existing in a baranggay is 2.42

TotalTotal Baranggays 428Visited Baranggays 257Island Baranggays 0Security Problem 12Potential Barangays 416Visit Rate 62%

Average MFI/Bgy 2.416409

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Competitor Penetration RateLibmanan Cabusao Sipocot Pamplona Ragay Caramoan

CARD 84% 100% 88% 100% 95% 0%Informal 31% 56% 12% 44% 5% 11%CSEA-K 0% 0% 0% 13% 30% 7%Producer's Bank 31% 11% 0% 19% 0% 0%KMBI 50% 44% 8% 50% 5% 0%ASA 56% 11% 38% 13% 0% 0%SEDP 47% 67% 0% 13% 0% 0%TSPI 0% 0% 0% 13% 0% 0%CCMMPC 0% 0% 0% 0% 0% 0%CB Libmanan 16% 44% 0% 6% 0% 0%SEDECO 0% 0% 0% 25% 35% 0%

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Competitor Penetration Rate

Lupi Presentacion Calabanga Siruma Tinambac GarchitorenaCARD 48% 6% 93% 0% 81% 0%Informal 36% 47% 40% 100% 22% 29%CSEA-K 16% 0% 8% 100% 6% 0%Producer's Bank 0% 24% 68% 0% 31% 0%KMBI 0% 0% 10% 0% 0% 0%ASA 16% 0% 0% 0% 0% 0%SEDP 0% 0% 0% 0% 0% 0%TSPI 0% 0% 68% 0% 44% 0%CCMMPC 0% 0% 0% 100% 0% 0%CB Libmanan 4% 0% 0% 0% 0% 0%SEDECO 0% 0% 10% 0% 0% 0%

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Competitor Penetration RateLibmanan Cabusao Sipocot Pamplona Ragay Caramoan

RB Camalig 0% 0% 0% 0% 0% 0%Madrigal Fdn. 0% 0% 0% 6% 0% 0%SIDC 0% 0% 0% 31% 0% 0%Penafrancia 0% 0% 0% 0% 0% 0%Protata 0% 0% 0% 0% 20% 0%RB Goa 0% 0% 0% 0% 0% 0%RB Ragay 0% 0% 0% 0% 25% 0%Archdiocese 0% 0% 0% 6% 0% 0%Bangko Milaor 0% 0% 0% 6% 0% 0%CB Camsur 3% 0% 0% 0% 0% 4%CB Caramoan 0% 0% 0% 0% 0% 14%CDCO 0% 0% 0% 6% 0% 0%Farmers' Coop. 0% 0% 0% 0% 0% 0%Intertrade 0% 0% 0% 0% 0% 0%Kabalikat 0% 0% 0% 0% 0% 0%Kalahi-CIDSS 0% 0% 0% 0% 0% 0%LBP 0% 0% 0% 0% 0% 0%LGU 0% 0% 0% 0% 0% 0%N. Luzon Fdn. 0% 0% 0% 0% 0% 0%Primover 0% 0% 0% 0% 0% 0%RB Pamplona 0% 0% 4% 0% 5% 0%RIC 0% 0% 0% 0% 0% 0%Torres 0% 0% 0% 0% 0% 0%

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Competitor Penetration RateLupi Presentacion Calabanga Siruma Tinambac Garchitorena

RB Camalig 0% 0% 30% 0% 0% 0%Madrigal Fdn. 4% 0% 23% 0% 0% 0%SIDC 0% 0% 0% 0% 0% 0%Penafrancia 0% 0% 23% 0% 0% 0%Protata 0% 0% 0% 0% 0% 0%RB Goa 0% 18% 8% 0% 0% 0%RB Ragay 0% 0% 0% 0% 0% 0%Archdiocese 0% 0% 0% 0% 0% 0%Bangko Milaor 0% 0% 0% 0% 0% 0%CB Camsur 0% 0% 0% 0% 0% 0%CB Caramoan 0% 0% 0% 0% 0% 0%CDCO 4% 0% 0% 0% 0% 0%Farmers' Coop. 0% 0% 5% 0% 3% 0%Intertrade 0% 0% 13% 0% 0% 0%Kabalikat 0% 18% 0% 0% 0% 0%Kalahi-CIDSS 0% 0% 0% 0% 0% 14%LBP 4% 6% 3% 0% 0% 0%LGU 8% 0% 0% 0% 6% 0%N. Luzon Fdn. 0% 0% 0% 0% 0% 14%Primover 0% 0% 10% 0% 0% 0%RB Pamplona 0% 0% 0% 0% 0% 0%RIC 0% 0% 0% 0% 14% 0%Torres 0% 12% 0% 0% 0% 0%

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Competitor Penetration RateAverage

CARD 58%Informal 36%CSEA-K 15%Producer's Bank 15%KMBI 14%ASA 11%SEDP 11%TSPI 10%CCMMPC 8%CB Libmanan 6%SEDECO 6%

• CARD is the most present MFI in the areas visited.

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Competitor Penetration Rate

• Other MFIs with low penetration rateo (3%) RB Camalig, Madrigal Foundation, SIDCo (2%) Penafrancia, Protata, RB Goa, RB

Ragayo (1%) Archdiocese, Bangko Milaor, CB

Camsur, CB Caramoan, CDCO, Farmer’s Coop, Intertrade, Kabalikat, Kalahi-CIDSS, LBP, LGU, North Luzon Foundation, Primover, RB Pamplona, RIC, Torres

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Barangay Dynamics

Libmanan Cabusao Sipocot Pamplona Ragay CaramoanHall used 6% 11% 15% 50% 10% 4%Support 97% 100% 88% 94% 100% 96%

Lupi Presentacion Calabanga Siruma Tinambac GarchitorenaHall used 8% 12% 33% 0% 11% 0%Support 96% 88% 95% 100% 92% 100%

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Barangay Dynamics

TotalHall used 13%Support 96%

• Not all barangay halls are used for center meetings

• Barangay officials are generally supportive of microfinance activities

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DelinquencyLibmanan Cabusao Sipocot Pamplona Ragay Caramoan

DelinquencyPresence 31% 44% 15% 44% 30% 0%Low 31% 44% 15% 31% 30% 0%Medium 0% 0% 0% 13% 0% 0%High 0% 0% 0% 0% 0% 0%

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DelinquencyLupi Presentacion Calabanga Siruma Tinambac Garchitorena

DelinquencyPresence 16% 18% 43% 100% 19% 14%Low 16% 6% 23% 0% 17% 0%Medium 0% 12% 15% 100% 3% 14%High 0% 0% 5% 0% 0% 0%

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Delinquency

• All barangays, except for Caramoan, have delinquency incidences but most have low frequency

• Five barangays (Pamplona, Presentacion, Calabanga, Siruma, and Tinambac) have medium frequency

AverageDelinquencyPresence 31%Low 18%Medium 13%High 0%

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Competition Analysis Matrix

• ARDCI’s financial products are superior to all of the competitors except with CARD (at par)

• Main strengths of ARDCI’s financial products:– Low premium but with high insurance benefit– Fast insurance claims processing– Accelerated loan payment– Quick 2-week loan processing for new clients– Higher loan ceiling for first time borrowers– Savings could be withdrawn anytime

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Competition Analysis Matrix

• Main weaknesses of ARDCI’s financial products:– 1 year group liability– Lower increment in succeeding loans– Limited non-financial benefits (e.g scholarship)– No insurance against calamities