How Sri Lankan Social Enterprises Can Differentiate Themselves for Export Success - 3 Tips

This article appears on the 'Sri Lanka Exporter Magazine' April -June 2019 edition (Pages 94-95) published by the National Chamber of Exporters in Sri Lanka

Over the last decade in particular, social enterprises has been a much talked about topic with significant interest and traction across the globe. From a conceptual standpoint one can argue that social enterprises has been in existence for decades, and hence it is not a recent phenomenon. The evolving nature of the concept has resulted in much debate on the universal definition of a social enterprise and what should be its objectives. At a broad level a social enterprise can be defined as an organization that solves a social or environmental problem through a market-driven entrepreneurial approach. Social enterprises are businesses that are changing the world for the better, where creating a positive social change takes priority over making profits. In Sri Lanka as well there has been an encouraging trend with social enterprises trying to solve a wide range of problems such as reduction of plastic, healthy food (organic), clean drinking water, sanitation, empowering the differently abled, apparel designing using up-cycled material and innovative education platforms for rural youth to name a few. As a result these social enterprises have created micro entrepreneurship opportunities, improved skills and competencies at a community level, created jobs and uplifted the living standards from an overall perspective.  

It is a well-known fact that social enterprises are focused on creating an impact to the society and environment. However, this does not mean that social enterprises can ignore some of the key principles and commercial aspects of running a business. To put it simply, one can argue that social enterprises also need to 'differentiate itself from competitors' if they are to be successful. In today's dynamic business environment where the customer is often spoil for choice, social enterprises need to be more agile, different and be innovative if they are to stay ahead of the game. The competitors (both local and global) will always want to be a step ahead, play catch up and look to grab market share whenever possible. A social enterprise therefore, needs to understand 'how good they were yesterday will have no relevance on their success today or for that matter tomorrow'. The effective use of marketing as a strategy can help social enterprises be 'different'. For e.g. a social enterprise which focuses on organic cold pressed juices now needs to compete in the overall beverage segment and not only the healthy beverage segment. Hence, they need to use marketing to differentiate themselves and create a top of the mind position within their customer segment.

It is clear that due to the size of the domestic market, economic environment and consumer dynamics, as a nation we need to encourage and incentivize more exports if we are to grow. At the same time competing at an international level is also not easy with significant challenges and barriers that exist. Some of these challenges are unique to a country or region (for example ASEAN or EU) whilst the others are somewhat universal in nature. The importance of understanding in depth the culture, norms and business practices of an international market is critical if an organization wants to achieve success when exporting. This remains relevant to social enterprises as well. However, there is a school of thought that social enterprises are at an advantage than traditional enterprises when exporting because the social and environmental problems that require solutions are very similar across the globe. For example finding solutions for poverty alleviation, climate change, reduction in plastic etc. are common to most countries. Sri Lankan social enterprises who want to explore international markets need identify, plan and execute strategies to differentiate its offering in the highly competitive global environment to survive or succeed. Basically having a good product and meeting the local cultural norms alone will not be sufficient. Therefore, exemplified below are 3 tips that Sri Lankan social enterprises should place emphasis on when creating an effective marketing strategy in their pursuit to be 'different' and going global (via exports).

1.     Story 

Every social enterprise has a story, background (passion/drive) or something they want to achieve which creates an impact. The prospective customers also need to understand this story and relate to it. It is only then that they will consider purchasing the product or service. There is nothing more criminal that having a great story and not been able to communicate it to the target audience. Hence, whichever marketing medium used i.e. traditional or digital you need to ensure that the story about the product and company is exemplified well. 'Dryzy' which is a social enterprise in Sri Lanka focuses on healthy dried food which includes Breadfruit, Jack fruit, Bitter Gourd etc. Dryzy provides the convenience of not having to cut, chop or clean the food which is usually a very time consuming activity. The products of the company have a strong international appeal due to the health benefits and the convenience associated with the product. The story they portrait is simple i.e. eat healthy- stay healthy. This is visible in their overall go to market strategy. The health conscious customer segment at a global level can easily relate to the story of Dryzy and therefore, they have a greater chance of buying the product which will result in export success for the enterprise.  

2.     Get customers involved with the product  

Customers feel good and connected to a social enterprise when they are involved in some (or all the parts) of the process/experience. The 'Good Market' which is a social enterprise in Sri Lanka is a classic example of how they get people involved in the overall organic concept and the notion of 'buy social, buy local'. The weekend market creates a platform for like-minded people to try out new products (of social enterprises) and also spend the weekend with friends and family in an atmosphere that makes them feel good and that they are doing the 'right' thing. The ‘Good Market’ certified products have a unique opportunity to go global due to the concept, process they follow (to be a certified company) and product uniqueness. These products can be sold to international markets either through a physical or virtual market place. A channel strategy based on a partner model can be used for physical stores, pop up stores or weekend markets. Similarly the online sales can be done through a local fulfillment partner in that particular country. 

3.     Alignment with customer needs & IMPACT

The success of any enterprise depends on the prospective target market or customers of the product or service. In other words the product or service has to appeal to the customers. The key therefore, is to develop a quality product or service that is not only a great idea but something that the customers would appreciate and want to buy on a regular basis. As a social enterprise if your product or service is aligned with the customer needs or solves one (or more) of their problems then you have a greater chance of success. The marketing strategy needs to highlight this fact clearly in an articulate manner. Customers also prefer to buy a product or service from a social enterprise where they are clear about the 'Impact' created. 'Sena Eco' is a social enterprise in Sri Lanka that creates medicinal footwear based on traditional Ayurveda concepts. They use re-cycled material to produce the footwear which are both environmentally friendly and fashionably 'chic' at the same time. The impact created by ‘Sena Eco’ is clear to everyone. Through the various social media marketing (which is their primary tool used for marketing) strategies used by the company, customers are made aware and re-iterated on the positive impact of the products they sell. Hence, customers are inclined to purchase the products due to this fact irrespective of the geography. The product range of ‘Sena Eco’ has great export potential due its uniqueness and the prospective market already knowing the ancient health benefits of Ayurveda. The use of re-cycled material makes the offering further attractive as well.

The important point for any social enterprise to keep in mind is that 'differentiation' is the key to be successful in the competitive global environment. Marketing is no doubt a strategic tool that any enterprise can use to highlight why they are different to others. Taking note of the above 3 tips will help Sri Lankan social enterprises better craft the marketing strategy in their pursuit of success when exporting and trying to conquer international markets.