Swisscontact & ORG-MARG Quest, Bangladesh 2001

Description
Swisscontact contracted an assessment of the demand for BDS in 7 urban areas outside Dhaka and Chittagong to understand consumption patterns, enable providers to design effective services for the emerging growth centers, and encourage new players to enter the untapped markets. The study focused on essential, promotional, advisory, and training services. Dhaka, with its well developed market for BDS, was used as a control.

Focus group discussions (FGDs) helped researchers determine which urban areas to assess. The study was carried out in two rounds, each having two phases: an in-depth quantitative interview with SEs in the manufacturing, trading, and service sectors and a qualitative study of services. Additional FGDs helped clarify initial round results and facilitate second round activities.


Methods for info gathering
SE surveys, In-depth interviews, Focus Group Discussions, Quantitative

Summary of results
· The potential market for BDS is much larger than the existing market with overall awareness of BDS relatively high in all of the targeted areas. The manufacturing sector dominates the market for BDS.

· Entrepreneurs are generally reluctant to try BDS, though those in new markets sample low-end services more often than those in the Dhaka control group.

· Key, low-end services (accounting, tax and financial advice, communications, advertising), legal services, and trade fairs are in demand and are purchased repeatedly across all sectors. They account for 90% of the BDS market.

· Niche marketing of high-end services (production advice and training, technical training, management training/ advice) might result in more business.

· BDS markets in the target areas display a positive potential even without external stimulation.

· Reasons for purchasing BDS include: lack of in-house capacity, growth of business, legal requirements. SEs also take advantage of free services.

· Reasons for not purchasing services: not required, do not have problems in that area, too expensive.

· SEs choose suppliers based on: recommendations, known competence, reputation, willing to tailor services, is a relative/ friend, is least expensive.

· Sources of information about suppliers: friend/ colleague, business institute/ associate, newsletter/ leaflet, newspaper.




Associated Activities and Documents
Market Assessment
»	Assessing Supply of and Demand for Quality Management Services in Bangladesh, Katalyst, 2004
»	The Accounting, Financial Advisory, and Taxation Services Market in Bangladesh, Katalyst, 2004
Programme Design
»	Katalyst in Bangladesh, by Frank Matsaert, 2003
Implementation
»	Swisscontact Bangladesh - BDS Seminar presentation, 2002
Synthesis Documents
»	The Annual BDS Seminar, September 2001