SMILE FOUNDATION CASE STUDY

TEAM NAME: SMILING BUDDHAS

COLLEGE NAME: NITIE, Mumbai
TEAM MEMBER DETAILS:
1. Siddhartha Srivastava
 Email Id : sidcs3@gmail.com

 Phone No.: 09975586821

2. Sumantra Das
 Email Id : das.sumantra@gmail.com

 Phone No.: 09619414485

INTRODUCTION: In the given case we have to formulate a strategy for Smile
Foundation to help it get over the various road-blocks and achieve the given case objectives
described below -

CASE OBJECTIVES:

SOLUTION PROPOSED:

In view of the given objectives and the various road-blocks ahead we propose to implement
the Civic Driven Change Model in a customised and phase-driven fashion to tackle all the
problems.

Civic Driven Change (CDC) Model: (The Concept as used in the European Nations)
Civic Driven Change refers to change processes that are directly initiated, lead and owned by
people themselves. The focal point of Civic Driven Change is not ‘development’, but change
in society at large. The challenge is not to conceive programmes and projects and then try to
mobilise local people to participate, but to find ways to assist people as they try to achieve
their own change. Complex societies develop on the basis of asymmetric power relations.
The role of Civic Driven Change would be to alter these asymmetries in a pro-poor direction.
Major ACTIVITIES undertaken under the aegis of Civic Driven Change Model:

 Developing a discourse and conceptual framework of Civic driven Change

 Conduct explorative research in the field of Civic Driven Change
 Facilitating a knowledge network on Civic driven Change
 Information dissemination and research findings

We propose to model the Civic Driven Change in a customised way in India, as given with its
major components below –

The Proposed Basic Functions of the Civic Driven Change Model in India

The Centre strives to propagate the thinking on Civic Driven Change by scholars,
researchers, development practitioners, and activists, and to aid them in their efforts to bring
about societal change.
The six major functions of CDC as proposed are elaborated below –

(i) SOCIAL VENTURE PHILANTHROPY

The term ‘venture philanthropy’ was first coined in 1969 by John D. Rockefeller- III.
Social Venture Philanthropy uses many of the tools of venture funding to promote start-
up, growth and risk-taking social ventures. It plays an important role in diversifying
capital markets for non-profits and social purpose organisations. The field is small but
maturing.

VIABILITY of SVPs: In the United States of America of the total charitable giving’s a
major chunk comes from the individuals (as shown in the figure below). This is though not
true for India where only around 10% comes from individuals.
Basically the need is to tap our
huge army of professionals, vast
middle class and the privileged
class of the society which holds
on to the major pie of the
national wealth.
We as a society need to leverage
upon the skewed distribution of
wealth by encouraging people to
be more philanthropic in their
outlook.
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MOTIVE behind the SVP Vehicle: The basic purpose behind the SVP vehicle is to
facilitate the interaction between the Venture Philanthropists and entrepreneurs who are in
need of resources.
IMPLEMENTATION of SVP : Smile Foundation uses their NGO network to know about
the people who need help and then after due deliberations the selected few are sent to the
Venture Philanthropists who finally select the plans in which they want to invest after
ensuring factors like financial viability etc.

(ii)
How The SVP Vehicle Works

CIVIL SOCIAL GROUPS / SMILE FOUNDATION CHARTERS

Civil Social Groups (CSGs) are voluntary civic and social organizations and institutions that
form the basis of a functioning society as opposed to the force-backed structures of a state
and commercial institutions of the market. CSGs refer to the arena of un-coerced collective
actions around shared interests, purposes and values.

We propose to form Smile foundation Charters across urban centres of the country, on
similar lines of CSGs, using the current membership strength and the expected one to be
generated through our scale-up operations. This would help us to leverage the advantages
intrinsic to CSG and at the same time give brand exposure to the foundation helping it in
return to attract more donations and memberships.
MOTIVE behind forming Smile
Foundation Charters: As
explained above Charters
would provide a platform to the
locals of an area to come together
and organize themselves to solve
the problems prevalent in their
areas through self-initiation and
hence reduce the dependency on
government and other social
institutions.
Vertical hierarchy of
Smile foundation Charter

IMPLEMENTATION of Charters: Bring together

people from different walks of life, leveraging upon
the current membership strength, residing in a
locality with the same interests, purpose and values
vis-a-vis social problems. These charters once
formed would be the single point of contact between
the foundation and the masses. They would be self-
governed and grow organically as the membership
increases. Local Charters focus on all civic
problems of their respective areas.

Growth Projection for Smile Foundation Charters

(iii) HIGH NETWORTH INDIVIDUALS AND CORPORATES

In a country like India where we have a skewed distribution of

wealth and a major chunk is controlled by the elite few, it is
imperative that we try to engage these High Net-worth Individuals (
HNIs) and Corporates in the Civic Driven Change Model
MOTIVE in engaging the HNIs and
Corporates: To leverage upon the
philanthropist intent of the HNIs and Big
Corporates for generating funds for the
Foundation.

Skewness of the Income Distribution in India

IMPLEMENTATION of Engagement: We plan to form a Core Group of around 50

members (each coming from different walks of life) drawing upon our membership base.
This group would be responsible for pitching to the HNIs and the Corporates and convincing
them of our organisational purpose, effectiveness and viability.

Now in order to ensure Continuous Engagement we recommend redesigning and

restructuring the website of the Smile Foundation to incorporate the following changes
(iv) MAHAMANDI – A One Day Sales And Marketing Event
MahaMandi is a one day Marketing/Sales event where our volunteers (Smile Foundation
members & students from different colleges) go out on the streets of their respective cities
and sell products to the locals. The products are manufactured by the small rural enterprises
under the supervision of NGOs. This event draws inspiration from a similar event organized
by NITIE, Mumbai, which has been applauded as the most innovative event of its kind by
ISB, Hyderabad.

S
NGO Charter T
U
D
NGO Charter E
Smile N Masses
Foundation T
NGO Charter
B
O
D
NGO Charter
Y

Rural Groups

Flow of activities to organize the event

OPERATIONAL details of the event: There would be three entities involved with
respective responsibilities
The operational cost incurred would be included in the price of the products. The event would
be organized once in six months.

Key Targets:

 Sell products to people and give them pamphlets which educate the customers about
the relevance, scale and easy accessibility of the philanthropic concept and associated
activities.
 The pamphlet includes details about the process to volunteer and “how to approach”
for more information on the same.
 Scale of the event would be major cities and would be covered by media to give us
enough mileage to conceive the idea in people’s mind.
 Apart from media, the customers and people interacted with during the event would
be our indirect publicity channel.

Revenue Model for MahaMandi:

Value of Number of cities Number of Total sales

inventory sale covered teams per city Revenue
per team of two
members
Current 2000 INR 1 300 6,00,000 INR
Mahamandi
Figures of 2010
as conducted by
NITIE
Proposed 2000 INR 4 500 40,00,000 INR
structure of
MahaMandi
under Smile
Foundation

Assuming that the Mahamandi would be conducted at Delhi, Mumbai, Chennai and Kolkata
and that the number of teams per city would be 500 we get that the total sales revenue for our
proposed MahaMandi comes out to be approx. 40 lacs INR for a 1 day pan-India event.

(v) FORMATION OF CO-OPERATIVES

Cooperatives are centres in urban and semi-urban locations serving as Retail Stores selling
products manufactured by Rural Manufacturers.
OBJECTIVES of a Cooperative:

 It is used to provide employment to rural and urban unemployed youth

 Co-operatives can be used for a separate revenue generation stream
 These centres are Charter offices cum retail stores, where the charters operate from
and also form shops to sell the products.
 The store for rural products is expected to operate the whole year because of the
product being of daily use, low cost and non-perishable in nature.

Business Environment of the Co-operative

Stakeholders

Smile Foundation Charters

and Urban Unemployed Cooperatives PROFITS
1. The proceeds are
awarded to the rural
groups.
NGO 2. The profits earned
by the rural groups
 Oversee
manufacturing by the SUPPLY are utilized in rural
welfare.
rural groups
3. The operational
 Manage supply chain CHAIN cost of all the
 Drive Technical stakeholders are
know-how transfer deducted at their
from the corporate
ends
network to the rural

Rural Manufacturers

FINANCIAL MODELLING of the Co-operative:

Products Retailed - Biscuits, Pickles, Spices, Dry Snacks etc.

Assumptions:

 Total Sale of 500 SKUs per Co-operative store per day

 Average profit margin per SKU is 4 INR
 We have co-operative stores attached to each of our Charter Offices
 Number of Charter Offices per city is 5
Calculations:

Total Revenue per month per store = 500*4*30 = 60,000 INR

Now as per the Growth Projection of Charters already given we can deduce that by 2012 our
Annual Revenue Turnover would be = 60,000 * (number of Charters all over India) * (no. Of
months) = 1,44,00,000

So we get the Annual Revenue Turnover for the year 2012 as 1.44 Cr INR

REVENUE PROJECTIONS for Co-Operative:

Year Revenue
Projection (in
INR Cr)
2010 1.44
2020 7.20
2030 18.0

CAGR = 13.4%

20
18
16
14
12
10
8
6
4
2
0
2012 2020 2030
(vi) RURAL INITIATIVES
Rural Initiatives are the programs run by the NGOs for development and upliftment of the
poor, the primary cause. Smile foundation conceptualizes the plans and programs, involving
the SVP, HNI/Corporate, Charters and individual volunteers to contribute through the CSRs
and philanthropically. This provides them with a trusted and easily accessible channel.

These programs have two kinds of targets and hence two kinds of initiatives:

HNI/Corporat SVP Charters

 CSR  Rural Biz  Feedback and

contributions Plans mentoring
 Volunteers  Employment  Educational and skill
under CSR opportunities development progs

Smile
SmileFoundation
Foundation

NGO NGO NGO NGO

Self Help Groups and Rural groups

 Interaction Framework for Smile Foundation in the Rural Sector
Cash Inflows Cash

Urban
Civil Social Groups

Charte
SVP
S
M Semi - Urban
I Mandi
L
E
Project Shakti etc
NGO
Rural
Rural welfare and
upliftment

HNI/Corporate/Cooperative/Donor Population Events/Initiatives

WORKING ENVIRONMENT OF THE SMILE FOUNDATION AFTER THE

PROPOSED CHANGES ARE IMPLEMENTED

As seen in the above diagram the Smile Foundation is acting as an interface in the whole
working environment hence achieving our objective of making it a complementary entity
rather than an initiating one. Also the smooth functioning and cash flows prove the
sensitising of the people towards the social concerns.

OTHER RECOMMENDED METHODS - Sensitising People & Spreading Awareness

S.No Method Explanation Target Audience

1

5
Viral Marketing

Electronic and Print

media
Street Plays

Word of Mouth
Marketing
Interactive Website
Spread the word through social
networking sites and e-mails etc
Limited advertising in Electronic
and Print media
Conducted by the local Charters
and NGOs

The members pass on the message

to the people in their environment
Developing a website which is
interactive, informative and
facilitates online payments

Given Objectives Achieved Through the Civic Change Model and Its Six
Constituents:

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The net-savvy high
income group
Masses in general

Mainly the semi-

urban and rural
audience
Urban and semi-
urban
Urban and semi-
Urban
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