Marketing Strategies of

Kashf Foundation

Group Member: Zahid Hussain Abbasi

Mirza usama Bin shahid
Submitted to:

Sir Saeed Mujahid

ID:
ID:

FA14-ES-0035
FA14-ES-0014

Kashf History:
The idea of Kashf was gestated when our Founder and President
Roshaneh Zafar met Professor Muhammad Yunus of the Grameen
Bank in a chance meeting in 1993; thereafter ensued a
development dialogue between the two which led to the birth of
Kashf as an action research programme in 1996.
The initial two years were spent in understanding the market and
the needs of clients in peri-urban and urban settings. The
importance of standardized products, systems and policies, the
simplification of procedures and reporting requirements, along with
the significance of focusing on client satisfaction and developing
clear cut financial performance indicators was highlighted.
Kashf Foundation was the first specialized microfinance program in
Pakistan established for specifically target women from low income
communities, which has now transformed itself into the first wealth
management company for women from low income households. The
organization focuses on enhancing the role that women can play in
improving the economic status of their families by building their
entrepreneurship skills through access to business loans, improving
their financial management skills by delivering financial education
trainings and reducing family level contingencies by providing microinsurance services.

Vision:
Financial services for all in a poverty free and gender equitable
society.

Mission:
Serving all with dignity by providing quality and cost effective
microfinance services to low income households that alleviate
poverty and enable women to become active agents of social and
economic change, through building alliances, promoting linkages
and developing entrepreneurship

Products:
Kashf Foundation specializes in providing microcredit facilities to
bottom-of-the-pyramid households, targeting women in particular.
Microloans help home based businesses, mostly run by women,
meet their demand for credit, and enable the entrepreneurs grow
their business revenues and enhance their productivity thus
contributing towards the economic transformation of their
households. Kashf Foundation offers a suite of customized products
to help business-owners and entrepreneurs grow their businesses
and eventually own ventures which are profitable, sustainable, and
also generate employment for other women and families within their
communities.
Currently Kashf Foundation offers two specialized productive loans;
one for women entrepreneurs who wish to inject capital into a
running venture, and the other for those who wish to start up a new
business. A third product, the Kashf Aitebar Karza, is a renewable
credit line offered to clients who wish to re-build their businesses
and their relationship with Kashf, in case they have suffered a
business loss or faced an irremediable economic loss. A credit-for-life
insurance product is also available to clients to help protect them
against any financial distress which may occur after the death of the
client or their spouse.

1. Kashf Karobar Karza-Productive loan for existing

businesses
Kashfs flagship product, the Kashf Karobar Karza, is a productive
loan which may be obtained by any low-income entrepreneur,
especially women that own a running business.
The KKK is a customized loan; loan amounts are determined after
appraising the clients business, determining cash flows, and
assessing the clients ability to repay the loan. The maximum limit for
the Kashf Karobar Karza has been enhanced to Rs. 60,000, whereas
first-time clients can obtain loan amounts of up to Rs. 30,000. A
single loan cycle spans across an entire year, with clients repaying

the loan across twelve equal monthly installments. The Kashf

Karobar Karza provides a transparent and trustworthy line of credit
to the client while maintaining the dignity of the client and her
family by ensuring that the loan funds are used to maximize
economic and social gains to the family.

2. Kashf Ibtida-e-Karobar Karza-Productive loan for new

businesses
Kashf offers microcredit to women with no prior experience to help
them become economically self reliant.
Kashfs Business Development Officers help clients identify their
specific investment needs through pre-feasibility studies. These
investment plans help clients identify the needs of their business,
develop linkages with other buyers and sellers in the market, and
determine the specific cash-flow needs of their business. The
maximum limit for this loan is Rs. 30,000. One loan cycle spans
across 12 months, with clients repaying the loan across twelve equal
monthly installments. This product is specifically designed to help
mainstream women who have a specific skill set and wish to start a
new venture, but do not have access to a formal credit system.

3. Kashf Aitebar Karza-Renewable credit line for existing

clients
Kashf Foundation offers the Kashf Aitebar Karza as a renewable
credit line for clients so that they may expand and grow their
businesses in times of economic downturns, economic shocks and to
supplement their financial requirements.
Kashf Foundation understands that their clients have been adversely
impacted in the last few years following the economic downturn in
the country. Clients find it difficult to manage their household
expenditures and repay their loans at the same time. Keeping this in
mind, Kashf Foundation introduced the Kashf Aitebar Karza as a
renewable credit line for clients so that they may expand and grow
their businesses to meet their ever-increasing financial needs. This

product is available to Kashf clients that are in their second loan

cycle or above. The maximum limit for this loan is RS. 40,000 which
is repayable in twelve easy to pay back equal monthly installments.

4. Kashf Zindagi Bima (KZB) Life Insurance

Life insurance at minimal cost is available to all Kashf customers and
helps to mitigate the death risk faced by Kashfs clients.
Kashf Foundation acts as an agent for the insurance company to
provide this product to its clients. The insurance covers the amount
of Kashf outstanding loans at the time of death of the client and the
familys primary bread-earners plus Rs 5,000 in funeral benefits for
the family

5. Kashf Sehatmand Zindagi Bima - Micro Health Insurance

Low-income households face considerable costs when it comes to
health and medical emergencies, and such long-term costs are
usually not planned. In times of medical duress, a low-income family
is thus seen to suffer considerably, and in many cases a lack of
medical treatment results in the loss of a family member. The
Foundation hopes to mitigate this risk for its clients by introducing a
health insurance product which will provide coverage to the entire
family at a minimal cost. This product is currently being revised to
ensure maximum coverage to clients, increased panel hospitals to
ensure convenience, and a staggered premium collection system
which ensures that clients do not have to pay a hefty upfront cost for
the insurance.
Currently, the product is in pilot phase and is being tested in 18
branches. Since the start of the pilot in January 2014 Kashf has been
able to provide low-cost health insurance to 11,760 persons (5,873
females and 5,887 males), this includes the clients husbands and
children

6. Kashf School Sarmaya (Education Finance)

Over the past two decades there has been phenomenal growth in
the private education sector in Pakistan this growth is not just

limited to expensive schools catering to the rich but also low-cost

schools catering to the poor. A large number of low-income
households prefer to send their children to these private schools as
the quality of education is much better than their government
counterparts. That said research has shown that low-cost private
schools still have a long way to go in terms of the quality of
education provided, with access to finance/funding being the major
limiting constraint. Kashfs School Finance program aims to help lowcost private schools improve the quality of the education through
capital support, teacher training and curriculum development
support. Kashf works closely with the school management to assess
the needs of the school and also audits the quality of teaching and
curriculum. After a detailed assessment, the school owners and
Kashf staff undertake a consultative process to determine the most
important capital needs for the school this may include
infrastructure such as furniture, extra space, replacing depreciated
structures, etc, investments in working capital such as teachers
salaries, and improvements including painting walls and replacing
old computers. Kashf also provides capacity building support which
includes training/development of the owner/entrepreneur, teacher
trainings for the school staff, and curriculum
development/improvement support. Currently, Kashf is piloting this
program and plans to roll it out in the next 12-18 months.

Capacity Building of clients:

Kashfs client capacity building and financial literacy program is
premised on the fact that women play important social and
economic roles, the effectiveness of which is critical for the welfare
of households. Therefore, enabling women to become financially
literate and have an enhanced knowledge of managing/running
businesses will allow them to make better decisions for the
household. This in turn will increase the households income,
savings, reduce economic vulnerability and increase investments in
the households social welfare. Kashf offers a number of
opportunities to clients to improve financial management, these
include the following.
1. Basic Financial Literacy Training:
Basic Financial Literacy trainings are delivered by Kashfs Business
Development Officers (BDOs) to potential women clients and any

additional male family members where necessary. These trainings

are provided prior to loan disbursement in order to educate clients
on the basics of borrowing, debt management, savings, client rights,
and details of the financial agreement that they are undertaking with
KF. All new clients who have applied for a loan from Kashf Foundation
are eligible to receive BFL training at the time of loan disbursement.
Clients that have been a part of this program have reported that the
trainings have helped them improve their understanding of financial
issues such as proper utilization of loan, disadvantages of multiple
borrowing, etc and helped them use the credit more effectively.
2. Systematic Financial Education Training:

These training sessions are undertaken as module-based

workshops in four subject areas: Savings, Budgeting, Debt
Management and Financial Transactions. These are conducted
within the community with groups of 10-15 clients, while all
clients who successfully complete the 3 days are certified. Clients
who have attended these trainings have reported an increase in
their business revenue, increase in savings, and also report that
their businesses and household decisions have become more
effective as a result of these trainings.
3. Awareness Raising and Capacity Building through
Mainstream media:
Kashf Foundation has always remained on the cutting edge of
innovation in products, processes, and delivery mechanisms. Kashf
Foundation is the first MFI in Pakistan to use mainstream media to
present the case for female economic development as a route to
economic self-sufficiency. Kashf Foundation produced and aired a 15
episode TV series entitled Rehaii (which literally means Liberation)
on Pakistans premier Urdu Drama Channel, Hum TV. The show was
produced with the highest quality standards and had an impressive
cast and crew; the play was direct by award winning Pakistani
director Mehreen Jabbar and the show had an all star cast
comprising of Nauman Ejaz, Sameena Peerzada, Maria Wasti, Sania
Shamshad and Danish Taimur. The story was penned by Farhat
Ishtiaq and the soundtrack was sung by Tahira Syed and Roshaneh
Zafar. Audiences across different income groups and geographies
have appreciated the TV show and connected with the characters
and story.

Marketing Strategies:
Kashf Foundation is enjoying a very smart business in Micro
financing sector,
This is because only due to good segmentation strategies,
As the woman is half part of Pakistan and Kashf foundation is
particularly segmenting to woman so it means K.F is targeting the
half of the population of country and launched different products for
rest of the market,
Business/Marketing Philosophy:
The main objective of Marketing is to get high business and to
remain in market, so for this other organizations spend a lot of
assets to gain business and to gain profit, but K.F having different
philosophy here,
As K.F is registered under section 42 of company ordinance
(Nonprofit Organization)
So saving a lot of taxes but getting servicing 22% charging for every
disbursement of loan for the time period of 1 year.
But along this also getting a huge donation from different national
and international Donors not only for operations and capacity
building of Clients but for expansion for branch network as well,
In 2014 about 14 different branches were opened by the donation of
PPAF in different part of Pakistan, in Lasbela ( Balochistan), In
Noshehra and Mardan (KPK) and Khairpur (Sindh)
So here the K.F is not only targeting loan user but also focusing the
donors as well and enjoying a good business from both side so the
all marketing campaigns and strategies are developed for the both
parties,
So finally after the detail study of K.F marketing strategies we can
say that this is not only Marketing but this is a very good marketing
because this aim of marketing is getting business and analyzing the
need and requirement of market and giving a solution of that, so
finally K.F is doing this very well.
And for this not required any specially campaign or advertisement
separately but by showing the work and activities to donor as they
want are developing the good well and high image,

So we can say that the way of showing or showcasing the things are
more important than the spending time and money on
advertisement,

Marketing Strategies in Roomer

In 2008 Rumor was created by Competitors that the Managing
director Ms. Roshaneh Zafar has died and she advised that all the
dues are released, so due to this rumor 75% recovery was stopped
and due to this operation was closed on temporary bases,

Effect of Rumor:
Clients recovery was stopped up to 75%
New Loan disbursement was stopped

Strategy:
To overcome this Issue many decision were taken like,
Reduce Luxury expenses
Reduce Incentives
Try to overcome through cost cutting
And used all techniques through which cost may reduce

De-motivation of Employees:
By reducing allowances and incentives employees were de
motivated and were trying to switch job,
And the employees turnover reached up to 30%,

The Final Decision:

 With passage of time new loan disbursement was started in

some areas those were not rumor effected,
And finally after a long brain storming management decided to
start new product for those clients those were rumor effected,
with the promise that they will be re-disburse but with new loan
they will pay off remaining amount as well.

Success of Decision:
This was not looking a smart decision but finally this decision
succeed and Through this decision 56% of sucked amount was
recover within 14 Month,

National and International Partners: