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EAWAG July 2, 2015

EAWAG July 2, 2015. Business models to deliver safe water to the BOP What works Urs Heierli. Businesses and products. Business Models Scales Small Medium Large (Nepal) (India) (Guinea Conakry). WATA Tecnology. Chlore -C in Guinea Conakry.

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EAWAG July 2, 2015

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  1. EAWAG July 2, 2015 Business models to deliver safe water to the BOP What works Urs Heierli

  2. Businesses and products

  3. Business Models Scales Small Medium Large (Nepal) (India) (Guinea Conakry)

  4. WATA Tecnology

  5. Chlore-C in Guinea Conakry

  6. Marketing Chlore-C in Guinea

  7. Marketing and…

  8. …Social Marketing

  9. Lessons Guinea • Very interesting story: • Regular cholera epidemics … and often not enough chlorine available, because it was imported • Small NGO in Tinkisso used WATAs for many years and produced successfully in the province of Tinkisso. UNICEF and Ministry of Health became interested on local production. • UNICEF bought 14 WATA devices to make chlorine from table salt but Ministry gave it to the Provinces to make chlorine. Government production did not work. • Next cholera outbreak and still no chlorine available, except at the small factory of Tinkisso • Then Government finally decided to designate Antenna Tinkisso to produce for 4 provinces • Tinkisso has produced over 5 million bottles. Challenge to reach rural and remote areas • Scaling-up to reach for 3 million people is planned

  10. Aqua + in India (DA/TARA)

  11. Marketing Flasks • Chlorine flasks are effective and cheap • Cheaper than boiling • Most expensive: doing nothing • Price was raised to 42 Rs for one flask of Aqua+ in India (CHF 0.60 per month = 2 cents per day) Problems: • Margins must pay last mile delivery. Margins are the driver!!!!! • Not so aspirational • Regular consumption • Social marketing crucial

  12. Springhealth India • Marketing chlorinated water • Using existing Mom-and-pop stores • Water is sold at 3 Rs for 10 liters (to be collected at shop) or 4 Rs for 10 liters with home delivery • Pricing is very affordable: bottled water would be 15 Rs for 1 liter (Springhealth water 40 to 50 times cheaper) • Almost all clients want home delivery • Home delivery is convenient, aspirational, prestigious • Especially designed jerry can is not only practical but also aspirational

  13. Marketing chlorinated water Springhealth India

  14. Springhealth India

  15. Delivery Boy: needs at least 100 Rs per day

  16. Social marketing: Water testing “mela”

  17. Aspirational and practicalcontainer

  18. Marketing water filters Hydrologic Cambodia

  19. Marketing filters

  20. iDE did promotion

  21. Retailer who sells everything

  22. Mobile sales teams

  23. Marketing Hydrologic 3 lessons: • Products must be aspirational and desirable, increasing the prestige of user • Sales in shops are passive: no active persuasion of customers: mobile sales teams and sophisticated sales pitches with village leaders involved • Products must contain enough margins to pay for last mile delivery, namely door-to-door sales • Super Rabbit: nice design. It costs 36 $ instead of 18 $ for the “Rabbit” filter, but is available with micro-credit (1 year) • 66 % want to buy Super Rabbit with credit

  24. New aspirational model

  25. Conclusion – what works

  26. What does not work • Old paradigm: subsidize and give away free chlorine tablets • Products for the poor: nobody wants them, at least the poor • Subsidize products below the cost: example Nepal with Pyush: sold for 20 Rs but cost is more. When subsidies dried out, production went down from 650’000 bottles to 65’000 bottles. PSI withdrew also from Nepal • Result: in the present Earthquake, nobody could supply enough for the emergency demand

  27. What works • Business approach works and ensures sustainable supplies • Products must be aspirational, not products for the poor • A special basic product for the poor can also be available through NGOs but it should not de-value the aspirational version of the high-value product • Allow for enough margins to make the supply chain profitable • Governments and NGOs are needed: but not for subsidizing or delivery of free goods. Invest massively in social marketing, awareness creation and health education • It can be a business: but still not for a fast buck. It needs lots of effort, dedication and patience.

  28. Thank you

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