Global Household Water Treatment & Safe Storage Monitoring


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Global Household Water Treatment & Safe Storage Monitoring and Evaluation Project
Final Report Appendix
December 2nd, 2008
The Global Entrepreneurship Lab (GLab) A-Team Massachusetts Institute of Technology, Cambridge, MA
Shivani Garg Geeta Gupta
Eswar Mani Udit Patel
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Table of Contents
Appendix A: Organizations Interviewed Appendix B: Criteria Used to Identify Organizations to Interview Appendix C: Business Sustainability Interviewing Guidelines Appendix D: Aggregation of M&E Metrics Identified Appendix E: Criteria Used to Assess Business Sustainability Appendix F: Best Practice Validation Interviewing Guidelines Appendix G: Guidelines to Determine Best Practice Metrics/Methods Appendix H: Tool and Indicators Supporting Best Practices Appendix I: Phase 1 Interviews Appendix J: Phase 2 Interviews
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Appendix A: Organizations Interviewed

Phase 1

Company 1 Eureka Forbes 2 Halo Source 3 Hindustal Lever Ltd. 4 Medentech 5 Potters for Peace 6 Proctor and Gamble

Type Commercial Commercial Commercial Commercial Non Profit Philanthropic

Supply Chain Position
System Manufacturer
Component Manufacturer
System Manufacturer
System Manufacturer
Component Manufacturer
System Manufacturer

7 PSI

Non Profit

Distributor

8 Pure Home Water Non Profit

Multiple

1 Ceramica Tamakloe Commercial

2 EtMedix

Commercial

System Manufacturer
Distributor

3 International Aid

Non Profit

4 International Rescue Non Profit Commission

5 Kale Hewitt Church Non Profit

Distributor Distributor Distributor

6 New Energy

Non Profit

Distributor

7 Precision 8 PSI 9 Pure Home Water

Commercial Non Profit Non Profit

Distributor
System Manufacturer / Distributor
Distributor

10 UNICEF

Non Profit

Distributor

11 UNOCHA 12 Vesterguaard 13 Water Healthcare

Non Profit Commercial Commercial

Distributor
System Manufactuer
Retailer

14 WaterHealth

Commercial Distributor

Products

Technology Location Maturity

Multiple

Hybrid

Halo Pure Sport Adsorption Bottle

Pure-It

Hybrid

India USA India

Established Start Up Established

AquaTabs Clay Pot Filters PuR

Disinfection
Particle Removal
Hybrid

Ireland Growing

Nicaragua Established

USA

Growing

Multiple

Multiple

Clay Pot Filters

Particle Removal

USA

Established

Ghana Start Up

Kosim Filter AquaTabs Biosand Filter Multiple Biosand Filter Multiple

Particle Removal

Ghana Established

Disenfection Ethiopia Startup

Particle Removal

Ghana Growing

Multiple

Global Established

Particle Removal

Ethiopia Established

Multiple

Ghana Growing

AquaTabs Water Guard PuR Kosim Filter
Multiple

Disenfection Ghana Startup

Hybrid
Particle Removal
Multiple

Ethiopia Established Ghana Growing Ethiopia Growing

Multiple

Multiple

Ethiopia Growing

LifeStraw

Multiple

Ethiopia Startup

Multiple

Multiple

Community Water

Treatment

Hybrid

Systems

Ghana Established Ghana Startup

Phase 2

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Appendix B: Criteria Used to Identify Organizations to Interview
Phase 1 Organizations
Maturity: Organizations were selected to adequately represent different stages of the business life cycle. The maturity of the organizations selected varies from small startups such as HaloSource to large highly established organizations such as P&G and Unilever. This approach helps to clarify best practice metrics within and across different business life cycle stages.
Role in Supply Chain: Very few organizations own the entire supply chain for implementation of HWTS systems. A majority of these organizations play a specific role within the supply chain. Organizations selected represent different roles from component manufacturers (e.g., HaloSource) to system manufacturers (e.g., Medentech) to distributors (e.g., PSI).
Technology and Product Mix: Numerous HWTS products and technologies are currently available commercially. These range from simple clay pot filters to highly sophisticated and advanced filtering systems. The organizations selected represent the range of products identified by the WHO as core HWTS products. Core products include disinfection products such as chlorine or bromine-based solutions or tablets, filters such as candle filters, clay pot filters and cloth filters, coagulant/ disinfection products, such as PUR, and combined systems, such as Hindustan Lever’s Pure-it product. In addition, these products represent the range of key commercial household water treatment techniques of disinfection, particle removal, adsorption and membrane processes.
Commercial versus Philanthropic: Organizations were selected to adequately represent both commercial organizations such as Hindustan Lever and Vestergaard Frandsen S.A. as well as philanthropic organizations such as Proctor & Gamble, as well as non-profit or religious organizations such as UNICEF, Potters for Peace or Kale Hewitt Church.
Geographic Coverage: HWTS implementation initiatives are scattered worldwide. Organizations were selected to represent a global footprint: where the organizations originate from (North America, Central America, Asia and Europe) and regions they operate in (Africa, Latin America and India).
Phase 2 Organizations
Presence in Ethiopia & Ghana: The three-week field study targeted companies and organizations in Ethiopia and Ghana. While there has been extensive HWTS research done in African nations like Kenya, research into HWTS
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organizations within Ethiopia and Ghana is still quite limited. Both nations were chosen as locations for the field study because of the WHO Network presence. Ethiopia was chosen as a location where there is significant need for HWTS solutions and since it is an emerging market for a wide array of such technologies. In addition, it was the site of a recent WHO Network country conference in October 2007. The growing presence of organizations such as PSI and the pre-implementation efforts by manufacturers point to the growth in commercial HWTS businesses in Ethiopia. In Ghana, the number of HWTS organizations, combined with Susan Murcott’s extensive experience in Ghana, led that West African nation to be an obvious choice for study. Coverage of technologies: As briefly mentioned above, it was important for us to conduct our study in locations where a diverse array of HWTS technologies/solutions are being marketed and implemented. The commercial sustainability analysis was focused on the following HWTS technologies:
• BioSand filters • Bromine-based solutions • Chlorine-based filters • Candle filters • Ceramic pot filters • Cloth filters • Water disinfection tablets • Water sachets Coverage of supply chain: For analyzing commercial sustainability, organizations operating at different stages of the HWTS supply chain were targeted. While Phase 1 efforts was focused primarily on manufactures of HWTS technologies, Phase 2 efforts targeted social marketers, retail distribution channel operators and suppliers.
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Appendix C: Business Sustainability Interviewing Guidelines
Pre-Interview
• Gather background information and business description of organization • If possible, gather background on contact being interviewed • Visit organization website (if available)
Interview Protocol
• Contact clients ahead of time to schedule call and provide a quick agenda. • When client agrees to a call, try to gauge how much time they are able to
spend ahead of time and tailor following set of questions. • Ahead of the call, provide brief introduction of background of interviewers and
reiterate aim/objective of interview and thank them for their time. • Follow-up call with a thank you note and some follow-up questions. • By end of November, we should contact these priority targets again to ask
any remaining questions we have learned are important during the whole process.

Questionnaire:

Introductions (5 Minutes) • Interviewer introductions • Interviewee introduction • Walk through agenda and provide quick overview of purpose

Product Description (10 Minutes)
• Can you briefly describe your product/technology?
• What are your goals and objectives for this product? o Market Control? o Profits? o Geographic reach? o Other?
• Who is your target customer base?
• Who are you key competitors? And what is your current share? • What is your geographical reach, how long have you been doing
in these areas?

businesses

Business Sustainability Indicators (40 Minutes)

We are going to walk through a number of categories around business sustainability. Can you please let us know what metrics you use to assess the sustainability of your business within these categories?

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1. Financial/Profitability o How do you measure profitability and financial success? o How do you price your product? Are your products subsidized? ƒ How do you measure the affordability of your product ƒ Do you segment your market and offer different prices to different segments? ƒ Are any of your products given out for free? o How do you measure growth in sales? ƒ E.g. % increase in sales overall • % increase in sales over time to target population • % increase in sales in other markets / populations ƒ What is your current sales volume o What metrics do you use to track your costs o What are your sources of funding? o How profitable are you? What are your margins?
2. Marketing o How do you measure market penetration? o How do you measure the effectiveness/impact of these programs? ƒ % of repeat customers ƒ Growth in repeat customers ƒ What is your marketing spend as a % of sales o What marketing programs do you have in existence today? o Do you offer educational or training programs • Repeat customers • Increased sales o What marketing channels do you use – Radio/fliers/websites/kiosks • People reached per channel • Costs per channel • Sales generated per channel
3. Partnerships and Distribution Channels o What kind of partnerships do you have? ƒ How do you measure the success / impact of these partnerships? o What are your different distribution channels? Are these channels proprietary? How do you measure the efficacy of each? ƒ Capabilities to reach target ƒ % Sales per distribution channel ƒ Costs per channel ƒ Time per channel ƒ Limitations ƒ Capacity • Capacity utilization ƒ Transportation breakage; loss ratio; how are costs assessed; reserves? • Order Delivery Rate
4. Operational
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o What does your supply chain look like (from manufacturing process to final retail outlet)
o What metrics do you use to measure its efficiency? ƒ Time from order being placed to arrival ƒ Inventory Management • Inventory turnover • Service Level: Supply from manufacturer / demand from customers • Source of raw materials (locally available) • Production per day • Labor vs. technology for production • Shelf Life
o Where is your product manufactured? ƒ Is skilled/unskilled labor available to locally manufacture your product
o How do you determine sales forecasts (forecasting methods)? ƒ What metrics do you use to determine your forecasts? • Historical sales, demand growth, etc.
o What role (positive/negative) do Government(s) play in your product’s success? ƒ Do you incur/measure cost for compliance to environmental regulations (during and after production)?
5. Post-Purchase o How do you measure customer service levels? ƒ Complaints / customer ƒ Do customers have access to the company for customer service issues? ƒ Any indicators on after-sales services? ƒ Maintenance of non-consumable products e.g. filters? o Are complementary products available? How do you measure the retail reach of your product and its replacement parts? (e.g. candles for candle filters) o How do you determine what maintenance needs are for the product? o Whose responsibility is it to educate on maintenance: Manufacturer or Distributor? ƒ How do you assess whether the instructions are well understood by the end-user? ƒ Could you send us a copy of your product manual/brochure? o Disposal mechanisms e.g. for sediments of flocculated water, used filter cartridges?
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Appendix D: Aggregation of all M&E Metrics Identified During Data Gathering
Product Set
• Organization goals are set in line with MDGs, with metrics in line with MDGs (Procter & Gamble)
• Conversion rates of people using HWTS products i.e. % of target population that uses the product (Procter & Gamble)
• Longevity: number of years that product has been on the market in a country (Medentech)
• Percent of products directed towards sales to consumers, sales to organizations such as UNICEF and NGOs, and donated for emergency disaster relief
• % of subsidy given (if applicable)
Financial Performance
• Top line revenue (HaloSource, Eureka Forbes, HLL) • Gross margin (HaloSource) • Profit and profit margin (HaloSource) • Break-even point for factory (Potters for Peace, Pure Home Water) • Margins across supply chain (HaloSource, Medentech, PSI) • Cost of manufacturing (HaloSource, Medentech, Procter & Gamble) • A qualitative “feel good” factor assessed by employee satisfaction ratings
(Procter & Gamble) • Payment format to ensure easier access to pay (Procter & Gamble) • Employee morale levels (Procter & Gamble) • Customers:
o Affordability (Medentech, Procter & Gamble, PSI) • Willingness to pay (Medentech, PSI) • Pricing based on reasonable daily expenditure / daily income (Medentech) • Prices of products sold in similar retail environments (PSI) • Price in line with other household goods - one egg, pack of cigarettes (Medentech, P&G, PSI)
• Retailers: o Willingness to stock (Eureka Forbes) o Salesmen salaries (PSI) o Retailer’s margin (Medentech, Procter & Gamble) o Retailer shelf space allocation (Medentech) o Time product remains on shelf (Medentech) o Cost of dispenser and affordability to retail (all cash, no credit)
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Marketing
• Target customer breakdown by segment (HaloSource) • Competitor market share • Market entry (HaloSource)
o HWTS market size o Existing competitors in space o Technology that exists in market, especially beyond filtration o Market response o Water quality levels o Unmet consumer needs o Price points that exist in market, viable for future o Targets are bottom of the pyramid or top of the pyramid o Regulatory constraints that may pose barriers to entry or possible
partnerships o Multi-national brands and how they are perceived o Trusted distribution channels exist o Types of organizations and fragmented • Geographic scope (Medentech) • Conversion from direct sale demonstrations (Eureka Forbes) • Number of HH visited / direct salesman (Eureka Forbes) • Number of units sold / channel / state (Eureka Forbes) • Forecasted penetration (Medentech) • Brand name recognition of marketing partners (Halo Source, Medentech) • Scalability of markets (Medentech) • Existence and effectiveness of point of sale material (Medentech) • Existence and effectiveness of community programs (Medentech) o Local dialects and languages used o Location specific adaptation of program components and approaches
Distribution Channels and Partnerships
• Percent breakdown of distribution channel segmentation groups (HaloSource, Medentech)
• Brand name of distribution partners (HaloSource) • Percent reliance on distribution partners to sell products to end customers
(HaloSource, Medentech) • Quality control levels ensured by exclusive contracts or open contracts
(HaloSource, Medentech) • Margins that distributors obtain for this product should be comparable to other
products that are staffed (e.g., price of bag of water versus price of cigarettes as sold through distributors) (Medentech) • Pricing model discussed with distributor: taxes, shipping, margins, etc. (Medentech) • Pro-bono distribution vs. for-profit distribution (PSI)
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Global Household Water Treatment & Safe Storage Monitoring