Results from Safe Water Project - Glenn Austin - PATH
Results from Safe Water Project - Glenn Austin - PATH
Results from Safe Water Project - Glenn Austin - PATH
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<strong>PATH</strong><strong>Results</strong> <strong>from</strong> the <strong>Safe</strong> <strong>Water</strong> <strong>Project</strong> Pilots<strong>Safe</strong> <strong>Water</strong> <strong>Project</strong> Dissemination MeetingNew Delhi, India<strong>Glenn</strong> <strong>Austin</strong>January 19, 2012PICTURE OFPILOTPhoto credit: <strong>PATH</strong> <strong>Glenn</strong> <strong>Austin</strong>
Learning initiative: Six key questions regardingimpact, sustainability, and scale.1 What is the uptake rate among target consumers of HWTSproducts?2 What is the extent of consistent and correct use?3 What are the triggers and barriers to trial and use?4 Can profit be earned <strong>from</strong> sales to target consumers?5 Will partners continue and/or scale up the SWP model?6 What other efforts/inputs/incentives are needed tostimulate additional supply and demand for HWTS?Page 2
Pilot locationsIndia5 MFI variations+ direct bicycle salesCambodia1 MFI variation, retail+ direct salesKenyaBOG salesVietnamDirect health workersalesPage 4
Direct SalesPhoto credits: <strong>PATH</strong>/SWP
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Direct sales pilots: VariationsModelvariationHealth worker Bicycle entrepreneur Basket-of-goods vendorModelDescriptionSales of an FMCG productdoor to door by communehealth station collaborators(public-sector communityhealth workers)Sales of an FMCG productby newly recruited andtrained bicycleentrepreneurs at weeklymarkets and door to doorSales of a durable water filter byself-help group members sellinghealth products through a BOGmodel at community groupmeetings and door to doorLocationsCan Tho Province, VietnamPratapgarh, Uttar Pradesh,IndiaNyanza and Western Provinces,KenyaChannelPartnerZuellig Pharma and publichealth authorities incl.district medical centers andcommune health centersMART (Ruralmarketing agency)<strong>Safe</strong> <strong>Water</strong> and AIDS Program(SWAP)Product &ManufacturerAquatabsMedentechAquatabsMedentechCeramic water filterChujioCost of Productin LocalCurrency (USD)1000 VND ($0.05)Rs 0.5 ($0.01) per tabletor Rs 1 ($0.02)KSH 1,100 ($12.00)KSH 700 ($7.00)Total ProductUptake 35,788 tabs 312,426 tabs 478 filtersPage 7
Page 8<strong>PATH</strong> Picture of direct sales w mfi (CAMBODIA)or Picture of MFI pilot
MFI pilots: VariationsModel variation India MFI Cambodia MFIModel DescriptionSales of durable water filter by installmentpayment. Products distributed bymanufacturer through MFI customerchannel.Sales of durable water filter byinstallment payment. Productsdistributed by manufacturer throughMFI customer channel.Locations Tamil Nadu, India Kampong Speu Province, CambodiaMFI Partner Spandana VisionFundProduct &ManufacturerPureIt FilterHindustan UnileverSuper Tunsai ceramicfilterHydrologicCost of Product inLocal Currency (USD)2,000 Rs ($42.00) 92,000 Riel ($22.50)Total Product Uptake4,763 filters 4,394 filtersPage 9
MFI and direct sales pilot results: EffectivenessTo be updated with final Cambodia resultsAll data <strong>from</strong> Abt AssociatesPage 10Significance: ** refers to p
MFI and direct sales pilot results: EffectivenessAll data <strong>from</strong> Abt AssociatesPage 11Significance: ** refers to p
Total cost recovery1. Sales2. Costs (cash basis not amortized over period oftrue benefit)a. Product costsb. Distribution costsc. Marketing and promotion costsd. Administrative costsTotal cost recovery calculation: Sales/CostsPage 12
Distribution pilot results: Total cost recoveryPage 13
Triggers and barriers for purchase – all pilotsBarriers• Lack of felt need to treat.• Smell and odor (chlorine).• Low availability of product.• Insufficient cash flow for purchaseof filter and cartridges (which alsorequire financing).• Free product not effective ingenerating continued use (highlevels of resale, lack of felt need).Page 14
Triggers and barriers for purchase – all pilotsTriggers• Financing.• Trusted social influence at time ofsale (group dynamics, healthworker, friends).• Product appeal (attractive,effective, convenient, affordable).• Product demonstration.• Involving other family members.“Was interested inthis, and the loanmade me go for it.”“When we sawthis, wanted to buy.It is beautiful.”“I am young so mymother-in-lawmakes thesedecisions.”Page 15
Uptake<strong>Project</strong> results in a market contextPotential adoption curve for new products5 to 10 yearsTime10 to 15 yearsSource: Golder PN, Tellis GJ. Will it ever fly? Modeling the takeoff of really new consumer durables. Marketing Science (1986–1998).1997;16(3):256–270.Page 16
Conclusions on the potential for market-basedsolutions in the HWTS provisionIf it works, it scales• The microfinance model has most potential forsuccess.• Currently being scaled without donor support.There is a role for market-based solutions inreaching further down the income pyramid• NGOs and the public sector can add value:‣ Catalyze innovation.‣ Provide incentives and reduce risk.‣ Conduct real-time monitoring for improved results.Page 17
Overall learning• Well managed and resourced operations areessential.• Structure of business models is flexible forlocal conditions but must be based on soundbusiness practices.• Subsidy spoilers: when giveaways spoildemand.• Finance has to fit.Page 18
<strong>PATH</strong>’s tool box fits other WASH challenges• We are already applyingtools to sanitation andcommunity water.• Sanitation financingmodels.• <strong>PATH</strong> platformapproaches provideeconomies of scale, lowercosts of manufacture,and increased quality andfunctionality.Page 19
Thank you to all our SWP partners!Quicksand DesignDMCDistrict PreventativeMedicine CenterACCESSPage 20
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