Envirofit Interna-onal: Cracking the BoP Market Soren Chargois - PowerPoint PPT Presentation

Envirofit Interna-onal: Cracking the BoP Market Soren Chargois

Quan-ta-ve Qualita-ve Analysis Recommenda-on Analysis Customer Value Proposi0on Go-to-Market Plan à Women and children in India are dying at à Products priced for households that make high rates from Indoor Air Pollu-on (IAP) $2-$7/day from burning biomass à Marke-ng through videos, demonstra-ons, à Envirofit produces cookstoves with 50% less infomercials >> recent marke-ng is not carbon emissions working as well as planned à MVP is efficient 2-stroke engine for à Sells products through retail outlets rickshaws to decrease air pollu-on > used à Selling to people who don’t have the money same technology in cookstoves to purchase is a difficult objec-ve à This is a product people need, but don’t à Biggest compe-tor: First Energy know they need Technology and Opera0ons Management Profit Formula à Proprietary technology created in CSU à 2011 projec-ons are less than 2010 EECL lab figures à Mass produc-on con-nues in China à Finances because alloy is too expensive in India - Funding from the Bohemian à 2 companies in India- one “for-profit” Founda-on, Shell, and various donors and one “non-profit” à Business was growing, but now is taking a downturn

Quan-ta-ve Analysis Qualita-ve Analysis Recommenda-on Envirofit needs to cater to the poor at the bo^om of the pyramid • – Women want to buy, but their husbands think it is a waste of money The financial data chart shows money being made, but 2011 projec-ons • are slim Unit prices are increasing by about $2 each year- this might dissuade • families from buying Since Envirofit is technically nonprofit, they can’t charge more than to • cover the costs of produc-on etc. – Cost of produc-on is seemingly increasing, along with increased efforts to educate and market to poten-al customers Sales increase as long as TV ads are running, slow when they aren’t- this is • an unsustainable marke-ng technique – There has been men-on of other incremental costs to drive sales, but these would end up cos-ng too much The net margins seem to be increasing, but that is without R&D taken into • account à R&D has proven to be vital but expensive

Recommenda-ons Recommenda-on Qualita-ve Analysis Quan-ta-ve Analysis • Recommended increase of marke-ng efforts towards men – Since men control buying power, they need to know this is a worthy investment – Poten-ally focus more on the chronic illnesses and death that occurs everyday from CO2 emissions • Ini-ate a loyalty or referral program – This will be an incremental cost, but depending on the program, it could be a very small incremental cost • Suggested à For every referral a family makes, they receive a week of free fuel- This could poten-ally be a very inexpensive op-on for Envirofit • Con-nue monitoring performance benchmarks: desired fuel efficiency, carbon emission standards, durability, affordability to keep customer base happy