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

Envirofit Interna-onal: Cracking the BoP Market

Soren Chargois

Qualita-ve Analysis

Quan-ta-ve Analysis Recommenda-on

Customer Value Proposi0on

à Women and children in India are dying at high rates from Indoor Air Pollu-on (IAP) from burning biomass à Envirofit produces cookstoves with 50% less carbon emissions à MVP is efficient 2-stroke engine for rickshaws to decrease air pollu-on > used same technology in cookstoves à This is a product people need, but don’t know they need

Go-to-Market Plan

à Products priced for households that make $2-$7/day à Marke-ng through videos, demonstra-ons, infomercials >> recent marke-ng is not working as well as planned à Sells products through retail outlets à Selling to people who don’t have the money to purchase is a difficult objec-ve à Biggest compe-tor: First Energy

Technology and Opera0ons Management à Proprietary technology created in CSU EECL lab à Mass produc-on con-nues in China because alloy is too expensive in India à 2 companies in India- one “for-profit” and one “non-profit” Profit Formula à 2011 projec-ons are less than 2010 figures à Finances

• Funding from the Bohemian

Founda-on, Shell, and various donors à Business was growing, but now is taking a downturn

Qualita-ve Analysis

Quan-ta-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

accountà R&D has proven to be vital but expensive

Recommenda-ons

• 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

• ccurs 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

• p-on for Envirofit
• Con-nue monitoring performance benchmarks: desired fuel efficiency,

carbon emission standards, durability, affordability to keep customer base happy

Qualita-ve Analysis Quan-ta-ve Analysis

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