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PATH Safe Water Project. PATH Safe Water Project. What actions are most likely to accelerate widespread adoption of point-of-use (POU) water treatment and storage devices by low-income populations and sustain POU treatment by them over time?. Market Based Solution Objectives :
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PATH Safe Water Project
PATH Safe Water Project What actions are most likely to accelerate widespread adoption of point-of-use (POU) water treatment and storage devices by low-income populations and sustain POU treatment by them over time? Market Based Solution Objectives: • Catalyze and pilot commercial marketstrategies through partners • Analyze the opportunity and best approaches for scale and sustainability of what was piloted • Improve HWTS products and provision • Share learning and tools for replication and scale For more about HWTS products: google WHO HWTS Network
Marketing and sales Distribution Customer service Market-based solutions: meeting BOP needs Aspiration, demonstration effect, commercial volumes, efficient channel machinery = launchpad to reach the poorest of the poor Base of pyramid Profit Market-based solutions limit Subsidy Combine market-based solutions and public-private partnerships to extend reach Limit of marginal profitability limits penetration of market-based solutions to base of pyramid Poorest of the poor 3
Act Measure Refine SWP strategic approach overview SCALE & REFINE OPPORTUNITY IMPACT Share learning Business model development Improve core technologies Integrate public sector Add partners and geographies Broad market analysis Gap analysis Partner selection Identify success factors Pilot design Consumer feedback • India • Vietnam & Cambodia • Africa time 2006 2011 4
PATH activities: Enable appropriate technology: Advancing the category to support competition Strengthen systems: Catalyzing market participants Know the customer: Understanding household needs/behavior Product or service design Customer service India Research and development Marketing Sales and Distribution Production Product or service design Customer service Vietnam Research and development Marketing and sales Production Distribution Product or service design Customer service Cambodia Research and development Marketing and sales Production Distribution HWTS Value Chain Gap Analysis 5 Red indicates gaps
Example: The MFI* Aggregator Model PATH role: • Identify qualified MFIs, share learning and introduce to HWTS manufacturers • Bear certain costs and risks associated with testing the model Current Landscape Gap Analysis Resulting Model • MFIs and HWTS manufacturer’s sales forces leverage the MFIs’ established relationships with consumers to market HWTS. • The MFI aggregator model is a flexible concept and applies to both types of microfinance predominant in India, Grameen and SHG. • Various MFI models have engaged the BOP. • Robust and socially-oriented MFI’s enjoy strong relationships with their borrowers, the ability to assemble them on a regular basis, and a core competence in lending. • HWTS manufacturers lack regular access to BOP consumers. • Durable product adoption rates appeared dependent on access to financing. • Sustainability requires efficient distribution, sales and service with relatively few actors * Microfinance Institution