www.path.org

Project UpdateScaling SanitationLessons learned from HWTS users and entrepreneurs

UNICEF

November 4 2010

Scaling Sanitation

2PATH is working in countries shaded orange.Area of bubble indicates staff per office

PATH’s Vision: A world where innovation ensures health is within reach for everyone.

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How can household sanitation reach global scale?

Photo: NASA

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Project Update

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Project Update

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Project Update

7

PATH’s Safe Water Project

To what extent do market-based approaches help accelerate widespread adoption and sustained use of household water treatment and safe storage solutions by low-income populations over time?

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Health Impact Through

adoption and sustained use by vulnerable populations

Product design

Research and development

Production Marketing Customer service

Addressing Gaps In The Market

ACCEPTABILITY:Make it easier to design products that meet the needs of low-income

consumers

REACH:Catalyze partners to

explore new and creative distribution &

sales channels

AWARENESS:Better understand how to influence purchase

and sustained use

Sales and distribution

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Gap: Rural low-income consumers are not reached by commercial HWTS manufacturers due to highdistribution costs and lack of product affordability

Microfinance (MFI) PilotEX

AM

PLE

Strategy: Combine partner strengths

Hindustan Unilever (HUL): product, marketing and distribution

Spandana: reach, customer consolidation and credit (payments of $1 or $2 per week)

PATH: negotiate on behalf of end-users, absorb some risk and evaluate results

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SeekersIncome range - $12-$30

Hindustan UniLeverPureIt typical consumer:

StriversIncome* range - $31-$60

*Household Incomes. Adapted from ‘The Bird of Gold’ : The Rise of India’s Consumer Market (Mckinsey Global Institute, May 2007)

DeprivedIncome range – less than $5

Aspirers:Income range - $5-$11

MFI Pilot consumers

SeekersIncome range - $12-$30

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0%2%4%6%8%

10%12%14%16%

6%

15%

After 11 months

MFI pilot penetration

Market penetration with PureIt product

Baseline

Exam

ple

Commitment to scale-Partners plan to replicate in more states using their own money-PATH is starting similar models with new partners in new settings

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Gap: Existing products not designed for low-income users

Strategy: Find out what the user wants and needs Make it easier for providers to meet users’ needs

EXA

MPL

E

13

Partner: Quicksand DesignMarch – December 2009, Andhra Pradesh, India

Example: Extended user testingEX

AM

PLE

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Product-specific user insightCeramic water purifier: Aspirational appeal and

perceived value influence initial adoption

But the user experience drives sustained use

Day 1: “This is what I get?!?”

Day 90: “This is what I want!

EXA

MPL

E

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Partners Hydrologic, CambodiaCAD-Based Solutions, USAUNC Watershed, Cambodia

Targeted product improvementsEX

AM

PLE

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Start Up Partner Support

• Help Hydrologic Scale– Sales force management and logistics– Consumer segmentation research to direct

efforts– Strategy for retail outlets and point of sale

promotion– Sales tracking and customer feedback– Consumer credit models

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Cambodia HWTS Market SegmentsMP case study qualitative

Only 12% of the market is not accessible –not motivated to treatments other than boiling.

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Demand PUSH – get it out of here! Demand PULL – this stuff has value!

Latrine Users/

consumers

Waste water,

fertilizer & biogas

consumers

Latrine-Based Sanitation Value ChainsLower manufacturing/Installation costs

Lighter platformEasier removal of sludge

Urine separation reduces transport/treatment costs

Lower cost basis for Ag/energy outputs

Lower price/higher availability of safe Ag/Energy Input Products

Better /Safer user experienceUpgradeable

Safe, Lower costRemoval/transport

R&DLatrine Users/

consumers

Latrine Installers

and Service

Providers

Materials Marketing Build

Demand PUSH – micro enterprise, income generation Demand PULL – shame, stigma, aspiration, norms

Service

Desirable features and benefitsLocalizable and upgradeable

Easier cleaning and maintenance

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Sanitation today- good enough?

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User Needs/User Experience

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22

23

24

25

26

27

28

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SEEDSupport for Entrepreneurs and Enterprise Development

• Equipping Local Entrepreneurs to go to scale• Consumer segments and how to reach them• Products that appeal and are easier to build• Technical knowledge (e.g. IDE EZ Latrine)

Financing/installments

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Signs of Success –innovation & resources

• Sulabh Toilet India service spas introduced in slums

• Community led total sanitation being scaled and transplanted by the Water Sanitation Program (WSP) at the World Bank

• Akvo-pedia clearing house of sanitation information (www.akvo.org)

• Rigel Technology - introducing new BoP toilet (to be introduced at the World Toilet Summit in Singapore Dec 2-4)

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Latrine-Based Sanitation Value Chain

Waste water,

fertilizer & biogas

consumers

R&DLatrine

Installers and Service

Providers

Materials Marketing Build

Transport Treatment Disposal/ReuseStorage

Latrine Users/

consumers

Latrine Users/

consumersService

Capture

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PATH Safe Water Project

• Market-based approach• Customer centered development• Inclusive market ecosystem• Systems: Value Chain and gap analysis• Case Studies

– Products designed by and for users– MFI distribution for access and affordability– Health-based provision

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Health Impact

Product design

Research and development

Production Marketing Customer service

Addressing the gaps

SUSTAINABILITYACCEPTABILITY:

Make it easier to design products that meet the needs of low-income

consumers

SCALE -REACH:Catalyze partners to

explore new and creative distribution &

sales channels

IMPACT-AWARENESS:Better understand how to influence purchase and

sustained use

Sales and distribution

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Spandana clients who purchased Pureit by SEC*

A&B: 18%

C: 18%

D: 12%

E: 9%

**Based upon data from Abt survey data profiling four Spandana branches

2. L

EAR

NED

35

SEC A/B, 4

SEC C, 35

SEC D, 32

SEC E1, 11

SEC E2, 18

Socio-economic profile ofSpandana purchasers

Purchase rates by SEC SEC Distribution of Purchasers

*Based upon data from Abt survey data profiling four Spandana branches.

18.2 18.1

12.4

8.8 9.2

A/B C D E1 E2

2. L

EAR

NED

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Project Update

Topics

• Perspectives on scale and systems• Market-based approaches • Lessons from the Safe Water Project• Sanitation observations