Aqua+ presentation

TARA

The Magic of Two Drops!

Pitch Presentation

TARA

Water Purification for BoP households is:•Expensive•Cumbersome•Low Priority

Bad water kills more children than wars!

• Financial Stress− Loss of income due to sick days

• Emotional Stress− Illness sometimes leading to

death

TARA

Complication

• Available solutions are not affordable

• Affordable solutions are not reliable

Hard nut to crack

TARA

Marketing Plan for 2011 ~ 12SolutionWe provide AFFORDABLE and RELIABLE water

purification solution to the BoP households

Aqua+ “The Magic of Two Drops” is:

• Affordable − Re. 1 per day…Cheaper than tobacco, mobile phones

TARA

Marketing Plan for 2011 ~ 12

• Affordable

• Easy to use − Add 2 drops / litre− Wait for 30 mins− Water is safe to drink

We provide AFFORDABLE and RELIABLE water purification solution to the BoP households


Solution

TARA


• Affordable

• Easy to use

• Aspirational − Filter-like water within budget

We provide AFFORDABLE and RELIABLE water purification solution to the BoP households


Solution

TARA

Go-to-market Strategy Distribution Channels:

Trust is the key to establish reliability

1. Social Enterprises 2. Govt. channels

− Capitalize on established trust for entry level acquisition

− Stock Aqua+ at local shops, chemists etc.

− ASHA workers

− Anganwadi workers

TARA

Marketing Plan for 2011 ~ 12Performance

• Sold 100,000 bottles Product Acceptability (Slums of Delhi to villages in Kerala)

• Provided safe drinking water to 50,000 HHs

• Signed contracts in hand for 540,000 bottles in FY 2013~14

• Distribution channels setup− Ideal Safety Systems (Kerala), CREATE (UP), IDOBRO (Maharashtra)

TARA

Marketing Plan for 2011 ~ 12Right Time to Scale

• “The Magic of Two Drops” accepted by consumers

TARA


• Product accepted

• Large untapped market− 167 million families in Indian BoP− Business potential of Rs. 60 billion per year

TARA



• Market exists

− Lean on investment and human resources

• Distribution channels already exist

TARA



• Market exists

• Easy to manufacture and distribute− De-centralized production is possible− FMCG Easy to stock and move− Margin for each stakeholder of value chain

• Lean on investment and HR

TARA

Marketing Plan for 2011 ~ 12Margin in Value Chain

TARA Channel Partner

“Last Mile” delivery

Consumer

CoP: Rs 11 MRP = Rs 30

Margin of Rs. 12 for distribution

Price: Rs 15

Tax & Freight: Rs 3

Landed cost: Rs 18

Margin: approx Rs 7

Landedcost: Rs 25

Margin: approx Rs 5Margin: Rs 4

Financials

TARA

Revenue

1. Social Enterprises 2. Govt. channels

Contract size : 5-10 K Selling Price : Rs 15

Year 1 : 8 partnersYear 2 : 14 partnersYear 3 : 25 partners

Contract size : 50-100 KSelling Price : Rs 13.48

Year 1 : 1 partnerYear 2 : 1 partnerYear 3 : 2 partners

TARA


Year 2 : Channels equal in sales revenueYear 3 : Channels equal in sales volume

Channel-wise GrowthRe

venu

e in

INR

Mill

ions

Channel 1: Social Enterprises

Channel 2: Govt. Channels

(2.9 L bottles)

(6.0 L bottles)(8.1 L bottles)

(9.0 L bottles)

(15.6 L bottles)

(15.6 L bottles)

TARA

For this we require Rs. 50 Lakhs investment

– Product Development: Rs. 7.5 Lakhs– Market development: Rs. 35 Lakhs– Channel Development: Rs. 7.5 Lakhs

Plan and Pitch

TARA

Team has over 50 person-years of experience

Core Team:

Siddharth Bountra

Pranay Samson

Shrashtant Patara

Supporting expertise:

Technical – Dr. K Vijayalakshmi

Sales & Mkting – Vijay Chaturvedi

Communication – Ipsos Research Pvt. Ltd.

Technology Partner – Antenna Technologies, Switzerland

Team

Contact

Primary contact: Siddharth BountraPhone number: +91 9971301338E-mail: [email protected]

Advisor: Shrashtant PataraPhone Number: +91 9818379060E-mail: [email protected]

TARA

Thank you

Appendices

TARA

Marketing Plan for 2011 ~ 12Sustainability

Our solution is sustainable because:

For the consumer:• Affordable• Easy to use• Readily available• Aspirational

For channel partner:• Social impact• Profitable (40% margin)• Risk-free• Tap into existing delivery network

TARA

Marketing Plan for 2011 ~ 12Risks

• Quality control of Product– Setup Food Grade Production unit with QC Protocol

• Open market for cheap knock-offs and similar products– Emphasis on brand; become Coke and Scotch Tape

• Distribution dependent on external channels– Adding partners to compensate loss of some

TARA

Marketing Plan for 2011 ~ 12Direct Costs

Total per bottle – Rs 5.45

Bottle with cap – Rs 3

Liquid solution – Rs 1.2

Label – Rs 0.5

Shrink wrapping – Rs 0.4

Packaging – Rs 0.35

TARA

Marketing Plan for 2011 ~ 12Financial Overview

Item 2013-14 2014-15 2015-16

Revenue 125 240 440

Cost of good sold 69 128 230

Labour 26 38 57

Marketing Costs 18 32 49

Admin expenses 13 15 20

Establishment cost 6 9 10

EBIDTA -7 18 74

Product Development 16 16 20

Finance costs 2 3 5

Depreciation 4 6 10

PBT -25 -1 49

TARA

Marketing Plan for 2011 ~ 12Product BriefAqua+ is:

• 50 ml bottle of Sodium Hypochlorite Solution (Liquid Chlorine)

• MRP is Rs. 30 per bottle

• Last for 1 month for a family of 5

• Easy to use: 2 drops per litre; wait 30 mins; water is safe to drink

TARA

Marketing Plan for 2011 ~ 12Competition

Chlorine Tablets− Not easily available − Bitter taste of purified water

Low cost water filters− Not affordable by the BoP− Spare parts not easily available

Boiling− Rising fuel prices makes it very expensive

TARA

1 million HHs provided with safe drinking water over 3 years

Reduction of carbon footprint by replacing boiling

Marketing Plan for 2011 ~ 12Social Value

SD

Social Equity

Environmental Quality

Economic Effeciency

TARA

Marketing Plan for 2011 ~ 12Market Size

According to McKinsey Global Institute:

167 million families in Indian BoPX

1% market shareX

1 bottle per month for 12 months=

20 million bottles or Rs. 600 million every year

Easier said than done but it provides long term target

Thank You

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