Entrepreneurial Tools for the Developing World

Tim Elliott

Senior Business Officer

September 23, 2013

Introduction to PATH

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• PATH is an international nonprofit organization that works to transform global health through innovation

• We work in more than 70 countries and have offices in 34 cities in 23 countries

Synergy at the interface

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• Improving products (Technology)

• Developing business models (Entrepreneurship)

• Triggering action (Behavior Change)

Rules & tools

Market Landscape Identifying a market and understanding how to penetrate it

Products & Services Putting the user first - Appropriate, Affordable and Aspirational

Operations Developing an efficient and effective organization

Financing Access to and responsible use of capital for both consumers and business

Marketing Creating awareness and building a brand

Sales Establishing a customer relationship and triggering action

Working with Key Opinion Leaders (KOLs)

Who are they, how do you find them, and how can they help you succeed

Reporting Defining success and tracking progress towards it

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What’s wrong with this picture?

• Picture of Lifestraw with people holding over their had a day

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Appropriate

Affordable Aspirational

Demand

Sustained Use

Commercial Viability

Health Impact

(Context Specific)

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Improving products: 3 A’s

Developing business models

• Focus on Operations

• Make sure your heart bleeds in the right place

• Pick your winners

• Less is more

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Social sales

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• Distinguishing between Sales and Marketing

• Last-meter Behavior Change

• Building an effective sales program

• Recruiting the best team

• Establishing a culture

• Aligning incentives

• Defining success

Case study: Selling water filters in Cambodia

Key Rules & Tools Applied

Product Redesigned aspirational water filter

Sales Social sales program: Recruiting, training, management and tools

Financing Developed a consumer loan program to sell filters on installment

Operations Integration of product sales with MFI loans, and a streamlined process of approval and delivery

Reporting Real-time, active monitoring for identifying and reinforcing best practices and course-correction

Redesigned CWP

Original CWP

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Case study: Commercial outcomes

• The introduction of the new filter design and financing helped boost sales

• The sales training and tools had a dramatic impact on both total sales and average sales per Sales Agent (SA)

• Every household was able to repay their loan

DTD MFI Total / Change

Number of SAs

10 4

Total Filter Sales

1,070 3,090 4,160

Avg. Sales per SA per

Day 1.5 8.5

500% increase

Closing Ratios

23% 49% 100%

increase

MFI Loan Repayment

N/A 100%

0.01.02.03.04.05.06.07.08.09.010.0

0

100

200

300

400

500

600

700

800

Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Avg

. Sal

es p

er S

A

Tota

l Filt

er S

ales

Sales by Model

DTD Filter Sales

MFI Filter Sales

DTD Avg. Sales per SA per Day

MFI Avg. Sales per SA per Day

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Case study: Population outcomes

6.2% 3.3% 3.2%

43.1% 38.9% 38.5%

Household Purchased CWP Household Currently Using CWP Household Regularly Using CWP

Baseline Endline

• Significant increase in uptake and use in MFI catchment area

• About 90% of those who purchased CWP use it regularly

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The exit strategy

• “Pilots never fail and pilots never scale…”

• Since pilot completion thousands more filters have been sold with no further PATH involvement

• Hydrologic and VisionFund are scaling up the model in eight additional provinces

• PATH has since partnered with iDE in Cambodia to combine Sanitation Financing with their successful Sanitation Marketing program with similar success

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Open source: Rules and tools

http://sites.path.org/commercializationtoolkit Page 13

Using the CLEAR framework CONTENTS

Home Landscape Product and service Operations Key opinion leaders Sales Marketing Reporting Financing Glossary Tools Site map Contact us Feedback SEARCH

Backup Slides

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Developing a sales program

12/2/2013 Page 15

Activity Key Insights

Recruiting Recruiting through “passive” channels (radio, job postings, etc.) often proves to be less effective than “active” channels (asking for recommendations from local leaders, partners, etc.).

Training Shorter, regular, in-field trainings often produce greater results than longer more formal classroom sessions.

Compensation In many cultures, sales agents resist heavily commission-based compensation. However, this is a good way to weed out non-performers in recruiting and align incentives of salespeople with the organization. High performers will be rewarded when the organization succeeds and salespeople turnover will be low.

Reporting Tie simple sales reports to training and compensation. Use reporting over time to improve salesperson performance and reward success.

Case study: Population outcomes

6.7% 5.0% 5.0%

16.4%

12.1% 11.9%

20.9%

17.0% 16.7%

Household Purchased CWP Household Currently Using CWP Household Regularly Using CWP

Control Group Basic Direct Sales MFI-Random Pilot Area

• Uptake and use in each pilot group significantly higher vs. control

• Uptake and use in MFI area group significantly higher vs. BDS group

• High rate of regular use among purchasers (74% in BDS, 81% in MFI area)

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