Product marketing from a social perspective:

The O-Gas Experience

The Right to Win 2011 2

Achieving societal marketing1. Product benefit

2. Social/Stakeholder engagements

3. Empowerment

Why Societal marketing1. Win-Win-Win for consumer, companies and the society

2. Desirable products with general acceptability

3. Improved well-being for the consumer

Societal marketingProduct design & Marketing with

an approach of balancing consumer’s

short-term satisfaction with long term sustainable

benefits for the general society

ne

What Why

How

The Ultimate aim of societal marketing is to achieve a change in attitude of the consumer that benefits the society

ProfitSatisfaction

Human Welfare

Brief on product marketing from a social perspective

The Right to Win 2011 3

Project Steel: A little background

Other Investors: Development Finance

Institutions (DFIs) or other investors

interested in supporting the distribution

of cleaner energy.

On-lending Company: A SPV, the On-

lending Company will provide on-

lending debt capital to MFIs. The

company is funded by Oando and other

social investors

Distribution points: Oando warehouses,

retail stations and other infrastructure

(containers) as well as contracted

warehousing will be used as storage

points for the project.

Micro-Franchisees: A low-income

entrepreneur acting as LPG Retail

point, supplied and trained by Oando,

financed by MFIs.

At the center of the

dedicated distribution

channel is the O-Gas

distributor.

The O-Gas distributor

manages the O-Gas

wholesale hub and the

network of MFs attached

to each distributor

Start OMP LPG Terminal

O-Gas Distributor

Micro-Franchisee

End User

Unique design from Oando

The Right to Win 2011 4

• Finance or micro credit option being offered to retailers and end users to enable them

afford the 3kg LPG stoves and ensure their continued utilization of the product

O-ACCESS: Oando African Climate Change Empowerment Support Scheme

O-GAS

Improvement on

Alternative e.g.

Portability & Safety

Economic Value

Awareness campaign

highlighting safe use and

advantages of LPG

Financial Empowerment

Distribution network - 10

minutes from the end user’s

home

Many past projects on rural provision of energy failed because they lacked strategies for income generating activities. O-ACCESS plugs that gap!

Innovative financial empowerment; an add on

The Right to Win 2011 5

EMPOWERMENT

Job opportunities

Product education

Training

Financing

Benefits of this approach

Product adoption & Acceptance

Endorsement

Product distribution

Legislative & Political support

Bulk purchase

Tax waiver

Positive reinforcement

SOCIAL ENGAGEMENT

Cultural (Traditional)

Institutional (Local & International)

Political (Legislative)

Others

PRODUCT BENEFITS

Health Impacts

Environmental impact & CER

Improved standard of living

Sustainable lifestyle

Switch

Societal marketing will drive product adoption

The Right to Win 2011 6

Keys to Successful Switch and Sustainability of Initiative

Endorsement by the King of Lagos Oba Rilwan Akiolu

Product presentation to CDC of LGAs in Lagos

Stakeholder session with Lagos state Executive council CEO, OMP at a sustainability forum in Rio, BrazilPublication on support from Lagos Assembly

The Right to Win 2011 7

Engagement with honorable members of

the Lagos Assembly

Demonstrating the use of the cooking stove

Displaying Oando Marketing’s range of

LPG products

Meeting with the MSMEs at the grassroots The LPG gas lamp and accessories

Community engagement, education and participation

The Right to Win 2011 8

3kg Cylinders at the Warehouse

Transportation of Cylinders at the Warehouse

Filling of the CylindersLoading of Filled Cylinders

onto branded truck

Secondary Distribution Point

Cages that will be used to display the 3kg stoves

Local skill and capacity development in 2 years ?

The Right to Win 2011 9

Thank you for your attention