Sanitation Marketing: What are we learning, and what more should we do? Jan Willem Rosenboom SPO, Water Sanitation and Hygiene Janwillem.rosenboom@gatesfoundation.org October 14, 2013 September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Sanitation marketing 2006-2013: Asia Bangladesh American Std: SaTo pan India PSI, WSP: 3SI,TSSM Cambodia iDE: SMSU Indonesia WSP: TSSM September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Sanitation marketing 2006-2013: Africa Kenya IFC,WSP: Selling Sanitation Tanzania WSP:TSSM September 22, 2018 ©2013 Bill & Melinda Gates Foundation

San·i·ta·tion Mar·ket·ing noun \ˌsa-nə-ˈtā-shənˈmär-kə-tiŋ\ ….field that applies social and commercial marketing approaches to scale up the supply and demand for improved sanitation facilities. Research Product Development Business Model Promotion Implementation September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Prelude: Which PRoblem are we solving? The presentation on the UNC website does not include the videos; apologies but the file would become too large. September 22, 2018 ©2013 Bill & Melinda Gates Foundation

©2013 Bill & Melinda Gates Foundation Three short videos from Bihar, India, with interviews from villagers in 3 categories: I don’t need a toilet (I enjoy ODF, there is no problem, no disease is spread by shit) I can’t afford a toilet. With no money for food or other items, where would I get money from to buy a toilet? I would like to have one if they were available (convenient and safe; prevents health issues; had good experience using one in the city;…). This sets the stage for reflecting on the question which target group Sanmark programs aim for. September 22, 2018 ©2013 Bill & Melinda Gates Foundation

If the  of business is the art of problem solving… Changing behavior Aim for ODF Demand creation first Marketing (if any) last Selling Toilets Low hanging fruit-wide but shallow Create a product Build supply chain Create demand Market based ≠ ODF If the heart of business is the art of problem solving (Dan Roam), we should be clear up front which problem we are aiming to solve:   September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Understanding consumers, suppliers as basis for product development Research Product Development Business Model Promotion Implementation Understanding consumers, suppliers as basis for product development Don’t forget financial markets and enabling environment What customers say they want does not always match their purchasing decisions Sanmark: willingness to pay notoriously difficult area  Get smarter about test validity of things like consumer surveys September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Product can also be a service Research Product Development Business Model Promotion Implementation Product can also be a service Talk of toilets, but sell underground only, or one part only (pan, slab, collar) Innovation stimulates demand, but local context sets the stage Cement products can be drawback  I don’t buy a phone without a network provider. Ignoring emptying services at our peril for health and business reasons September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Many models in operation, from well tested to barely understood (yet). Research Product Development Business Model Promotion Implementation Many models in operation, from well tested to barely understood (yet). Product + country state of business = options Realizing value of waste unexplored (Douglas) Need to address lack of experience in Africa  Sustaining the model?  Successful business model should see viral spread driven by local demand (But…) September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Keep in mind: Learning from the “overnight success” of the cell phone Research Product Development Business Model Cont’d Promotion Implementation Keep in mind: Learning from the “overnight success” of the cell phone What has been called “the world’s most successful rural delivery model” was subsidized for 20 years before showing a profit Field is young There is not “one market”; there is not “one solution” Thanks to Glenn Austin at PATH for the mobile phone pictures and overview. The World’s most successful rural delivery model is of course Coca Cola in Africa. September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Research Product Development Business Model Promotion Implementation Enterprises can promote sanitation goods and services. But public sector need for sanitation promotion remains. Whether you can benefit from the private sector may depend on where you live: for-profit providers can avoid the poorest rural areas. Enterprises can promote sanitation (goods) but this doesn’t take away the need for public sector sanitation promotion (behavior, public goods) September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Many approaches focus on training, support to masons/ small business Research Product Development Business Model Promotion Implementation Varied environments (incentives, infrastructure, product options, etc.) Many approaches focus on training, support to masons/ small business Limits geographic reach, relies on replication to scale. limited profitability, scalability, sustainability  Need evidence about effective ways to catalyze private sector engagement; best use of external funds There is still a lack of evidence on effective approaches to catalyzing private sector engagement in the consumer market for sanitation. To date, many sanitation market development approaches have tended to focus on training and business development support to masons, sanitation entrepreneurs and very small scale businesses. While these businesses may be entirely appropriate to service local demand, global experience has shown that such localized models have limitations in terms of profitability, scalability and sustainability. These approaches generally rely on replication for scale, since micro- and small businesses are limited in their geographic reach. They thus require continual investment in training and business development support services. Micro and small businesses – in any sector - also face a number of challenges to growth, including lack of access to capital and skills, which can limit overall profitability and result in higher risk of failure. September 22, 2018 ©2013 Bill & Melinda Gates Foundation

Questions? There is always more… ©2013 Bill & Melinda Gates Foundation September 22, 2018 ©2013 Bill & Melinda Gates Foundation