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Boiling Point 54: GTZ-HERA Household Energy Programme Editor: Agnes Klingshirn


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Boiling Point
Front cover of Boiling Point issue 54
Issue 54 (2007) Climate change and household energy
ArticleGTZ-HERA Household Energy Programme Editor: Agnes Klingshirn
AuthorLisa Feldmann, Verena Brinkmann

[top] [end]Marketing in household energy interventions – GTZ experiences from different African countries by Lisa Feldmann and Verena Brinkmann

A GTZ regional workshop on stoves marketing was held in the beginning of 2007 in Addis Ababa, Ethiopia. Participants from different African countries exchanged experences and gained inputs from the international marketing expert Kathryn Potts. The following gives a short synthesis of the lessons learnt during this workshop.

The scaling up of household energy interventions is based on the commercial approach of supply and demand. The overall idea is to increase production and sales for stove producers and retailers on one side, and to grow demand and usage of efficient biomass stove technologies on the other. GTZ interventions support the increase of sales figures by product development, training in technical and business skills, stoves promotion and quality control. While at the same time the demand is boosted by awareness creation through information campaigns and mainstreaming into the public sector. In this way an increasing knowledge and demand leads to a greater number of stoves on the market. In order to create a sustainable market for improved stoves a solid marketing strategy is key. Generally speaking, marketing includes all activities leading to higher sales figures.

Figure 1 Truck load with Institutional Rocket Stoves, Mulanje, Malawi (Photo: Andi Michel, GTZ)
Figure 1 Truck load with Institutional Rocket Stoves, Mulanje, Malawi (Photo: Andi Michel, GTZ)
Central for marketing strategies are the so called “4 Ps” within the marketing mix. These include identification and development of new Products, suitable Price development, distribution channels and Places, and Promotion. The underlying marketing principle for stove interventions means getting the right stove to the target users, in the right quantity, quality and price. It also means that each business person in the marketing chain makes a fair profit (This does not mean the project makes profit!).

According to GTZ experiences, for an improved stove to be accepted by users it must be efficient (min. 40% fuel saving), clean burning, adapted to local needs and habits, and convenient for the cook to use. In addition they have to be attractive, modern and affordable to the target group. Stoves promoted through GTZ interventions cost from 1 to 300 Euros (for institutional stoves) and different stove models help to reach more people by appealing to differing cooking needs and income levels.

When looking at the demand side, market and customer analyses help to develop a clear picture about target groups and potential customers. Stove producers should know their customers needs, habits and demand for improved stoves as well as aspirational factors such as trends, fashion and concepts of modernity. It is important to know whether the customers are the same as the users. To develop an appropriate marketing strategy, it helps to be aware of the customers’ opportunity, ability and motivation to buy an improved stove.

On the supply side, quality and efficiency standards have to be taken into consideration as well as the production capacities of stove producers. Regularly audited quality certificates and a customer warranty can be the basis for the labeling of stoves. Using a catchy logo makes them unique and helps them stand out from competing products. When setting up warranty schemes the involvement of private or governmental standardising agencies has proven to be successful. The stove price should be developed from a market chain analysis, to ensure that everybody involved gets a fair profit and so create a sustainable stove market. Raw material and labour costs have to be included in the final stove price as well as distribution/transport costs.

During the Ethiopian workshop, the participants shared their own experiences and a number of marketing tools used in projects were collected and grouped into experience, information and promotional categories, to be further exchanged among stove projects. Experience tools were classified as lessons learnt from previous projects, such as documenting and learning from failures. Information tools, such as market surveys, innovation adoption curves, marketing and price chain analysis provide data for the Promotional tools. These can take the form of market demonstrations, use of different media, trade fairs, theatre tours, and advertising but these all have to be developed with regard to the socio-cultural background of the target groups. Pilot tests or focus groups are a good method to choose the most effective promotional tools. TV ads or series can be helpful but require a careful analysis of the mass media in use by the target population.

Figure 2. Billboard Mirt promotion, Ethiopia (Photo: Verena Brinkmann, GTZ)
Figure 2. Billboard Mirt promotion, Ethiopia (Photo: Verena Brinkmann, GTZ)
Working together with a professional PR or advertising agency to promote efficient stoves can be of great value. Nevertheless, stove producers themselves should be trained in marketing and business skills as they need to understand the requirement for simple promotion activities to attract new customers. The workshop participants also highlighted the necessity of planning an exit strategy for the project right from the beginning. Creating an ownership for stove marketing in other organisations, local NGOs, producers and governmental bodies is one of the most important sustainability factors. Who is going to execute and pay for all activities carried out by the project after it has come to an end?

For more information please contact GTZ HERA at hera@...

[top] [end]Other GTZ news from Lisa Feldmann



[top] [end]Economic evaluation shows benefits of Ugandan stove programme

Investments in efficient cooking technologies pay off. This is the result of a cost-benefit analysis carried out in Uganda, where GTZ’s Energy Advisory Project is implementing an improved stove programme. Within the last two years the project has reached 190,000 households with efficient stoves. “The impact is tremendous, the investment of 1 Euro yields a return of 25 Euro considering all economic benefits over a period of ten years” reports Marlis Kees from GTZ’s household energy programme HERA.

The study quantified the benefits to households as well as the wider national and global benefits as a result of stove use. It found that the economic benefits of the 200,000 improved stoves in use so far are as follows:
  • Higher stove efficiencies led to household firewood savings of about 220,000 tonnes per year amounting to 5.4 million Euros annually
  • Cleaner burning and safer stoves caused less disease and accidents resulting in a household benefit of 0.63 million Euros annually and a further 0.14 million Euros saved by the public health sector each year
  • The 220,000 tonnes of firewood saved negated the need for afforestation at a cost of 7.8 million Euros
  • Avoided CO2 and CH4 emisions amount to 1.7 Million Euros at a CER price of 5 Euros per tonne of CO2eq

Figure 3. Woman cooking on a Rocket Lorena in Bushenyi District, Uganda. (Photo: Ulrich Laumanns GTZ)
Figure 3. Woman cooking on a Rocket Lorena in Bushenyi District, Uganda. (Photo: Ulrich Laumanns GTZ)
The Energy-Saving Stove Project was launched by the Ugandan Ministry of Energy and Mineral Development together with GTZ on behalf of the German Ministry for Economic Cooperation and Development (BMZ). It is financially supported by the Dutch Government. It started working in 2004 in the Bushenyi and Rakai districts in close collaboration with different NGOs. Today, 87% of households prepare their meals on fixed two pot Rocket Lorena or portable one pot Shielded Rocket Stoves. The stoves have become a “must-have”. The project is now tackling ten more districts.

The economic cost-benefit analysis was conducted by the economist Helga Habermehl and is available at www.gtz.de/en/themen/umwelt-infrastruktur/energie/20674.htm

See also www.gtz.de/hera and for further information contact hera@...

[top] [end]Marketing stoves succeeds in Burkina Faso

Marketing is key in successful stove dissemination. This is the experience of the GTZ project Foyers Ameliorés (FAFASO) in Burkina Faso. The start of a marketing campaign in November 2006 had a tremendous impact on sales figures in the two cities of Ouagadougou and Bobo Dioulasso; whilst in October 450 stoves were sold, this rose to almost 1,300 in November and over 1,800 in December. Since then sales figures have risen further and in June 2007 over 2,300 stoves were sold. In total, almost 23,000 stoves have been disseminated.

FAFASO promotes the dissemination of three different types of improved charcoal and fuelwood stoves. To differentiate these stoves from others on the market a control system has been established in cooperation with a scientific institute to assure a defined quality standard and to make this difference visible a label has been created. Only after quality control audits do certified producers get this label for their stoves, creating a unique brand identity for stove promotion.

While previous improved stoves projects in Burkina Faso had alerted the population and NGOs to the theoretical advantages of improved stoves, the campaign was aimed at raising the profile of the labeled stoves and to create confidence in their quality. “We put posters everywhere in the cities and aired radio and TV spots,” Andrea Reikat the FAFASO manager in Burkina explained, “This marketing strategy was not addressed solely at women but husbands too as they are usually the ones who decide about household expenditure. Consequently, the monetary aspect of efficient stoves was highlighted.”

Apart from media promotion, stoves were also presented at trade fairs and exhibitions as well as in public markets. Sponsoring activities were also carried out to obtain a wider media coverage.

Overall the large-scale marketing proved to be successful as stove sales figures have risen significantly.

[top] [end]Regional exchange on improved stoves in West Africa

Figure 4. Delegates at the Dakar regional workshop (Photo: GTZ)
Figure 4. Delegates at the Dakar regional workshop (Photo: GTZ)
A regional workshop on improved cooking stoves was held in the first week of June 2007 in Dakar, Senegal. Participants came from GTZ projects in West African countries such as Benin, Burkina Faso, Madagascar, Mali, Mauritania, Niger and Senegal. Some were already deeply involved in stove projects, others ready to start. The three-day meeting was organised by the GTZ household energy programme HERA. The Senegal project Foyers Ameliorés Senegal (FASEN) also used the opportunity to organise a national meeting on household energy in the same week. At that meeting, policy makers, NGO’s, embassy officials, entrepreneurs and members of the GTZ household projects were present. During the workshop participants discussed stove production and technology, commercialization, communication and project monitoring in a lively manner. It became clear that a commercial approach should be applied and no subsidies should be given to the users or producers. The importance of marketing and promotion as an ongoing process was stressed and that producers and sellers should continue the process after a project has ended. Future activities will include an Internet forum for the discussion and exchange of materials and the organisation of inter-project exchange visits.

[top] [end]Test results show efficiency of Mirt stoves

Figure 5. Baking Injeera on the Mirt stove (Photo: GTZ)
Figure 5. Baking Injeera on the Mirt stove (Photo: GTZ)
Fuel savings of over 50% and carbon monoxide (CO) emission reductions of about 90%, when compared to an open fire, were the main findings of a systematic comparison of three different types of Mirt stoves conducted by the GTZ SUN Energy project in Ethiopia. Improved Mirt stoves are especially designed for the baking of the traditional Ethiopian bread Injera. The tests were conducted as part of a scientific analysis of the specific fuel consumption and indoor air pollutant emission levels. CO and particulate matter (PM) concentrations were measured both during the baking period as well as five minutes before and 30 minutes after the baking of Injera. While the normal Mirt stove showed a 30% reduction of PM compared with the open fire, the newly developed Mirt of Aprovecho showed a reduction of almost 50%. Currently the project is also engaged with the design and adoption of a cooking stove that uses both wood and charcoal.

[top] [end]New brochure: “Cooking Energy – Why it really matters if we are to halve poverty by 2015”

GTZ’s household energy programme HERA has published a new brochure: “Cooking Energy – Why it really matters if we are to halve poverty by 2015”.

Ten points explain the most important facts about household energy. With this publication HERA aims to raise awareness about this so often neglected topic, pointing out its relevance for reaching the Millennium Development Goals.

Download the brochure here (English and French version): www.gtz.de/en/themen/umwelt-infrastruktur/energie/20677.htm

[top] [end]Download the original article

pdf file link GTZ News edited by Agnes Klingshirn (591 KB)

[top] [end]Contents: Boiling Point 54 - Climate change and household energy

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Theme Editorial - Carbon finance for clean cooking – time to grasp the opportunity - BP54:Health and Greenhouse Gas Impacts in Africa - BP54:Carbon Finance for Healthy Kitchens - BP54:Critique of GHG stove assessment methods - BP54: Practical Action CO2 offsetting experience - BP54: Credible Carbon Offsets for African Households - BP54: GTZ News - BP54: Practical Action News - BP54: Marine conservation and energy efficient stoves - BP54: Can Carbon Finance Clean Cooking? - BP54: Rates of smoke emissions - BP54: A Polyethylene Dome for Biogas Plants - BP54: HEDON news



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