June 17, 2010

Welcome to HIP’s Webinar on

Experiences and Lessons Learned in Sanitation Marketing Programs – 2008 to

2010Presenters: Scott Tobias and Morris Israel, ARD, Inc.

The Contents of this Presentation …

• Broad overview of Sanitation Marketing

• HIP experiences in Madagascar, Uganda and Peru

• Take-aways

• Topics that require future investigation

Why the Urgency?

• To reach the sanitation MDG, some 500 million households require reliable sanitation by 2015

• And we must meet minimum standards for infrastructure

• And we need solutions that reach the poorest

• Requires an investment of some US$150 billion in capital costs

• Traditional supply-side approaches cannot mobilize these kinds of resources

• Traditional approaches have not worked

Why Sanitation Marketing?

• Markets can mobilize the massive resources found in millions of households rather than depending on donors and governments

• Markets supply the quality products and services that consumers want

• Markets are financially sustainable as opposed to approaches that rely on external funds

• Marketing is cost-effective and can be taken to scale

• A toilet purchased is a toilet properly used and maintained…

HARDWARE GOODS and

SERVICES

PROMOTIONMARKETING and

PROMOTION

ENABLING ENVIRONMENT

POLICY and LAWS

The Hygiene Improvement Framework (HIF) for a Sanitation Market

HYGIENE IMPROVEMENT

HH SANITATION

SUPPLY (Hardware)

• Designs • Hardware• Construction services • Raw materials• Training

DEMAND (Promotion)

• Behavior, social change• Community mobilization• Social marketing

ENABLING ENVIRONMENT

• Policy, regs and codes• Financing, cost recovery• Partnerships• Inst. strengthening

KEYS&L Savings and LoanO&M Operation and Maintenance

Informal & formal private sector

Providers

Consumer Household

WASTEREMOVALSERVICES

BUILDINGPERMITS

TOILETCOMPONENTS

(RETAIL)

CONSTRUCTIONAND O&M SERVICES

SAVINGS, LOAN& CREDIT

CONSTRUCTIONMATERIALS

(RETAIL)

O & M PRODUCTS

A Conceptual Framework - Sanitation Marketing Institutional Analysis

Local Gov't

Informal & formal waste

collectors collectors

Material Retailers

WASTEDISPOSALSERVICES

Informal & formal

private or public sector

waste disposal handlers

Component manufacterers

TOILETCOMPONENTS(WHOLESALE)

CONSTRUCTIONMATERIALS

(WHOLESALE)

Construction material

manufacturer

S&L, banks, microcredit institutions

Productsuppliers &

retailers

market transactions

Actors

PRODUCTS& SERVICES

provider

regulator

LEGEND

ENFORCEMENT

Component Retailers

What Do We Need to Do…

• Assess and understand the market

• Build capacity and facilitate relationships

• Strengthen incentives

• Nudge the market into “ignition” by supporting key market functions:

o Develop appropriate products and services that respond to consumer preferences (including finance)

o Create appropriate marketing messages and plans for promotion and communication to market the products and services to consumers

HIP Sanitation Marketing Activities

• Madagascar

• Uganda

• Peru

• HIP leads sanitation marketing activities in Madagascar and Uganda and provides support in Peru, working closely with appropriate government and non-government entities …

Madagascar

Objectives

• Privately owned public pay-for-service toilet/shower/laundry facilities appropriate for urban areas, and sanitation/hygiene stores or product lines for hardware stores financed through specially designed bank loans

Context• Ongoing activities in hygiene improvement prior to sanitation market project

• Coup changed partnership situation. HIP moved from national government to community and NGO focus

• Sanitation marketing initiated in 2008 in four activity areas

Partners

• Funding from USAID/Madagascar with Ministries of Health, Water, Diorano WASH Coordination Group, WaterAid, UNICEF, Scout Federation, Red Cross

MadagascarResults

• CLTS activities implemented by Scouts and faith-based NGOs.

• HIP trains local masons to make SanPlat slabs and build quality latrines. Masons receive slab molds, start a business, work for the commune or NGOs.

• Sanitation products point of sales. Small-scale production workshops produce the improved SanPlat latrine slab for resale in hardware stores.

• Public private partnerships for urban neighborhood toilet/shower facilities. Renovated public toilets owned by the commune; facilitated a partnership between the commune and a privately contracted facility manager.

Uganda

Partners• Plan/Uganda, National Sanitation Working Group and

UWASNET

Objectives• Develop Sanitation Marketing program in Tororo

District

• Field test approach and tools for rural sanitation marketing

Context• Supportive enabling environment

• Largely rural setting

• Previous demand creation through CLTS

UgandaResults• Systematic approach with significant market research

• Program implementation focused on sanitation products, esp. the slab

• Introduced new product in response to expressed demand (dome slab)

• Trained supply side actors in production techniques, supported by manuals and options catalogue

• District-wide implementation with key partnerships

• Developed Sanitation Marketing Strategy for Tororo District; platform for replicability and scale-up

PeruPartners• WSP/Peru is lead implementer with support from multiple donors, including USAID Peru

Objectives• WSP/Peru learns how to establish self-sustaining sanitation markets by investigating 5 districts/demographics with

3 NGO implementers

• Coordinate at national level with private sector and GoP to build buy-in for approach

Context• HIP provides technical support to WSP/Peru in

program design, sustainability, M&E, etc.

• Significant investment in up-front market and supply chain studies

• Fully developed demand and supply side approaches

PeruResults

• Distinct demographics and more mature markets than Uganda and Madagascar

• Consumers desire high-rung solutions – pour flush toilets

• Government regulations impact ability to apply intermediate technologies

• Markets established in 4 of the 5 districts – each evolved differently

• Different actors emerge to perform key market functions – marketing and promotion is key function

• Final year to consolidate, learn, build replication capacity in Peruvian organizations

Significant Take-Aways• Complex process that requires specialized skills, resources and

commitment

• Don’t underestimate what it takes to “understand” the market

• Old habits die hard, on several levels

• There is no ONE sanitation market

• Expect the unexpected

• Begin implementing the exit strategy on day 1

• Government and a supportive enabling environment are critical

• Financing coping strategies require focused attention and creativity

And Now What? …Addressing Gaps and Challenges

• Need to understand how to establish sanitation markets in different demographics

• How are essential market functions sustained, replicated and scaled up? o Need post-project evaluations to understand short-term and long-term dynamicso Manuals, guides, policies , and support for low-cost replication, expansion

• Reaching the poorest o Creative financing, organizing bulk purchases, targeted subsidies

• Developing the public sector role in the sanitation marketo Environmental issues, leveraging public sector resources, M&E, quality control

• Integrating objectives of sanitation marketing with public health approaches

Sanitation Marketing Resources

• Water and Sanitation Program (WSP): www.wsp.org – Cairncross, S (2004) The Case for Sanitation Marketing. WSP/World

Bank Field Note

– Jenkins, M (2004) Who Buys Latrines, Where and Why. WSP/World Bank Field Note

– Frias, J and Mukerjee N (2005) Private Sector Sanitation Delivery in Vietnam: Harnessing Market Power for Rural Sanitation. WSP/World Bank Field Note

• Sanitation Marketing for Managers: Guidance and Tools for Program Development (HIP), forthcoming – July 2010

• HIP website: Go to: http://www.hip.watsan.net/page/4388

Contact Information

• Scott Tobias stobias@ardinc.com

• Morris Israel misrael@ardinc.com

• Sandy Callier scallier@aed.org

• Sarah Fry sfry@aed.org

• Malva Baskovitch mbaskovitch@worldbank.org

THANK YOU

Question 1

In what districts in Peru did you implement the program, and what are the demographic differences you found? Which

NGOs participated?

Question 2

Did you find the marketing of SanPlats in rural areas, particularly in Madagascar, effective or challenging due to

lack of large populations?

Question 3

In urban environments, did you find challenges with land tenure where latrines were constructed?

Question 4

In urban settings, were there any particular models works better? Sanitation marketing, SanPlats, or other

alternatives?

Question 5

Most sanitation markets are driven by NGOs.

Do governments get and want to drive the markets themselves?

Question 6

Are there any examples of how you’ve segmented market strategy according to market characteristics for products

and services?

Question 7

In the Peru program, were there specific challenges with the pilot, why did the market not take off?

Question 8

What percentage of their income are people willing to pay for sanitation?

Question 9

Could you comment on the challenges you faced in terms of implementing sanitation marketing in the three countries

where you worked?

Question 10

How can I be actively involved in the field?

Question 11

Do you have any plans to bring sanitation marketing to Haiti?

Question 12

What is the role of government as a purchaser

in terms of the economy of scale?

Question 13

It seems like sanitation marketing approaches require different sets of indicators than those used for conventional

approaches.

What research has been done into which indicators and M&E methodologies will be most appropriate for sanitation

marketing?

Question 14

I work in one of the most remote places in Bhutan. It is difficult to get sanitary hardware transported to the

villages, and few are keen to sell it the village due to its location and sanitary materials are not seen as profitable.

How can I make sanitation improvement accessible to this community?