projecteverest

Proposed Experiment

[Proposed Experiment] Fuel Fiji Jan 2019 Distribution Channels: Village Ordering Systems

Lean Phase: Supply Chain and Key Activities

 

Assumption: That village headman ordering system is a viable distribution channel

1. The headman is willing and able to work with us to create a stove ordering system

2. There is at least one of our customer segments in villages willing to purchase the Bukka Stove

3. The previously mentioned customer segment will express interest in buying the Buka Stove from the headman

4. There are people who will express interest to the headman who will then buy a stove

 

Time Box: 4 weeks

 

Key Metrics:

  1. Percentage of villages agreeing to use ordering system

  2. Number of EOIs gathered through the ordering system in the two weeks following a village visit

  3. Scale of EOI (level of interest - conversion rate to be tested in Feb)

  4. Type of purchase (loan or upfront)

 

Success Criteria

Green Light Point –  

  • 50-100% of villages agreeing to use ordering system

  • 8 or more EOI’s gathered through the ordering system in the two weeks following the village visit

  • 5 or more contact details exchanged in the two weeks following village visit.

Green Light Proceed:  

  • Solidify the distribution channel by setting up an ordering and delivery system. Potentially hiring an employee to work with PEV and further implement the channel.

 

Orange Light Point -  

  • 25-49% of villages agreeing to use ordering system

  • 8 or more EOI’s gathered through the ordering system in the two weeks following the village visit

  • 1-5 contact details exchanged resulting from headman’s order in the two weeks following initial visit.

Orange Light optimise:  

  • < 25% of villages agreeing to use ordering system

  • Review and repeat experiment. Look at the results of first experiment for areas of improvement, redesign experiment implementation (e.g. change pitch, alter how EOIs are collected/delivered, change price point etc.). Implement redesigned experiment for the next village, noting effects of changes, and possible changes for future. Review and repeat.

 

Red Light Point –

  • No contact details exchanged.

Red Light Failure:

  • Look into why this distribution channel failed, this may require returning to village for further empathising. Use data to gathered to review and improve other distribution channels.

 

Method:

 

  1. Contact December PEV Fuel Distribution Team - Carissa Long for background information regarding progress.

  2. Use above information to determine which villages have been visited or had meetings so they are not re-visited. Establish new villages that are interested in having a meeting about setting up an ‘stove ordering system’.

  3. Map out realistic routes for visiting the new villages for efficiency.

  4. Understand the SOP for respective villages and create an appropriate pitch/script for the meetings. Meetings are expected to go as follows:

  • Greetings and introduction with village headman

  • Pitch - includes stove explanation and benefits (financial, health etc.)

  • If there is interest, explain stove ordering system (laminated sheets with PEV contact details, Buka Stove images etc.)

  • Hand out copies of stove ordering system

  • Explain to the Headman to text message the “Fuel” contact number on the laminated sheet each time an EOI occurs

  • The “Fuel” team will call village members as EOIs are texted from the Headman

  • During communication with village members, confirm level of interest and willingness to buy a stove (assuming there is supply (available)

  • Once there are a reasonable number of strong EOIs (5 or more) in a village, each villager will be contacted again for confirmation and the stoves will be delivered for sale

  1. Combine EOI forms with main data survey from Fuel Value Proposition Team.

 

Fiona Aaron 5 months ago

Could you please clarify what the 'stove ordering system' is and what the proposed benefits? How many customers could we reach? What's in it for the person doing the selling?

Reply 0

Haziq Ahmed 4 months ago

Hi Fi,

The current method of going to villages to make sale is quite labour intensive and relies heavily on PEV as it involves contacting the village headman to organise a meeting, taking a number of stoves to that village, demonstrating the stove and then making some sales (hopefully). What previous months have identified that even if people are interested in buying the stove, most of the time villagers dont have liquid money to pay for the stove. This results in either us relying on them to come down to Sig Town or having to go back to the village again.

The stove ordering system is a method where the village headman can act as the middle man between PEV and the customers. Obviously this is still in its refining stages but the initial idea was for the village headman to gain EOIs over a couple of weeks and then contacting PEV advising of the number of people interested in buying the stove. This gets rid of the two main issues with the previous method of making sales 1) customers have liquid cash as they are expecting PEV to bring Stoves and 2) We dont have to make multiple visits to the village. As for it being reliant on PEV to go to villages I'm sure this is something that Feb will look into.

The customers we reach will depend on the size of the village and number of households, the experiment looks into whether this is a viable option for us to continue or not down the track. As for the headmen, legally, we cannot pay them any compensation for selling the stove. The value prop for them is the health, environment and cooking benefits of villagers using the stove.

Let us know what you think?

Reply 0

Jess Riley 5 months ago

Status label added: Proposed Experiment

Reply 0

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