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Global Social Benefit Incubator 2008
GSBI Application Exercises Example: BushProof
The following is an adaptation of information submitted by BushProof on Social Edge supplemented with information from their business plan presentation at the 2006 GSBI at Santa Clara University.
Exercise 1: Target Beneficiaries
1.1 Create an estimate of the Total Available Market
1.2 Target Addressable Market (Positioning)
Water Products
Solar Products
1.3: Target Market Segment
Exhibit 1: Madagascar Demographics
Exercise 2: Value Proposition
Question 3: Business Model
BushProof revenue fishbone has both anticipated and existing cash flows. BushProof’s expected revenues come from three main sources wholesalers, rural peddlers, and NGOs. Currently, BushProof receives its entire income from NGOs through consulting services. However, anticipates incomes from wholesalers and peddlers in the future. Since the wholesaler and peddler process are not yet implemented, their initial contribution is zero percent, however, BushProof projects that these two revenues will make 75% of the future revenues.
Income Fishbone Diagram
According to the expense fishbone, the majority of the expenses (70%) are from the production of the products, with the remainder utilized by sales and marketing and general overhead.
Expense Fishbone Diagram
BushProof’s critical success factors are:
Exercise 1: Target Beneficiaries
1.1 Create an estimate of the Total Available Market
| Segment | Size | Needs |
| Madagascar Water Deficient Rural Poor | 14.5 Million | Safe and reliable drinking water at a low cost |
| Madagascar Total Rural and Urban Poor | 17 Million | Low cost option for electricity to improve quality of life and increase productivity |
1.2 Target Addressable Market (Positioning)
Water Products
| Alternative | Characteristics | Size | Positioning |
| Municipal water systems | High capital and expansion costs, requires minimum population density, high maintenance | < 50% Urban Population < 5% Rural Population |
Convenient |
| Chlorinated tablets | Easy implementation, no capital investment, higher recurring costs | <1% generally emergency use | Convenient, pay by dose costs, no large investment |
| Non Consumption | No cost, increased disease, lost productivity, death | 14.5 million | Default |
| BushProof | Rugged product Cost low Effective |
Target 500k/year | Low cost, highly accessible, simple to maintain |
Solar Products
| Alternative | Characteristics | Size | Positioning |
| Hydroelectric and fossil fuel power plants (grid) |
Clean energy High capital costs |
500k rural | Convenient energy supply |
| Non Consumption of electricity | Easy to find, lower costs | 17M | Default, wood & kerosene |
| BushProof | Rugged product, cost low, renewable and low impact to environment | Target 100k/year |
Low cost, durable, easy to use |
1.3: Target Market Segment
| Market Segment Analysis Your social venture: BushProof low-cost drinking water solutions |
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| Target Market | Compelling Reason for Adoption | Reasons for Non-adoption of Product or Service | |
| 1. | Direct Beneficiaries Rural and Urban poor Product: bio-sand filters, low-cost hand pumps, SODIS bags, cost effective solar energy products |
Water Products:
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Water Products:
Solar Products:
|
| 2. |
Indirect Beneficiaries NGOs and Humanitarian Aid Organizations Products: well jetting, low-cost drilling, Canzee pumps, low-cost hand pumps, hand washing bags, SODIS bags, ceramic and bio-sand filters. |
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Exhibit 1: Madagascar Demographics
| Population: |
18,595,469 (July 2006 est.) |
| GNI per capita: | (US$) 290 |
| Age structure: | 0-14 years: 44.8% (male 4,171,821/female 4,158,288) 15-64 years: 52.2% (male 4,809,173/female 4,900,675) 65 years and over: 3% (male 249,414/female 306,098) (2006 est.) |
| Population growth rate: | 3.03% (2006 est.) |
| Birth rate: | 41.41 births/1,000 population (2006 est.) |
| Death rate: | 11.11 deaths/1,000 population (2006 est.) |
| Infant mortality rate: | total: 75.21 deaths/1,000 live births male: 83.34 deaths/1,000 live births female: 66.84 deaths/1,000 live births (2006 est.) |
| Life expectancy at birth: | total population: 57.34 years male: 54.93 years female: 59.82 years (2006 est.) |
| Total fertility rate: |
5.62 children born/woman (2006 est.) |
| Major infectious diseases: | degree of risk: high food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever vectorborne diseases: malaria and plague are high risks in some locations water contact disease: schistosomiasis (2005) |
Exercise 2: Value Proposition
In order to reach large numbers of poor people with safe drinking water and energy solutions, BushProof consciously targets two distinct customer groups simultaneously: the poor themselves, and Non-Governmental Organizations (NGOs) that work with the poor.
Components for your value proposition 1: (rural and urban poor)
Components for your value proposition 1: (rural and urban poor)
- For rural and urban low-income people,
- Who are seeking to protect the health of their family and improve their quality of life,
- BushProof offers a range of low-cost household drinking water and solar energy solutions,
- That provide increased convenience, a higher social status, and improved quality of life
- By providing a healthy, clean and great tasting drinking water conveniently at household level that are privately owned and easy to us without significant recurring costs and by providing cost-effective durable solar energy products
- For NGOs with Water & Sanitation projects that target the poor,
- Who want to reach more beneficiaries faster, more cost-efficient and in a sustainable manner,
- BushProof’s well construction services and appropriate low-cost drinking water products,
- Offers the opportunity to achieve higher impact (more people reached more effectively) for less money while reducing overheads and management costs,
- Unlike doing it by themselves or using commercial contractors,
- BushProof understands NGO needs and is able to work effectively even in remote and difficult areas, where the need is greatest and others can’t reach.
Question 3: Business Model
BushProof revenue fishbone has both anticipated and existing cash flows. BushProof’s expected revenues come from three main sources wholesalers, rural peddlers, and NGOs. Currently, BushProof receives its entire income from NGOs through consulting services. However, anticipates incomes from wholesalers and peddlers in the future. Since the wholesaler and peddler process are not yet implemented, their initial contribution is zero percent, however, BushProof projects that these two revenues will make 75% of the future revenues.
Income Fishbone Diagram
According to the expense fishbone, the majority of the expenses (70%) are from the production of the products, with the remainder utilized by sales and marketing and general overhead.
Expense Fishbone Diagram
BushProof’s critical success factors are:
- Maintaining technical suitability of ‘bush-proof’ product to fit the environment, customer’s needs and budget
- Communicating value of product through marketing messages
- Ability to manage cash flow due to seasonality of revenue and expenses
- Developing effective distribution system for remote areas
- Increasing & maintaining effective partnerships to generate demand for products
