Cover Image
close this book Boiling Point No. 30 - April 1993
View the document Sales & Subsidies
View the document Why Commercialization for Stoves ?
View the document Report of the International Seminar on Stove Commercialization
View the document Commercial Marketing for the Indian NPIC- National Programme on Improved Chulhas
View the document A Commercial Drop in an Ocean of Subsidy
View the document Commercialization of Kenya's Rural Stove Programme
View the document Ahibenso - The Improved Ghana Coalpot
View the document Cooking Stoves for Commercial, Sustainable Production & Dissemination in Africa
View the document Poor Project Planning & Unsuitable Stoves
View the document Chulhas for Tibetan, Communities in India
View the document GTZ Section
View the document Stove Dissemination in China
View the document Stove Designing For Successful Marketing
View the document Practical Tips for a Marketing Strategy
View the document ESMAP in the 1990s
View the document Fiji Woodburning Stoves
View the document The Health Impacts of Biomass & Coal Smoke in Africa
View the document Smoke Gets in your Eyes-and Forms Cataracts
View the document NEWS

Sales & Subsidies

One of the aims of any improved stoves programme must be to maximise the number of stoves in use, in order that benefits can be enjoyed as widely as possible. In the initial stages of a project, stoves are often given away or sold at greatly reduced prices in order both to test the acceptability and to raise public awareness of a particular type of stove. Distributing stoves in their thousands calls for a very different approach. The success or failures of a stoves programme can often be dictated by the distribution method which is adopted. Some programmes continue to distribute subsidised stoves through NGOs or government networks; others turn completely to commercial channels, while many use a combination of the two approaches. Different types of stove lend themselves more readily to one approach or another. Portable, one-pot stoves are easy to sell in the market place; larger "built in" stoves require the services of trained artisans and cannot be sold on the open market.

A commercial market for stoves is governed by the laws of supply and demand and so has the potential to expand and become self-sustaining. However, the people who afford to buy stoves may not be those who most need them. Subsidised distribution, on the other hand, can be directed to benefit funding from institutional sources, which can lead to bureaucratic inertia and inefficiency. This edition of Boiling Point reports the experiences and lessons learnt from several different stove programmes. We hope that it will help stove programme planners to determine the dissemination methods most suitable for them to achieve widespread impact.

 

ACTIVITY

IMPLICATIONS OF COMMERCIALISATION FOR STOVE AGENCIES

INTERNAL

1 Get used to a completely different role for the agency

ORGANISATION OBJECTIVES

2 Need different staff skills (few extension workers) for new role examine agency objectives and assess their compatibility with the likely impact of commercial appraoch (ea. target group, type of benefits etc);

 

- commercialization is likely to occur at a time when objectives arebroadening for:

 

- rapid expansion

 

- reducing dependency on donors

 

- planning eventual agency withdrawal and sustainability

RESEARCH AND DEVELOPMENT

Re-orient R&D to design Marketable stoves: attractive, transportable, easy to install, range of sizes/types, competetive with other marketed stoves; market research: stove market, purchasing power, distribution networks etc.

PRODUCTION

identify producers willing to take initiative and risk, not just meet orders;

 

develop effective quality control mechanism;

 

producers provide repair and maintenance system;

 

continued access to training, information, machines and tools needed at project end;

 

coordinate production with marketing networks.

 

develop a marketing and advertising strategy;

DISSEMINATION

recognize new system of target setting;

 

work with profit-seeking retailers and wholesalers;

 

Ioss of extension workers role;

 

greater influence of external factors on achieving targets;

 

Ioss of direct contact with users;

 

Ioss of direct control over quality, price, location of sales.

 

promotion is impersonal, not face-to-face with users;

PROMOTION

commercial techniques: eg posters, adverts etc and related promotional skills needed;

 

find a marketable and credible message and agency image.

MONlTORlNG & EVALUATION

need to monitor activities you don't control (ea. dissemination). people

 

you no longer meet (users); and unanticipated impacts ea. social and employment;

 

need market research and monitoring staff and skills.

FUNDRAISING

explain to donors that they need to risk more in order to achieve more;

 

need high initial investment: R&D, Market research, production set-up, advertising;

 

convince donors that considerable institutional involvement and long term funding may be needed for R&D, training, promotion, M&E, and business management.