Sales Analysis

Figure 5_2
Reaching the Poor with Sanitation

One of the key questions for the project was the degree to which sanitation marketing penetrates poorer market segments. Willingness-to-pay research feeds into this learning, as do pilot financing mechanisms to reduce cash flow constraints for households wanting to purchase a latrine.

Overall, we have seen a doubling (12% increase) in IDPoor coverage since the baseline in early 2012. 22% of SMSU customers were classified as IDPoor. This equates to roughly 30,000 IDPoor sales to date, well in excess of the satisfactory target of 10,400, but shy of the ‘excellent’ target of 42,000.

Figure 10_2

The figure above presents the SMSU sales breakdown of IDPoor 1 and IDPoor 2 sales alongside the total population breakdown of IDPoor status. In looking at the difference between these two, we see that there are many places where iDE can better serve the IDPoor market. Of course, some of these differences are inflated because there are households in our sample that claimed to have an IDPoor card, but did not know which level they were.

Verified sales figures show the project significantly undersold to IDPoor households in Svay Rieng. In Kandal, however, the percentage of IDPoor 1 customers that businesses have sold to is about 1% higher than the proportion in the total population.

Moving forward, iDE is designing a ‘smart subsidy’ pilot to test ways to increase coverage among the lowest-income households without distorting the market.

As part of this data collection, respondents were asked whether or not they received a full or partial subsidy for the purchase of their toilet. In total, 1.9% of households received a full subsidy and 19% of households received a partial subsidy for the purchase of their latrine. The provinces that had the highest percentage of partial subsidies were Prey Veng, Siem Riep and Otdar Meanchey with 23%, 35% and 13%, respectively.

Figure 6_2
Latrine Sales Exceed “Excellent” Target

Project-connected enterprises cumulatively sold over 141,000 latrines by the end of October 2014.

This exceeded the “excellent” target of 140,000 latrines, and was the result of nearly 80,000 latrine sales in the final year of the project (actually 13 months, with average unit sales of over 6,000 per month).

Figure 7_2

The overall ratio of non-project-connected sales to project-connected sales was roughly 1:1. This could be from a “ripple effect”; that is, broader market activity stimulated as a result of generalized marketing campaigns and local shifts in attitudes and behavior brought about directly through SMSU investments in marketing, sales and business capacity building. In this sense, we would hope to see a leading effect, where SMSU sales are initially a higher percentage of sales in a ramp-up of overall sales activity, followed by a decrease in SMSU market share as other businesses crowd in and capitalize on innovations in product and marketing strategy, as well as overall shifts in consumer attitudes and behavior.

Update: 228,151 latrines have been sold as of May 2016 through project-connected business, with average monthly sales at around 5,000.