LifeStraw Go in Ghana:Business Plan

Managing in the Global Marketplace - Cohort S55Michael Appiah, Eric Backer, Erick Traille, Tim Warrick, Shawn Bielke

Agenda• Country Overview: Ghana• Ghana Water, Environmental Issues, and

Sachet Industry• Product Overview: LifeStraw Go• Applications of product in Ghana• Marketing and Promotion• Distribution

The Republic of Ghana• 26,327,649 people (ranks

48th in the world)• Capital City: Accra• Active member of United

Nations• 11 Government sponsored

languages• 1.09 million foreign visitors

annually

Geert Hofstede Cultural Orientation

Economic Overview

• Currency: Ghana Cedi (GH₵) - 1 USD = 3.83 GH₵• Key Sectors: Agriculture, Services, and

Manufacturing

PPP GDP GDP - per

capita

Avg. Monthly Disposable

Salary

Distribution of family income - Gini Index

Ghana $113.3 B

$37.68 B

$4,300 $365 42.3

United States

$17.97 T

$17.97 T

$56,300 $2,790 45

Ghana World Rank

81st na 175th 93rd 53rd

Ghana Water● Water Situation in Ghana:

○ Lack of access to safe drinking water, especially those in poorer areas

○ The Ghanaian government is not able to keep up with the rapid expansion of cities

○ Water shortages due to uneven distribution of rainfall, drought, and poorly managed water resources.

○ Water sachets as their main source of drinking water

● Urban access to treated and piped water is 46 percent (roughly 6.44 million people of 14 million),

● Rural areas have only 35 percent

SWOT for Ghana Water ResourcesStrengths Weakness

● Vast amount of water resources● Many entrepreneurs in the water

sachet business

● Poor infrastructure with regards to clean water and sanitation

● Rapid expansion is proving too much for the government to keep up with piped water

● Water Shortages

Opportunities Threats

● Infrastructure investments● A collectivist culture● Environmental Policy

● Corruption● Water Tariffs● A culture of high uncertainty

avoidance and low long-term orientation

● Drought● Lifestyle change to branded water

Ghana Sachet Industry• 500 ml disposable water packet• 3.65 billion units per year• 30 Sachets per bag (USD $1.50)

(USD $0.05 per sachet)• Estimated Sachet market – USD

$182.5 million• Unregulated Industry • Major contributor to pollution

▫ 270 tons of plastic waste per day

LifeStraw Go• Filters up to 1,000 liters (264 gallons) of

water• Removes 99.9999% of waterborne

bacteria & Parasites including E-Coli, Giardia, and Cryptosporidium

• $29.95 ea - Southern Region• $24.95 ea - Northern Region• Follow The Liters Program

SWOT for LifeStraw GoStrengths Weakness

● Reusable● Environmentally sound● Cost effective in the long run

● Doesn’t produce water, just purifies

● Price is 7% of average monthly disposable income

● Ghana has high on uncertainty avoidance with extremely low long-term orientation

Opportunities Threats

● Urban and rural increases in available water sources

● LifeStraw Go can replace 2000 sachets, 100 dollars, or 2 kilograms of plastic from entering the environment per person

● Bottled water● Sachets (Everpure, Ice Cool,

Mobile, Standard Water, and Voltic)

● Piped drinking water

Pricing Strategy

*Southern Region surrounding capital city of Accra and north to Kumasi

*Northern Region surrounding Tamale and north to Bolgatanga

Tiered Pricing Strategy by Regions and ChannelsSouthern Region* -

Retail PriceNorthern Region* -

Retail Price

Qty Price Discount Price Discount

Buy 1 $29.95 ea base $24.95 ea base

Buy 2 $28.45 ea 5% $22.45 ea 10%

Buy 3 $26.95 ea 10% $19.95 ea 20%

Replacement Filter

$18.95 ea $14.95 ea 20%

Southern Region - Wholesale Price

Northern Region - Wholesale Price

Qty Price Discount Price Discount

Buy 100 $14.95 ea Base (50% margin)

$12.45 ea Base (50% margin)

Buy 250 $14.20 ea 5% $11.85 ea 5%

Buy 500 $13.45 ea 10% $11.20 ea 10%

Replacement Filter

$9.45 ea $7.45 ea

Marketing Goals & ObjectivesYr Objective1 Penetrate 10% of the market of

foreigners 2 Capture 10% of foreigner and urbanite

market with access to fresh water3 Achieve 7% penetration of the total

urban market4 Penetrate 7% of the market of urban and

Rural Ghanians5 Capture 10% of the entire Ghana

population

Five-Year ForecastYear 1 Year 2 Year 3 Year 4 Year 5

Product Sold 109,000(Based on 10% Foreigners)

753,000(Based on 10% Foreigners and Urbanites)

980,000 1,960,000 2,700,000

Revenue (USD) @ $29

$ 3,161,000 $ 21,837,000 $ 28,420,000 $ 56,840,000 $ 78,300,000

Revenue (USD) @ $24

$ 2,616,000 $ 18,072,000 $ 23,520,000 $ 47,040,000 $ 64,800,000

Total Target Marget

7,530,000(Foreigners and Urban people with piped water)

7,530,000(Foreigners and Urban people with piped water)

14,000,000(All Urban residents)

14,000,000(All Urban residents)

27,000,000(Total Ghana Population)

Percent of Total Target Market

1.4% 10.0% 7.0% 14.0% 10.0%

Percent of Final Market

0.40% 2.79% 3.63% 7.00% 10.00%

Promotion of LifeStraw GoStrategies:• Gorilla marketing• Community events• Philanthropy• Push/Pull tactics

Campaign message: “Protect our environment & families – Drink

with LifeStraw.”

Promotion: Gorilla Marketing• Donate 10 LifeStraw Go’s to each of the 56

embassies• Introduction letter highlighting mission• Promote campaign website as a resource:

▫ Studies on success in other countries▫ Plot water sources▫ Tracking trouble pollution areas (community

forum)▫ Organizing community events (community forum)

Promotion: Community Events• Sponsor clean up events

▫ Supported by LifeStraw▫ Initiated by community

• Provide materials for cleaning up• Product giveaways and sales

Promotion: Philanthropy• Provide safe drinking

water to schools across Ghana

• Include information on LifeStraw Go that students can take home and share with families

Promotion: Pull Tactics• 30 Second radio advertisements• Focus on mission and cost savings• Promotional material for resellers• One Lifestraw Go replaces 2000

sachets, saves $100, and prevents 2 kilograms of plastic from entering the environment.

Product Placement and Distribution• Place in and near

transportation hubs for easy visibility

• Placement in 560 shops located in capital cities

• Brand Ambassador Program

• Regional Distribution and Training Centers

Conclusions• Provide safe and

environmentally friendly access to water across Ghana

• Radio Advertisements, Store displays, targeted giveaways, and Brand Ambassador program

• Reach 10% of population after 5 years“Protect our environment & families – Drink with LifeStraw.”

Any Questions???

ReferencesCIA World Factbook - Ghana:https://www.cia.gov/library/publications/resources/the-world-factbook/geos/gh.html

Disposable Income:http://www.numbeo.com/cost-of-living/country_price_rankings?itemId=105

Ghana 2013 Census Data:http://www.statsghana.gov.gh/

Hamline Proquest NewsStand: (Hamline.edu>>Bush Memorial Library>>Databases>>Databases by Name>>ProQuest Newsstand

http://search.proquest.com/newsstand/advanced?accountid=28109

Climate change causes acute water shortage in ghana. (2016, Feb 18). IANS English Retrieved from http://search.proquest.com/docview/1766094895?accountid=28109

ECC wins $400 million water rehabilitation project in ghana. (2012, Sep 01). PR Newswire Retrieved from http://search.proquest.com/docview/1037529320?accountid=28109

Ghana's oil production causes water shortage in second port-city. (2012, Jun 27). Xinhua News Agency - CEIS Retrieved from http://search.proquest.com/docview/1022454281?accountid=28109

Bottled water study

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwjt5-ajsIXMAhWlwYMKHXUtC9UQFggvMAE&url=http%3A%2F%2Fwww.ccsenet.org%2Fjournal%2Findex.php%2Fijms%2Farticle%2Fdownload%2F48792%2F28726&usg=AFQjCNHRNHgYzDygocRDBs051ftCwfhYMA&bvm=bv.119028448,d.amc&cad=rja

Water sources

Stoler, J., Weeks, J. R., & Fink, G. (2012). Sachet drinking water in Ghana’s Accra-Tema metropolitan

area: past, present, and future. Journal of Water, Sanitation, and Hygiene for Development : A Journal of

the International Water Association, 2(4), 10.2166/washdev.2012.104.

http://doi.org/10.2166/washdev.2012.104

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3842094/

LifeStraw Go Website:

http://lifestraw.eartheasy.com/products/lifestraw-go

Little, R. J. (2015). The State of Sachets: Ghana's private sector solution to a public infrastructure problem.

Retrieved from http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1063&context=pitzer_theses

Okioga, T. (2007). WATER QUALITY AND BUSINESS ASPECTS OF SACHET-VENDED WATER IN

TAMALE, GHANA. Retrieved from http://web.mit.edu/watsan/Docs/Student Theses/Ghana/Thesis - Tesha

Okioga 5-18-07.pdf

References Continued...Demand for water per day

http://www.water-for-africa.org/en/water-consumption.html

Udoh F (2012) Nigeria: sachet water business generates N7 billion daily – NAFDAC. All Africa. http://allafrica.com/stories/ 201204200996.html

Interview: Financing, pollution hinder adequate water delivery in ghana. (2014, Mar 22). Xinhua News Agency - CEIS Retrieved from

http://search.proquest.com/docview/1509432328?accountid=28109

Tourism in Ghana

http://data.worldbank.org/indicator/ST.INT.ARVL

http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=257863

Carson O'Keeffe Satterfield, 2010

https://www.modernghana.com/news/282397/going-green-in-ghana.html

http://metromass.com/tour-ghana

https://www.modernghana.com/ghanahome/estates/?menu_id=37&sub_menu_id=715&gender=&cat_id=143&has_price=1

http://easytrackghana.com/travel-information-ghana_local-transportation.php

Price for radio ad.

http://www.gbcghana.com/images/ratecard2013.pdf

Foreign Visitors

http://data.worldbank.org/indicator/ST.INT.ARVL andhttp://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=257863