Need Water? there’s an APP for that! (Affordable Pressure Pump)
Team Need Water? Laura Jones Nate Meng Isaac Penny & IDE Myanmar present: a valve story: redesigning the pressure pump
thebigidea Simplify the design of the pressure pump to make it more affordable and robust target: valve system 47 fewer parts result: $10 price reduction
INTRODUCTION USER + NEED = INSIGHT BUSINESS CASE HOUSEHOLD ECONOMICS IMPACT ON A FAMILY NATIONAL IMPACT: SALES FORECAST DESIGN DIRECTION MEET PP VERSION 1.0 LESSONS FROM THE PRL MEET THE PROTOTYPE FUNCTIONALITY IMPLEMENTATION PLAN CHANGING THE IDE PRODUCT MIX DISTRIBUTION AND MARKETING PRICING STRATEGY SALES DRIVERS AND COST SAVERS BENEFITS TO IDE NEXT STEPS TESTING INTELLECTUAL PROPERTY MANUFACTURING WHAT NOW?
user: a poor farmer in myanmar Meet AungKoKo. Cash crop farmer. Son uses hand pump. He feels like giving up. He can water only a small area & makes little profit Considering buying a Suction Pump. Dry season income: + $1/day. With a Pressure Pump, he could earn double.
needs… safety convenience flexibility (the benefits of a Pressure Pump)
to eliminate… unnecessary labor danger carrying 60 lbs of H20 for six hours a day in 95° heat 11-yr old treadling 8 ft in the air in 95° heat (the drawbacks of a Suction Pump)
at a cost of $35 US or less… UNITS SOLD $25-$35 products are in the pricing sweet spot Nargis YEAR Why this price point? Despite unprecedented economic hardship users can still save to purchase. Value is more important than ever.
P.O.V. A poor farmer in Myanmar needs the convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump (Why? More Plot for your Kyat*)
Users get more plot for their Kyat*(*Kyat = Myanmar currency) A Pressure Pump user can irrigate 2X as much land as Suction Pumps during the dry season, and earn roughly 2X the income
$138 school expenses for 3 children additional agricultural inputs 1 pig seed funding for a small business 6 flocks of ducks 1 fishing net repurchase of pawned items 3 months of medical care for tubercular child 44 mosquito nets 1 extra meal/day all year for a family of 4 6 flocks of chicks
Enabling users to upgrade from suction to pressure pumps will have significant country-wide impact We are here (2009) Nargis Wealth created by the APP in a single year: 22,143 * $138 = $ 3,055,738 inMyanmar
At $35, the APP should replace the current pressure pump and largely replace the mobile suction pump UNITS SOLD Remember the pricing sweet spot? ($25-$35) YEAR The APP simplifiesIDE’s product line
who else needs to buy in?Demonstrators are the key to distribution and marketing. They control channel & need to see market potential (price + benefits)
Currently, every customer must make a trade-off options within current IDE product line dominant low-end choice dominant high-end choice The APP simplifies the decision and reduces the guess-work for the demonstrator None Low Med Hi Very Hi
insights on adoption:in order for users to buy it, demos need to show it. They usually show 2 models per demonstration easy to assemble Pressure Pump KEY Mobile Frame Current IDE Product APP expensive cheap Frequently Demo’d Tripod Targeted niche New demo set Pump Head difficult to assemble Demonstrator adoption is driven by unit sales potential (linked to commission) and ease of installment
How to hit the $35 price point? while the APP requires a subsidy to hit the necessary price point, the robustness of the product will offer IDE compensatory benefits…
Replacing the current pressure pump with the APP,will increase sales while decreasing overhead costs retail price parts units sold material costs COGS direct labor distribution & marketing cost rework in QC demonstrations field repairs word of mouth replacement
IDE benefits… simpler cheaper reworks product better repairs replacements fewer complaints positive word-of-mouth demonstrations more units sold reputation efficiency use of funds better impact
H2 get from design to manufacturing: fieldtesting Durability and User Feedback: Key to success and design iteration Forty pump field test: Three Months Manufacture valve components in US: High tolerance (0.005”) Lowers integration time Will give IDE|M right of first refusal on Intellectual Property Estimated cost $14,422
manufacturing Processes Basic Lathe and Mill Welding for valve attachment Injection Molded Valve / Body Materials Plastic Valve / Body for Corrosion Timeline Initial Production in Myanmar Import some components, if cost savings can be realized
what next? increase port size field test determine IP strategy iterate on design file provisional patent manufacture in-country secure product patent collect feedback determine whether to license iterate on manufacturing Sell via IDE Myanmar stabilize manufacturing manufacture in China export in test market (India) export worldwide
convenience the APPcan offer poor farmers in Myanmarthe convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump flexibility & (no more 11-yr-olds treadling 8ft in the air) safety
With a $35 investment in the APP, he could earn an extra $138 each year
thanks to… IDE TEAM COACHES SPONSORS TEACHING TEAM Jim Taylor Debbie Taylor David Klaus Yin Mon Soe Yu Yu Aung Jeff Burkebile Krista Donaldson Stuart Coulson AnurupaRao Alan Asbeck Vicky Chiang Jim Patell Dave Beach Erica Estrada CarlyGeehr Audience! Need Water? there’s an APP for that! (Affordable Pressure Pump) Laura Jones . Nate Meng . Isaac Penny
but, if this is such a huge opportunity, why is the $35 pressure pump not already available? a timeline 2006 “Under Pressure” Target Cost: $25 Part Count: 14 2009 APP Retail Cost: $35 Part Count:98 2007 IDE Pressure Pump Retail Cost: $45 Part Count: 148 The goal of the first Pressure Pump team was similar to ours—design a pump that cost ~$30. But, from design to manufacturing, on the fly decisions increased part-count and price. The APP simplifies the design without sacrificing functionality.