Xylem Essence of Life

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presented by Keith Teichmann in Asia Water Week 2013, Manila 11-15 March 2013

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Xylem Essence of Life

  1. 1. Xylem Essence of LifeKeith TeichmannDirector of Innovative Networks and Marketing
  2. 2. Upending Traditional Models• Agriculture contributes >50% towards poverty reduction• Farmers make up ⅓ of the world’s population (~2.3B)( 2.3B)• ~1.5B are ‘small holders’ (<1 acre)2 5 Billion peopleBase of the Pyramid• Substantial under‐utilized arable land2.5 Billion peopleLiving on less than $2.50/day• Addressing just 1%, touches 2.9M potential familiesCompelling Market for “Solving Water”
  3. 3. Where Do We Begin?Abject Poverty ProsperitySubsistence FarmerSmallholder FarmerProfessional Small FarmerWaterManagementFarmer Farmer Small FarmerWater Application& StOpen Treadle Pressure Pumps Mechanization& StorageXylem Treadle System$100 PerPortable Solar Cart$600 PerDrum, Bag, Spray, Small Drip Mound Bag, Spray, DripTraditional Methods< $60 Per ~ $100 Per ~ $600 Per< $60 PerSocio‐Economically Grounded
  4. 4. Travel, Discussions, ObservationsVoice of CustomerOver750 FVoice of CustomerFarmersInterviewedEvaluationEvaluationQuantitativeQualitativeCompetitiveExtensive and Personal Customer Intimacy
  5. 5. Stepping to prosperityValue PropositionsVOC Preferences Preto‐TypingPreto‐TypingDesign & Performance: 80% ExertionPrice & Value:Farmer IncomeLabor & Time3X25%Channels:Price & Value: 89% QualityWater ConsumptionLabor & Time 25%40%50% Smaller!50% Lighter!Channels: 57% AvailabilityRural Marketing: Better PerformanceField Serviceableg72% Fellow FarmersDifferentiated Value Proposition
  6. 6. Hybrid Value ChainOEM PartnersBusiness Networks• Partnerships• Synergies• Integrated systems• Supply side• Demand sideNGOsFinancial PartnersR l t hFARMER• Micro financing• Rural lending• Rural outreach• Community influencersGovernment Agencies• Country programs• International projectsCredible ‐‐‐ Scalable ‐‐‐ Defensible ‐‐‐ Sustainable
  7. 7. Reason to Believe…“Don’t underestimate theRural CommunitiesXylem“Don’t underestimate theaspirational quality orentrepreneurial nature ofthose in rural communities”Innovation IncubationVOC & Preto‐TypesThought LeadershipGovernment CredibilityCompelling ‐‐‐ Differentiated ‐‐‐ Sustainable

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