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

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

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  • 1. Xylem Essence of LifeKeith TeichmannDirector of Innovative Networks and Marketing
  • 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. 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. Travel, Discussions, ObservationsVoice of CustomerOver750 FVoice of CustomerFarmersInterviewedEvaluationEvaluationQuantitativeQualitativeCompetitiveExtensive and Personal Customer Intimacy
  • 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. 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. 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