As American Standard’s Jim McHale explains, more than 2,000 children in developing areas die every day from poor sanitation problems. Many people in poor regions use pit latrines, which enable flies to easily spread disease. American Standard examined why people were using unsealed latrines and designed a new product that worked with current user behavior while keeping the product cost to about a dollar. “Product development works when the people involved are treated and listened to as customers, not beneficiaries,” McHale says.

1. Developing World Solutions Pointing the
Way to a Developed World Future
Natasha Davidson, Philips Lighting
Jim McHale, American Standard

2. Lighting Up Africa
Enabling Life in the Evening in Rural Africa: Philips
Community Light Centers

3. 2
The story of Frederick and ‘Soccer Kesha’

4. Confidential Sector, MMMM dd, yyyy, Reference
The Philips Vision: We strive to make the world
healthier and more sustainable through innovation
Our Mission: Improving people’s lives through meaningful innovation

5. 4
The Inspiration: 560 million Africans live in off-grid
areas, without electricity, and are at a disadvantage
compared to other world communities

6. Our commitment : To ‘light up Africa’ with the
creation of Community Light Centers
5

7. 6
What is a community light center?

8. What is a “Community Light Center”?
It is an area of 1000m2 , lit using the latest Solar
powered LED lighting
7

9. We will deliver over 100 “Community Light Centers”
across Africa in collaboration with the KNVB and
supported by the UN
8
12
26
19
271
13
2
6
5
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2
5
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10. 9
We invite the Sustainable Brands community to join
us in Lighting up Africa!
Principal Paul Ojero, Raila Education
Centre in Kibera
•! One light center available
for use by SB community
•! Where: Raila Education
Centre in Kibera, Nairobi,
Kenya
•! What: education
sessions, community
meetings, market place,
sports gatherings
•! How: schedule via the
school principal

11. 10
Vincent, 14
“I like playing football so much.
Before these lights were here, we
even played by the light of a torch
powered by batteries. But of course
that didn’t really work well. Now we
can play properly”
“Things have changed a lot because
of the lights. We have electricity at
home, but when there’s a power
blackout I come here to read and
study. I think that already happened
about five times.” Catherine, 15
The impact of the light centers, from the students

12. 11
Frederick and ‘Soccer Kesha’ . . .enabling life in the
evening

14. Rebuilding a legacy brand by building new
markets for sanitation

17. Posters Created by US Works Progress Administration, 1940

18. A REPORT BY the London School of Hygiene and Tropical
Medicine In Collaboration with Domestos (Unilever), 2012
Global Causes of Child Deaths…

19. Apply Our Product Design, Manufacturing, and Distribution
Expertise to Develop a Better Toilet System for Bangladesh

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Total cost ~ $7 - $10 USD
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27. 14

28. Latrine Pan Design Criteria
Feature Target, Goal, or Specification
User interface Requires no change in behavior
Size Equal to existing pans~40cm x ~22cm
Water seal depth > 1.25cm
Flush volume < 1.5 liters, poured from a bodna
Performance > 150g of encased miso paste
Performance Minimal or no splash-back during use
Target cost < $1 USD
Goal: Develop an affordable pour-flush latrine pan that
effectively isolates waste and improves the user experience.

29. Existing Cup Trap 12th Iteration Optimized Trap
Computational Fluid Dynamics Simulations

38. •!Partnering with PRAN-RFL Group to manufacture
and distribute in Bangladesh.
•!Production started in March 2013.

39. Production Parts

40. Sustainable Business Model
Current Latrine Cost 480 – 800 BDT (40 BDT is plastic pan)
Step in Supply Chain! Price in BDT!
RFL Ex-Factory Price! 70!
RFL’s Sales, Distribution, Marketing, and Overhead (SDMO)! 14!
Total Cost Ex-Factory + SDMO! 84!
American Standard Royalty! 8!
Price from RFL Group to RFL Distributor! 92!
Wholesale Price from RFL Distributor to Local Shopkeeper! 102!
Local Shopkeeper Retail Price to End Consumer (MSRP)! 120!
New Latrine Cost 560 – 880 BDT (120 BDT is plastic pan)

43. Lessons Learned
•! Product development for the BoP works when the people involved are
treated and listened to as customers, not beneficiaries.
•! Consumers at the BoP want quality products and are willing to pay for
them. Businesses just need to listen and deliver.
•! Know your strengths and get good help where needed.
•! Sustainable business models are possible… with the right design and a
good understanding of the market.
•! Think and develop locally, then leverage global scale.
•! Taking on this challenge provided an extremely effective way to leverage
our heritage of innovation, reinvigorate employees with an expanded
notion of purpose, and get the company back on a growth track.

44. Thank You!