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Daniel Toro, Brian Tran, Rus Williams, Jamie Xiong
Table Of Contents:
Executive Summary
Introduction and Rationale
Creative Brief
Company Background
Country Background
Problem Statements
Situational Analysis
SWOT Analysis
Competitor Analysis
Market Segmentation
Target Marketing
Market Positioning
4 P’s
Communication Strategy
Strategic Marketing
Financial Budget
Implementation and Evaluation
Implementation and Timeline
Conclusion
Appendix
Executive Summary
Jibu is an American-founded company that specializes in selling filtered water to provide
clean, safe, and local water to residents in various parts of Africa - Republic of Congo, Uganda,
and Rwanda. However, Jibu is more of an opportunity company than it is a water company. Jibu
provides seed-financing for business-in-a-box franchises designed to make drinking water
affordable and convenient for the under-served populations. Jibu is individually owned by
franchisees and is equipped with local entrepreneurs who want to help become the solution of
providing clean water. Half of all water projects within the developing world fail within two
years primarily because there is a lack of ownership and proper incentives on the ground. Jibu is
addressing the systemic roots of these issues by empowering local entrepreneurs to start their
own safe water drinking franchises. So, really, Jibu is decentralizing water treatment plants, and
mitigating the need for piped drinking water, just like cell towers erase the need for landlines for
telephone.
For this assignment, we have been tasked to assist Jibu with their marketing plan and
deliverables for their pilot site in Kigali, Rwanda. For the firm’s deliverables, we employed the
B2B and B2C approaches in order to properly and sufficiently reach consumers and franchisees
alike. One flyer has been designated to target locals who are interested in becoming franchisees.
It has been designed to easily track ROI by allowing locals to rip off a small portion of the flyer,
which includes contact information, to be returned back to Jibu. Another flyer was designed
specifically to target prospective customers. We asked our designer, Ann Fitzpatrick, to include
bullet points to deliver a concise and to-the-point message about Jibu: safe, clean, local,
affordable, and in-house filtration system. “Jibu” translated in Swahili is “the answer,” and Jibu
is definitely the answer to the water crisis in developing countries.
Rwanda spends $211 million a year on charcoal, used for boiling water and cooking, and
we plan to market the differences in 1. Costs - charcoal vs. Jibu subscription 2. Time - walking to
get wood and charcoal for boiling water and cooking (on average, 20 hours a week) versus
walking to a nearby Jibu store (planted 1 mile apart from each other) and 3. health benefits -
clean water vs. boiled, contaminated water.
Introduction and Rationale
The B Corporation, Jibu, tries to promote entrepreneurship within communities, seeing
their company more as an opportunity company rather than a water company. Although Jibu
focuses on giving locals the opportunity of opening their own franchise, they also try to help the
community by making clean water affordable to purchase.
Jibu Corporate performs a thorough evaluation of potential sites to increase the
probability that we are choosing profitable and sustainable regions for our RMs, who are then
responsible (in coordination with Jibu Corporate’s) for choosing the actual sites for the launch of
Franchises. Each Jibu water depot is intended to serve a 2km radius and we tend to target high
population density, urban and peri-urban areas. Jibu also relies on our NGO partners such as
Water Missions International and Healing Waters International to provide hygiene education and
community development that helps translate the need for safe water into demand that the needy
are willing to pay an affordable price for.
Creative Brief
We plan to approach marketing and advertising in a personal way using photos with
locals and using locals to sell to locals (both B2B and B2C). The best way to promote our
product for both B2B and B2C is through distribution of flyers and door to door advertising,
especially since Rwanda is not technologically advanced. Another way to creatively approach
the advertising of our product for B2C is to give an incentive for using the product to potential
customers. For example, the buy ten and get one free is a promotional tool that can be
implemented. This will bring customers to realize and create a psychological approach on buying
the Jibu’s product. Another way we plan to advertise Jibu for both B2B and B2C is to post
bulletin boards all across the city and airports.
There are a few ways we want to help market Jibu for both B2B and B2C. We talked
about the importance of distributing flyers around. The design needs to be informational but
simple at the same time. Most of the flyers emphasize the color blue with vector pictures, since a
portion of the Rwandan population are illiterate. The flyers will also stress the importance of
saving health and time, what the community deems very important. The distribution of the flyers
will be done door to door, and placed on walls of high traffic areas. Again, using photos with
locals and employing locals to sell to communities may be most effective.
To prepare for D2D sales (both B2B and B2C), the sales representative should know
his/her product inside and out in addition to providing insight about the problems with public
water. A knowledgeable and well prepared sales person can make a big difference. The
salesperson should also have a quick, precise introduction as to who they are and why they are
there. Most importantly, the sales representative should trust the product and possess a passion
for Jibu. All sales persons should note any questions they receive from the prospective
customers. These questions will be compiled into a FAQ sheet, which can be used for future
flyers, signage, or sales purposes.
A positive attitude to have while selling Jibu can be that every single person in the
neighborhood not only wants your product, but they need it for their own good. This is especially
true for B2C. Instead of the suit and tie sales approach, a friendly neighbor conversation may
attract the prospective customers more. Considering there are no doorknobs in Rwanda so we
can tape or fold and slip flyers under doors or leave a folded/sealed flyer in the door seal. In
terms of B2B, highlighting the fact that owning and operating their own business will not only
help his/her economic status, but the state’s economic status as well.
A simple equation to measure ROI is (Gain from investments)-(Cost) / (the Cost of
Investment). To measure gain from investment from D2D B2C sales, the salesperson stand ready
to make a transaction. These sales transactions will be easy to track, but for the transactions that
take place after the D2D B2C sales, salesperson should provide all of their prospective customers
with a ticket and instruct them to bring the ticket with them to their Jibu store when they are
ready to make a transaction. Another way to track these purchases is to simply ask them how
they heard of the product (Are you a new or returning Customer? If new, how did you hear about
the product – did a salesman come to your neighborhood?) The franchise owner can work these
questions into a friendly conversation. These sales can be recorded separately in order to keep
track of gain from D2D B2C selling.
Company Background
Jibu is a 2-year old company that was founded in Colorado Springs by father and son
duo, Randy Welsch and Galen Welsch. Jibu provides clean water to the citizens of Rwanda,
Uganda, and Congo. At this point, Rwanda’s pilot site in Kigali will be the focus for this
marketing study.
Jibu is individually owned by franchisees. Franchisees are asked that the franchisee put
up $1000 towards the business and in return, Jibu provides the training and the infiltration
system. Jibu is technologically neutral and is not driven by any particular water treatment
approach, so our actual water technology solutions will vary driven by scientific and other site-
specific information gathered from each specific locale. We do not drill bore holes, wells, or
build large municipal water systems at this time. Our focus is treating existing water sources
using modular, semi-industrial water filtration systems which are easily tailored to each specific
locale to ensure quality and taste in addition to safety.
Each Jibu franchise has its own in-house infiltration system. There is a four phase
treatment process- starting with a pre-filter, then through an ultrafiltration membrane which
removes all bacterias and viruses or 99.99%, then it goes through a carbon filter to make the taste
fresh, and the last phase is a chloramine injection and acts as a preservative in the water so that
after we bottle the water and it goes to someone’s home, it is less likely to be re-contaminated.
Jibu trains all employees and partners in customer relations, treatment system operation,
packaging, and on Jibu’s comprehensive operations manual to ensure quality control and
adherence to procedures. The Regional Manager is the primary responsible for franchise quality
assurance, although third party entities are also utilized. Because each Jibu franchise is equipped
with a tablet as the point of sale system, remote and live monitoring of sales and production is
available. Remote monitoring of water treatment output and water quality is being developed.
Country Background
The social and culture of Rwandan includes many different types of people, not only the
population of Rwanda but people in neighboring states that surround this country. Many of these
people particularly come from Congo and Uganda. They speak the Kinyarwanda language; it’s a
really beautiful language which uses a lot of emotions and expressions. The important ethnic
divisions within Rwandan culture between Hutu, Tutsi, and Twa are based on perceptions of
historical group origins rather than on cultural differences. All three groups speak the same
language, practice the same religions, and live interspersed throughout the same territory; they
are thus widely considered to share a common culture, despite the deep political divisions going
on right now within the nation. The Rwandans in Congo and Uganda are made up of both
refugees, who generally maintain a strong identification with the Rwandan national state, and the
Kinyarwanda speakers who have lived outside Rwanda for generations and therefore have a
distinct cultural identity.
Rwanda, by 1994 had more than 7 million people that were all divided into three
ethnicities about 85% of which are Hutu, the Tutsi and Twa which was only 1% of the country’s
population. Ethnic conflict began prior to WW1 where they lost possession of Rwanda to the
Belgium administration. The Hutu political movement began to gain momentum in the late
1950’s as it had most to gain because of majority rule. The uprise of the Hutu created a violent
incident between the people of Rwanda; hundreds of Tutsi were killed as a result of the social
revolution which lasted from 1959 to 1961. This signified the end to Titsu domination and the
start of ethnic tension. Independence was gained in 1962, merely 120,000 citizens, most of which
were Tutsi had fled to neighboring states to escape the violence.
Rwanda is located in east central africa surrounded by the Uganda and the Republic of
Congo. The government type of this country is Republic and has been under the presidency of
Paul Kagame since the year 2000. after taking over as president after Bizimungu, he is the first
Tutsi who has held presidential status. A new constitution was written in 2003 that instituted a
balance of political power between Hutu and Tutsi which 93% of Rwandans voted to uphold.
As President, Kagame has improved social and economic conditions in Rwanda. Kagame
has done a great job in decreasing the amount of corruption and crime as well as nearly doubling
income per capita. Another interesting factor that is resulted from these improvements is that life
expectancy has increased and more and more children are finishing school compared to before
his presidency.
Problem Statements
1. Finding the right location, 2. Finding the right franchisee, and 3. Reaching out to
communities to spread awareness about the water product and franchisee.
Finding the right location is crucial to Jibu. As stated before, Jibu wishes to operate in urban
settings. Seeing that it is a for-profit company, urban settings may allow for more revenue when
compared to remote and highly underdeveloped parts of Rwanda. In addition, Jibu places a big
emphasis on finding the right franchisee to operate the business. Jibu is looking for trustworthy
entrepreneurs who are proven leaders with backgrounds in management. Successful Jibu
franchisees are people with strong understanding of the importance of marketing and sales. They
are willing and able to invest resources and time and committed to improving communities.
Finding the right location and the right fit for a franchisee can be done through the correct
promotional tools and community outreach or D2D sales.
Situational Analysis
Political: Rwandan political and micro economic stability has been increasing since
2010 as well as a slowly recovering in economic activity. Poverty has always been a huge
problem in this country for a long time, and with Rwanda still recovering from the 1994
genocide sponsored by the state which wiped out a lot of people, however their government
states that the country has recovered and is now in a stable state. With GDP increasing with
every year this could be beneficial to a new start up business.
Economic: With a currency reform Uganda has stabilized the economy by undertaking
currency restructuring which raised prices for producers on crops eventually increasing the cost
of petroleum, therefore improving civil service wages, affecting Rwanda. By exporting more
coffee and tea, Rwanda has been able to slowly rebuild its economy; with an 8 % increase on
average between 2001 and 2012. Not only have they began exporting more but Rwanda has also
become a tourist destination, even with the economic reform citizens of Rwanda are dependant
on aid.
Social: With substantial economic and social progress in the past 20 years. Since 1980
life expectancy in Rwanda has increased by 4 years as well as the amount of year children stay in
school. Citizens of Rwanda have very extreme conservative attitudes when it comes to gender
equality. The equality of sexes is irrelevant in Rwandan culture, there are separate
responsibilities expected of the men and women of Rwanda. With these analysis’s a new
business can begin to understand how consumer’s needs are shaped and what brings them to the
marketplace for purchase.
Technological: Technology has been supercharging the economy of Rwanda. As being
one of the least technologically inclined countries in Africa, Rwanda has began training their
citizens to help the growth of their communication and information sectors across the society.
Rwanda has had a huge increase in cellular device users, going from less than a million people
owning cell phones in 2003 to 2.5 million mobile device users in 2010.
SWOT Analysis
Strengths: Jibu water is healthier and more hygienic than boiled public water. In addition,
subscribing to Jibu will save time and money considering Rwandans spends $211 million a year
on charcoal and women and children spend up to 20 hours each week collecting and drying wood
fuel for cooking. Jibu’s product can aid in increasing the expected life span of Rwandans.
Weaknesses: Jibu operates in urban areas, which means there is limited opportunities for
marketing. For example, billboards are almost non-existent and the urban areas have very limited
internet connection. These factors can affect both print and social media marketing opportunities.
In addition, Rwandans’ behaviors and social perspectives about collecting water may be difficult
to change considering this is a tradition and way of life that has been passed down for many
generations. However, what is considered normal isn’t always right. This is all true for both B2B
and B2C.
Opportunities: From a B2C standpoint, creating endorsements by Doctors Without
Borders, or other organizations in the area, would give us the opportunity to teach the
community about the product and why it is a healthier way to drink water. It will help the
community understand how Jibu can help their children and themselves save time, money, and
prevent fatalities due to water diseases. By teaching them with images that can help them
comprehend and learn the difference between having water boiled with coals rather than water
that is purified by Jibu. We believe this should bring a great advantage over all the competitors in
the area and create that necessity for good quality Jibu water for the people.
Threats: In the event of an economic downturn, Jibu customers may resort to obtaining
water the traditional way: for free. This is a threat to the firm for obvious reasons. In addition,
unforeseen or unpredictable government regulations and political unrest can hurt the firm as
well. Lastly, any competitor, either existing or potential, is always considered a threat. From a
B2B perspective, economic downturns can affect potential and current franchisees the same as it
would consumers.
Strengths
● More healthy and hygienic than public
water
● Save time and money
● Increase expected lives of Rwandans
Weaknesses
● Operating in urban areas leads to
limited marketing opportunities
● No billboards to advertise
● Limited ways to reach consumers
without social media being used
● Hard to change minds of the people
from using charcoal to buying water
Opportunities
● Help consumers understand the
importance of clean water
● Possible partnership with different
organizations like UNICEF or Doctors
Without Borders
Threats
● Possible to get water for free instead
of buying water
● Unforeseen government regulations or
political unrest can hurt the company
● New competitors can enter the market
Competitor Analysis
Charity:Water is a nonprofit organization that brings clean and safe drinking water to
people in developing countries. 100% of Charity:Waters public donations go directly to clean
water technologies that range from wells to water filtration. Answering this basic human need,
charity:water offers a lot of opportunities to get involved, from volunteering to fundraising. This
nonprofit organization is located in 20 developing countries in Africa, Asia, Latin America and
the Caribbean. Jibu does not run its business based off of donations, which could help them with
costs. Their advantage is that the franchises can be sustainable, not needing external funding to
help.
WATERisLIFE is another nonprofit organization that brings clean water to those in need.
WATERisLIFE developed a water filtration product called The Straw which provides clean
drinking water when immersed into a water source. In the long term scope, the company teaches
sanitation and hygiene education and monitors their work to ensure the longevity of clean water
sources.They are located in Haiti, Africa, Indonesia, India, Pakistan, Afghanistan and South
America. This product helps those filter water wherever they go, which Jibu cannot offer. Jibu
can gain advantage over this company because their water filtration system can make water more
clean and drinkable compared to the straw. The water filtration system that Jibu has can clean
more water at once, while the Straw can only filter small amounts at a time, taking up more time.
Lastly, JICA (Japan International Cooperation Agency) is a Government program that
helps build water facilities to supply water through. With the help of volunteers, JICA provides
water to those in rural areas. Some of these volunteers help maintain the water rehabilitation
facility. Within this facility, trained volunteers work on sanitation of the water and maintenance
of the handpumps that the community uses. All this is part of the Rwanda Grant Aids Project,
working with the Rwandan government. JICA is located Rwamagana, Kayonza and Ngoma
districts. Jibu is not fully supported by a government program, which may not gain trust from the
people right away. The company is able to overcome this by offering more locations to receive
water from than what JICA can offer in an easier way.
Attributes Jibu Charity:Water WATERisLIFE JICA
Price -300 ml: 10
cents
-600 ml: 20
cents
-1 liter: 40 cents
-1.5 liter: 67
cents
Free Free Free
Location Democratic
Republic of
Congo, Uganda,
Rwanda
Africa, Asia,
Latin America
and the
Caribbean
Haiti, Africa,
Indonesia, India,
Pakistan,
Afghanistan and
South America
Rwamagana,
Kayonza and
Ngoma districts
Overall Benefits Save health and
time, Use water
filtration systems
Helped by
donations, use
water filtration
systems
Personal
portable water
filter
Government aid,
maintenance of
water pumps
Jibu Charity:Water WATERisLIFE JICA
Price 4 2 3 1
Location 3 2 1 4
Usage 1 2 4 3
Overall Benefits 1 2 4 3
Total 9 8 12 11
*Rated on a scale of 1 - 4, 1 being the best choice and 4 being the last choice
Jibu is a for-profit organization, which sets them apart from their competitors. Jibu
incorporates the people of Rwanda in their business model by allowing them to become business
partners or franchisees; this helps build a stronger economy for Africa in general, especially
since its economy has seen little to no growth for a long time.
Jibu is the water sector’s only incubator that offers asset financing and ongoing business
resources to franchisees. Jibu equips emerging market entrepreneurs to launch smart, organically
profitable safe water businesses, which in return is beneficial to the economy as a whole. In
addition, Jibu has top-notch technology that makes safe and clean water accessible to hard-to-
reach customers. Their four step filtration process is one of their core competencies that sets
them apart from their competitors.
By leveraging the latent potential of those who need safe drinking water, we are building
a partnership network of self-propagating, safe water providers. Our franchise model enables
people in the developing world to better control their own destinies and jump-start a virtuous
cycle of wealth generation for themselves and their communities. As the franchiser, we provide
local entrepreneurs with financing, hardware and materials, training, and guidance needed to
start successful businesses treating and selling water.
Market Segmentation
Psychographic: The segment we would like to go after in terms of psychographics would
be Rwandans who value quality over quantity, meaning several liters of clean, safe water at a
time versus an unlimited supply of contaminated water. Jibu also categorizes this as their
“sophisticated” market. This segment is considered to be more educated and aware of social
issues. This is a great target because they tend to understand the importance and health benefits
behind purchasing Jibu water more than the average Rwandan. The traditional way of obtaining
water does not require monetary funds (expect to purchase charcoal to heat the water) and people
can carry home as much water as they can. Although this way of getting water is free it does not
provide Rwandans with quality water. In addition, the psychographics we would like to go after
includes those whose attitudes and opinion about water is that it could be better. Those with this
point of view and opinions would be a great place to start because it takes less convincing that
Jibu is really the answer.
Geographic: Jibu only operates in urban cities throughout Rwanda and throughout
Rwanda, there are underground water pipes sporadically placed for residents to use at their
disposal. Jibu, however, plans to open a franchise about 2km or 1 mile apart from one another.
This ensures that the clean, safe Jibu water is accessible to many.
Behavioral: Attitudes is how you feel about something and behavior can be related to
actions. In terms of behavior, we would like to go after those who 1) have the attitudes as listed
above and 2) commit to their attitudes and adapt easily to new and changing situations (i.e.,
Rwandans who feel negatively about their current water source: attitude - and those same
Rwandans who welcome Jibu and actually use Jibu: behavior). Not only is this attractive, but it’s
smart because we won’t need to use a lot of resources to convince them that Jibu is the answer
because they would already know that. Being open to change and being able to adapt quickly is
important to us because the Rwanda way to getting water is a long lived tradition that has
become social phenomena that is weaved and deeply embedded in Rwandan culture.
Demographic: After meeting with our Jibu contact, Jill, we were informed that the target
market is “anyone and everyone who drinks water.” This is attractive because water is the one
product that everyone in Rwanda have in common. Our marketing and promotions will still
consist of the health benefits Jibu water offers including prolonging life expectancy. In addition,
Jibu would like to penetrate sophisticated markets, meaning populations with a higher
concentration of number of college graduates. Jibu believes that such a market will allow a
deeper penetration as they understand the Jibu product more and how beneficial it can be to their
overall health and economy.
Target Marketing
Jibu’s plan is to open one store each month all throughout urban Rwanda. To help them
reach this goal, the target market we intend to pursue is not just anyone and everyone who drinks
water, but a (sophisticated) market that is comprised of families and college students who are
open to change. College students are educated and understand the health benefits more whereas
parents will see the benefits Jibu’s water will provide to their children. Of all pilot sites, Kigali,
Rwanda presents the most sophisticated market of which customers are very aware of the need
for safe drinking water and eager for affordable solutions.
Jibu sets up local franchisees to sell their safe water at an affordable price. And yet, there
are still those who cannot afford to pay at all. For this portion of the population, Jibu provides
subsidies in the form of water vouchers, which are funded through charitable donations.
Market Positioning
The position we currently occupy in the minds of the consumer is an American firm who
doesn’t understand the Rwandan way of life and an American firm who is trying to change
traditions and culture. The position we would like to own is an American firm working for
Rwandans (and Africa in general) who not only respects their culture and tradition, but want to
aid in its success and longevity by providing clean water.
4 P’s
Product: There are two products that we are trying to offer. One of those products is
selling the franchises. We are trying to expand the company by having others invest and become
franchisees. The second product we are offering is water to the community, providing the option
of different sized water bottles with delivery possible.
Placement: Jibu is active in several parts of Africa; however, for this project we have
been tasked to assist the operation team in Rwanda. Currently, Jibu is opening franchises 2km
apart from one another in urban cities throughout Rwanda.
Price: Price of Jibu water varies per region, driven by local demand and price support.
Jibu’s average price target is US 4-5¢ per liter or $1 per 20 liters which is expected to provide
the average family (5-7) with drinking water for 2-3 days. Pricing is determined by a number of
factors with two of the primary factors being a) local market expectation of quality water prices
and b) making business profitable enough to cash flow the launch of new franchises. Jibu’s
financial model is feasible even with a probable worst case scenario of the lowest cost we could
sell water for combined with the highest expenses to deliver that water. In the near term, Jibu
fully intends to employ proven mobile money technology to enable customers to pay for safe
water with mobile money (via their cell phones.) This will enable the poorest of Jibu’s customers
(“Water Club” members) to pay for water via electronic ‘water credits’ funded by traditional
donation dollars.
Promotion: We are promoting Jibu products through flyers and D2D selling. The flyers
will comprise of short simple facts of the benefits by purchasing Jibu’s water product. The flyer
will be emphasizing how Rwandans can save their health and time by purchasing Jibu water (as
opposed to spending 20 hours a week on gathering charcoal and wood to use for boiling water).
In addition, stickers with the Jibu logo can be distributed to customers as a way to expand on
brand awareness and recognition; however Jibu already has a sticker inventory and it does not
warrant our team to redesign or create new stickers. The flyers will be highlighting Jibu’s
affordability, cleanliness, hygiene, and health factors.
Communication Strategy
We want to emphasize that our product will help our consumers’ lives prosper, saving
time and health. The word “Jibu” means the answer, symbolizing that our product will solve
most of the problems relating to their health. By emphasizing our product to the public with
model figures it will help the consumer grasp the idea of what Jibu’s plan is for Rwanda and the
nation of Africa.
Jibu’s sales tactics are developing as we speak. They are spending a lot of their money in
marketing. That’s when we come in, we asked them to observe the market, since many stores are
open in villages, door-to-door sales must happen for Jibu to succeed. We also gave the idea to
print flyers and put them on main streets where they stop and eat a snack or at airports where
there is high foot traffic. By creating a flyer that is simple to read, it is less complicated to
understand Jibu’s product. This is true for both B2B and B2C . Another idea was to spread
awareness through community outreach of the health benefits clean water provides. However,
moving forward, our team will only focus on the tangible deliverables, B2B and B2C flyers.
Strategic Marketing
Goals: Our goal is to provide urban Rwandan communities with clean water as well as
business opportunities.
Objectives: Educate communities about the health and affordability factors related to Jibu
for B2B and B2C purposes.
Specific: We are opening one franchise a month in Kigali, Rwanda.
Measurable: We can see the additions by calculating if we have more franchises than the
previous month.
Attainable: We are able to obtain this goal by having multiple potential franchisees going
through training before opening.
Realistic: By training multiple potential franchisees at once, it is possible to have one
ready each month to open, preparing a few months in advance.
Timely: We will start at least 2 months in advance to secure a consumer who wants to open a
franchise.
Strategies: One of our strategies is going door to door, spreading the word out and
educating the area about our product with flyers and stickers. With interested franchisees and
customers, we will start to foster a relationship with them, keeping their business in the long
term.
Tactics-Action: We will have meetings for franchisees and customers to go to if they
choose to learn more about our product. Going more into detail, these meetings will most likely
be located at a local established franchise. This will bring them over the edge into wanting to do
business with our company.
Financial Budget
Below is the breakdown from water sales per $1:
Jibu’s financial project: Per our contact, Jill, their budget is up and running. They are
charging well below their competitors in all the countries in Africa and cities they are opening
stores in. Their inventory of sales consists of 300, 600, 1 liter, and 1.5 liters of water. Customers
can also spend more and get more quantity for their buy such as, 5 liters, 18.9, and 20 liters.
Jibu’s Prices in USD:
300 ml: 10 cents (These prices is if they bring in their used bottle)
600 ml: 20 cents
1 liter: 40 cents
1.5 liter: 67 cents
The consumer has the choice to buy 24 pack of each of these options. But since their
market is not custom to drinking clean water they have to consider some sales strategies. By
creating and showing the people from these countries and villages it will create awareness and
demand more sales for Jibu.
Since many people in Rwanda do not have access to the internet, we are staying away
from social media from a B2C standpoint. Jibu has created social media accounts like Facebook
and Twitter already; however it is designed for investors and franchisees alike. We have decided
to use our deliverables for distribution and door to door selling. This requires a budget for
printing and service. The costs can be seen with the table below:
Yearly Marketing Budget
Cost rwf Conversion USD
Printing 151.80 rwf (2,000 Flyers) = 303,600 rwf $0.22(2,000 Flyers) = $440
Service 229,730 rwf(4 People) = 918,920 rwf $332.94(4 People) = $1,331.76
Total 1,222,520 rwf $1,771,76 USD
After speaking with Jill, our Rwanda Jibu point of contact, we concluded the printing
costs to be about 151.80 rwf per colored flyer, or about $0.22 per sheet 8.5 by 11. We summed
up 2,000 flyers because Jibu plans to initially have two franchises in Kigali, Rwanda at the
moment, and continue to grow from there. Each store would have about 1,000 flyers to post and
pass around in the area, which we confirmed with Jill. The population in Kigali is close to a
million people, but the franchises are not operating at a size to reach a market so large. Looking
over costs, we decided that it would be best to pay workers to distribute flyers and talk door to
door for both B2B and B2C purposes. Salary seemed to be most efficient, since paying per hour
and with commission would cost more in the long term. The average salary after taxes in Kigali,
Rwanda, is 229,730 rwf, or $332.94 a year. Each franchise would have two people working
together, posting up flyers and helping promote brand awareness going door to door and creating
buzz campaigns. Again, this is true for both B2B and B2C. The total cost per year with just two
stores would be 1,222,520 rwf, or $1,771,76 USD. The budget can change if the number of
franchises increases. Jibu’s goal is to have a new franchise created at least once a month in
Kigali, but this cannot be definite until the existing franchises establish themselves and grow,
having the community wanting to buy water.
Implementation and Evaluation
Stakeholders are people that are invested in the company however they are not investors.
The actual definition for stakeholders are people who can affect or be affected by the
organization's actions, objectives and policies. In Jibu there are 4 categories of stakeholders:
1 .Executive leadership: Co founder(US), Co Founder (Africa), COO and CFO
2. Board of Directors: Advisory Board Member and 3 other Board members.
3. Eminent Pro Bono Contributors: Research and Impact Lead, Chief Materials and Processing
Engineer Consultant, Chief Operations Consultant, Account Executive and Creative Director
4. Pilot Managers: Pilot Manager-Kigali, Pilot Manager- Lubumbashi, Pilot Manager-
Lubumbashi, Pilot Manager- Lubumbashi
Jibu will be running evaluations the tactics implemented quarterly and if we see a
positive outcome in the quarterly evaluations then after a couple of years we can cut it down to
semiannual evaluations. The action plan if something is not going as planned, Jibu will first
identify the problem, then depending on what it is if it is mechanical then we will have someone
on standby from the local mechanics to come and fix the machine, if it is a complaint from a
customer we will have someone at the front desk of our office who is trained in conflict
management who will be able to deal with management and customer conflicts.
When Where How
Objectives Quarterly Rwanda 360 degree reviews,
surveys
Tactics Quarterly Rwanda Regional
management conducts
review, pass our
surveys
Measures Quarterly Rwanda Keep track of all
records
Evaluation Outcome Semi- annually Rwanda Reflect back on
records, surveys, and
management reviews
Step 4.
Jibu provides permanent access to safe and affordable water throughout Rwanga, each
location only being a mile apart making it easy and accessible for the public. Not only does this
corporation provide people with the education of clean water compared to the dirty water they
drink it also creates jobs in the developing world by allowing people from Rwanda to become
franchisees.
The citizens of Rwanda that decide to take up the franchise opportunity that Jibu has to
offer will develop the franchisees social responsible as leaders and their integrity in the
developing world. The franchisees will learn to forge new partnerships between developed world
resources and developing world potential. As well as leveraging the water distribution network
as a platform to provide for other basic human needs.
Implementation and Timeline
Timeline - 1 year (Short Term Goals)
Goals for End of the Project: To raise awareness about clean water and recruit new franchisees
and new customers to a Jibu water subscription.
2 Months Out
1) Compile a list of potential franchisees
2) Assign a point of contact for potential franchisees to reach
3) Ensure all existing franchisees are equipped with the proper soft and technical skills to record
customer info (i.e. how did they hear of Jibu?)
4) Hire salespeople
4 Months Out
1) Distribute flyers
2) Conduct D2D sales for B2B and B2C
6 Months Out
1) Follow up on existing franchisees on recording customer referral info
2) Conduct a seminar or information session for B2B
8 Months Out
1) Re-distribute flyers and conduct another round of D2D sales
12 Months Out
1) Review tactics and ROI
Implementation Timeline (Long Term Goals)
2 Months out
1) Hire a sales manager for D2D salespeople
2) Implement a full training program with best practices and FAQ from consumers (B2B and
B2C alike)
4 Months Out
1) Hire a manager to oversee outreach or seminars
6 Months Out
1) Gather surveys and reviews from managers to reflect on tactics and objectives
2) Make changes accordingly
8 Months Out
1) Meet with franchisees to see what their needs are
2) Gather info from franchisee about what locals are saying about the product
10 Months Out
1) Allow customers to leave suggestions or comments at franchisees to learn more about what
consumers are looking for
12 Months Out
1) Plan for payment to be paid electronically
2) Employ a research team to re-evaluate ROI and tactics
3) Make changes accordingly
Conclusion:
Jibu is only two years old, yet it has grown rapidly. Their L3C structure mirrors their philosophy:
from the ground level to the corporate level, Jibu believes that sustainable solutions need to be
rooted in an economic engine that incentivizes and rewards ownership. Profit enables Jibu’s
charitable purpose at every tier of operation. Their business model has equipped both Jibu and
communities throughout Rwanda to prosper for many years to come. Outreach and brand
awareness is most important when it comes to marketing Jibu. Placing a significant emphasis on
the fact that Jibu is locally owned and operated can increase their chances of survival in a
developing country. D2D sales at the B2B and B2C level can grow trust within the community,
especially if locals are out in the field. Distributing flyers can target hard-to-reach customers in
terms of geographic and demographic factors. Employing such marketing strategies can create
brand recognition and most importantly, loyalty, especially when the community is so heavily
weaved into Jibu’s business model.
Appendix
http://www.buskirkeng.com/inyenyeri.pdf
http://www.colours-printing.com/about.htm
http://www.siecus.org/index.cfm?fuseaction=Feature.showFeature&featureid=973&pageid=483
&parentid=478
http://jibuco.com/
http://jibuco.com/finacial-model/
http://jibuco.com/mission/
http://www.un.org/africarenewal/magazine/april-2011/information-technology-super-charging-
rwandas-economy
http://c3project.iita.org/UgandaCountryBackground.aspx
http://www.bbc.com/news/world-africa-14093238
http://www.numbeo.com/cost-of-living/city_result.jsp?country=Rwanda&city=Kigali

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JibuFinalPaper

  • 1. Daniel Toro, Brian Tran, Rus Williams, Jamie Xiong
  • 2. Table Of Contents: Executive Summary Introduction and Rationale Creative Brief Company Background Country Background Problem Statements Situational Analysis SWOT Analysis Competitor Analysis Market Segmentation Target Marketing Market Positioning 4 P’s Communication Strategy Strategic Marketing Financial Budget Implementation and Evaluation Implementation and Timeline Conclusion Appendix Executive Summary Jibu is an American-founded company that specializes in selling filtered water to provide clean, safe, and local water to residents in various parts of Africa - Republic of Congo, Uganda,
  • 3. and Rwanda. However, Jibu is more of an opportunity company than it is a water company. Jibu provides seed-financing for business-in-a-box franchises designed to make drinking water affordable and convenient for the under-served populations. Jibu is individually owned by franchisees and is equipped with local entrepreneurs who want to help become the solution of providing clean water. Half of all water projects within the developing world fail within two years primarily because there is a lack of ownership and proper incentives on the ground. Jibu is addressing the systemic roots of these issues by empowering local entrepreneurs to start their own safe water drinking franchises. So, really, Jibu is decentralizing water treatment plants, and mitigating the need for piped drinking water, just like cell towers erase the need for landlines for telephone. For this assignment, we have been tasked to assist Jibu with their marketing plan and deliverables for their pilot site in Kigali, Rwanda. For the firm’s deliverables, we employed the B2B and B2C approaches in order to properly and sufficiently reach consumers and franchisees alike. One flyer has been designated to target locals who are interested in becoming franchisees. It has been designed to easily track ROI by allowing locals to rip off a small portion of the flyer, which includes contact information, to be returned back to Jibu. Another flyer was designed specifically to target prospective customers. We asked our designer, Ann Fitzpatrick, to include bullet points to deliver a concise and to-the-point message about Jibu: safe, clean, local, affordable, and in-house filtration system. “Jibu” translated in Swahili is “the answer,” and Jibu is definitely the answer to the water crisis in developing countries. Rwanda spends $211 million a year on charcoal, used for boiling water and cooking, and we plan to market the differences in 1. Costs - charcoal vs. Jibu subscription 2. Time - walking to get wood and charcoal for boiling water and cooking (on average, 20 hours a week) versus
  • 4. walking to a nearby Jibu store (planted 1 mile apart from each other) and 3. health benefits - clean water vs. boiled, contaminated water. Introduction and Rationale The B Corporation, Jibu, tries to promote entrepreneurship within communities, seeing their company more as an opportunity company rather than a water company. Although Jibu focuses on giving locals the opportunity of opening their own franchise, they also try to help the community by making clean water affordable to purchase. Jibu Corporate performs a thorough evaluation of potential sites to increase the probability that we are choosing profitable and sustainable regions for our RMs, who are then responsible (in coordination with Jibu Corporate’s) for choosing the actual sites for the launch of Franchises. Each Jibu water depot is intended to serve a 2km radius and we tend to target high population density, urban and peri-urban areas. Jibu also relies on our NGO partners such as Water Missions International and Healing Waters International to provide hygiene education and community development that helps translate the need for safe water into demand that the needy are willing to pay an affordable price for. Creative Brief We plan to approach marketing and advertising in a personal way using photos with locals and using locals to sell to locals (both B2B and B2C). The best way to promote our product for both B2B and B2C is through distribution of flyers and door to door advertising, especially since Rwanda is not technologically advanced. Another way to creatively approach the advertising of our product for B2C is to give an incentive for using the product to potential customers. For example, the buy ten and get one free is a promotional tool that can be
  • 5. implemented. This will bring customers to realize and create a psychological approach on buying the Jibu’s product. Another way we plan to advertise Jibu for both B2B and B2C is to post bulletin boards all across the city and airports. There are a few ways we want to help market Jibu for both B2B and B2C. We talked about the importance of distributing flyers around. The design needs to be informational but simple at the same time. Most of the flyers emphasize the color blue with vector pictures, since a portion of the Rwandan population are illiterate. The flyers will also stress the importance of saving health and time, what the community deems very important. The distribution of the flyers will be done door to door, and placed on walls of high traffic areas. Again, using photos with locals and employing locals to sell to communities may be most effective. To prepare for D2D sales (both B2B and B2C), the sales representative should know his/her product inside and out in addition to providing insight about the problems with public water. A knowledgeable and well prepared sales person can make a big difference. The salesperson should also have a quick, precise introduction as to who they are and why they are there. Most importantly, the sales representative should trust the product and possess a passion for Jibu. All sales persons should note any questions they receive from the prospective customers. These questions will be compiled into a FAQ sheet, which can be used for future flyers, signage, or sales purposes. A positive attitude to have while selling Jibu can be that every single person in the neighborhood not only wants your product, but they need it for their own good. This is especially true for B2C. Instead of the suit and tie sales approach, a friendly neighbor conversation may attract the prospective customers more. Considering there are no doorknobs in Rwanda so we can tape or fold and slip flyers under doors or leave a folded/sealed flyer in the door seal. In
  • 6. terms of B2B, highlighting the fact that owning and operating their own business will not only help his/her economic status, but the state’s economic status as well. A simple equation to measure ROI is (Gain from investments)-(Cost) / (the Cost of Investment). To measure gain from investment from D2D B2C sales, the salesperson stand ready to make a transaction. These sales transactions will be easy to track, but for the transactions that take place after the D2D B2C sales, salesperson should provide all of their prospective customers with a ticket and instruct them to bring the ticket with them to their Jibu store when they are ready to make a transaction. Another way to track these purchases is to simply ask them how they heard of the product (Are you a new or returning Customer? If new, how did you hear about the product – did a salesman come to your neighborhood?) The franchise owner can work these questions into a friendly conversation. These sales can be recorded separately in order to keep track of gain from D2D B2C selling. Company Background Jibu is a 2-year old company that was founded in Colorado Springs by father and son duo, Randy Welsch and Galen Welsch. Jibu provides clean water to the citizens of Rwanda, Uganda, and Congo. At this point, Rwanda’s pilot site in Kigali will be the focus for this marketing study. Jibu is individually owned by franchisees. Franchisees are asked that the franchisee put up $1000 towards the business and in return, Jibu provides the training and the infiltration system. Jibu is technologically neutral and is not driven by any particular water treatment approach, so our actual water technology solutions will vary driven by scientific and other site- specific information gathered from each specific locale. We do not drill bore holes, wells, or
  • 7. build large municipal water systems at this time. Our focus is treating existing water sources using modular, semi-industrial water filtration systems which are easily tailored to each specific locale to ensure quality and taste in addition to safety. Each Jibu franchise has its own in-house infiltration system. There is a four phase treatment process- starting with a pre-filter, then through an ultrafiltration membrane which removes all bacterias and viruses or 99.99%, then it goes through a carbon filter to make the taste fresh, and the last phase is a chloramine injection and acts as a preservative in the water so that after we bottle the water and it goes to someone’s home, it is less likely to be re-contaminated. Jibu trains all employees and partners in customer relations, treatment system operation, packaging, and on Jibu’s comprehensive operations manual to ensure quality control and adherence to procedures. The Regional Manager is the primary responsible for franchise quality assurance, although third party entities are also utilized. Because each Jibu franchise is equipped with a tablet as the point of sale system, remote and live monitoring of sales and production is available. Remote monitoring of water treatment output and water quality is being developed. Country Background The social and culture of Rwandan includes many different types of people, not only the population of Rwanda but people in neighboring states that surround this country. Many of these people particularly come from Congo and Uganda. They speak the Kinyarwanda language; it’s a really beautiful language which uses a lot of emotions and expressions. The important ethnic divisions within Rwandan culture between Hutu, Tutsi, and Twa are based on perceptions of historical group origins rather than on cultural differences. All three groups speak the same language, practice the same religions, and live interspersed throughout the same territory; they are thus widely considered to share a common culture, despite the deep political divisions going
  • 8. on right now within the nation. The Rwandans in Congo and Uganda are made up of both refugees, who generally maintain a strong identification with the Rwandan national state, and the Kinyarwanda speakers who have lived outside Rwanda for generations and therefore have a distinct cultural identity. Rwanda, by 1994 had more than 7 million people that were all divided into three ethnicities about 85% of which are Hutu, the Tutsi and Twa which was only 1% of the country’s population. Ethnic conflict began prior to WW1 where they lost possession of Rwanda to the Belgium administration. The Hutu political movement began to gain momentum in the late 1950’s as it had most to gain because of majority rule. The uprise of the Hutu created a violent incident between the people of Rwanda; hundreds of Tutsi were killed as a result of the social revolution which lasted from 1959 to 1961. This signified the end to Titsu domination and the start of ethnic tension. Independence was gained in 1962, merely 120,000 citizens, most of which were Tutsi had fled to neighboring states to escape the violence. Rwanda is located in east central africa surrounded by the Uganda and the Republic of Congo. The government type of this country is Republic and has been under the presidency of Paul Kagame since the year 2000. after taking over as president after Bizimungu, he is the first Tutsi who has held presidential status. A new constitution was written in 2003 that instituted a balance of political power between Hutu and Tutsi which 93% of Rwandans voted to uphold. As President, Kagame has improved social and economic conditions in Rwanda. Kagame has done a great job in decreasing the amount of corruption and crime as well as nearly doubling income per capita. Another interesting factor that is resulted from these improvements is that life expectancy has increased and more and more children are finishing school compared to before his presidency.
  • 9. Problem Statements 1. Finding the right location, 2. Finding the right franchisee, and 3. Reaching out to communities to spread awareness about the water product and franchisee. Finding the right location is crucial to Jibu. As stated before, Jibu wishes to operate in urban settings. Seeing that it is a for-profit company, urban settings may allow for more revenue when compared to remote and highly underdeveloped parts of Rwanda. In addition, Jibu places a big emphasis on finding the right franchisee to operate the business. Jibu is looking for trustworthy entrepreneurs who are proven leaders with backgrounds in management. Successful Jibu franchisees are people with strong understanding of the importance of marketing and sales. They are willing and able to invest resources and time and committed to improving communities. Finding the right location and the right fit for a franchisee can be done through the correct promotional tools and community outreach or D2D sales. Situational Analysis Political: Rwandan political and micro economic stability has been increasing since 2010 as well as a slowly recovering in economic activity. Poverty has always been a huge problem in this country for a long time, and with Rwanda still recovering from the 1994 genocide sponsored by the state which wiped out a lot of people, however their government states that the country has recovered and is now in a stable state. With GDP increasing with every year this could be beneficial to a new start up business. Economic: With a currency reform Uganda has stabilized the economy by undertaking currency restructuring which raised prices for producers on crops eventually increasing the cost of petroleum, therefore improving civil service wages, affecting Rwanda. By exporting more coffee and tea, Rwanda has been able to slowly rebuild its economy; with an 8 % increase on
  • 10. average between 2001 and 2012. Not only have they began exporting more but Rwanda has also become a tourist destination, even with the economic reform citizens of Rwanda are dependant on aid. Social: With substantial economic and social progress in the past 20 years. Since 1980 life expectancy in Rwanda has increased by 4 years as well as the amount of year children stay in school. Citizens of Rwanda have very extreme conservative attitudes when it comes to gender equality. The equality of sexes is irrelevant in Rwandan culture, there are separate responsibilities expected of the men and women of Rwanda. With these analysis’s a new business can begin to understand how consumer’s needs are shaped and what brings them to the marketplace for purchase. Technological: Technology has been supercharging the economy of Rwanda. As being one of the least technologically inclined countries in Africa, Rwanda has began training their citizens to help the growth of their communication and information sectors across the society. Rwanda has had a huge increase in cellular device users, going from less than a million people owning cell phones in 2003 to 2.5 million mobile device users in 2010. SWOT Analysis Strengths: Jibu water is healthier and more hygienic than boiled public water. In addition, subscribing to Jibu will save time and money considering Rwandans spends $211 million a year on charcoal and women and children spend up to 20 hours each week collecting and drying wood fuel for cooking. Jibu’s product can aid in increasing the expected life span of Rwandans. Weaknesses: Jibu operates in urban areas, which means there is limited opportunities for marketing. For example, billboards are almost non-existent and the urban areas have very limited internet connection. These factors can affect both print and social media marketing opportunities.
  • 11. In addition, Rwandans’ behaviors and social perspectives about collecting water may be difficult to change considering this is a tradition and way of life that has been passed down for many generations. However, what is considered normal isn’t always right. This is all true for both B2B and B2C. Opportunities: From a B2C standpoint, creating endorsements by Doctors Without Borders, or other organizations in the area, would give us the opportunity to teach the community about the product and why it is a healthier way to drink water. It will help the community understand how Jibu can help their children and themselves save time, money, and prevent fatalities due to water diseases. By teaching them with images that can help them comprehend and learn the difference between having water boiled with coals rather than water that is purified by Jibu. We believe this should bring a great advantage over all the competitors in the area and create that necessity for good quality Jibu water for the people. Threats: In the event of an economic downturn, Jibu customers may resort to obtaining water the traditional way: for free. This is a threat to the firm for obvious reasons. In addition, unforeseen or unpredictable government regulations and political unrest can hurt the firm as well. Lastly, any competitor, either existing or potential, is always considered a threat. From a B2B perspective, economic downturns can affect potential and current franchisees the same as it would consumers.
  • 12. Strengths ● More healthy and hygienic than public water ● Save time and money ● Increase expected lives of Rwandans Weaknesses ● Operating in urban areas leads to limited marketing opportunities ● No billboards to advertise ● Limited ways to reach consumers without social media being used ● Hard to change minds of the people from using charcoal to buying water Opportunities ● Help consumers understand the importance of clean water ● Possible partnership with different organizations like UNICEF or Doctors Without Borders Threats ● Possible to get water for free instead of buying water ● Unforeseen government regulations or political unrest can hurt the company ● New competitors can enter the market Competitor Analysis Charity:Water is a nonprofit organization that brings clean and safe drinking water to people in developing countries. 100% of Charity:Waters public donations go directly to clean water technologies that range from wells to water filtration. Answering this basic human need, charity:water offers a lot of opportunities to get involved, from volunteering to fundraising. This nonprofit organization is located in 20 developing countries in Africa, Asia, Latin America and the Caribbean. Jibu does not run its business based off of donations, which could help them with costs. Their advantage is that the franchises can be sustainable, not needing external funding to help.
  • 13. WATERisLIFE is another nonprofit organization that brings clean water to those in need. WATERisLIFE developed a water filtration product called The Straw which provides clean drinking water when immersed into a water source. In the long term scope, the company teaches sanitation and hygiene education and monitors their work to ensure the longevity of clean water sources.They are located in Haiti, Africa, Indonesia, India, Pakistan, Afghanistan and South America. This product helps those filter water wherever they go, which Jibu cannot offer. Jibu can gain advantage over this company because their water filtration system can make water more clean and drinkable compared to the straw. The water filtration system that Jibu has can clean more water at once, while the Straw can only filter small amounts at a time, taking up more time. Lastly, JICA (Japan International Cooperation Agency) is a Government program that helps build water facilities to supply water through. With the help of volunteers, JICA provides water to those in rural areas. Some of these volunteers help maintain the water rehabilitation facility. Within this facility, trained volunteers work on sanitation of the water and maintenance of the handpumps that the community uses. All this is part of the Rwanda Grant Aids Project, working with the Rwandan government. JICA is located Rwamagana, Kayonza and Ngoma districts. Jibu is not fully supported by a government program, which may not gain trust from the people right away. The company is able to overcome this by offering more locations to receive water from than what JICA can offer in an easier way. Attributes Jibu Charity:Water WATERisLIFE JICA Price -300 ml: 10 cents -600 ml: 20 cents -1 liter: 40 cents -1.5 liter: 67 cents Free Free Free
  • 14. Location Democratic Republic of Congo, Uganda, Rwanda Africa, Asia, Latin America and the Caribbean Haiti, Africa, Indonesia, India, Pakistan, Afghanistan and South America Rwamagana, Kayonza and Ngoma districts Overall Benefits Save health and time, Use water filtration systems Helped by donations, use water filtration systems Personal portable water filter Government aid, maintenance of water pumps Jibu Charity:Water WATERisLIFE JICA Price 4 2 3 1 Location 3 2 1 4 Usage 1 2 4 3 Overall Benefits 1 2 4 3 Total 9 8 12 11 *Rated on a scale of 1 - 4, 1 being the best choice and 4 being the last choice Jibu is a for-profit organization, which sets them apart from their competitors. Jibu incorporates the people of Rwanda in their business model by allowing them to become business partners or franchisees; this helps build a stronger economy for Africa in general, especially since its economy has seen little to no growth for a long time. Jibu is the water sector’s only incubator that offers asset financing and ongoing business resources to franchisees. Jibu equips emerging market entrepreneurs to launch smart, organically profitable safe water businesses, which in return is beneficial to the economy as a whole. In addition, Jibu has top-notch technology that makes safe and clean water accessible to hard-to-
  • 15. reach customers. Their four step filtration process is one of their core competencies that sets them apart from their competitors. By leveraging the latent potential of those who need safe drinking water, we are building a partnership network of self-propagating, safe water providers. Our franchise model enables people in the developing world to better control their own destinies and jump-start a virtuous cycle of wealth generation for themselves and their communities. As the franchiser, we provide local entrepreneurs with financing, hardware and materials, training, and guidance needed to start successful businesses treating and selling water. Market Segmentation Psychographic: The segment we would like to go after in terms of psychographics would be Rwandans who value quality over quantity, meaning several liters of clean, safe water at a time versus an unlimited supply of contaminated water. Jibu also categorizes this as their “sophisticated” market. This segment is considered to be more educated and aware of social issues. This is a great target because they tend to understand the importance and health benefits behind purchasing Jibu water more than the average Rwandan. The traditional way of obtaining water does not require monetary funds (expect to purchase charcoal to heat the water) and people can carry home as much water as they can. Although this way of getting water is free it does not provide Rwandans with quality water. In addition, the psychographics we would like to go after includes those whose attitudes and opinion about water is that it could be better. Those with this point of view and opinions would be a great place to start because it takes less convincing that Jibu is really the answer. Geographic: Jibu only operates in urban cities throughout Rwanda and throughout Rwanda, there are underground water pipes sporadically placed for residents to use at their
  • 16. disposal. Jibu, however, plans to open a franchise about 2km or 1 mile apart from one another. This ensures that the clean, safe Jibu water is accessible to many. Behavioral: Attitudes is how you feel about something and behavior can be related to actions. In terms of behavior, we would like to go after those who 1) have the attitudes as listed above and 2) commit to their attitudes and adapt easily to new and changing situations (i.e., Rwandans who feel negatively about their current water source: attitude - and those same Rwandans who welcome Jibu and actually use Jibu: behavior). Not only is this attractive, but it’s smart because we won’t need to use a lot of resources to convince them that Jibu is the answer because they would already know that. Being open to change and being able to adapt quickly is important to us because the Rwanda way to getting water is a long lived tradition that has become social phenomena that is weaved and deeply embedded in Rwandan culture. Demographic: After meeting with our Jibu contact, Jill, we were informed that the target market is “anyone and everyone who drinks water.” This is attractive because water is the one product that everyone in Rwanda have in common. Our marketing and promotions will still consist of the health benefits Jibu water offers including prolonging life expectancy. In addition, Jibu would like to penetrate sophisticated markets, meaning populations with a higher concentration of number of college graduates. Jibu believes that such a market will allow a deeper penetration as they understand the Jibu product more and how beneficial it can be to their overall health and economy. Target Marketing Jibu’s plan is to open one store each month all throughout urban Rwanda. To help them reach this goal, the target market we intend to pursue is not just anyone and everyone who drinks water, but a (sophisticated) market that is comprised of families and college students who are
  • 17. open to change. College students are educated and understand the health benefits more whereas parents will see the benefits Jibu’s water will provide to their children. Of all pilot sites, Kigali, Rwanda presents the most sophisticated market of which customers are very aware of the need for safe drinking water and eager for affordable solutions. Jibu sets up local franchisees to sell their safe water at an affordable price. And yet, there are still those who cannot afford to pay at all. For this portion of the population, Jibu provides subsidies in the form of water vouchers, which are funded through charitable donations. Market Positioning The position we currently occupy in the minds of the consumer is an American firm who doesn’t understand the Rwandan way of life and an American firm who is trying to change traditions and culture. The position we would like to own is an American firm working for Rwandans (and Africa in general) who not only respects their culture and tradition, but want to aid in its success and longevity by providing clean water. 4 P’s Product: There are two products that we are trying to offer. One of those products is selling the franchises. We are trying to expand the company by having others invest and become franchisees. The second product we are offering is water to the community, providing the option of different sized water bottles with delivery possible. Placement: Jibu is active in several parts of Africa; however, for this project we have been tasked to assist the operation team in Rwanda. Currently, Jibu is opening franchises 2km apart from one another in urban cities throughout Rwanda. Price: Price of Jibu water varies per region, driven by local demand and price support. Jibu’s average price target is US 4-5¢ per liter or $1 per 20 liters which is expected to provide
  • 18. the average family (5-7) with drinking water for 2-3 days. Pricing is determined by a number of factors with two of the primary factors being a) local market expectation of quality water prices and b) making business profitable enough to cash flow the launch of new franchises. Jibu’s financial model is feasible even with a probable worst case scenario of the lowest cost we could sell water for combined with the highest expenses to deliver that water. In the near term, Jibu fully intends to employ proven mobile money technology to enable customers to pay for safe water with mobile money (via their cell phones.) This will enable the poorest of Jibu’s customers (“Water Club” members) to pay for water via electronic ‘water credits’ funded by traditional donation dollars. Promotion: We are promoting Jibu products through flyers and D2D selling. The flyers will comprise of short simple facts of the benefits by purchasing Jibu’s water product. The flyer will be emphasizing how Rwandans can save their health and time by purchasing Jibu water (as opposed to spending 20 hours a week on gathering charcoal and wood to use for boiling water). In addition, stickers with the Jibu logo can be distributed to customers as a way to expand on brand awareness and recognition; however Jibu already has a sticker inventory and it does not warrant our team to redesign or create new stickers. The flyers will be highlighting Jibu’s affordability, cleanliness, hygiene, and health factors. Communication Strategy We want to emphasize that our product will help our consumers’ lives prosper, saving time and health. The word “Jibu” means the answer, symbolizing that our product will solve most of the problems relating to their health. By emphasizing our product to the public with model figures it will help the consumer grasp the idea of what Jibu’s plan is for Rwanda and the nation of Africa.
  • 19. Jibu’s sales tactics are developing as we speak. They are spending a lot of their money in marketing. That’s when we come in, we asked them to observe the market, since many stores are open in villages, door-to-door sales must happen for Jibu to succeed. We also gave the idea to print flyers and put them on main streets where they stop and eat a snack or at airports where there is high foot traffic. By creating a flyer that is simple to read, it is less complicated to understand Jibu’s product. This is true for both B2B and B2C . Another idea was to spread awareness through community outreach of the health benefits clean water provides. However, moving forward, our team will only focus on the tangible deliverables, B2B and B2C flyers. Strategic Marketing Goals: Our goal is to provide urban Rwandan communities with clean water as well as business opportunities. Objectives: Educate communities about the health and affordability factors related to Jibu for B2B and B2C purposes. Specific: We are opening one franchise a month in Kigali, Rwanda. Measurable: We can see the additions by calculating if we have more franchises than the previous month. Attainable: We are able to obtain this goal by having multiple potential franchisees going through training before opening. Realistic: By training multiple potential franchisees at once, it is possible to have one ready each month to open, preparing a few months in advance. Timely: We will start at least 2 months in advance to secure a consumer who wants to open a franchise.
  • 20. Strategies: One of our strategies is going door to door, spreading the word out and educating the area about our product with flyers and stickers. With interested franchisees and customers, we will start to foster a relationship with them, keeping their business in the long term. Tactics-Action: We will have meetings for franchisees and customers to go to if they choose to learn more about our product. Going more into detail, these meetings will most likely be located at a local established franchise. This will bring them over the edge into wanting to do business with our company. Financial Budget Below is the breakdown from water sales per $1: Jibu’s financial project: Per our contact, Jill, their budget is up and running. They are charging well below their competitors in all the countries in Africa and cities they are opening stores in. Their inventory of sales consists of 300, 600, 1 liter, and 1.5 liters of water. Customers can also spend more and get more quantity for their buy such as, 5 liters, 18.9, and 20 liters. Jibu’s Prices in USD: 300 ml: 10 cents (These prices is if they bring in their used bottle) 600 ml: 20 cents
  • 21. 1 liter: 40 cents 1.5 liter: 67 cents The consumer has the choice to buy 24 pack of each of these options. But since their market is not custom to drinking clean water they have to consider some sales strategies. By creating and showing the people from these countries and villages it will create awareness and demand more sales for Jibu. Since many people in Rwanda do not have access to the internet, we are staying away from social media from a B2C standpoint. Jibu has created social media accounts like Facebook and Twitter already; however it is designed for investors and franchisees alike. We have decided to use our deliverables for distribution and door to door selling. This requires a budget for printing and service. The costs can be seen with the table below: Yearly Marketing Budget Cost rwf Conversion USD Printing 151.80 rwf (2,000 Flyers) = 303,600 rwf $0.22(2,000 Flyers) = $440 Service 229,730 rwf(4 People) = 918,920 rwf $332.94(4 People) = $1,331.76 Total 1,222,520 rwf $1,771,76 USD After speaking with Jill, our Rwanda Jibu point of contact, we concluded the printing costs to be about 151.80 rwf per colored flyer, or about $0.22 per sheet 8.5 by 11. We summed up 2,000 flyers because Jibu plans to initially have two franchises in Kigali, Rwanda at the
  • 22. moment, and continue to grow from there. Each store would have about 1,000 flyers to post and pass around in the area, which we confirmed with Jill. The population in Kigali is close to a million people, but the franchises are not operating at a size to reach a market so large. Looking over costs, we decided that it would be best to pay workers to distribute flyers and talk door to door for both B2B and B2C purposes. Salary seemed to be most efficient, since paying per hour and with commission would cost more in the long term. The average salary after taxes in Kigali, Rwanda, is 229,730 rwf, or $332.94 a year. Each franchise would have two people working together, posting up flyers and helping promote brand awareness going door to door and creating buzz campaigns. Again, this is true for both B2B and B2C. The total cost per year with just two stores would be 1,222,520 rwf, or $1,771,76 USD. The budget can change if the number of franchises increases. Jibu’s goal is to have a new franchise created at least once a month in Kigali, but this cannot be definite until the existing franchises establish themselves and grow, having the community wanting to buy water. Implementation and Evaluation Stakeholders are people that are invested in the company however they are not investors. The actual definition for stakeholders are people who can affect or be affected by the organization's actions, objectives and policies. In Jibu there are 4 categories of stakeholders: 1 .Executive leadership: Co founder(US), Co Founder (Africa), COO and CFO 2. Board of Directors: Advisory Board Member and 3 other Board members. 3. Eminent Pro Bono Contributors: Research and Impact Lead, Chief Materials and Processing Engineer Consultant, Chief Operations Consultant, Account Executive and Creative Director 4. Pilot Managers: Pilot Manager-Kigali, Pilot Manager- Lubumbashi, Pilot Manager- Lubumbashi, Pilot Manager- Lubumbashi
  • 23. Jibu will be running evaluations the tactics implemented quarterly and if we see a positive outcome in the quarterly evaluations then after a couple of years we can cut it down to semiannual evaluations. The action plan if something is not going as planned, Jibu will first identify the problem, then depending on what it is if it is mechanical then we will have someone on standby from the local mechanics to come and fix the machine, if it is a complaint from a customer we will have someone at the front desk of our office who is trained in conflict management who will be able to deal with management and customer conflicts. When Where How Objectives Quarterly Rwanda 360 degree reviews, surveys Tactics Quarterly Rwanda Regional management conducts review, pass our surveys Measures Quarterly Rwanda Keep track of all records Evaluation Outcome Semi- annually Rwanda Reflect back on records, surveys, and management reviews Step 4. Jibu provides permanent access to safe and affordable water throughout Rwanga, each location only being a mile apart making it easy and accessible for the public. Not only does this
  • 24. corporation provide people with the education of clean water compared to the dirty water they drink it also creates jobs in the developing world by allowing people from Rwanda to become franchisees. The citizens of Rwanda that decide to take up the franchise opportunity that Jibu has to offer will develop the franchisees social responsible as leaders and their integrity in the developing world. The franchisees will learn to forge new partnerships between developed world resources and developing world potential. As well as leveraging the water distribution network as a platform to provide for other basic human needs. Implementation and Timeline Timeline - 1 year (Short Term Goals) Goals for End of the Project: To raise awareness about clean water and recruit new franchisees and new customers to a Jibu water subscription. 2 Months Out 1) Compile a list of potential franchisees 2) Assign a point of contact for potential franchisees to reach 3) Ensure all existing franchisees are equipped with the proper soft and technical skills to record customer info (i.e. how did they hear of Jibu?) 4) Hire salespeople 4 Months Out 1) Distribute flyers 2) Conduct D2D sales for B2B and B2C 6 Months Out 1) Follow up on existing franchisees on recording customer referral info
  • 25. 2) Conduct a seminar or information session for B2B 8 Months Out 1) Re-distribute flyers and conduct another round of D2D sales 12 Months Out 1) Review tactics and ROI Implementation Timeline (Long Term Goals) 2 Months out 1) Hire a sales manager for D2D salespeople 2) Implement a full training program with best practices and FAQ from consumers (B2B and B2C alike) 4 Months Out 1) Hire a manager to oversee outreach or seminars 6 Months Out 1) Gather surveys and reviews from managers to reflect on tactics and objectives 2) Make changes accordingly 8 Months Out 1) Meet with franchisees to see what their needs are 2) Gather info from franchisee about what locals are saying about the product 10 Months Out 1) Allow customers to leave suggestions or comments at franchisees to learn more about what consumers are looking for 12 Months Out 1) Plan for payment to be paid electronically
  • 26. 2) Employ a research team to re-evaluate ROI and tactics 3) Make changes accordingly Conclusion: Jibu is only two years old, yet it has grown rapidly. Their L3C structure mirrors their philosophy: from the ground level to the corporate level, Jibu believes that sustainable solutions need to be rooted in an economic engine that incentivizes and rewards ownership. Profit enables Jibu’s charitable purpose at every tier of operation. Their business model has equipped both Jibu and communities throughout Rwanda to prosper for many years to come. Outreach and brand awareness is most important when it comes to marketing Jibu. Placing a significant emphasis on the fact that Jibu is locally owned and operated can increase their chances of survival in a developing country. D2D sales at the B2B and B2C level can grow trust within the community, especially if locals are out in the field. Distributing flyers can target hard-to-reach customers in terms of geographic and demographic factors. Employing such marketing strategies can create brand recognition and most importantly, loyalty, especially when the community is so heavily weaved into Jibu’s business model. Appendix http://www.buskirkeng.com/inyenyeri.pdf http://www.colours-printing.com/about.htm http://www.siecus.org/index.cfm?fuseaction=Feature.showFeature&featureid=973&pageid=483 &parentid=478 http://jibuco.com/ http://jibuco.com/finacial-model/ http://jibuco.com/mission/