Marketing Strategy for Promoting Clean Cooking Solutions and Solar Products

P a g e | 0
0
WOMEN ECONOMIC EMPOWERMENT: Women in
Energy Enterprise in Kenya project
Market Analysis and Strategy for the promotion of Improved Cook
Stoves, Solar Products and Biomass fuel briquettes in Kenya; A
Marketing Strategy for Seven Counties in Five Regions in Kenya
2016
Martin Ombima,
P.O.BOX 2696 40100 Kisumu
Tel +254721710323/0786710323
Email: Martin.ombima@gmail.com

1
Marketing strategy for ICS, Solar Products andBiomass fuel briquettes for women owned enterprises in
Kenya, 2016
ACKNOWLEDGEMENT................................................................................. ERROR! BOOKMARK NOT DEFINED.
LIST OF ACRONYMS ..................................................................................................................................2
GLOSSARY ...................................................................................................................................................3
1.0 BACKGROUND............................................................................................................................................5
1.1 OBJECTIVES ......................................................................................................................................................6
1.2 THE APPROACH ADOPTED ...................................................................................................................................6
1.3 HOUSEHOLD ENERGY DEMAND AND SUPPLY TRENDS IN KENYA....................................................................................7
1.3.1 Defining the target market for WEEK ...................................................................................................8
1.3.2 Willingness to Pay For Improved Energy Services .................................................................................9
1.3.3 Population segmentation by geographic, economic and fuel use patterns ..........................................9
1.3.4 Competition SWOT analysis ................................................................................................................10
1.3.5 Target market segments for WEEK .....................................................................................................11
2.0 TARGET MARKET SEGMENTS ANALYSIS FOR WEEK ..................................................................................11
2.1 SEGMENT 1 KEY INSIGHTS..................................................................................................................................11
2.1.1 Urban and Peri-Urban Middle Class....................................................................................................11
2.2.1 Urban and Peri-Lower Middle Class....................................................................................................14
2.3.1 Urban and Peri-Low income................................................................................................................16
2.4.1 Rural -Middle class..............................................................................................................................17
2.5.1 Rural –Lower middle class...................................................................................................................19
3.0 MARKETING STRATEGY FOR THE FIVE TARGET SEGMENTS BY WEEK........................................................21
3.1 SEGMENT 1 MARKETING STRATEGY: URBAN AND PERI-URBAN MIDDLE CLASS..............................................................21
3.2 SEGMENT 2 MARKETING STRATEGY: URBAN AND PERI-URBAN LOWER MIDDLE CLASS ...................................................24
3.3 SEGMENT 3 MARKETING STRATEGY: URBAN AND PERI-URBAN LOW INCOME ..............................................................27
3.4 SEGMENT 4 MARKETING STRATEGY: RURAL MIDDLE CLASS......................................................................................30
3.5 SEGMENT 5 MARKETING STRATEGY: RURAL LOWER MIDDLE CLASS............................................................................33
4.0 IMPLEMENTING THE ICS, SOLAR PRODUCTS & BIOMASS FUEL BRIQUETTES MARKETING STRATEGY.......36

2
Kenya, 2016
List of Acronyms
BDS Business development support
CBO Community Based Organization
EIP Energy Investment Prospectus
ERC Energy Regulatory Commission of Kenya
GoK Government of Kenya
ICS Improved cook stoves
IFC International Finance corporation
kW Kilowatt
KEBS Kenya Bureau of Standards
KES Kenya shillings
LED Light Emitting Diode
LPG Liquefied petroleum gas
MAS Market Analysis and Strategy
MFI Microfinance Institution
MNO Mobile Network Operator
MoEP Ministry of Energy and Petroleum
MoU Memorandum of Understanding
MSEs Micro and small enterprises
MW Mega Watt
NGO Non-Governmental Organization
O&M Operation and Maintenance
PAYG Pay As You Go
PMSD Participatory market systems development
SP Solar Product
PSV Public service vehicle
PV Photovoltaic
SACCO Savings and Credit Co-operative
SE4ALL Sustainable Energy for All
SHS Solar Home System
VSL Village Savings and Loans
WEEK Women in Energy enterprise in Kenya project
Wp Watt Peak
WTP Willingness to pay

3
Kenya, 2016
Glossary
Biomass fuel briquettes: A fuel consisting compressed block of coal dust or other combustible biomass
material such as charcoal, sawdust, wood chips, peat, or paper that can be used in biomass cook stoves and or
kindling to start a fire.
Improved cook stoves: Cook stoves are commonly called “improved” if they are more “efficient” than the
traditional cook stoves.
Solar products: SPs are defined as devices that generate energy for use by transforming solar energy.
Price elasticity of demand: Price elasticity of demand is an elasticity used to show the responsiveness of the
quantity demanded of a good or service to a change in its price. More precisely, it gives the percent change in
demand one might expect after a percent change in price.
Solar: For the purposes of this report the term “solar” refers to solar PV technology.
Stand-Alone Products: Here the term “standalone” refers to a power-generating device or system that is self-
contained and is capable of functioning in isolation. Power is therefore only provided at the point of generation,
with systems designed to be suitable for a variety of load profiles. End-users can range from individuals,
households to institutions. This value-chain is distinct in that end-users purchase and own the technology;
therefore the responsibility for financing and O&M costs lies with them.
Willingness to Pay: WTP is an economic concept, which aims to determine the amount of money a consumer is
willing to pay for the energy product, which indicates the value to the consumer for that energy product. The
consumers’ WTP is becoming increasingly popular and is one of the standard approaches that is used by market
researchers and economists to place a value on goods or services for which no market-based pricing mechanism
exists1
.
Women in Energy Enterprise in Kenya: For the purpose of this MAS report these refer to women owned
MSEs that engage in the production and or distribution of ICS and or biomass fuel briquettes and distribution or
retail of PSPs.
1
Koss (2001) and Gill et al. (2000)

4
Kenya, 2016
Figure 1: Product Figure 2: Price
Sun King Pro - Green Light Planet & S2 - d.light PAYG - Barefoot Powapack junior
Figure 3: Promotion Figure 4: Distribution
Open air marketing campaign for briquettes PSV Transportation of cook stove liners and ICS

5
Kenya, 2016
1.0 Background
In 2015, the GoK MoEP in consultation with stakeholders in the Energy sector drafted the
National Energy and Petroleum policy with the overarching objective of ensuring adequate,
affordable, competitive, secure and reliable supply of energy to meet National and County
needs at least cost while protecting and conserving the natural environment. This policy has a
number of broad objectives including ensuring adequate, quality, cost effective and
affordable supply of energy to meet development needs, while protecting and conserving the
environment. The specific objectives of the Energy and petroleum policy are to: provide
sustainable quality energy services for development; utilize energy as a tool to accelerate
economic empowerment for urban and rural development; improve access to affordable
energy services; provide an enabling environment for the provision of energy services;
enhance security of supply; promote development of indigenous energy resources; and
promote energy efficiency and conservation as well as prudent environmental, health and
safety practices2
.
MSEs mainly from the informal sector have greatly contributed towards the attainment of the
specific objectives of utilizing energy enterprise as a means to accelerate economic
empowerment for urban and rural development and improving access to affordable energy
services. Although women entrepreneurs have practically been at the forefront of this, very
few have attained economic empowerment as most still lack the requisite skills for business
development and market growth thus majority find themselves in the labour intensive and or
low value levels of the energy services value chains. Further still access to clean energy for
cooking and lighting by consumers in Kenya is constrained by myriad of challenges at all the
three levels of the market system; supply and demand of the energy services, the business
support services to the core market actors and an ineffective enabling environment for the
energy sector. While production of ICS and promotion of SPs and biomass fuel briquettes has
been going on for years, penetration of these energy products in households, commercial
enterprises and institutions is still very low in the country. Significant number of households
across Kenya both in the urban and rural still continues to use unclean fuels and inefficient
energy technologies such as fuel wood on inefficient three-stone-stoves and kerosene lamps
for lighting.
To complement the implementation of the GoK EIP and the attainment of SE4ALL goals for
Kenya, Practical Action Eastern Africa and Sustainable Community Development Services
(SCODE) are implementing a 3 year project, Women in Energy Enterprises in Kenya
(WEEK), which aims to strengthen women’s capacity to effectively participate in and benefit
from the energy markets as either enterprise operators or energy technology end users. The
project is employing a Participatory Market Systems Development (PMSD) approach to
develop demand and supply at primary value chain level of the 3 energy technologies; ICS,
SPs and biomass fuel briquettes, the BDS services to the core market actors and to influence
policies that provide a more enabling environment for the 3 energy markets. WEEK purposes
to directly support 730 women energy MSEs who will in turn reach 364,200 consumers
including poor women, men, children and institutions with clean, affordable and efficient
2
Draft National Energy and petroleum policy 2015

6
Kenya, 2016
energy products in 5 target regions; Nairobi, Rif valley, Central, Nyanza and Western. In
developing supply at the primary value chain level, the project intends to develop the
technical and business skills of 730 women in production and distribution of the three energy
services and to develop demand; the project will undertake public awareness and aggressive
marketing campaigns targeting seven Counties namely Nairobi, Murang’a, Nyeri, Nakuru,
Kakamega, Kisumu and Siaya.
For the attainment of these project undertakings, an explicit Marketing Strategy for the 3
energy technologies in each of the 7 target Counties has been developed and adopted by the
project.
1.1 Objectives
Drawing from the findings of the MAS survey and other energy sector learning, this study
identified and recommends key project interventions and energy enterprise-led undertakings
that if employed will be useful in developing and growing the markets for ICS, SPs and
biomass fuel briquettes within the target Counties of the WEEK project. This document
focuses on developing a “4Ps” Marketing strategy by extracting energy services customer
insights while refining the target market for ICS, SPs and biomass fuel briquettes. The
objectives of this assignment were to:
1. Define ICS, PSPs and biomass fuel briquettes target market, and identify and develop
detailed profiles of customer segments to be targeted by marketing efforts
2. Develop a route to market strategy basing on the 4Ps (product, price, place, promotion) for
each of the three energy technology lines in the respective local market contexts of the seven
Counties
1.2 The Approach adopted
Project baseline data and basic assumptions about the target segments were validated through
qualitative field research in rural, urban, and peri-urban areas in Nairobi, Nyeri, Murang’a,
Nakuru, Kisumu, Siaya and Kakamega counties of Kenya. The research team conducted
several contextual observation studies to develop a deeper understanding of consumer
behaviour and habits around income and expenditure patterns, cooking practices, and
seasonal changes. In addition, the market assessment team employed deep dives to develop a
richer understanding of consumer need and demands, value perceptions, motivations and
fears, and dreams and aspirations in regards to cooking fuel and cook stoves and lighting.
These deep dives used interviews and observations, activity maps with flash cards, focus
group discussions, and mock market testing.
For the marketing strategy, the 4P’s – product, price, place and promotion – offer a
framework for identifying strategic marketing goals and ensuring customer needs are met.
The segment based marketing strategy developed by this study takes into account stove
design, bundling strategies, payment options, fuel availability and type, distribution and sales,
promotional opportunities, and public and private sector engagement. The marketing strategy
identifies the potential geographic reach in the seven target Counties in Kenya for
commercial sale and promotion of ICS, biomass fuel briquettes and solar lanterns, maps out

7
Kenya, 2016
promotional and positioning strategies for the three energy technology lines, and proposes
specific interventions for the adoption of these strategies in the target seven counties.
1.3 Household energy demand and supply trends in Kenya
The ERC report on analysis of energy consumption patterns in Kenya 2010 showed that
about 70% of the consumers use biomass while 30% use other fuels. This supports published
studies that biomass provides 70% of the energy requirements3
. The study showed kerosene
to be mostly used for lighting (52%) while biomass was widely used for cooking (60%). The
survey data showed that users of charcoal and fuel wood in Nairobi have to travel on average
0.59 and 6.44 kilometres respectively to access the fuel they need. Average monthly
consumption per household was high for electricity compared to the other fuels. The energy
budget share for households differed across the regions, fuels as well as whether rural or
urban. Fuel wood had the highest energy budget share on average for both rural (11.6 %) and
urban (9.34 %) compared to the other fuels. The findings indicated that Nyanza households
utilised a larger proportion of their energy budget on charcoal compared to other urban
households. Note that the penetration of fuel wood in the rural areas was 77.2 % implying
most of the households in the rural areas use fuel wood. Connectivity to electricity in Kenya
varied greatly across regions with Nairobi having the highest connection with 53.47 % of
total households. Central was second with 42.4 % while Western was among the lowest with
connection rate of 14.7. The results indicated fuel stacking where 54% of the households used
two fuels with 2% using only one fuel type. Cost of installation was the most cited reason for
not using LPG, Electricity and Solar Energy Sources with most households classified as
lower income groups not utilizing these fuels. Analysis of fuel types in Kenya by urban and
rural areas shows that the most popular fuel types in terms of their various uses are: kerosene
(80%), followed by charcoal (60), fuel wood (55%), electricity (37%) and LPG (21%) in that
order. The usage of fuel wood, charcoal and kerosene in rural areas is higher, compared to
urban areas. However, the use of LPG and electricity in the rural areas is lower, compared to
that of urban areas. While lower prevalence of electricity use in rural areas can be attributed
to lack of connectivity, lower LPG use can be attributed to lack of access and information.
Overall, the use of renewable energy from solar, biogas and wind is very low in Kenya with
3%, 0.2% and 0.1% respectively. The usage of fuel types by various income categories
reveals that the use of Material residue, kerosene and fuel wood declines with rise in income
(higher quintiles). However, the trend for use of charcoal, electricity, biogas and solar is
reverse. The use of these fuels increase with rise in income. Given that charcoal is regarded
as ‘unclean fuel’, we would expect households to substitute it with more clean fuel as income
increases. However, the results of the study show that usage of charcoal does not change with
increase in income. The energy choice model results showed that demand for cooking fuels
such as fuel wood, charcoal, kerosene, electricity, LPG are driven by certain key factors and
vary depending on whether the household is located in rural or urban areas. The key
determinants for kerosene choice at the household were occupation, total energy expenditure,
household size, fuel wood price, education level and price of LPG. With regard to fuel wood
choice, important factors included the price of fuel wood which has a negative coefficient,
3
Kituyi 2002, Kamfor 2002

8
Kenya, 2016
household size and total expenditure. The key determinants of choice for use of charcoal
included household size, price of charcoal, price of fuel wood, education level, and both
formal and informal employment. The regional dummies for Central were positive implying
that a household in Central Kenya is likely to use charcoal compared to Nairobi. The choice
of electricity was determined by employment level, price of wood fuel, and education level.
1.3.1 Defining the target market for WEEK
The ERC report on analysis of energy consumption patterns in Kenya 2010 findings indicate
that different factors significantly affect the fuel choice; household size, kerosene price, fuel
wood price, charcoal price, LPG price, gender of person purchasing fuel as well as education
level. The report also reveals as the household size increases, the budget share on kerosene
declines. This could be explained by the fact that as the household size increases, the
household switches to other fuel types such as charcoal and fuel wood supporting the earlier
finding on fuel stack hypothesis. Also as the price of charcoal increases, the budget share on
LPG increases. From the analysis, urban households are more likely to increase demand for
LPG than those in rural areas. The budget share for charcoal was driven by various factors
ranging from socioeconomic, prices, education and location of households among other
factors. Demand for charcoal is inversely related to its own price. That is, as the price
increases, less of it is demanded. Other important factors in the demand for charcoal included
household size, price of LPG, as well as primary education which is inversely related to
demand. Households in urban areas were more likely to use charcoal than those in rural areas,
while Rift Valley and Western regions had negative influence on demand for charcoal.
Energy consumption pattern in Kenya portrays more of fuel stacking than fuel switching,
where households are observed to be using multiple fuels (the use of more than one or
various fuels to meet different energy demands). Fuel switching occurs when a household
opts or chooses to completely shift and use a new fuel.
From this analysis, market segments to be targeted by this marketing strategy were drawn
based on whether they are located in the urban, peri urban or rural and on income levels;
middle class -earning upwards of KES 20,410 per month, lower middle class -earning
between KES 9,319 and KES 20,409 and low income -earning less than KES 9,319 per
month.
Further investigation was conducted to refine the target market segments which yielded the
following:

9
Kenya, 2016
1.3.2 Willingness to Pay for Improved Energy Services
In our market assessment sample households across the 7 Counties were asked if they are
willing to pay to meet the cost of improving the quality, reliability and efficiency of energy
products. On quality issues, households were questioned if energy is of accepted standards &
amount desired. Reliability was measured by frequency, duration, extent of energy supply
disruptions. Efficiency looked at storage capacity in relation to transmission & generation
facilities for SPs, energy saving capability for ICS and duration of burning and amount of
heat produced for biomass fuel briquettes.
From the Market assessment of the energy markets of the seven target Counties, potential
consumers with WTP for any of the three energy technologies promoted by WEEK project is
summarized as shown in the table below:
1.3.3 Population segmentation by geographic, economic and fuel use patterns
Segment Urban Peri-urban Rural
Low income Purchased charcoal
+ Kerosene
Purchased wood +
Kerosene
Free wood + Kerosene
Lower middle class Purchased charcoal
+ Electricity and
kerosene
Purchased charcoal
+ kerosene
Free wood + Electricity
and kerosene
Middle class LPG, purchased
charcoal +
Electricity
Purchased charcoal
+ Electricity and
kerosene
Purchased wood +
Electricity and kerosene
•Urban and peri-urban households that are already buying and paying for charcoal and fuel
wood, and are relatively easy-to-reach (based on the presence of existing ICS and
briquettes production and distribution centers)
•Urban and peri urban households that are already buying and paying for kerosene fuel for
lighting and are relativel easy to reach (based on existence of PSPs retailers)
A
•Urban and peri urban households that use LPG and electricity for cooking and lighting, and
are relatively easy to reach with ICS and biomas fuel briquettes marketers
•Urban and peri urban households that are already using and paying for electricity for lighting
and are relatively easy to reach with PSPs (experience regular electricity outtages and
existance of retailers for PSPs)
B
•Rural Households that can be reached by adding ICS & PSPs to the portfolios of existing
innovative distribution models run by NGOs, women’s groups, membership organizations,
VSLs and MFIs
•Rural Households that can be reached through local kiosks by adding ICS & PSPs to their
range of products stocked
C

10
Kenya, 2016
1.3.4 Competition SWOT analysis
WEEK
product
Competition Competition Strengths Competition
Weaknesses
Advantage in relation to
competition
Upesi ICS Traditional 3 stone wood
fuel stove, traditional
charcoal cook stove,
kerosene stove
 Low acquisition cost
 Popular with rural/peri-
urban low income users
 Inefficient in fuel burning
 High wastage of heat
 Emit a lot of smoke
 Highly efficient in wood fuel
burning
 Significant reduction on
wastage of heat
 Affordable
 Suitable for rural/peri-urban
low income cooking space
Kenya Ceramic
Jiko
Traditional 3 stone stove,
traditional charcoal stove,
kerosene stove
 Popular with urban low
income users
 Inefficient in fuel use
 Highly efficient in charcoal
fuel burning
wastage of heat
 Affordable
 Easy to light and use for urban
low income cooking space
Burn Stove ICS LPG, Electric cooker,
traditional charcoal
stove,kerosene stove
 Clean burning
(LPG/Electric stove)
 High aesthetics
 Low acquisition
cost(traditional
charcoal,
kerosenestove)
 High acquisition cost
 High cost of Kerosene,
LPG refilling/electricity
bills
(traditional charcoal cook
stove)
fuel burning
wastage of heat
 No refilling/ electricity costs
 Easy to light and usefor urban
cooking space
 High aesthetics
Environfit ICS LPG, Electric
cooker,traditional
charcoal stove, kerosene
stove
 Clean burning&High
aesthetics(LPG/Electric
stove)
(traditional charcoal,
kerosene stove)
 High cost of kerosene,
bill
(kerosene stove)
fuel burning
wastage of heat
cooking space
 High aesthetics
Ecozoom ICS LPG, Electric cooker,
traditional charcoal stove,
kerosene stove
 Clean burning&High
aesthetics(LPG/Electric
stove)
(traditional charcoal,
kerosene stove)
 High cost of kerosene,
fuel burning
wastage of heat
cooking space
 High aesthetics
Biomass fuel
briquettes
Charcoal, firewood, LPG,
Electricity, kerosene
 Popular with rural/
peri urban users
(Charcoal, firewood)
 Popular with
urban/peri-urban users
(Charcoal, LPG,
Electricity, kerosene)
 Highly fluctuating price
(LPG, kerosene)
 Seasonal shortages
(Charcoal & firewood)
 Regular electricity supply
disruption/outages
 Highly efficient in burning
 Long burning time (compared
to charcoal/firewood)
 Easy to light and use in rural &
urban cooking space
 Relatively low cost
PSPs Electricity, kerosene,
candles
 Popular with rural/
peri urban users
(kerosene)
 Increased investment by
GoK for connection to
electricity
 Popular with
urban/peri urban users
in case of short time
electricity outage
(candles)
 Highly fluctuating price
(kerosene, electricity)
 High initial investment
cost (electricity)
(kerosene)
 Poor quality light (candle,
kerosene)
 Accidental fire hazard
(candle, kerosene)
 High quality light
 Easy to operate and use in
rural & (peri)urban spaces
 Highly portable
 Affordable
 Nil O&M costs
 Non-hazard (no accidental
fire)
 Clean fuel for lighting
 PSP may bear phone charging
capability

11
Kenya, 2016
1.3.5 Target market segments for WEEK
Segment Urban Peri urban Rural
Middle class Segment 1 Segment 4
Lower middle class Segment 2 Segment 5
Low income Segment 3 Non target
For the purpose of this MAS the ‘rural low income’ consumers are considered non-target
segment because of their high dependency on freely available biomass fuel during most of the
year, they are also remotely located thus hard to reach by the marketing and sales force for
SPs which implies a higher retail prices to be charged for this market segment whereas their
disposable income and subsequently purchasing power is significantly low.
The middle class, represented in Segments 1 and 4, are part-time users of upmarket stoves for
cooking times less than 30 minutes and electricity for lighting. Further research determined
that the middle class in both rural and peri-urban areas continue to use traditional cook
stoves. While the middle class living in peri-urban areas may be able to afford upmarket
cooking options, investigation revealed that many households in this segment continue to use
traditional biomass cook stoves on a part-time basis for cooking at least one main meal a day.
2.0 Target Market segments analysis for WEEK
2.1 Segment 1 key insights
2.1.1 Urban and Peri-Urban Middle Class
Size14
Demographics
 Average earnings upward of KES 20,410 per month
 Regular source of income from formal employment
 Average of 5 member household
 Household either male or female headed
 Educated to college level
 Connected to electricity

12
Kenya, 2016
Cookstoves/
Lightingfuel/
Cookingfuel
 Use different fuels for different uses
 Electricity or LPG for short cooking times (breakfast, snacks, heating up food, baby food etc.)
 Experience frequent electric power outages
 Use biomass charcoal to cook at least one meal per day
 Will not stop using biomass because of high fuel costs for kerosene
 Purchase biomass charcoal, wood fuel from vendors
 Indoor built-in kitchens or individual standalone kitchens with shelter
 Living in rented houses are not allowed to cook using biomass fuel wood cookstove inside the built-in
kitchen
Profile
 Living in areas with easy access to local market areas
 Well informed on market trends
 Have bank accounts and small investments in a local bank but not always familiar with MFI loans
 Experience buying consumer products using loan and instalments
 Highly influenced by multimedia marketing
 Own electronic appliances such as TVs, refrigerator, smart phones and computers with access to internet
 Subscribe to newspapers, magazines and online social media
 Display high willingness to invest on premium and durable products
 Aspire to improve lifestyle and social status
 Most cook indoors either in their built-in kitchen or sheltered external kitchen
 Most own and use either biomass stove or electric stove in combination with LPG stove
for daily cooking because of the comfort, convenience and safety offered by these
stoves while cooking indoors.
 Electricity for lighting and back up candles or solar lanterns when electricity goes off
 Some of them use charcoal cook stove to cook at least one main meal for the family
everyday while many others use charcoal stove occasionally to cook traditional food.
 Biomass cook stoves are usually used in their external kitchen space.
 Cooking indoors with more privacy is associated with high social and economic status
in urban areas.
 Aspire to be able to afford LPG for daily use or cook with piped gas connection when
available.
 High end imported rice cooker, electric kettle, microwave oven, LPG stove, blenders,
refrigerator, water filter are common home appliances in these households.
 Usually show keen interest to buy or use proven new technologies, products or brands
that will improve their lifestyle (convenient and comfortable) and social status.
Product Willingly spend KES 5,000 to 30,000 to buy kitchen appliances (rice cooker, LPG,
water filter, microwave oven, blender, electric kettle, and refrigerator) that help
make their life more comfortable and convenient.
 Have sufficient disposable income to invest on a value for money products.
 Usually buy home appliances costing more than KES 15,000 using loans or
instalment options from retailers.
 Rent, children’s education, entertainment and healthcare are the main expenses for
these families.
 Women sometimes contribute to family income through part time jobs and
participate in decision making while purchasing expensive products for their home.
Price
 Women of the household usually purchase daily grocery from neighbourhood
shops.
 The male members of the household do major purchases for the households from
the central market area of the city.
 Usually buy household consumer products from reputed retailers and distributors in
the city.
 Most of these households have experience buying from salesmen visiting their
home but do not usually trust the quality of such products.
 Wood fuel sellers are not located close to these households. Households usually buy
huge bulk of charcoal fuel (transported by bicycle) to avoid frequent visits to
charcoal sellers in the suburbs.
Place

13
Kenya, 2016
 These households are highly influenced by popular media as well as word of mouth
and market trends.
 Well exposed to mainstream advertisement and promotion channels like social
media marketing, posters, TV, newspaper ads, celebrity endorsement, door-to-door
marketing and sales.
 Most of the households capitalize on seasonal and festive offers from major
retailers to make major purchases for their home.
 Souvenirs, like calendars or caps, from private brands and NGOs can be seen in
these households.
 TV series and movies are a window to their aspirational lifestyle that they strive for.
 They are interested to explore new technologies and products that will help them
stay a step ahead of others by making their life more comfortable, convenient and
increase their social status/image.
 They prefer to buy familiar and popular brands that are perceived to be trustworthy
with reliable after sales service.
Promotion

14
Kenya, 2016
2.2.1 Urban and Peri-Lower Middle Class
Size14
Demographics
 Average earnings between KES 9,313 to 20,410 per month
 Multiples sources of income with at least one regular source
 Average of 5 members per household
 Educated to secondary level
 Connected to electricity
 Women contribute to family income through part time job or small business
Cookstoves/
Lightingfuel/
Cookingfuel
 Kerosene or LPG for short cooking times (breakfast, snacks, heating up food, baby food etc.)
 Experience frequent electric power outages
 Use biomass charcoal/ fuel wood for long cooking time
 Will not stop using biomass because of high fuel costs for kerosene
 Purchase biomass charcoal, wood fuel from vendors
 Living in rented houses are not allowed to cook using biomass fuel wood cook stove inside the built-in
kitchen
Profile
 Living in plots or clusters of rented houses
 Have migrated with family and young children to urban/peri-urban areas
 Have membership in a recognized savings group/MFI/ CBO
 Living in areas with easy access to school and local market area
 Highly influenced by opinions of their relatives, friends and neighbours
 Own electronic appliances like TVand/or radio, smart phones and subscribe to local newspapers and social
media
 Display slight willingness to invest on premium and durable products
 Want to be able to cook at least their main meals everyday using just one biomass cook
stove with multiple fuel types, irrespective of weather condition or food quantity.
 Electricity for lighting and back up candles or solar lanterns when electricity goes off
 Mostly cook outdoors (usually with shelter).
 Most of them own a portable biomass cook stove and LPG (tiers 1 cities e.g. Nairobi,
Kisumu, Nakuru) or kerosene stove (in tier 2towns like Kakamega, Murang’a, Nyeri,
Siaya) as a standby stove for quick cooking time.
 Cooking indoors with more privacy is associated with high social and economic status
in urban areas.
 Lack of space, safety and cleanliness are the main concerns for them to cook indoors.
 Usually cook large quantities of food at once to suffice the family for whole day.
 Might use free / cheap biomass or kerosene when wood fuel is not available.
 Rice cooker and electric stoves are largely perceived as the next level upgrade for their
cooking needs because of the comfort and convenience in using them indoors.
 Usually show interest in buying or using proven new technologies, products or brands.
 Aspire to live a comfortable and convenient urban lifestyle with improved social status.
Product

15
Kenya, 2016
 Usually spend around KES 500 to 1,500 to buy either kerosene stove or portable
clay cook stove as standby.
 New kerosene stoves costing anywhere between KES 400 to 750 are popular among
these households.
 Irregular and small income makes it difficult to make huge expenditures in one go.
 Many aspire to buy and use electric cooker because of the comfort and convenience
in using them indoors.
 Most of them are either members of women’s savings group, VSL, CBO or a local
MFI.
 Children’s education, house rent, food and healthcare are the main expenses for
these families.
 MFI loans are usually sought for healthcare, school fees, family functions and
house improvement.
 Husband or the male earning member usually makes purchasing decisions for
expensive products.
Price
 Women of the household purchase daily grocery from neighbourhood shops.
 Major purchases for the households are done by the male members of the household
from nearby market area or the central market of the city.
 Small retailer dealing with kerosene, LPG and cooking utensils and small hardware
retailers and repair workshops are a common sight in their neighbourhood.
 Wood fuel/charcoal sellers are located at walkable distances from these households.
While, charcoal sellers in certain towns go door-to-door, to sell.
 Local NGOs, women’s savings group and VSLs are active channels for awareness
creation and product distribution for several aid programs in these areas.
 These households are highly influenced by community opinion and hence many
NGOs effectively conduct community yard meetings and door-to-door awareness
campaigns in these localities.
Place
 Well exposed to mainstream advertisement and promotion channels like bill boards,
posters, TV and newspaper ads, door-to-door campaigning, and community
meetings.
 Most of the households wait for seasonal and festive offers from major retailers to
make any major purchases for their home.
 Word of mouth marketing and endorsement from community opinion leaders like
village elders, religious leader, teacher, doctor etc., are very effective in creating
awareness and demand.
 Souvenirs like calendar or caps from several private brands and NGOs can be seen
in these households.
 Buy familiar and popular brands, which are perceived to be trustworthy with,
reliable after sales service.
Promotion

16
Kenya, 2016
2.3.1 Urban and Peri-Low income
Size14
Demographic
s
 Average earnings below KES 9,331 per month
 Single or multiple source of irregular income
 Employment as day casual labourers, MSEs operators, vegetable vendors etc.
 Educated to primary school level and or vocational training level
 Not connected to electricity
Cookstoves/
Lightingfuel/
Cookingfuel
 Traditional three stone cook stoves for fuel wood or traditional charcoal stove and kerosene stove
 Kerosene lamp or solar lantern
 Try to access free or low-cost biomass whenever possible
 Habituated to move cooking space indoors during night time or when rain falls
Profile
 Living in housing clusters at informal or illegal settlements
 Rely on easy access to central market areas
 Susceptible to temporary displacement due to flooding
 Susceptible to permanent displacement due to fire or legal evacuations
 Have membership in informal savings groups, VSLs and CBOs
 Highly influenced by community opinion
 Want to be able to cook at least their main meals everyday using just one biomass cook
stove with wood fuel all year long, irrespective of weather condition or food quantity.
 Mostly cook outdoors (with or without shelter).
 Susceptible to flooding during monsoon and hence tend to cook indoors.
 Kitchen spaces are congested with harsh usage conditions for appliances, like muddy
undulated floors.
 Lack of space, safety and cleanliness are the main concerns for them to cook indoors.
 Usually cook large quantities of food at once to last the family for whole day.
 Cannot afford wood all throughout the year.
 Might use free or cheap biomass when wood fuel is not available or not affordable.
 Not comfortable with using unfamiliar technologies or products or brands.
 Aspire to live a comfortable urban lifestyle.
Product
 Don’t have sufficient disposable income to buy a new cook stove to fully replace their
free self-built biomass cook stove for daily use.
 Irregular and small income makes it difficult to make huge expenditures in one go.
 LPG and electric stoves are aspired, as the next level upgrade for their cooking needs.
 Electricity is aspired, as the next level upgrade for their lighting needs.
 Used kerosene stoves are available at price range similar to a portable clay cook stoves
(KES 250).
 Most of them are either members of women’s savings group, VSL, CBO or a local MFI.
 Children’s education, food and healthcare are the main expenses for these families.
 MFI loans are usually sought for healthcare, school fees, wedding and house repair or
improvement.
 Husband or the male earning member usually makes purchasing decisions for expensive
products.
Price

17
Kenya, 2016
 Women of the household purchase daily grocery from neighbourhood stalls.
from nearby market area or the central market of the city.
 Small retailer dealing with kerosene, LPG and cooking utensils and small repair work-
shops are a common sight in their neighbourhood.
 Wood fuel/charcoal sellers are located at walkable distances from these households.
While, wood sellers in certain towns go door-to-door, to sell wood fuel.
creation and product distribution for several aid programs in these areas.
 These households are highly influenced by community opinion and hence many CBOs
and NGOs effectively conduct community yard meetings and door-to-door awareness
creation campaigns in these localities.
Place
 Well exposed to mainstream advertisement and promotion channels like billboards,
posters, TV and newspaper ads, door-to-door campaigning, and community
meetings.
 Most of the households wait for weekly market day and seasonal or festival markets
to make any major purchases for their home.
 Word of mouth marketing and endorsement from community opinion leaders like
village elders, religious leader, teacher, doctor etc., are very effective in creating
awareness and demand.
 Souvenirs like calendar, caps from several private brands and NGOs can be seen in
these households.
 They tend to buy familiar and popular brands which are perceived to be
trustworthy.
Promotion
2.4.1 Rural -Middle class
Size14
Demographics
 Average earnings upward of KES 20,410 per month
 One or multiples sources of regular income
 Household mostly male headed
 May or may not be educated to college level
 Employment as farmers, fish mongers, timber and brick merchants, teachers, County government
civil servants etc.
 May or may not be connected to electricity
Cookstoves/Lightingfuel/
Cookingfuel
 Traditional cookstoves with wood fuel and other biomass fuel to cook main meals
 Main meals are cooked using biomass cookstove only
 Electricity or SHS or kerosene pressure lamp
 Electricity or gas for short cooking times (snacks, heating up food etc.)
 Either gather biomass fuel or purchase charcoal from seller
 Will not move up the energy ladder (using upmarket stoves only) because of the fuel cost and perceived
improved taste when cooked over wood fire

18
Kenya, 2016
Profile
 Can afford to buy LPG for part time usage
 Living in own house with sufficient space around the house
 Earning and decision making members of the family are fairly educated and informed
 Have bank accounts and small investments in a local bank and have experience with MFI
 Have high social standing and their opinions are highly valued in the community
 Own electronic appliances such as TVs, radios, mobile phones, refrigerators etc27.
 Have disposable income to invest on building and maintaining their house
 Have willingness to invest on premium and durable products
 Cook all their main meals using biomass cook stove
 Usually cook large quantities of food at once to suffice the family for whole day
 Prefer to cook in kitchen space with shelter. Cooking in sheltered kitchen is associated
with high social and economic status
 External kitchen spaces usually have permanent shelter to withstand damage during
heavy rain
 Kerosene lamps or solar lantern backup when electricity goes out
 Some of them own electric cooker or LPG stove for part-time usage for cooking quick
snacks, tea or to reheat food at night
 Safety and cleanliness are the main concerns for them to cook indoors using biomass
stoves
 Not very comfortable in using unfamiliar technologies or products or brands
 Usually show interest to buy or use new but proven technologies, products or brands
that will improve their lifestyle and social status
Product
 Willingly spend KES 2,000 to 10,000 to buy kitchen appliances (electric stove, LPG,
water filter) that help make their life more comfortable and convenient.
 Have sufficient disposable income to invest on a value for money products
 Usually take MFI loans and bank loans for home improvement, healthcare, agriculture
or business
 House improvement, Children’s education, healthcare and agriculture are their main
expenses
Price
from the central market area in the nearest town or city
 Usually buy household consumer products from a reputed retailers and distributors in
the nearest town or city
creation and product distribution for several aid programs in the rural areas
 These households are highly influenced by community opinion and hence many NGOs
and CBOs effectively conduct community yard meetings and door-to-door awareness
campaigns in rural areas
Place

19
Kenya, 2016
 These households highly trust awareness and promotion campaigns led by NGOs and
government bodies. For example: community meetings, loudspeaker announcements,
government campaign etc.
 They are also exposed to mainstream advertisement and promotion channels like
posters, TV and newspaper ads, door-to-door marketing and sales usually done by NGO
marketing forces
 Most of the households wait for weekly market day and seasonal or festival markets to
make any major purchases for their home
these households
 TV series and movies are a window to their aspirational lifestyle that they strive for
 They prefer to buy familiar and popular brands which are perceived to be trustworthy
with reliable after sales service
 They are interested to be associated with new technologies and products that will help
them stay a step ahead of others as opinion leaders for the community, thus increasing
their social standing.
Promotion
2.5.1 Rural –Lower middle class
Size14
Demographics
 Average earnings between KES 9,331 and 20,410 per month
 One or multiple sources of irregular income
 May or may not be educated
 Not connected to electricity
Cookstoves/
Lightingfuel/
Cookingfuel
 Traditional cook stoves with wood fuel and charcoal to cook
 Main meals are cooked using wood fuel cook stove only
 Individual standalone kitchens with shelter
 Solar lantern or kerosene lamp
 Either gather biomass fuel or purchase charcoal from seller
 Will not move up the energy ladder (using upmarket stoves only) because of the fuel cost and perceived
improved taste when cooked over wood fire
Profile
 Living in own house with some space around the house
 Have membership in a recognized savings group/MFI/ CBO
 Own electronic appliances such as TVs, radios, mobile phones
 Highly influenced by community opinion
 Cook all their main meals using biomass cook stove
 Usually cook large quantities of food at once to suffice the family for whole day
 Prefer to cook using wood fuel all year long. Due to non-availability of dry wood fuel
during wet season, they are often forced to but are forced to use other biomass (dry
leaves, straw, cow dung) in dry season in order to store wood fuel for wet season
 Kerosene lamp or tin lamp for lighting
 Prefer to cook in kitchen space with shelter. Cooking in sheltered kitchen is associated
with high social and economic status
 Safety and cleanliness are the main concerns for them to cook indoors using biomass
stoves
 Not very comfortable in using unfamiliar technologies or products or brands
 Usually show interest to buy or use new but proven technologies, products or brands
that will improve their lifestyle and social status
Product

20
Kenya, 2016
 Have limited disposable income thus very sensitive to price
 Prefer layaway financing model for acquisition of high value products
 Usually take MFI loans and bank loans for home improvement, healthcare, agriculture
or business
 House improvement, Children’s education, healthcare and agriculture are their main
expenses
Price
 Major purchases for the households are done by the female members of the household
from the local market area
 Usually buy household consumer products from identified local retail kiosks in the
market
creation and product distribution for several aid programs in the rural areas
 These households are highly influenced by community opinion and hence many NGOs
and CBOs effectively conduct community yard meetings and door-to-door awareness
campaigns in rural areas
Place
 These households highly trust awareness and promotion campaigns led by NGOs and
government bodies. For example: community meetings, loudspeaker announcements,
government campaign etc.
 They are also exposed to mainstream advertisement and promotion channels like radio,
posters and “talking walls”, door-to-door marketing and sales usually done by NGO
marketing forces
 Most of the households wait for weekly market day and seasonal or festival markets to
make any major purchases for their home
these households
 They prefer to buy familiar and popular brands which are perceived to be trustworthy
with reliable after sales service
Promotion

21
Kenya, 2016
3.0 Marketing strategy for the five target segments by WEEK
3.1 Segment 1 Marketing Strategy: Urban and peri-urban middle class
Counties of Marketing strategy coverage: Nairobi, Nakuru, Kisumu
Product
ICS PSP Biomass fuel briquettes
Value proposition
 A “high tech” charcoal stove to
cook main meals
 For cooking meals that require
over 30 minutes of cooking time
 More efficient than traditional
charcoalstove
 Quality assurance warranty
Value proposition
 Offers lighting experience similar to
electricity
 No recurrent expenditure on kerosene
or candles
 For short time back-up use during
electricity outages
 Cleaner than traditional kerosene
 No risk of accidental fires
Value proposition
 Offers cooking experience similar
to charcoal
 A “high quality” biomass fuelto
cook main meals
 For cooking meals that require over
30 minutes of cooking time
 Burns longer than traditional
biomass charcoal
Offering:
Stacking of Modern Premium cook
stove with other modern kitchen
cooking appliances for
complementarity
Offering:
Stacking solar powered back up for
lighting with electricity to
supplement during electricity power
supply disruptions
Offering:
Stacking of modern biomass fuel briquette
with other modern kitchen cooking fuel for
complementarity
Actual Product: Modern charcoal
cook stove
Augmented Product: Complements
other modern kitchen cooking
appliances
Brand names: KCJ, Ecozoom,
Envirofit,
Appearance: High aesthetics
Functionality: Single burner,
portable
Actual Product: Portable solar
lantern
Augmented Product: Back-up
quality lighting to supplement
frequent electricity black outs
Brand name: Phillips, Sun king,
d.light, Bare foot
Appearance: Durable
Functionality: Portable
Actual Product: Biomass fuel briquette
Augmented Product: Complements other
modern kitchen cooking fuels
Brand name: N/A
Appearance: Compact solid carbonized
biomass
Functionality: Smokeless, sparkles, long
burning and high calorific value

22
Kenya, 2016
Price
Segment characteristics:
 Low price sensitivity
 High disposable income therefore can pay more for premium products
 Financial loss risk averse therefore demand warranty for quality assurance
ICS PSP Biomass fuel briquette
Offering:
Discount and warranty in order to
reduce risk of adoption
Offering:
Offering:
Discount attached in order to reduce risk
of adoption
Retail price: Determined by retailers
Monetary incentive:
 Discount voucher for return
customers
 Product warranty reduces
cost and risk of adoption
 Money saved through
diversified fuel scheme (e.g.
electricity or LPG only for
short time cooking)
Nonmonetary incentive:
 Increase in status as
forward-thinking early
adopters of the Modern
cook concept
Retail price: Determined by Solar
brand Company
Monetary incentive:
 Discount voucher for quantity
purchase
 Product warranty reduces cost
and risk of adoption
eliminated cost of kerosene
and candles
 Increase in status as forward-
thinking early adopters of
portable solar lamps
Retail price: KES 30/Kg
Monetary incentive:
 Lower priced compared to
immediate substitute (charcoal)
guaranteed longer burning and
with adequate cooking heat
thinking early adopters of the
Modern biomass fuel briquettes
Place
 Retail locations are plentiful as they live in location with easy access to local market and are surrounded by many
well-regarded, branded retail outlets that consumers already frequent
Offering:
Easily available in well-regarded retail
outlets the consumers already frequent
Offering:
Easily available in well-regarded,
branded retail outlets the consumers
already frequent
Offering:
Easily available in well-regarded
groceries kiosks or ICS and or
charcoal retail outlets the consumer
already frequents
Convenience Incentives:
Appealing location: Established and
well-regarded ICS retailers outlets
Be where target segment spends time:
well-regarded retailers/brand outlets
Be where target segment spends
well-regarded retailers of energy
products outlets

23
Kenya, 2016
Living in areas with easy access to
schools and local market areas
Working with existing distribution
channels: Prefer to buy familiar and
popular brands from trusted distributors
or retailers
time: Living in areas with easy
access to schools and local market
areas
popular brands from trusted
distributors or retailers
time: Living in areas with easy access
to schools and local market areas
Working with existing retail
channels: Prefer to buy from familiar
regular charcoal/groceries kiosk
Distribution Channel:
Distributor: National-scale ICS
company with strong brand recognition
and market share in the cook stove
business.
Wholesaler: Small and micro scale
distributor with existing retail network
Retailer: Small and micro scale
stockists with well-maintained linkages
and access to high-trafficked market
areas
After sales: Spare parts easily
accessible through retail networks.
Trained technicians provide repair and
maintenance services both during and
after the warranty period.
Distributor: National-scale Solar
Products Company with strong brand
recognition and market share in PSPs
Wholesaler: Larger dealerships or
depots within Distributor’s existing
retail network
Retailer: Dealerships with well-
maintained linkages and access to
support services with the Distributor
in high-trafficked market areas
Trained technicians provide repair
and maintenance services both during
and after the warranty period.
Producer: Small and micro scale
producer of carbonized biomass fuel
briquettes with network of independent
retailers
Retailer: Local groceries/charcoal
kiosk located within the estate or local
market centre
Promotion
 Attracted to a new product that will make life more comfortable, convenient and increase their social status
Offering:
An ICS product that now delivers an
aspirational balance of traditional home
cooking and “cutting edge”
contemporary urban living.
Offering:
A trusted solar brand that now delivers
health, economy and lighting
experience benefits.
Offering:
An alternative to charcoal that now
delivers economy with traditional
cooking experience.
Promotional activities:
 Distributor/retailer advertising
 Retailers’ open air demonstrations
at market centres
 Request for referrals by customers
 Early adopters testimonials
highlighting ICS benefits
 Distributor’s sales agents personal
selling
highlighting PSP benefits
 Retailer advertising
at market centres
highlighting biomass fuel
briquettes benefits

24
Kenya, 2016
3.2 Segment 2 Marketing Strategy: Urban and peri-urban lower middle
class
Product
Value proposition
 Offers cooking experience
similar to traditional
charcoal/fuel wood stove
cook main meals
charcoal stove
Value proposition
electricity
or candles
electricity outages
Value proposition
to charcoal
 A “high quality” biomass fuel to
cook main meals
biomass charcoal
Offering:
stove with other kitchen cooking
appliances for complementarity
Offering:
Stacking solar powered back up for
lighting with electricity to
supplement during electricity power
supply disruptions
Offering:
with other kitchen cooking fuel for
complementarity
Actual Product: Modern biomass
improved cook stove
other kitchen cooking appliances
Brand names: Charcoal KCJ,
Charcoal/wood fuel Upesi
Appearance: Highly durable
portable
lantern
Augmented Product: Back-up
quality lighting to supplement
frequent electricity black outs
d.light, Bare foot
Appearance: Durable
Brand name: N/A
biomass
Functionality: Smokeless, no fire sparks,
long burning and high calorific value

25
Kenya, 2016
Price
 Price sensitivity
 Disposable income that can accommodate investment in more efficient energy products
Offering:
Offering:
Offering:
of adoption
Monetary incentive:
customers
kerosene or LPG only for
short time cooking)
cook concept
brand Company
Monetary incentive:
purchase
and candles
Monetary incentive:
 Cheaper than kerosene foe
cooking
Place
 Retail locations are plentiful as they live in location with easy access to local market and are surrounded many retail
kiosks that consumers already frequent

26
Kenya, 2016
Offering:
Offering:
already frequent
Offering:
already frequents
or retailers
areas
products outlets
Distributor: District-scale ICS
producerswith strong brand recognition
business.
Wholesaler:Small and micro scale
areas
After sales: Trained technicians provide
repair and maintenance services both
during and after the warranty period.
retail network
accessible through brand retail
outlets. Trained technicians provide
repair and maintenance services both
during and after the warranty period.
retailers
Retailer:Local groceries/charcoal
market centre
Promotion
 Attracted to a new product that will reduce cost in the long term and increase their social status
Offering:
An ICS productthat now delivers an
cooking experience and modern efficient
technology.
Offering:
healthy indoor air quality, economy
and lighting experience as good as
electricity.
Offering:
cooking experience.

27
Kenya, 2016
at market centres
selling
 Market to landlords investing in
fire cover to encourage tenants to
switch to solar from kerosene and
candles
at market centres
briquettes benefits
3.3 Segment 3 Marketing Strategy: Urban and peri-urban low income
Product
Value proposition
 Offers modern technology for
cooking with experience similar
to traditional cooking
charcoal and kerosene stoves
Value proposition
electricity
Value proposition
to charcoal
cook main meals
biomass charcoal
Offering:
Offering:
Lighting experience similar to
electricity
Offering:
complementarity
Actual Product:Modern charcoal
cook stove
Augmented Product:Complements
other kitchen cooking appliances
Brand names:KCJ, Upesi
Functionality:Single burner,
lantern
Augmented Product: Cleaner
cheaper substitute to kerosene
lighting
d.light, Bare foot
Appearance: Durable
Brand name: N/A
biomass

28
Kenya, 2016
portable Functionality: Portable burningand high calorific value
Price
 High price sensitivity
 Low disposable income that only cater for basic energy needs
Offering:
Offering:
Offering:
of adoption
Monetary incentive:
customers
kerosene only for short time
cooking)
cook concept
brand Company
Monetary incentive:
purchase
Monetary incentive:
cooking
Place

29
Kenya, 2016
Offering:
Offering:
already frequent
Offering:
Easily available in local groceries
kiosks or charcoal retail outlets the
consumer already frequents
or retailers
areas
products outlets
business.
areas
retail network
retailers
market centre
Promotion
 Attracted to a new product that guarantees reduced cost
Offering:
Offering:
Offering:
cooking experience.
Promotional activities: Promotional activities: Promotional activities:

30
Kenya, 2016
at market centres
selling
candles
at market centres
briquettes benefits
3.4 Segment 4 Marketing Strategy: Rural middle class
Counties of Marketing strategy coverage: Kakakmega, Nyeri, Murang’a,
Siaya
Product
Value proposition
cook main meals
charcoal stove
Value proposition
electricity
or candles
electricity outages
Value proposition
to charcoal
cook main meals
biomass charcoal
Offering:
Offering:
Solar powered lighting with
experience similar to electricity
Offering:
with other traditional cooking fuels for
complementarity
Actual Product: Modern
charcoal/wood fuel cook stove
Augmented Product:Complements
traditional kitchen cooking
Actual Product: SHS
lighting
traditional kitchen cooking fuels

31
Kenya, 2016
appliances
Brand names:KCJ, Upesi
Functionality:Single burner,
portable
d.light, Bare foot, MKOPA solar
Appearance: Durable
Brand name: N/A
biomass
burningand high calorific value
Price
Offering:
Offering:
Offering:
of adoption
Monetary incentive:
customers
short time cooking)
cook concept
brand Company
Monetary incentive:
purchase
and candles
Monetary incentive:
cooking
Place

32
Kenya, 2016
Offering:
Offering:
already frequent
Offering:
already frequents
or retailers
areas
products outlets
business.
areas
retail network
retailers
market centre
Promotion
Offering:
Offering:
Offering:
cooking experience.

33
Kenya, 2016
at market centres
selling
candles
at market centres
briquettes benefits
3.5 Segment 5 Marketing Strategy: Rural lower middle class
Counties of Marketing strategy coverage: Kakakmega, Nyeri, Murang’a, Siaya
Product
Value proposition
cook main meals
charcoal stove
Value proposition
electricity
or candles
electricity outages
Value proposition
to charcoal
cook main meals
biomass charcoal
Offering:
Offering:
Lighting experience similar to
electricity
Offering:
complementarity
Actual Product: Modern
charcoal/wood fuel cook stove
other traditional kitchen cooking
appliances
lantern
Brand name: N/A

34
Kenya, 2016
Brand names: KCJ, Upesi
portable
lighting
d.light, Bare foot
Appearance: Durable
biomass
burning and high calorific value
Price
Offering:
Offering:
Offering:
of adoption
Monetary incentive:
customers
short time cooking)
cook concept
brand Company
Monetary incentive:
purchase
and candles
Monetary incentive:
cooking
Place

35
Kenya, 2016
Offering:
Offering:
already frequent
Offering:
already frequents
or retailers
areas
products outlets
business.
areas
retail network
retailers
kiosk located within the village or
local market centre
Promotion
Offering:
Offering:
Offering:
cooking experience.
Promotional activities: Promotional activities: Promotional activities:

36
Kenya, 2016
at market centres
selling
candles
at market centres
briquettes benefits
4.0 Implementing the ICS, PSP & Biomass fuel briquettes Marketing
Strategy
Sequencing is critical to the Marketing Strategy. Initially, the WEEK project implementing partners
should engage distributors/retailers to model the Stacking bundle of the “ICS, Solar lantern and fuel
briquettes package” consisting of either:
i. Package of Charcoal ICS and discounted biomass fuel briquettes or free sample biomass fuel
briquettes to first time users
ii. Package of ICS and single solar lantern
iii. Package of PSP and discounted biomass fuel briquettes or free sample biomass fuel
iv. Package of ICS, PSP and discounted biomass fuel briquettes or free sample biomass fuel
These Stacking bundles offer targeted marketing and promotional gimmick with relatively broad
commercial appeal and accessibility across the Segments 1 to 4. This will utilize an existing product
in the market with clear traction and established producers/distributors to introduce a new product line
to the same target segment.
While the premium ICSs are gaining familiarity in the market, WEEK project implementers can
engage with producers/distributors/retailers and financial service providers (VSLs, MFIs) to explore,
pilot, and demonstrate small-scale consumer financing marketing and promotional strategy for
Segments 2, 3 and 5. These can take the form of:
i. Consumer financing by VSLs and MFIs through direct payment to
producers/distributors/retailers who then deliver any of the energy products of choice to
member of the women groups subscribing to the VSL/MFI loaning product.
ii. Use of VSLs meetings as marketing and promotional forum for the various energy prodct
bundles described above

Marketing Strategy for Promoting Clean Cooking Solutions and Solar Products

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Marketing Strategy for Promoting Clean Cooking Solutions and Solar Products

Similar to Marketing Strategy for Promoting Clean Cooking Solutions and Solar Products (20)

Marketing Strategy for Promoting Clean Cooking Solutions and Solar Products