Damian Radcliffe16th January 2012

colalife

Presentation to Hult Business School

Fact 1:You can buy a Coca-Cola virtually anywhere in the World. Even in developing countries.

Fact 2:1 in 7 children in developing counties die before their 5th birthday.

Diarrhea-Related Dehydration Still a Top-Killer of Children in Developing World

8

Over 1 million children still dying from diarrhea-related death each year

More children die from diarrhea related illness than Malaria, HIV/AIDS and Measles combined

No real progress in the last 25 years

Fact 3:

Why the Emphasis on ORS? MDG # 4 - Time is Running Out!

Millenium Development Goal #4: Reduce by two-thirds, between 1990 and 2015, the mortality rate of children under 5

innovationneeded

incrementalimprovement

Mortality dropped 1.8% per year (1990-2008)

Mortality must decrease 10.5% per year 2008-2015 to

reach goal

1990 2008 2015

100

72

33

colalife Mark III aidpod

• ~1985-88 the idea was born in NE Zambia

• Lack of mass media: the idea stalled

Key milestones

Key milestones

• 2008 published concept online, featured on BBC Radio

• 2008 The Coca-Cola Company engaged

• 2008-2010 - testing the idea through Open Innovation:

• 10 universities; 10+ national/international conventions

• Over 15,000 online supporters

• Direct help from 200+ people, from 21 countries

• May 2010 won £15,000 - UnLtd Social Enterprise Award

• French fund-raiser

• Oct 2010/Jan 2011 Field trips to Zambia

• ~1985-88 the idea was born in NE Zambia

• Lack of mass media: the idea stalled

Pilot design

• Delivery through the private sector

Distributor

Wholesaler

Social marketingSocial marketing

Assess ability to pay

Inject subsidy here

• Niche application - AidPods are mother’s kits• Margins are made at every step

• Subsidy determined by ability/willingness to pay• Social marketing/sensitisation crucial to turn ‘need’ into ‘demand’• The AidPod is the only thing that is new

• Subsidy injected at distributor level

Pilot features:

• AidPods introduced into crates at the Wholesaler

AidPod Anti-Diarrhoea Kit (ADK)• ORS• Zinc• SODIS Bag• Soap• Educational materials

A first operational trial has started in late 2011 in Zambia

Key, overarching research questions for this first trial are:

1.To what extent can the informal Coca-Cola distribution chains be used to improve access to ORS, zinc and other simple interventions through ‘last mile’ retailers in under-served rural communities?

2. What effect does this have in supporting mothers/care-givers in home-based management of diarrhoea in children 0-59 months of age?

3.Run the pilot and publish the experience live

• http://colalife.org/blog

Where are we now?

• The Ministry of Health policy is to encourage innovation and public private partnerships

• UNICEF Zambia and other agencies supported the trial design from an early stage

• Awareness of ORS alone is good; zinc usage is low

• Private sector supply of ORS/zinc is very weak, especially in rural areas

• Diarrhoea mortality and dehydration in under 5’s still remains a problem

• Ease of doing business is relatively high, with English widely used

• Mobile phone ownership and penetration is fairly good and improving quickly

• Mobile money initiatives are established and are developing quickly

• Projects exist locally from which we can learn

• The Coca-Cola bottler, Zambian Breweries plc, is supportive, with a track record of innovative

• CSR projects

Why Zambia?

• Affordability; low cost products (e.g. production localised or adapted for affordability)

• Desirability: maintaining quality and desirability of product

• Access and availability, delivering products when and where customers need them

• Potential to scale up/drive down costs

• Adapted business models with a full understanding of the market and customers

• End to end organisation of the supply chain

• Focus, to build a value system around a narrow range of products

Potential success factors

• Using ‘soft funding’ to investigate/establish innovations which then convert to marketable products

• Time to develop and scale up

• ‘Para-skilling’ of non experts (e.g. shop-keepers in simple medicines)

• Piggy-backing distribution

• Ability to communicate the value proposition to all customers and stakeholders

• Sustainability (based on an appropriate combination of at least some of the above factors)

And a few more…

Key assets

Local intelligence and buy-in

2 years of stakeholder idea/development Global level expert support

ColaLife Pilot | Results Framework | Zambia

To reduce deaths due to diarrhoea among children under 5 yrs (0-59 months)

Mothers and care-givers adopt appropriate practices to help prevent and treat diarrhoea in under 5s (0-59m) in selected under-served rural communities.

Profit-driven distribution chains supply affordable anti-diarrhoea kits through ‘last mile’ retailers in under-served rural communities.

GOAL

OUTCOMES

And after that?• About thinking differently

• Building unlikely alliances to do extraordinary things

SectorOrganisation

SectorOrganisation

Innovation The place to be!Ludo LauwersVice ChairmanJanssen Pharmaceutica

Text

The ColaLife BOSS concept(BOSS = Buy One Subsidise Several)

• Delivery through the private sector

Distributor

Wholesaler

Social marketingSocial marketing

Assess ability to pay

Inject subsidy here

• Niche application - AidPods are mother’s kits• Margins are made at every step

• Subsidy determined by ability/willingness to pay• Social marketing/sensitisation crucial to turn ‘need’ into ‘demand’• The AidPod is the only thing that is new

• Subsidy injected at distributor level

Pilot features:

• AidPods introduced into crates at the Wholesaler

Distributor

Wholesaler

Business Model | Developing MarketAffordable, desired mothers kits inremote rural areas

$0.229

$0.375

$0.162$1.100World price

$0.938Subsidy

Social marketingSocial marketing

Business Model | Developed MarketEthical, value-based purchase of diarrhea travel kitsBuy One | Give One model

*Department of Health and Human Services at the US Centers for Disease Control and Prevention

Ethical marketingEthical marketing

10% Gross Revenue

$6.6 million

7 million AidPods

• 10 million travellers suffer diarrhoea per year*• No ready-made kit exists?• Initial target: 33% of previous sufferers• Market value: $66 million @ $20/kit

• 10 million travellers suffer diarrhoea per year*• No ready-made kit exists?• Initial target: 33% of previous sufferers• Market value: $66 million @ $20/kit

Quality AidPod Travel Kit $20

$0.938Subsidy

Pharma/Consumer Company

ADDITIONAL OPTIONS• Enhanced customer engagement• Creation of a community of ethical consumers

Business Model | Developed MarketEthical, value-based purchase of diarrhea travel kits

Your gift has arrived

Your gift has arrived

Your gift has arrived!

Business Model | Developed MarketEthical, value-based purchase of diarrhoea travel kitsBuy One | Give One model

10% Gross Revenue

$6.6 million

7 million AidPods

$0.938Subsidy

Subsidy and Source (USD millions)Subsidy and Source (USD millions)7

6

5

4

3

2

1

0

Foundations

Pharma/Consumer Company

10% of Travel Kit Sales

Yr1 Yr2 Yr3 Yr4 Yr5

Additional benefits for Pharma/Consumer Co• Learning• Cross-sector relationships• Brand enhancement

• Ethical• Pioneering

Most ethically perceived brands*

* A five-country study by GfK NOP reported in the Finacial Times, Feb 2007

AidPod Mother’s Kit• ORS• Zinc• SODIS Bag• Soap• Educational materials

AidPod Traveller’s Kit• ORS• Imodium• SODIS Bag• Hand wipes• Water sterilisation tabs• Advice sheet• [Registration instructions]• [Donation form]

to be continued . . . .

PLEASE join us online:@colalifefacebook.com/colalifecolalife.org/blog

Potential Inspirations

Tom’s ShoesMidomo Bracelet

Kwiat

Any others?

Now, over to you….