Hult Presentation January 2012
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Slides from a presentation - and challenge - given to Hult Business School students, January 2012.
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Hult Presentation January 2012
- 1. Damian Radcliffe 16 th January 2012 cola life Presentation to Hult Business School
- 2. Fact 1: You can buy a Coca-Cola virtually anywhere in the World. Even in developing countries.
- 3. Fact 2: 1 in 7 children in developing counties die before their 5th birthday.
- 8. Diarrhea-Related Dehydration Still a Top-Killer of Children in Developing World 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
- 9. No real progress in the last 25 years Fact 3:
- 10. 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 innovation needed incremental improvement 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
- 16. cola life Mark III aidpod
- 20. Pilot design
- 35. Key assets Local intelligence and buy-in 2 years of stakeholder idea/development Global level expert support
- 36. 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
- 38. Text The ColaLife BOSS concept (BOSS = Buy One Subsidise Several)
- 40. Business Model | Developing Market Affordable, desired mothers kits in remote rural areas $0.229 $0.375 $0.162 Social marketing Distributor Wholesaler $1.100 World price $0.938 Subsidy
- 43. Business Model | Developed Market Ethical, value-based purchase of diarrhoea travel kits Buy One | Give One model 10% Gross Revenue $6.6 million 7 million AidPods $0.938 Subsidy 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
- 47. Potential Inspirations Tom’s Shoes Midomo Bracelet Kwiat Any others?
- 48. Now, over to you….
Notas del editor
- My name is Damian Radcliffe and I am here to talk to you about colalife. So what is ColaLife?
- ColaLife is based on 3 facts: FACT 1 : You can buy a Coca-Cola virtually anywhere you go even in the most remote areas of developing countries
- FACT 2 : 1 in 5 children in these areas die before their 5 th birthday from preventable causes like dehydration from diarrhoea. Around 4,000 young children die everyday in Africa alone.
- Agnes‘ story is not unusual unfortunately. In Africa 1 in 5 children die before their fifth birthday and most of these die from preventable or easily treated causes like dehydration from diarrhoea. Diarrhoea, which is common enough even in more developed countries where it is usually nothing more than an embarassing inconvemience, is a killer in developing countries. Let‘s take a look at what these figures look like [animation] In their 2009 report, WHO reminded us that nearly 1 in 5 child deaths - about 1.5 million each year – is due to diarrhoea. It kills more children than AIDS, malaria and measles combined. The WHO report is here: http://www.who.int/child_adolescent_health/documents/9789241598415/en/index.html
- Agnes‘ story is not unusual unfortunately. In Africa 1 in 5 children die before their fifth birthday and most of these die from preventable or easily treated causes like dehydration from diarrhoea. Diarrhoea, which is common enough even in more developed countries where it is usually nothing more than an embarassing inconvemience, is a killer in developing countries. Let‘s take a look at what these figures look like [animation] In their 2009 report, WHO reminded us that nearly 1 in 5 child deaths - about 1.5 million each year – is due to diarrhoea. It kills more children than AIDS, malaria and measles combined. The WHO report is here: http://www.who.int/child_adolescent_health/documents/9789241598415/en/index.html
- Agnes‘ story is not unusual unfortunately. In Africa 1 in 5 children die before their fifth birthday and most of these die from preventable or easily treated causes like dehydration from diarrhoea. Diarrhoea, which is common enough even in more developed countries where it is usually nothing more than an embarassing inconvemience, is a killer in developing countries. Let‘s take a look at what these figures look like [animation] In their 2009 report, WHO reminded us that nearly 1 in 5 child deaths - about 1.5 million each year – is due to diarrhoea. It kills more children than AIDS, malaria and measles combined. The WHO report is here: http://www.who.int/child_adolescent_health/documents/9789241598415/en/index.html
- Agnes‘ story is not unusual unfortunately. In Africa 1 in 5 children die before their fifth birthday and most of these die from preventable or easily treated causes like dehydration from diarrhoea. Diarrhoea, which is common enough even in more developed countries where it is usually nothing more than an embarassing inconvemience, is a killer in developing countries. Let‘s take a look at what these figures look like [animation] In their 2009 report, WHO reminded us that nearly 1 in 5 child deaths - about 1.5 million each year – is due to diarrhoea. It kills more children than AIDS, malaria and measles combined. The WHO report is here: http://www.who.int/child_adolescent_health/documents/9789241598415/en/index.html
- So what is it that kills these young children? These are UNICEF figures and as we can see diarrhoea is a significant killer and kills more under fives than Malaria, HIV/AIDS and Measles combined.
- FACT 3 : The third fact is that these figures haven’t changed significantly over the last 25 years.
- Just to put some data behind the last claim. In 1990 the MDGs were published and MDG #4 relates to child mortality. The goal was to reduce child mortality by two thirds by 2015. Progress towards the Millennium Goals was formally assessed in 2008 and it found some improvement in survival rates but this incremental improvement is too slow. At the current rate of improvement we are going to miss the MDG and it will be decades before people in Africa and Asia reach the standards for child survival that we in more developed countries would consider acceptable. If we are to meet the MDG we’d need to reduce child mortality at a rate of 11% per year. And to do this we need innovation. We need new radical approaches. We need to do things differently. ColaLife seeks to be a part of this innovation process.
- This picture was taken recently in Uganda. It is the drug store room of a rural clinic. As you can see it lacks all the very basic medicines. A recent study by WHO and Health Action Internatoional indicated that rural clinics in sub-Saharan Africa operated on a 38% availability of the most basic drugs. What that means in practical terms is that if you walk to your local clinic - a walk that might talk many hours - the odds are that it will NOT have the drugs you need to help you.
- More to the private sector though and you see a radically different picture. Availability of consumer products might not be 100% but it approaches that and will be significant higher in most areas that the availability of medicines in the local clinic. So why the contrast? How does Coca-Cola get to the most remote shops and kiosks while we struggle to get basic medicines to remote, rural clinics?
- The answer is that we don’t really know. We know the Coca-Cola leaves the bottling plant on big lorries. But these lorries only go so far and after that a whole network of entrepreneurs get it to the really remote areas.
- People like this. On bicycles, buses, motor bikes, horses and mules. It is the ‘pull of the brand’ that gets the Coca-Cola to the most remote places in the world and there is money to be made it getting it there by everyone involved.
- One thing we do know though is that wherever a crate of Coca-Cola goes, this unused space between the bottles goes too. What a waste! ColaLife wants to use this space to get simple medicines, and other social products, to the same places that Coca-Cola gets. That is, most places.
- To do this we’ve come up with a wedge-shaped container, like this, which clips between the necks of Coca-Cola bottles in crates. The working name for this container is the ‘AidPod’. This short animation shows how the AidPod works.
- Video – no sound required – source: AidPod_animation_720x576_clipped v2.mov
- Simon first had the ideas behind ColaLife when we lived and worked in Zambia back in the 1980s. However, in those days, it was very difficult to share ideas. There was no postal service and we had no telephone or fax. All we had was a telex machine - hardly a mass communication device! In April 2008 Simon decided to have another go at convening people around the idea and started up a Facebook group and participating in discussion forums online including those on the BBC’s website. The BBC took up the idea and got Coca-Cola’s attention. In November 2008, Simon was invited to Tanzania by The Coca-Cola Company to attend a workshop to inform their pro-poor business innovation plans. He brokered a partnership between AED and Coca-Cola which led to a ‘learning lab’in Tanzania - this has informed a new project under the Global Fund for pro-poor enterprise creation. In April 2009 BBC Radio 4 broadcast an interview with Simon and Euan Wilmshurst of Coca-Cola, where they first aired in public their support for the idea. In May 2010, Jane and Simon won jointly a prestigious Social Enterprise Award from UnLtd, granting £15,000 in living expenses to develop the idea. It was also short-listed as a semi-finalist for the International Buckminster Fuller Design Challenge and selected for Honda’s Dream Factory exhibition and book on ‘Cultural Engineers’. In June 2010 Jane and Simon decided to dedicate full-time, to move ColaLife from a campaign to an implementation phase and gave up paid work. In June Simon and Jane also met Kris Pintens when Simon was presenting the ColaLife idea at a Supply Chain Conference in Prague. As a result, Simon presented the idea to Tom Aelbrecht in Beerse in August and joined the Bootcamp in October.
- Simon first had the ideas behind ColaLife when we lived and worked in Zambia back in the 1980s. However, in those days, it was very difficult to share ideas. There was no postal service and we had no telephone or fax. All we had was a telex machine - hardly a mass communication device! In April 2008 Simon decided to have another go at convening people around the idea and started up a Facebook group and participating in discussion forums online including those on the BBC’s website. The BBC took up the idea and got Coca-Cola’s attention. In November 2008, Simon was invited to Tanzania by The Coca-Cola Company to attend a workshop to inform their pro-poor business innovation plans. He brokered a partnership between AED and Coca-Cola which led to a ‘learning lab’in Tanzania - this has informed a new project under the Global Fund for pro-poor enterprise creation. In April 2009 BBC Radio 4 broadcast an interview with Simon and Euan Wilmshurst of Coca-Cola, where they first aired in public their support for the idea. In May 2010, Jane and Simon won jointly a prestigious Social Enterprise Award from UnLtd, granting £15,000 in living expenses to develop the idea. It was also short-listed as a semi-finalist for the International Buckminster Fuller Design Challenge and selected for Honda’s Dream Factory exhibition and book on ‘Cultural Engineers’. In June 2010 Jane and Simon decided to dedicate full-time, to move ColaLife from a campaign to an implementation phase and gave up paid work. In June Simon and Jane also met Kris Pintens when Simon was presenting the ColaLife idea at a Supply Chain Conference in Prague. As a result, Simon presented the idea to Tom Aelbrecht in Beerse in August and joined the Bootcamp in October.
- We met 45 people while in Zambia from 15 different organisations in the public, private and NGO sectors and in week 2 of our visit we pulled key players together to consider what a trial might look like. This is what we came up with.
- It was agreed that a pilot should focus on getting WHO-recommended diarrhoea treatment kits to new mothers and that we should do this through the ecxisting private sector network. The same network that gets Coca-Cola to the most remote areas of Zambia. It was agreed that we would embed private sector motivations into the distribution of these mother kits. The same motivators that get commodities such as cooking oil, salt, washing powder, talk-time and Coca-Cola to remote areas in Zambia. The Mother’s Kits, or AidPods, would be inserted into Coca-Cola crates at Wholesaler level in the distribution chain thereby increasing the profitability contained within a crate - profit will be made from the Coca-Cola AND the Mother’s Kits. The retail price of the kits will be based on mothers’ ability to pay. Based on this, and the margins that need to be made by the distributors, wholesalers and retailers, the level of subsidy will be determined and injected at the start of the distribution chain. Crucial to success will be a social marketing campaign aimed at turning ‘need’ into ‘demand’ for diarrhoea treatment kits by mothers. This will consist of awareness raising activities by Community Health Workers; communication and education campaigns using radio, community drama, posters and leaflets. Key to this design is that the only new element is the AidPod in the crate. All the other elements already exist in one form or other in other recent activities - it is just a question of putting the elements together in a different way and helping an unlikely alliance of partners work successfully together.
- So lets spend a few minutes looking at the AidPod - what it might contaiin and what it would be made of? Despite the fact that WHO recommended that all new mothers should be given diarrhoea treatment kits and told what to do WHEN their child gets diarrhoea, this is the only example that we have been able to find. This is part of the social marketing that went alongside a project to promote a diarrhoea treatmnent kit in Cambodia by a project run by PSI and supported by USAID abd UNICEF. When they made their recommendation, WHO and UNICEF said that the kits should be made more desirable and so we are considering including sample size consumer products like soap and baby lotion. We also think it would be desirable to have more than 2 sachets of ORS. We also want to make the packaging itself useful and relevant. The volume of an AidPod is approximately 500ml or half a litre. We want it to be used as a measuring jug and for the ORS sachets to be compatible with it so that one sachet would be used per AidPod full of water, that is enough to make half a litre of ORS. Most ORS sachets make up a litre. This leaves us with the remaining issue of water quality. It is highly likely that a child with diarrhoea contracted the diarrhoea from the water supply so it would be desirable to ensure that the water used for making up the ORS solution was uncontaminated. One way of doing this would be to boil the water or to chlorinate the water. Both of these imply costs. A third option is to use solar water disinfection technique known as SODIS.
- So lets spend a few minutes looking at the AidPod MOTHER’s Kit and the AidPod TRAVELLER’s Kit would contain Explain . . .
- If you put water in a PET bottle and expose it to the sunlight for 6 hours the bacteria in the water are killed. This heats the water to between 30 and 50C which would not normally be hot enough to pastuerise the water. However, the ultraviolet light within the sun’s rays damages the cell walls of the bacteria making them more susceptible to heat so that they are killed. The process also kills protozoa, viruses and parasites. The SODIS technique is recognised by the WHO. If possible, we want to make the AidPods out of PET so that they can be used to disinfect the water used to make the ORS solution. This would also help raise awareness of the SODIS technique which is not widely known.
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed 2 It would be filled with the cleanest water available
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed 2 It would be filled with the cleanest water available 3 The AidPod would be resealed and placed in a sunny spot
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed 2 It would be filled with the cleanest water available 3 The AidPod would be resealed and placed in a sunny spot 4 For six hours
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed 2 It would be filled with the cleanest water available 3 The AidPod would be resealed and placed in a sunny spot 4 For six hours 5 The ORS sachet would be emptied into the AidPod - note that the size of the sachet would match the volume of water in the AidPod
- This is how the AidPod would be used: 1 The contents of the Mother’s Kit would be removed 2 It would be filled with the cleanest water available 3 The AidPod would be resealed and placed in a sunny spot 4 For six hours 5 The ORS sachet would be emptied into the AidPod - note that the size of the sachet would match the volume of water in the AidPod 6 The young child would be given the ORS solution
- This is what we bring to this proposal
- If you boil ColaLife down to its essentials it is about: Innovation It’s about thinking differently And from where I sit it has turned into a huge stakeholder relationship development exercise What we have been doing is painstakingly building unlikely alliances to solve a problem that has not and will not be solved by one organisation or one sector by itself. I believe that there are so many, as yet unsolved challenges that could benefit from this Unlikely Alliances approach. I would like to see ColaLife as a catalyst for new thinking. And more specifically providing the inspiration for the formation of unlikely alliances to do extraordinary things. But hang on, is this pie in the sky thinking? Could ColaLife have this sort of wider impact? Well meet Ludo Lauwers, the Vice Chaiman of Janssen Pharmaceutica. On 23 December last year, an interview with Lauwers was published in the Belgian business press under the heading: “The many strange friends of Pharma” Lauwers talked about Coca-Cola’s legendary distribution power. He talked about Pharma products needing to get to the same places where the need was high and ColaLife was described as a interesting initiative. Were we the inspiration for the whole article? Who knows? I’m just pleased that these conversations have started. Thank you very much.
- Thank you
- We plan to run a pilot of the ColaLife concept in Zambia in 2011 and we have already visited the country to talk to the key stakeholders there. We met with 45 people and 15 organisations and together came up with the following business model. It was agreed that a pilot should focus on getting WHO-recommended diarrhoea treatment kits to new mothers and that we should do this through the ecxisting private sector network. The same network that gets Coca-Cola to the most remote areas of Zambia. It was agreed that we would embed private sector motivations into the distribution of these mother kits. The same motivators that get commodities such as cooking oil, salt, washing powder, talk-time and Coca-Cola to remote areas in Zambia. The Mother’s Kits, or AidPods, would be inserted into Coca-Cola crates at Wholesaler level in the distribution chain thereby increasing the profitability contained within a crate - profit will be made from the Coca-Cola AND the Mother’s Kits. The retail price of the kits will be based on mothers’ ability to pay. Based on this, and the margins that need to be made by the distributors, wholesalers and retailers, the level of subsidy will be determined and injected at the start of the distribution chain. Crucial to success will be a social marketing campaign aimed at turning ‘need’ into ‘demand’ for diarrhoea treatment kits by mothers. This will consist of awareness raising activities by Community Health Workers; communication and education campaigns using radio, community drama, posters and leaflets. Key to this design is that the only new element is the AidPod in the crate. All the other elements already exist in one form or other in other recent activities - it is just a question of putting the elements together in a different way and helping an unlikely alliance of partners work successfully together.
- Explain . . . . >> the need for subsidy >> the need to make this sustainable
- So how can we sustain this level of subsidy? Our approach can be summed up as Buy One | Give One. I parallel with the distribution of AidPod Mother’s Kits in developing markets we would develop a product for developed markets which would be marketed and sold on a Buy One | Give One basis. We believe we have identified a gap in the market for a kit for travellers aimed at helping to prevent and, where necessary, treat diarrhoea. Travel kits range in price from $15-$50 None cover diarrhoea in one, off the shelf purchase Every year an estimated ten million individuals suffer diarrhoea* Key control commodities for travellers could include: Imodium, Rehydration Salts, Water sterilisation tablets, Hand sterlisation wipes SODIS Bag Simple advice booklet Target: JnJ captures a market equivalent to one third of sufferers=3.3 million people Annual market size: $66 million at $20/kit Allocate 10% of gross revenue to subsidise AidPod Mother’s Kits Provides subsidy for 6.6/ 0.938 = 7 million AidPod Mother’s Kits per year
- The Buy One | Give One model provides valuable opportunities for enhanced customer engagement and even the creation of a network of ethical consumers that could be used to gather customer insight. The model would also enhance the JnJ brand as an ethical brand.
- So how can we sustain this level of subsidy? Our approach can be summed up as Buy One | Give One. I parallel with the distribution of AidPod Mother’s Kits in developing markets we would develop a product for developed markets which would be marketed and sold on a Buy One | Give One basis. We believe we have identified a gap in the market for a kit for travellers aimed at helping to prevent and, where necessary, treat diarrhoea. Travel kits range in price from $15-$50 None cover diarrhoea in one, off the shelf purchase Every year an estimated ten million individuals suffer diarrhoea* Key control commodities for travellers could include: Imodium, Rehydration Salts, Water sterilisation tablets, Hand sterlisation wipes SODIS Bag Simple advice booklet Target: JnJ captures a market equivalent to one third of sufferers=3.3 million people Annual market size: $66 million at $20/kit Allocate 10% of gross revenue to subsidise AidPod Mother’s Kits Provides subsidy for 6.6/ 1.10 = 6 million AidPod Mother’s Kits per year
- There are additional, non-financial benefits to Johnson & Johnson
- So lets spend a few minutes looking at the AidPod MOTHER’s Kit and the AidPod TRAVELLER’s Kit would contain Explain . . .
- To be continued – watch this space