11.40 11.55 jim mc hale
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As American Standard’s Jim McHale explains, more than 2,000 children in developing areas die every day from poor sanitation problems. Many people in poor regions use pit latrines, which enable flies to easily spread disease. American Standard examined why people were using unsealed latrines and designed a new product that worked with current user behavior while keeping the product cost to about a dollar. “Product development works when the people involved are treated and listened to as customers, not beneficiaries,” McHale says.
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11.40 11.55 jim mc hale
- 2. Rebuilding a legacy brand by building new markets for sanitation
- 5. Posters Created by US Works Progress Administration, 1940
- 6. A REPORT BY the London School of Hygiene and Tropical Medicine In Collaboration with Domestos (Unilever), 2012 Global Causes of Child Deaths…
- 7. Apply Our Product Design, Manufacturing, and Distribution Expertise to Develop a Better Toilet System for Bangladesh
- 8. Deep Dive Market Assessment Report April 9, 2012 One-to-One Interviews Prototype Focus Groups Latrine Option Cards Methods We Used.
- 9. + Total cost ~ $7 - $10 USD +
- 14. Assuming people use about half the bodna to clean themselves, estimated water volume used for flushing is 0.8 liters. 0.8L Locally available traps are too big to flush with a bodna… About 1 liter resides in the trap seal
- 15. 15
- 16. Latrine Pan Design Criteria Feature Target, Goal, or Specification User interface Requires no change in behavior Size Equal to existing pans~40cm x ~22cm Water seal depth > 1.25cm Flush volume < 1.5 liters, poured from a bodna Performance > 150g of encased miso paste Performance Minimal or no splash-back during use Target cost < $1 USD Goal: Develop an affordable pour-flush latrine pan that effectively isolates waste and improves the user experience.
- 17. Existing Cup Trap 12th Iteration Optimized Trap Computational Fluid Dynamics Simulations
- 26. • Partnering with PRAN-RFL Group to manufacture and distribute in Bangladesh. • Production started in March 2013.
- 27. Production Parts
- 28. Sustainable Business Model Current Latrine Cost 480 – 800 BDT (40 BDT is plastic pan) Step in Supply Chain Price in BDT RFL Ex-Factory Price 70 RFL’s Sales, Distribution, Marketing, and Overhead (SDMO) 14 Total Cost Ex-Factory + SDMO 84 American Standard Royalty 8 Price from RFL Group to RFL Distributor 92 Wholesale Price from RFL Distributor to Local Shopkeeper 102 Local Shopkeeper Retail Price to End Consumer (MSRP) 120 New Latrine Cost 560 – 880 BDT (120 BDT is plastic pan)
- 31. Lessons Learned • Product development for the BoP works when the people involved are treated and listened to as customers, not beneficiaries. • Consumers at the BoP want quality products and are willing to pay for them. Businesses just need to listen and deliver. • Know your strengths and get good help where needed. • Sustainable business models are possible… with the right design and a good understanding of the market. • Think and develop locally, then leverage global scale. • Taking on this challenge provided an extremely effective way to leverage our heritage of innovation, reinvigorate employees with an expanded notion of purpose, and get the company back on a growth track.
- 32. Thank You!