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The Marketing and Commercial Approach to Disseminating Improved Stoves in Cambodia

The Marketing and Commercial Approach to Disseminating Improved Stoves in Cambodia. Minh Cuong LEQUAN, GERES Better Air Quality 2006, Dec. 13-15 th, Jogjakarta. 1976-2006 30 years Jubilee. In Cambodia since 1994 30 staffs Biomass energy: efficiency, sustainable supply, planning, policy

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The Marketing and Commercial Approach to Disseminating Improved Stoves in Cambodia

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  1. The Marketing and Commercial Approach to Disseminating Improved Stoves in Cambodia Minh Cuong LEQUAN, GERES Better Air Quality 2006, Dec. 13-15th, Jogjakarta

  2. 1976-2006 30 years Jubilee • In Cambodia since 1994 • 30 staffs • Biomass energy: efficiency, sustainable supply, planning, policy • Biofuel (jatropha curcas) • French NGO created in 1976 • 150 collaborators • Energy Environment and Poverty • South East Asia, Himalayas, • West Africa, Maghreb and France Main partners in Cambodia

  3. Cambodia Fuelwood Saving Project : 1997 - 2007 To improve the livelihoods of Cambodians with regard to energy and sustainable development • Broad dissemination of ICS and wood energy saving devices to critical and dense areas • R&D on ICS and wood energy saving • Set-up institutions to: • promote the wood energy issue, • exchange technology with other countries and • support the government of Cambodia towards a “national wood energy policy”

  4. Coverage Area: 10 provinces beyond plan Extension

  5. Overwhelming success

  6. Fuel wood: the main source of energy Source: Cambodia Socio-Economic Survey 1999, NIS, MOP

  7. Traditional cook stoves: already commercialized Siam stove (ang) Lao Stove (ang) Lao Kg. Chhnang

  8. Improved cook stoves: easy to adopt New Lao Stove (ang) Lao Stove (ang) Lao Kg. Chhnang Neang Kongrey Stove

  9. Breaking the energy ladder 1) Charcoal price in Battambang and Koh Kong 2) 14.2 kg of LPG costs US$ 9

  10. Traditional Cook Stove Distribution Traditional Cook Stove Producers Cook Stove Wholesalers The Users Siam Stove Lao Kg. Chhnang Stove Lao Bucket Stove Assist the producers to produce Improved Cook Stove Marketing and advertising campaign Awareness program to cook stove sellers Cook Stove Mobile Vendor Ox-cart, Moto-remorque Rural & Urban Households Cook Stove Retailers Main Direction of CFSP Commercialization Strategy The commercial channels Based on existing sector No subsidy

  11. Assist artisans to produce NLS Marketing and advertising campaign Awareness program to cook stove sellers Commercial interventions Technical training Technical support Quality Control Micro credit Networking meetings Management training Initial stocks assured of purchase Ad-hoc troubleshooting Promotional offers: sell 10 units get a promotional T-shirt free No cost consignments in shops Free special racks for aisle end display Matchmaking meetings Presentation in fairs, cooking demos in markets, try-and-buy operations TV ads (popular soap operas), billboards on main roads, T-shirts, banners Radio and TV coverage (national news, educational shows) Sponsoring of football teams, boat racers, cycle racers

  12. The producers, middlemen & retailers got a consolidated net benefit of US$ 312,900 in 40 months Economic Benefit (1/2): Supply side 178.800 units sold from May 2003 until September 2006, The producers got a net profit of US$ 0.75/unit; totally US$ 134,100 or around US$ 300/month/producer Middlemen got a net profit of US$ 0.5/unit; totally US$ 89,400 Retailers got a net profit of US$ 0.5/unit; totally US$ 89,400 Then the users………

  13. Economic Benefit (2/2): User side Average CHARCOAL consumption 2.118 kg/family/d Real saving with NLS 21.76% Price of charcoal 500 Riels/kg or 0.12 US$/kg ... and for the environment

  14. Challenges for long term sustainability • Train and regulate • Vocational raining centre • Training of MIME staff, sub-decree on ICS standard • ICOPRODAC and labeling • ISO QMS/EMS • Quality Control System and • incentives from Carbon Finance • EE and RE • energy plantations • charcoal process improvements • Expand and transform • Export to push back market saturation • R&D (post-combustion stoves) • Copycats • Threat to quality • Price wars • But can help solve chronic under-supply • Quality • - Need to be rewarded and maintained in the long term • Fuel availability • charcoal prices may soar, making LPG more competitive • Market saturation • - expected in 4-5 years

  15. Thank you for your attention to know more: www.geres.eu or www.cfsp.org.kh to compensate your CO2 emissions: www.co2solidaire.org

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