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< prev - next > Energy Stoves and Ovens upesi_stove (Printable PDF)
Chapter Six
MARKETING
Marketing is all about how to sell the stoves. There is no point in potters making stoves if they cannot sell
them at a profit. Stoves provide benefits to the users only if they reach those users. If your project aims to
reach the users through the commercial market, people must be informed about the stoves and should be
persuaded to go and buy one.
The four basic principles of marketing, known as the four Ps, are: Product, Price, Place and Promotion.
Product
Have a good product to sell. In this case it is the stove. Ensure that the stove is
what your customers want, and that it is attractive as well as useful. It is
important that your stove has a good marketing name. The name should be
short and catchy. It is advisable to have a name that tells people something
good about the stove. An example is Upesi which tells people that the stove is
fast. You should choose a name that people in your area will understand and
remember.
Fig. 6.1 Upesi logo
Price
Getting the price right is a very important part of marketing. The stove must be affordable. At the same
time, it must be profitable for the producers to make, for distributors to transport and for retailers to sell. If
making and selling the stove is not profitable, then the project cannot succeed unless the price is
subsidized. Providing subsidies is not a sustainable approach. In order to work out the selling price of the
stove you will need to calculate all the costs of production. These include the cost of materials, all the
labour involved and the cost of likely losses and breakages. If the figure is doubled, you will get a
reasonable estimate of the likely selling price, including overheads/equipment, marketing and transport
costs, and profit margins.
Many development projects want to keep the price low. But experience has shown that it is better to start
with a higher price and let market competition bring the price down. A higher price to start with gives the
stove an image of being a valuable product. Later on when customers find it cheaper, they will feel that
they are getting a bargain. A higher price also attracts producers and retailers to start a stove business.
Place (or distribution)
If the stove is to sell, then it must be in the right place. It is possible that some customers will come to the
stove producers to buy the stoves. In some cases, the stoves will have to be transported to markets,
retailers or even directly to customers. This distribution may be done by the stove producers themselves or
by traders (often known as "middlemen"). Distribution takes time and costs money, so include it in the
selling price. Find out where other similar types of products are sold and how they are distributed. The
distribution of the Upesi stove is not simple because pottery stoves are breakable and the Upesi needs to
be installed after it is bought. This can be done by an installer or by the buyer.
Promotion
The Upesi stove is a new product, so you will have to introduce it to your potential customers. You need to
persuade them that it is a product that they want to buy. Aim to create a positive image of the stove.
Emphasize that it is a modern, desirable and useful product. Find out what people like about the stove and
use that information to develop your promotion campaign. Develop short, clear marketing slogans. Explore
different ways of communicating your messages about the stove. You could try demonstrating the stove in