HAITI CLEAN COOKING MARKET DEVELOPMENT PROGRAM CONSUMER PREFERENCE ANALYSIS
Company: Global Alliance for Clean Cookstoves
Location: Port-au-Prince, Haiti
Start Date: August 30, 2018
Posted On: Jul 09, 2018
HAITI CLEAN COOKING MARKET DEVELOPMENT PROGRAM CONSUMER PREFERENCE ANALYSIS at Global Alliance for Clean Cookstoves
Nearly three billion people around the world burn wood, charcoal, animal dung, crop residue or coal in open fires or in inefficient stoves for daily cooking and heating. Cooking this way contributes to serious health and environmental impacts, disproportionally affecting the lives and livelihoods of women and children. As a leading cause of air pollution, traditional cooking methods contribute to 2.6 million premature deaths each year and sicken millions more. In Haiti, alone, exposure to household air pollution contributed to almost 10,000 premature deaths in 2016. Lack of access to clean fuels forces women and children to spend significant time cooking and gathering fuel, time that could be spent resting, getting an education, caring for family, or earning an income.
The Global Alliance for Clean Cookstoves anticipates launching a four-year market development program in Haiti. The Haiti Clean Cooking Market Development Program aims to set the foundation for a long-term, sustainable transformation of the clean cooking market that will strengthen and diversify the supply of cleaner and more efficient cookstoves and fuel.
The Alliance is issuing a Request for Proposals to improve understanding of the target consumer segments that the Alliance has identified as part of its foundation and scale-up work in Haiti. This RFP will also seek to identify barriers to consumer uptake of clean cookstoves and fuels, including the awareness, affordability, accessibility, and acceptance challenges that prevent purchase and uptake. The Alliance will use this research to design demand side interventions that align with supply-side efforts to motivate Haitian households to switch to cleaner cookstoves and fuels.
REQUEST FOR PROPOSALS:
HAITI CLEAN COOKING MARKET DEVELOPMENT PROGRAM CONSUMER PREFERENCE ANALYSIS
Nearly three billion people around the world burn wood, charcoal, animal dung, crop residue or coal in open fires or in inefficient stoves for daily cooking and heating. Cooking this way contributes to serious health and environmental impacts, disproportionally affecting the lives and livelihoods of women and children.
As a leading cause of air pollution, traditional cooking methods contribute to 2.6 million premature deaths each year and sicken millions more. In Haiti, alone, exposure to household air pollution contributed to almost 10,000 premature deaths in 2016. Lack of access to clean fuels forces women and children to spend significant time cooking and gathering fuel, time that could be spent resting, getting an education, caring for family, or earning an income.
Yet clean cooking solutions exist that can reduce exposure to harmful cookstove smoke and lessen climate and environmental impacts. Use of clean cookstoves and fuels can reduce the amount of time women and girls spend gathering woodfuel, while potentially providing economic opportunities in communities around the world through market development activities.
The Global Alliance for Clean Cookstoves (the Alliance) believes the most effective and sustainable way to address this issue is by establishing a global market for cleaner and more efficient cooking solutions around the world. Our work aims to address the market barriers that impede the production, deployment, and use of clean and efficient cookstoves and fuels in developing countries, creating a world where no one is left behind, and universal access to clean cooking becomes a reality.
The Alliance, funded by the Government of Canada, is launching a four-year market development program in Haiti. The Haiti Clean Cooking Market Development Program (Program) aims to set the foundation for a long-term, sustainable transformation of the clean cooking market that will strengthen and diversify the supply of cleaner and more efficient cookstoves and fuel. While significant progress has been made in laying the groundwork for a thriving global market for cleaner and more efficient cookstoves and fuels, many barriers remain, in particular on the demand side around awareness, availability and affordability of cleaner solutions. There is significant evidence that awareness among affected populations of both the negative impacts of using inefficient stoves and the availability of clean cooking solutions is extremely low. Furthermore, many of these households are located in rural and remote areas, making them out of reach for many distribution channels. Affordability and
willingness to pay for an often-unknown product that might not meet all of a user’s needs compound these challenges, leading to relatively low levels of demand and sustained adoption of cleaner solutions.
In order to address these barriers and reach scaled adoption in the improved cookstove and fuel sector, knowledge regarding consumer needs and preferences including cooking habits, purchasing trends, cultural barriers, and adoption practices, is crucial to ensuring that products meet users’ needs and that distribution and marketing strategies are effective. Research is needed that will provide actionable insights around key demand related drivers, including effective messaging and marketing techniques, stove and fuel preferences, and desired features and price points, that can be integrated into stove and project design, distribution and consumer financing models, and marketing and awareness raising campaigns.
To that end, the Alliance is issuing a Request for Proposals (RFP) to improve understanding of the target consumer segments that the Alliance has identified as part of its foundation and scale-up work in Haiti. This RFP will also seek to identify barriers to consumer uptake of clean cookstoves and fuels, including the awareness, affordability, accessibility, and acceptance challenges that prevent purchase and uptake. The Alliance will use this research to design demand side interventions that align with supply-side efforts to motivate Haitian households to switch to cleaner cookstoves and fuels.
This particular study will focus on Haiti, in support of the Haiti Clean Cooking Market Development Program.
The ultimate objective of the Program is to reduce negative climate, environment, economic, and health impacts from traditional cooking practices on the Haitian population, with a focus on reducing the disproportionate impacts on women and girls. This foundation building program will be executed over four years, as part of a larger anticipated ten-year initiative.
The Program’s efforts will entail a combination of sector-wide, market development activities, including: capacity-building support for government, stakeholders and clean cooking enterprises; advocacy and technical assistance to develop better policies and regulations; and support for sector coordination. The Program will also advocate for the inclusion of women and girls not only in the design of policies, but also across the clean cooking sector, to overcome historical exclusion and increase women’s economic and social empowerment. The Program will be led by the Alliance, in close collaboration with the Government of Haiti, local stakeholders, practitioners, the private sector, donors, civil society organizations, and UN agencies.
The objective of this study is to generate consumer insights from current and target customer segments that are in range of accessing clean cookstoves and fuels supply. These insights will help inform the design of demand enhancing activities in support of building a clean cookstove and fuel market in Haiti. Analysis and findings should examine each aspect of the traditional “4Ps (product, price, place and promotion) marketing mix, incorporating the influence of cultural and contextual factors throughout.
The selected firm will undertake the following activities:
1) Refinement of target consumer segments identified through Alliance desk research and in consultation with suppliers.
The Alliance and its partners in Haiti have identified urban and peri-urban charcoal users in greater Port-au-Prince, and potentially Gonaïves, Cap Haïtien, Saint-Marc, Les Cayes, and Jacmel, as the most viable consumer segments to target for transition to cleaner stoves and fuels. The selected firm will be required to examine this broad segment more closely, and make recommendations on how this population should be further segmented and studied. This should include an estimate of the market size of each segment.
2) Development of detailed profiles of the target segments and identification of demand enhancing strategies for addressing each.
Once target segments have been identified the firm will undertake primary research to understand the target consumer segment’s relationship with cookstoves and fuels as well as their motivation to and reservations about purchasing and adopting a cleaner stove or fuel. The firm should examine each “P” of the traditional 4Ps mix (product, price promotion, and place), taking into account cultural influences and other contextual factors such as location, climate, etc.:
Product: This will include identifying the key technology features favored by these segments, including those needed for making local foods, and the fuel use and preferences of the consumer segment. The practice of multiple stove and fuel use should be examined as applicable, including drivers such affordability, seasonality, etc. Additionally, best practices seen in other products which have successfully been purchased and adopted by the consumer segments should be examined, including lessons learned in driving interest to new products and improving existing products to better suit consumer needs.
Price: The team should examine costs associated with current stoves and fuels used, including changes in price and availability (including for collected fuel). This should also briefly examine different payment models used for cooking and other goods.
Place: This will include addressing how to best reach the identified consumer segments, including which distribution channels are currently used to reach these consumer groups, potential distribution channels that could be utilized for cleaner cookstoves and fuels and which business models are currently being applied successfully to reach each target segment for cookstoves and other related products.
Promotion: The firm should identify marketing and awareness raising messages, techniques and channels most effective for promoting cleaner stoves and fuels to the target segment. This should include examination of current levels of awareness and perceptions of improved cookstoves and fuels among the target segments. The firm should also study techniques that have proven efficacy with these segments for other
products, and provide recommendations around messaging that could be effective for cleaner cookstoves and fuels, including testing relevant messages with consumer groups to better understand what will drive interest and demand.
The team should also examine the influences of cultural traditions and their implications for purchase and adoption of cleaner stoves and fuels. This should include changes in food taste or food preparation, perception by the family or community and household decision making dynamics. Finally, as proper use of improved cooking products is essential for both sustained adoption and to achieve the benefits sought for efficiency and emissions reductions, the research team should study the means by which these consumer segments have successfully changed behavioral patterns in the past.
Below are specific topics to be explored in the research. Please note that this list is not exhaustive, and we would be interested in hearing from applicants what additional information they think would be valuable to collect and/or analyze in order to meet the identified objectives, in particular around insight gathering to inform design of awareness raising activities.
• Awareness levels of cleaner stoves and fuels (including awareness of impacts of traditional cooking methods, cleaner technology options, and benefits of cleaner technologies);
• Cost of the currently used cookstove and fuels (both upfront and ongoing);
• Current consumer financing models utilized or other means of purchasing household products;
• Cooking habits and needs (cooking styles, role in daily routine, etc.);
• Purchase channels used for current stoves/fuels (or fuel collection practices)
• Currently utilized distribution channels reaching this segment, for cookstoves and for other products, including the size and weight of products;
• Reasons for using and/or purchasing this cookstove and fuel combination, including likes/dislikes;
• Reasons for not using and/or purchasing other types of cookstoves and fuels;
• Cookstoves and fuels currently being used and/or purchased by the segment (note: multiple cookstove or fuel use within a single household should be noted, and primary technology used should be identified);
• Marketing messages, techniques, channels currently being used to target this segment, including which are the most documented as most effective;
• Messaging and techniques that could be effective in promoting cleaner cookstoves and fuels to this segment (including testing of various content, wording, etc.)
• Segments’ interaction with community (social groups, health workers, etc.)
• Exposure to media (radio, TV, etc.)
• Information about aspirational goods, including where motivation originated and actions taken to save for or purchase them;
• Other consumer buying habits and information, such as how purchasing decisions are made within a household and what factors are taken into account, where and when goods are purchased, and how they are financed;
• Non-tangible drivers of product purchase, such as social or cultural factors that could motivate a consumer to purchase and/or adopt a product;
• Active cookstove and fuel stakeholders trying to reach this segment, including their scale, their main challenges, and their main factors of success;
Throughout the study, the selected firm will cooperate closely with a working group of local stakeholders and local clean cooking suppliers that are active in the Haiti clean cookstoves and fuels sector, and will be asked to participate in a kick off and project close out meeting with stakeholders to present plans and validate results.
The selected firm will also be expected to work with the organization that will separately collect baseline data as part of the Haiti Clean Cooking Market Development program. Please click here to view the Haiti Clean Cooking Market Development Program Baseline Data Collection Request for Proposals. The selected firm for this RFP will have the opportunity to contribute to the design of the baseline data collection surveys (which include household and enterprise surveys) to inform the analysis on preferences of the Program’s target consumers.
The consultant should start with desk research of all existing data, including studies conducted by the Alliance and others. The Alliance will provide various resources to the team for this purpose. Applicants are encouraged to review key resources in advance, including a Haiti Market Assessment released on November 1, 2016, available on the Alliance’s website at http://cleancookstoves.org/resources/529.html and the Haiti Action Plan: http://cleancookstoves.org/resources/545.html.
The firm should also plan to conduct primary research with consumers and stakeholders, which could include, but is not limited to: expert interviews, in-depth interviews with households, focus groups, ethnographies, and product demonstrations. All firms submitting proposals should specify the methodologies they plan to use to gather the required information. As mentioned, a comprehensive household survey will also be conducted as part of the baseline setting for the broader Program, so it is anticipated that additional research carried out by the firm procured under this TOR would be qualitative in nature.
The expected date for completing a signed contract is August 30, 2018, and data collection on the household survey is roughly anticipated to begin October 18, 2018. The final analysis should be completed no later than December 31st, 2018.
The following deliverables are expected at the end of the research period, with the exception of the project and work plan which should be delivered within ten days of the start of the study. The research team will be expected to have regular calls with the project manager throughout the project work period.
• Project and work plan, including methodologies;
• Interim report outlining segmentation hypothesis and segments to be targeted in primary research;
• Full consumer segmentation report with detailed data analysis and detailed profile of each of the target segments, including recommendations organized around the 4Ps (product, price, place, promotion) for most effectively targeting each consumer segment;
• Executive Summary of the consumer segmentation;
• Kick off and final meeting with local stakeholders to present plans and validate results;
• Please note that all reports should be provided in both English and French.
Please submit a proposal and work plan, not exceeding 15 pages, describing the following:
• Proposed timeline and approach for completing the work, including a description of overall process. The timeline should include all key deliverable dates and a plan for meeting those deadlines.
• Detailed methodologies for all aspects of the study
• Unique qualifications of the organization and its staff, such as: understanding of and experience in cookstove and fuel sector in Haiti, experience conducting market research, experience working with Haitian consumers and conducting consumer research. If the organization plans to hire any sub- contractors a letter of support from each sub-contracting organization must be provided.
• Broad overall budget, including budget for potential sub-contractors (note that indirect cost estimates may not exceed 13%)
• Outline of past experience conducting this kind of market research or analysis, including samples of previous work if applicable
• CV of researchers; It is required that the organization’s designated project manager be able to speak, read, and write fluently in both English and French and/or Creole, and it is strongly preferred that other members of the team have strong competency in both languages. It is also preferred that applicant organizations have sub- contractors or other team members with knowledge of native Haitian languages and customs.
Appendices may be provided for supplementary materials as relevant, but review will be based mainly on the information provided in the project plan.
It is required that the organization’s designated project manager be able to speak, read, and write fluently in both English and French and/or Creole, and it is strongly preferred that other members of the team have strong competency in both languages. It is also preferred that applicant organizations have sub- contractors or other team members with knowledge of native Haitian languages and customs.