Inclusive Supply Chains: The Toro-iDE Partnership

Prepared for: International Development

Enterprises, (iDE)

Prepared by: Tess Anaïs Zinnes Masters of Public Policy Candidate The Sanford School of Public Policy

Duke University

Faculty Advisor: Matthew T.A. Nash Disclaimer: This student paper was prepared in 2015 in partial completion of the requirements for the Master’s Project, a major assignment for the Master of Public Policy Program at the Sanford School of Public Policy at Duke University. Without the specific permission of its author, this paper may not be used or cited for any purpose other than to inform the client organization about the subject matter. The author relied in many instances on data provided by the client and related organizations and makes no independent representations as to the accuracy of the data. Tess Anaïs Zinnes received permission from the client to use this version of the case study to serve as material for classroom discussion. The author does not intend to illustrate either effective or ineffective management. Data was drawn largely from key informant interviews.

     

  2  

TABLE OF CONTENTS CASE SYNOPSIS…………………………………………………………………………..…….4 INTRODUCTION………………………………………………………………………….....…5 A CHAMPION EMERGES………………………………………………………………….…..7 MOTIVATORS………………………………………………………………………...…………9 PARTNERSHIP APPROACH…………………………………………………………………..11 ACHIEVEMENTS……………………………………………………………..……..…………14 LESSONS LEARNED……………………………………………………………………………………….16 MANAGING THE CHALLENGES……………………………………………………...……17 NEXT STEPS…………………………………………………………………………….……..20 APPENDIX…………………………………………………………………………..………….21 ACKNOWLEDGEMENTS…………………………………………………………………….23 SOURCES….…………………………………………………………………………………….24 INTERVIEWS……………………………………………………………….………………….25

     

  3  

     

  4  

CASE SYNOPSIS

Given the complexity of global issues like food security and climate change, there is a growing trend to leverage public-private partnerships (PPPs) to catalyze innovative solutions. These non-traditional partners combine their expertise to unlock the shared value of societal good and profits. Many partnership activities are taking place at the Base of the Pyramid (BoP). This case study explores why the Toro-iDE partnership was successful at BoP.

After an initial vetting process, Toro and iDE formed a PPP in 2013. Championing the partnership was Eduardo Mendías, a Senior Product Manager at The Toro Company. Utilizing Toro and iDE’s comparative strengths, the partners piloted a business model to supply drip irrigation kits to Zambian smallholders. A variety of challenges confronted the pilot including: locating funding; the operating environment; designing for a diverse BoP market; and reaching scale.

While a complimentary set of motivations aligned the partners, Toro’s leadership saw investing in the pilot as too risky. Luckily, through an iDE lead, the partners were able to win a USAID Feed the Future Partnering for Innovation grant. Upon solidifying funding, iDE applied its Human Centered Design expertise to evaluate the market and adapt Toro’s initial drip kit design. After various iterations, the Toro Drip Kit was competitively priced at $197 with a potential to benefit 367 thousand Zambia smallholders. Within that same year MRI Syngenta, a local agribusiness that had closely worked with iDE in the past, bought 500 kits. The initial infusion of kits was being bought by the top-layer of the BoP. These farmers on average were seeing various benefits including: revenue impact of $570/farmer; 2X the crop yield; a 50 percent decrease in labor; fuel savings of 88%; water savings of 1/3rd; and female farmer empowerment. While thrilled by this success, the partners began strategizing on how to obtain scale and reach the lower layers of the BoP.

Regardless of the strategy, replication would be key in persuading Toro to continue investing in the partnership. Various strategies were on the discussion table. The partners could focus on expanding their reach to the bottom layers of the BoP within Zambia by bringing in Vision Fund, a microfinance organization. A second option was for Toro to enter new markets alongside iDE in Mozambique and Honduras. Toro could also choose to enter Southeast Africa with new NGO partners since iDE lacked this regional presence. The partners recognized that the greater the risk, the greater the reward.

     

  5  

INTRODUCTION

Realities like food security are economic, social, and environmental challenges of the 21st century. Donors and philanthropists have traditionally financed NGOs to solve the intertwining issues of world hunger and poverty. Given the complexity of such global issues there is a growing trend of leveraging public-private partnerships (PPPs) to catalyze solutions. These alliances seek to apply the comparative advantages of each sector to unlock the triple bottom line of people, planet, and profit at the Base of the Pyramid (BoP).

The BoP is a market of 4+ billion who make $2/day and compose 65 percent of the global population. 1 The majority of the BoP are smallholders who bear a disproportionate burden of feeding the global population as well as supplying primary commodity inputs. 2 By 2050 the UN estimates a world population of 9.6 billion where 8.2 billion are concentrated in the developing world.3 This will require a 70 percent increase in food production.4 Increasing productivity will depend on whether markets can effectively deliver agricultural technology to smallholders living in rural area. Bridging this last-mile supply chain would increase smallholder productivity and therefore their incomes. In addition to these societal benefits, the private sector also sees a business opportunity at the BoP.

Forward-looking firms recognize the business case for inclusive growth at the BoP, which is estimated at $5 trillion.5 Firms traditionally focus on developed world markets, but growth will only be possible by entering BoP markets for a variety of factors. While growth opportunities will stabilize in the developed world, population and GDP per capita will climb in the developing world prompting growth. 6 Firms are also seeing their core markets becoming saturated from increased competition. 7 Given the private sector’s inexperience with BoP customers and operating environments, partnering with NGOs has become a best practice. Courageous firms are therefore seeking to enter BoP markets. It is within this context that The Toro Company and iDE partnered.

                                                                                                               1 Prahalad & Hammond, 2002 2 This case study adopts iDE’s definition of “smallholders” as farmers who own less than half a hectare of land. 3 United Nations, 2013 4 UN News Centre, 2013 5 World Resource Group, 2007 6 World Resource Group, 2007  7 UNDP, 2014

     

  6  

     

  7  

A CHAMPION EMERGES It was 2012 when serendipity struck at the yearly Irrigation Association Conference in Orlando, Florida. Kevin Andrezejewski, a Global Supply Chain Manager at iDE, found himself talking with Toro’s Director of Marketing. The marketing director had read the book Out of Poverty, written by iDE’s founder, and was impressed with the non-profit’s success in linking smallholders to markets. Kevin was also aware of Toro’s reputation. He held fond high school memories of selling Toro lawn mowers at the local hardware store. He was also familiar with Toro’s quality offerings and had previously identified the firm as a potential future partner. These positive reputations fostered an initial trust that lead to a conversation of Toro’s interest in working in smallholder markets. Since 2010, Toro had been passively active at the BoP. Initially, Toro conducted a pilot program with the Millennium Challenge Corporation and a local distributor in Honduras to sell Aqua Traxx drip tape to smallholders. Continuing to explore the BoP, Toro formed an NGO partnership with Fintrac, a US-based consulting company that develops agriculture solutions to end hunger. Toro had designed a drip irrigation kit for Fintrac to teach growers proper agronomic practices. However, the drip kit was not designed as a commercial product for smallholders. Eduardo Mendías, a Senior Product Manager at Toro Micro-Irrigation, had played an active role in these smallholder initiatives. His drive to get Toro more involved in BoP markets came from a realization he had while working abroad. In traveling to large-scale agricultural sites overseas, Eduardo was surprised to see smallholders using Toro products. Eduardo took the time to speak with these smallholders and the hardware store owners the farmers pointed him to. Putting the puzzle pieces together, he realized that a gray market had sprung forth and that smallholders were buying second-hand products and paying prices close to those that large-scale farmers were paying. Unlike customers buying new Toro products, smallholders were not receiving a warranty or technical support backed by Toro’s quality guarantee. Frustrated, Eduardo recognized that Toro was failing to satisfy demand. An opportunity to meet such demand emerged when Eduardo was introduced to Kevin. Many late nights and long weekends were ahead for the future partners. Their determination to leapfrog a supply chain that could simultaneously counter poverty would drive them. iDE had found their champion at Toro.8                                                                                                                8 *A champion is defined as, “An individual (or several individuals) who promote the partnership using their personal/professional reputation and/or role to give the partnership greater authority or profile.” (Tennyson, 2011)  

     

  8  

     

  9  

MOTIVATORS iDE and Toro began a partnership courtship. The purpose was to identify four items: their potential partner’s comparative advantages; whether work cultures could align; if motivations sufficiently overlapped to be complimentary; and whether there existed an opportunity to partner. iDE is an international nonprofit that has spearheaded the development of BoP markets for agricultural products and services since 1982. Their dedication to creating income and livelihood opportunities for smallholder farmers has lifted 19 million people out of poverty.9 iDE is active in 15 countries and has a total of 500 staff in Africa, Asia, and Latin America. Each country program leverages the knowledge of its local staff to forge new domestic products using Human Centered Design (HCD). HCD is a design thinking approach to innovation utilizing a prototyping mindset that is user-centric.10 Country offices are able to tap into the larger iDE learning network by adapting strategies to regional contexts while also advancing such knowledge. To achieve its smallholder mission iDE harnesses a variety of competitive advantages that include:

• A proven ability to bridge last-mile supply chain gaps through its HCD expertise.

• An established, positive reputation among local distributors, NGOs, and governments. Such relationships are key in creating a sustainable supply chain with the potential to scale.

• A knowledge-sharing network composed of 15 country programs that propel iDE to continuously evolve its BoP strategies.

iDE seeks to increase its impact on smallholder farmers through strategic corporate partnerships. Strategic corporate partnerships increase iDE’s ability to commercialize smallholder technologies more quickly. Selectively investing in the right corporate partner can offer a fast-track strategy to reaching scale in countries where the corporate partner is located.

iDE seeks to explore new opportunities for funding and innovation. Corporate partnerships can diversify funding channels that traditionally depend on donations and donor grants. Private sector investment is iDE’s

                                                                                                               9 iDE, 2015  10 inCompass Human-Centered Innovation Lab at iDE, 2014

     

  10  

preferred approach for funding partnerships. Some firms also offer in-kind donations. Unfortunately, grants are more accessible to iDE since firms tend to be unwilling to invest upfront. Grant funds, however, are not sustainable and require high reporting costs. Once financing is secured, the partners can harness their complementary expertise to collaboratively design smallholder technologies and innovative business models.

Toro was established in 1914 as a US-based company. The firm is known as an innovative leader in irrigation equipment design, as well as manufacturing, and is located in over 90 countries.11 Toro’s global brands support a range of customers including agriculture producers and homeowners to golf courses and professional contractors. The company’s mission is to provide cutting-edge technologies and quality customer support. Toro has several comparative advantages that supported its entry into BoP markets:

• Experience in designing and manufacturing drip technologies for small-scale farmers derived from its Micro Irrigation division12

• A manufacturing system that can lower the costs of production for price sensitive BoP consumers

Toro seeks to enter BoP markets to propel long-term growth. Core markets are becoming saturated as competition for this narrow subgroup increases. The majority of the world’s population and income growth is taking place in emerging markets.13 Africa alone has the largest BoP consumer market, which has 71 percent purchasing power.14 Companies capable of being successful at the BoP can potentially secure brand loyalty through first-mover advantage as well as establish key cross-sector relationships that help navigate new business environments.

Toro aims to de-risk its BoP market investments through strategic partnerships. Unlocking success at the BoP requires upfront investments to cover product development, market creation, and the generation of a viable business model. Lacking experience working with BoP consumers means that Toro faces a steep learning curve. iDE utilizes the HCD method, its business relationships, and grant funding to reveal a commercially viable supply chain that Toro can adopt.

Toro is committed to developing water-saving irrigation products that advance fuel efficiency for its customers.

                                                                                                               11 Toro, 2014 12  iDE Toro, 2013  13 United Nations, 2013 14 World Resources Institute and International Monetary Fund, 2007

     

  11  

Designing products that are water and emissions efficient is part of Toro’s corporate social responsibility (CSR) initiative. Toro continuously seeks to develop technological approaches that reduce economic and environmental burdens. Efficiency innovations in BoP product design hold the potential to leapfrog to core markets through reverse innovation. Reverse innovation is the process where products and services designed for the middle and bottom of the economic pyramid find appeal among the top 10 percent of the pyramid.15

PARTNERSHIP APPROACH

“We believe that there’s an opportunity to change the world…iDE walks the talk and we do too.”

- Eduardo Mendías, Senior Product Manager at The Toro Company PHASE I – Partner Selection Finding a partner with complementary or overlapping objectives, values, and working style is imperative in creating a productive relationship that meets each organization’s expectations. In this initial stage, Toro and iDE dedicated time to familiarizing themselves with their potential partner’s mission, people, and culture by visiting each other’s offices. Gauging internal willingness to partner was key to understanding the level of buy-in and therefore potential success of the partnership.

Critical Success Factors

Demonstrating the business case for the partnership and obtaining buy-in from VPs and the Manager of Toro Micro-Irrigation was essential. Eduardo, the partnership champion, took small steps in this area. At present, Eduardo dedicates 100 percent of his time to the Toro-iDE partnership.

Effective communication and adaptation allowed the partners to identify push back early on from Toro’s Sales Department. The Sales

                                                                                                               

15 Govindarajan, Vijay, and Jim Euchner, 2014

 

     

  12  

Department had previously had negative experiences working with NGOs. To protect the partnership, the project was moved to the Marketing Department. Effective internal communication within iDE was key in propelling the partnership. iDE’s Business Development team and the Technology and Innovation team maintained close communication. Aware of the Toro-iDE partnership, the Development Team identified a grant through USAID funded Feed the Future Partnering for Innovation grant. Reaching out to various iDE country directors also highlighted Zambia as an ideal location for the Toro-iDE pilot. Zambia was selected for several reasons: iDE has a country office in Zambia with solid private sector partners, unmet demand exists for drip irrigation, and the country is a USAID target location.

PHASE II: Human Centered Design iDE harnessed the power of HCD to commercialize Toro’s initial drip kit design (See Figure 1, HCD Process). By integrating smallholder needs, wants, and

Source: IDEO, 2009

limitations the Toro-iDE partnership consciously designed for BoP consumers. Following preliminary product testing, iDE staff evaluated the drip kits in Burkina Faso, Honduras, and Zambia. iDE then selected 12 Zambian smallholders to test a second product iteration. 16 Smallholder selection depended on the following

                                                                                                               16 iDE, 2013

FIGURE 1: HCD Process  

     

  13  

criterion: education (to successfully monitor and maintain equipment), willingness to allow visitor access (to demonstrate drip irrigation to neighboring smallholders who were unfamiliar with the technology), and the presence of a water source (a prerequisite in utilizing drip irrigation technology). Evaluating the potential market was also key in assessing the viability to scale the business model (See Infographic 1). Toro and iDE then integrated smallholder feedback to design another iteration of the product.

INFOGRAPHIC 1.

*Market sizing data obtained from iDE, 2013 Source: Author

     

  14  

PHASE III: Business Model iDE leveraged its long-term working relationship with MRI, a Zambian agriculture input supply company, to solidify last-mile distribution of the kits (See Figure 2, Toro-iDE Supply Chain). MRI utilizes Farm Business Advisors (FBAs) to sell their

Source: Author

products and provide technical advice to smallholders in rural areas. Previously, iDE worked with MRI to train their FBAs in smallholder sales techniques and extension services. In July of 2013 Syngenta, one of the world’s leading agribusinesses, bought MRI. Fortunately, Syngenta’s prior interest in the BoP served to further support MRI’s activity in smallholder markets.

ACHIEVEMENTS

“iDE linked the largest manufacturers of drip, Toro, to one of the largest agribusiness distributors in the world to be active in the smallholder market.”

- Duncan Rhinde, iDE Country Director Zambia The results of the Toro-iDE pilot exemplify how market-based approaches can attain the triple bottom line of society, environment, and profit. Toro Drip Kits are $93 cheaper than other available 500SQM products on the market (See Appendix Figure 3, Lusaka Market Sizing).

FIGURE 2: Toro-iDE Supply Chain

iDE is active at the R&D stage to adapt the business model and product to BoP markets. Unique to this scenario, iDE had also trained the FBAs in BoP extension support and sales services. Once sustainable, iDE removes itself from the supply chain.

Engineering  and    Product  Manufacturing

Toro  

Local  Distributor  

MRI  Syngenta  

Farm  Business  Advisors  (FBAs)  MRI  Syngenta  

Smallholder farmers

     

  15  

From a development perspective this partnership was able to provide life-changing irrigation technology to smallholders by including them in a sustainable value chain. Toro Drip Kits provide smallholders with a variety of social and economic benefits. By extending the growing season, Toro’s drip kits increase a family’s ability to escape a subsistence lifestyle typified by erratic income flows.17 The benefits of drip irrigation also lower labor inputs by up to 50% allowing smallholders to pursue other income-generating activities.18 In line with Toro’s environmental commitment, drip irrigation reduces water usage by one-third and can even provide fuel savings of 88% when switching from flood irrigation techniques.19 Higher incomes offer families the opportunity to secure a regular food supply, which results in better health. Families can then afford to send their children to school with this additional income, free time, and better health. Additionally, interviews conducted by iDE found that drip kits hold two benefits particular to women: 1. Agriculture is traditionally man’s work, but the simplicity of Toro Drip Kits empowers women to farm, especially in female-headed households; 2. Drip kits require less labor, which reduces the disproportionate farming burden on women who typically grow “lady-coined” vegetables in addition to working the family field.20 From a business perspective, the partnership de-risked Toro’s investment in entering a new market. By the end of the pilot the partners had sold 500 drip kits.21 Replicating the model promises a combined market potential of 6.5 million drip kits in Zambia, Tanzania, Kenya, and Ethiopia combined.22 A first-mover advantage can promote brand loyalty within the smallholder community, a license to operate with the Zambian government, and business relationships with domestic distributors (See Figure 4, Results Summary).  

*Revenue impact was obtained from Nicoletti, Kanyembe, and Taylor, 2013. *Other data obtained from USAID, 2014 and iDE, 2013

                                                                                                               17 iDE Toro, 2013 18 USAID, 2014 19 USAID, 2014 20 Zambia Trip Report 21 iDE Toro, 2013 22 USAID, 2014  

 

FIGURE 4. Results Summary

     

  16  

LESSONS LEARNED

“It’s important to have expectations in line with what can be delivered when.”

- Sarah Nuernberger, iDE Project Manager Technology & Innovation PARTNERSHIP LESSONS 1. Quality in, quality out: iDE typically partners with small manufacturers. The benefit of working with a larger manufacturer like Toro is their quality offerings. The tradeoff, however, is that such quality comes at a higher product cost. Toro and iDE applied engineering expertise to minimize these costs, which resulted in a highly competitive product relative to other available products (See Figure 3, Lusaka Market Sizing). To reach the lower layers of the BoP the partners are designing a Value Kit model that retains quality while further narrowing product capabilities. 2. Persistence, not foolishness: Market entry is challenging. It takes time and persistence. Not all partners are willing or able to commit long enough to reap the pay-offs. The partners recognize that only by scaling sales will Toro, as a for-profit organization, realistically be able to continue investing in the partnership. 3. Adaptation equals innovation: Toro’s approach to manufacturing is the typical high volume, low cost method of production. For that reason, Toro’s internal policy regarding reels of tape, for example, was to produce a minimum of 15,000-feet. The Toro-iDE partners, however, wanted to utilize the cost structure of Toro’s large commercial products to capitalize on the tapes and leverage economies of scale. While Toro’s internal policies were created to support their core business, this policy was contrary to supporting Toro’s new BoP business that only required 2,000-foot reels. Eduardo discussed the issue with Toro leadership internally. As a result, Toro adapted their methods and procedures without damaging the cost structure of its large production runs. In effect, drip kits are produced at a lower cost and customers get a more affordable product. PRODUCT DESIGN LESSONS

1. Smallholders judge kit quality through price. A cheap drip kit conveys lack of quality and can deter smallholders from purchasing it.23

                                                                                                               23 iDE, 2013

     

  17  

2. Smallholders prefer a single-box solution, the easy-to-understand pictorial instructions, and simple labeling (See Figure 6, Drip Kit Installation Instructions). 24 Currently Toro is the only firm selling an all-inclusive kit on the market, which offers a competitive advantage (See Figure 4, Drip Kit Installation Instructions).

3. Major drip irrigation selling points for smallholders are: that it allows for multi-tasking; it decreases weed growth and is therefore labor saving; it is simple to use; it increases crop yield and therefore income.25

4. Drip irrigation is a new technology to most smallholders. The water tank is key since it allows smallholders to visualize the quantity of water being applied to their crops. Visualization increases their trust in drip technology.26

MANAGING THE CHALLENGES

“Where iDE works, Toro will go with us.” - Kevin Andrezejewski, iDE Global Supply Chain Manager

FINANCIAL Despite some interest in entering smallholder markets, Toro leadership was not ready to fully finance an unproven concept in a new market. Funding challenges are typical given the high-risk of entering BoP markets. Many refer to the early stages of financing as the Valley of Death (See Figure 5, Valley of Death). Fortunately, government grants incentivize innovation by filling the gap where angel investors and venture capitalists are deterred.27 Through an iDE lead, the partners were able to secure a *Source: Shell Foundation, 2010

USAID Feed the Future Partnering for Innovation grant.

                                                                                                               24 iDE, 2013; iDE, 2014 25 iDE, 2014; iDE, 2013 26  iDE, 2013  27 Mazacato, 2014; Block, 2011

FIGURE. 5: Valley of Death  

     

  18  

OPERATING ENVIRONMENT While iDE Zambia considered sourcing some of the kit’s components locally, importation taxes made this option financially infeasible. Importing the remaining components would have resulted in a 15 percent duty tax and a 16 percent VAT.28 The complete kit was therefore imported to avoid both of the latter taxes and keep product costs down. NEW PRODUCT OFFERINGS There are various market segments that compose the BoP. iDE is in the early stages of working with Toro to design a $100 Value Kit. The current 500SQM drip kit model is $197. Adapting the current drip kit by reducing its capabilities (not quality) would allow poorer smallholders the ability to buy Toro’s Value Kit. Expansion packs for the original 500SQM kit are also being considered for smallholders seeking to apply drip irrigation to additional plots. SCALING iDE’s global network offers a strong starting point to scale the Toro-iDE business model. Discussion is currently focused on replicating the model with iDE Honduras and iDE Mozambique. To potentially scale to countries without an iDE presence, the partners are promoting the pilot internationally to identify new organizations to collaborate with. One such possibility is to partner with MRI Syngenta by identifying unique ways to scale. The partnership is also taking an organic and strategic method in obtaining scale. iDE is familiarizing Toro with key players in the field that may serve as new partners. While some nonprofit partners would feel threatened by being replaced, iDE realizes that ultimately Toro’s involvement at the BoP depends on making sales. iDE considers this strategy as being able to benefit both organizations’ goals in the long-term. To achieve higher sales the partners must make the drip kits affordable to lower layer BoP consumers. Willingness to pay for the kits exists among lower BoP segments -- their ability doesn’t. Filling the void with microcredit will be key in terms of going to scale. It is possible that Vision Fund, an organization with microcredit expertise, will be brought in to manage this challenge. MRI’s FBAs could then serve as in-field loan coordinators who oversee groups of 5-10 smallholders.29 This model could then be replicated.

                                                                                                               28 iDE, 2013 29 iDE, 2013

     

  19  

     

  20  

NEXT STEPS It was March 2015 and Kevin and Eduardo were flying back from the Global Forum for Innovations in Agriculture. They reflected on the new ideas and connections they had made. How could they best scale the Zambia pilot to attain the sales that Toro required? Would microcredit be enough for subsistence farmers to adopt Toro Drip Kits? Both partners realized that only higher sales would give Toro the confidence in continuing to work in smallholder markets. May was bringing the first dry season to Zambia. It would be the first time where Toro Drip Kits would be available. iDE would be leading training sessions and demonstration sites to promote the drip kits. Discussions with MRI Syngenta were underway regarding how to expand through the current model. Still, various questions ran through their minds: Should Toro explore Southeast Africa with a new NGO partner since iDE lacked a regional presence? Should Toro enter new markets with iDE in Mozambique and Honduras? Should they focus on first expanding their reach to the bottom layers of the BoP within Zambia? They could feel their efforts from the last two years leading up to this moment.

     

  21  

     

  22  

APPENDIX

Product

Cost (kwacha) Cost (USD)

Drip Metzerplas Inline Drip Tape - 500 m 802 $ 145.72

Metzerplas Inline Drip Kit - 32X32SQM 2200 $ 399.74

Metzerplas Inline Drip Kit - 50X50 SQM 4026 $ 731.52

Netafim Inline Drip Kit - 500SQM 1598 $ 290.36

Netafim Inline Drip Kit - 4,000SQM 7656 $ 1,391.10

Netafim Inline Drip Kit - 9,600SQM 14036 $ 2,550.34

Toro Inline Drip Kit – 500SQM $ 197.00

Chinese Inline Drip Tape - 1,000 m; 400 micron 1220 $ 221.67

Chinese Inline Drip Tape - 500 m; 800 micron 1295 $ 235.30

Chinese Take Off Valve 5 $ 0.91

Water Tanks 500 Liter Plastic Water Tank 550 $ 99.94

1,000 Liter Plastic Water Tank 1030 $ 187.15

5,000 Liter Plastic Water Tank 2970 $ 539.65

*Source: iDE, 2013

FIGURE 3: Lusaka Market Sizing  

     

  23  

FIGURE 6: Drip Kit Installation Instructions  

     

  24  

ACKNOWLEDGEMENTS I’d like to thank various people for taking the time to contribute to this case study: A big thank you to those dedicated folks at iDE and The Toro Company who shared their inspiring experience in Zambia in all of its challenges and success. Insight into the world of business was key given the topic of this research and my knowledge gap. My wonderful committee members, Dan Vermeer and Tony Brown, knew how to patiently guide me through this unfamiliar territory. I especially need to thank my advisor, Matt Nash, who generously dedicated his already limited time in overseeing this project.

     

  25  

SOURCES IDE. “History.” N. p., 2015. Web. 31 Mar. 2015. iDE. “Partnering for Innovation DIBOP Program: Drip Irrigation for the Bottom of the Pyramid.” 2014. IDE. Zambia Trip Report. N. p., 2013. Print. iDE, and Toro. “Human Center Designed Drip-Irrigation System for Smallholder Farmers.” 2013 : n. pag.

Print. “iDE Toro Drip Irrigation Kits.” Partnering for Innovation. N. p., 2013. Web. 17 Jan. 2015. IDEO. “Human Centered Design Toolkit.” N. p., 2009. Web. 31 Mar. 2015. inCompass Human-Centered Innovation Lab at IDE. “Category: Human Centered Design - Shifting the

Focus from Prototyping Techniques to a Prototyping Mindset.” N. p., 2014. Web. 6 Apr. 2015. Mazzacato, Mariana. The Entrepreneurial State: Debunking Public vs. Private Sectors Myths. London:

Anthem Press, 2014. Print. Nicoletti, Chris, Daniel Kanyembe, and Hart Taylor. iDE Zambia - RPI2: Impact Evaluation. N. p., 2014.

Print. Prahalad, C K, and Allen Hammond. “Serving the World’s Poor, Profitably.” Harvard Business Review

80.9 (2002): 48–57. Govindarajan, Vijay, and Jim Euchner. “Reverse Innovation: An Interview with Vijay Govindarajan -

ProQuest.” Conversations 2012 : 13–17. Web. 17 Oct. 2014. Shell Foundation. Enterprise Solutions to Scale. N. p., 2010. Print. Tennyson, Ros. The Partnering Toolbook: An Essential Guide to Cross-Sector Partnering. N. p., 2011.

Print. Toro. “Our Company.” N. p., 2014. Web. 31 Mar. 2015. United Nations. “World Population Projections 2012.” 2013 : 1–4. Print. UN News Centre. “World Must Sustainably Produce 70 per Cent More Food by Mid-Century – UN

Report.” N. p., 2013. Web. 29 Mar. 2015. UNDP. Barriers and Opportunities at the Base of the Pyramid - The Role of the Private Sector in Inclusive

Development. N. p., 2014. USAID. “From Smallholders to Shareholders: Optimizing Private Sector Partnerships for Smallholder

Impact.” 2014. World Resource Institute, and International Finance Corporation. The Next 4 Billion: Market Size and

Business Strategy at the Base of the Pyramid. Washington DC: N. p., 2007.

     

  26  

INTERVIEWS

1. Snow, Elizabeth. Telephone Interview. 15 Oct. 2014.

2. Vermeer, Daniel. In-person Interview. 16 Oct. 2014.

3. Nuernberger, Sarah. Telephone Interview. 20 Jan. 2015.

4. Nuernberger, Sarah. Email Correspondence. 26 Jan. 2015.

5. Andrezejewski, Kevin. Telephone Interview. 29 Jan. 2015.

6. Rhind, Duncan. Skype Interview. 29 Jan. 2015.

7. Snow, Elizabeth. Telephone Interview. 3 Feb. 2015.

8. Mendías, Eduardo. Telephone Interview. 5 Feb. 2015.

9. Mendías, Eduardo. Telephone Interview. 12 Feb. 2015.

10. Snow, Elizabeth. Telephone Interview. 13 Feb. 2015.

11. Nuernberger, Sarah. Email Correspondence. 18 Feb. 2015.

12. Nuernberger, Sarah. Telephone Interview. 27 Feb. 2015.

13. Nuernberger, Sarah. Email Correspondence. 2 Mar. 2015.

14. Andrezejewski, Kevin. Telephone Interview. 24 Mar. 2015.

15. Mendías, Eduardo. Telephone Interview. 27 Mar. 2015.