Contents

1. Abstract
2. Objective
3. Current practice
4. Problems in current scenario
5. Need of the project and opportunities for stakeholders
6. Targeted customer
7. Differentiating factor
8. Working of the entire business process
9. Marketing strategy
10. Concept selection matrix
11. BOM(bill of material)
12. Specification unite
13. Manufacturing strategy
14. SWOT analaysis
15. Voice of customer
16. DFX review
17. Reference
18. Documentation
 1. Abstract

As Ethiopia is striving to achieve the millennium development goal in the near future, the government
is trying to make sure clean water is available for every household in the country. Developing a
solution for filtering water in house or at the institution level may seem to be simple of developing a
machine that can be installed in the house to filter drinking water.

However various tradeoffs considered like space occupied by the machine, utility of the product,
incentive to the individuals to use the product and the value generation for the stakeholders. The
following proposal highlights the development of the solution for the low class people to filter water.

The product is developed through a proper product development cycle based on inputs from the voice
of customers, development design characteristics and specifications, finalizing the concept by
sequential evaluation criteria to finally fabricate a prototype exhibiting the working model and
proposed business Plan.

2. Objective
To provide low cost water filter for low class people at a household level
Developing a product for filtering the water

3. Current Practice

The need for water and sanitation in Ethiopia is severe. Only 42% of the population has access to an
improved water supply, and only 11% of the population has access to adequate sanitation services In
rural areas, these numbers drop even further.

In the rural Ethiopia, women and children walk up to six hours to collect water. Most people collect
water from shallow, unprotected ponds which they share with animals. Other people collect water from
shallow wells. Both of these sources are subject to contamination as rain water washes waste from
surrounding areas into the source. The jugs women use to carry water back to the village weigh up to
40 pounds! Often, young children are left at home while their mother and older siblings collect water
and their fathers work.

In the last 20 years, Ethiopia has experienced recurring droughts followed by food shortages and
famines. During times of drought, water-related diseases are rampant. Surface water sources such as
springs and ponds dry up. Remaining water sources are heavily contaminated by environmental waste,
such as human and animal excreta, which is washed in when it does rain. The stagnant water serves as a
breeding place for mosquitoes.

In times of drought, there is often not enough water available for people to bathe regularly. As a result,
community members, especially children, suffer from scabies and in eye infection.
During these times, in an effort to conserve water, hand-washing after defecation or before eating is
rarely practiced. Diarrheal and water-related diseases are among the principle causes of death in young
children

4. Problem in Current Scenario

Most of the local people transport water from a very long distance

If the poor doesnt get access to clean water then it becomes a great problem for the whole
family
The water source is being polluted from time to time exposing the poor to different water borne
diseases
The unprivileged transport the water in an open container that might easily be contaminated.
5. Need of the project and opportunities for stake holders

1. In order to capitalize on the health benefits of water, it is essential to draw from a clean source
of water.
2. Drinking impure, contaminated water is the leading cause of epidemic disease in developing
countries.
3. There are more than 2100 known drinking water contaminants that may be present in tap water,
including several known poisons.
4. Bottled water does not offer a viable alternative to tap water.
5. Municipal water treatment facilities cannot always control for the outbreak of dangerous
bacterial contaminants in tap water.
6. The only way to ensure pure, contaminant-free drinking water is through the use of a point-of-
use filtration system.
7. Several types of cancer can be attributed to the presence of toxic materials in drinking water.
8. Clean, healthy drinking water is essential to a childs proper mental and physical development

6. Targeted customer

The poor and the unprivileged who cannot afford a packed bottle of water are the customers identified
to use the product to filter the water they use for their daily consumption at home.

7. Differentiating factor
The product is simple to use
The product is affordable
The product is available
 The product is easy to maintain
The customer is covered by warranty period in case of any defect
The customer can return the product if it does not function properly
The customer can pick the product from any of the out lets available through the country or the
product can be delivered to the customers door
After sells service at the customers request and periodical inspection

Process:

8. The process of the business:

The producer will identify its supplier for the raw material thus benefiting the local industry
There will be a manufacturing facility at the headquarter of the producer
Product will be tested
Product will be advertized
Product will be marketed
The producer will sell the product directly using its own outlet thus avoiding the middle men
who will put unnecessaryprofit margin

Product:
The filtration process involves some type of filter media, over which water flows. This filter media
blocks passage of contaminants through physical obstruction, chemical absorption, or a combination of
both processes. Material construction of the filter media varies widely, but the most effective Medias
are made from carbon or a combination of carbon with other elements. Modern filtration technology
allows water filters to remove more and more contaminants through the chemical process of absorption.
In the adsorption process, contaminants are encouraged to break their bond with water molecules and
chemically adhere to the filter media. Generally, water goes through several stages of filtration to
ensure that each filter media will remove the ultimate number of contaminants. Water normally passes
through a water filter at a relatively low speed, in order to ensure adequate contact time with the filter
media. Once the water has passed through the required stages of filtration, it emerges as pure drinking
water, free from contamination.

The profit margin of the product:

Fixed cost:

nomenclature of the Cost remark

component birr cents
cape 10 00
Plastic upper container 30 00
Ceramic disc filter 200 00
clamp 20 00
 Plastic lower container 30 00
tape 20 00
Total fixed cost

Variable cost:

nomenclature of the Cost remark

component birr cents
Maintenance cost 300 00
Administrative charges 100 00
Labor cost 360 00 Six personnels is involved
Total variable cost

9. Marketing strategy
Chapter 6 presented an assessment of the need for clean drinking water in Nepal along with a
preliminary consumer analysis. Indeed, the market research section of the business plan,where the
market and potential customers are characterized, is one of the most important sections of the plan
and should be one of the first tasks to complete. 56 The preliminary consumer analysis presented in
Section 0, identified three primary users: urban users, rural users (accessible), and rural users
(remote). These are very general user groups that need to be characterized in more detail and
categorized into specific consumer groups. Once these groups are identified and characterized, then a
marketing strategy can be customized to meet the needs of these target groups. For Nepal, it would
be useful to identify specific villages to target when the ceramic water filter is first being tested in the
field. A monitoring and evaluation program could then follow to provide feedback in terms of user
behavior and user reaction to the product. For now, the general components of a marketing strategy:
product, price, distribution, and promotion are introduced along with some suggestions for future
consideration when a thorough marketing plan is developed.

9.1.Product strategy

A proposed product line strategy is presented below. This is a list of the products/spare parts that would
be available to customers. These product(s) may be offered by a single organization or multiple
organizations. For now, just a preliminary list of products is presented, without considering the
organization(s) that would market/supply these products.
1. Provide multiple filter system capacities: small (15 L total capacity); medium (20 L total capacity);
and large (30+ L total capacity).
2. Provide a filter system that uses a ceramic disk filter (i.e., the current prototype being
developed)
3. Provide a filter system that uses a candle filter. The system should be as similar in shape and
size as the disk filter system (i.e., the upper and lower containers should be identical; the only
difference being the method for installing the filter element).
4. Provide replacement disk filter elements.
5. Provide replacement candle filter elements (primarily for legacy systems).
6. Provide replacement parts such as spigots, lids, connecting pieces, etc.
7. The upper and lower containers and lid should be made of high-quality, clear Polyethylene
Terephthalate (PET) plastic or High Density Polyethylene (HDPE). Also consider using ceramic
containers where appropriate, such as in the Terai where there are added benefits to keeping water
 cool by using a ceramic container as opposed to plastic. Be prepared to adapt a plastic version to a
ceramic version if users reject using plastic.
8. Consider marketing water-purification products, such as Piyusha (liquid chlorine solution that can be
used in conjunction with the ceramic water filter to encourage a multi-barrier approach to water
purification.

9.2. Price
The pricing strategy summarizes prices for the various products offered in the product line. For this
project, a preliminary financial analysis of a disk filter system estimated the retail price for a complete
system to be birr 700. This estimate will be refined once a working prototype is brought to Nepal to
determine how much it will cost to manufacture the complete filter system.
9.3. Production and distribution
The production and distribution strategy describes how the product will be manufactured and
distributed throughout Ethiopia. As a start to building this strategy, a list of the activities leading up to
the sale of a filter system is presented in Table 8.1. Some examples of potential agents who would
carry out the activities are also presented. For example, ceramists such as Hari Govinda Prajapati of
Madhyapur Clay Crafts would manufacture the disk filter while a plastics company would manufacture
various parts for the filter system such as the containers and spigot.

Activity Responsibility Example

Manufacture Disk Filter ceramist Tabore ceramics in awasa

Rubber ring gasket Addis Goma kuteba/dejen aviation

Manufacture Filter System
parts
Assemble Filter System
Transport Filter System
Sell Filter System
Monitor & Evaluate Filter
Performance
industery
Plastics company & other
manufacturers/suppliers
Assembler/distributor
Assembler/distributor
Retailer, individuals/direct
sale
METEC Environment & Public Health
Organization (ENPHO),

9.4. Promotion
The promotional strategy focuses on methods for marketing and selling the proposed product line. In
the case of developing a ceramic water filter, this strategy could also tie in with a monitoring and
evaluation program, as part of field testing, to gather pertinent information for developing the
promotional strategy.
There are a number of unique challenges to selling the benefits of a ceramic water filter. For example:
How to demonstrate to users the link between good health and clean water?
How to convince potential customers that ceramic water filters can improve drinking water
quality?
How to quantify the health-related costs associated with poor drinking water quality and in
turn, to justify the cost of a ceramic water filter system?
The CeraMIT team made a number of marketing recommendations10, which have been slightly
modified and elaborated on below.

9.4.1. Branding
CeraMIT recommended creating a strong brand name and/or image to market the product. 10
A brand name/image essentially embodies the characteristics of a product or service into a feeling or
an emotion that is invoked upon recognition of the brand name or image. For example, Coca-Colas
bottled water products in Nepal are marketed with the comment
100% Trust printed on the bottle. Trust is certainly an important factor to associate with a ceramic
water filter product, considering the primary purpose of a filter system is to improve drinking water
quality and in turn, human health. Finding a Nepali name or image that embodies trust would provide a
good starting point for developing a brand name/image.

9.4.2. Certification
Certification could help to market a product to organizations that are familiar with the certification
process. Many users may not recognize a certification body such as NSF
International, but most of the larger aid organizations, such as UNICEF and the Red Cross, will. If
these organizations become potential customers, as described in Section 6.4.2, then it would be
beneficial to promote a product as being certified under an internationally recognized organization like
the NSF International.

Advertising
Branding
Direct marketing
Personal sales
Product placement
Publicity
Sales promotion
Loyalty marketing
Mobile marketing
Premiums
Prizes
Corporate anniversary

How to compete
Join professional association in the industry
Attend trade fairs and shows
Distribute free gifts
Have a professional looking website
Address meetings and focus groups
How to deliver
Have outlets that are easily accessible
Introduction of Door to door delivery
Have the customer select a collection store at their convenience

10. Concept selection

 11. Bill of Material (BOM)

12. Specification unit

13. Manufacturing Strategy

Targeted Cities

Addis Ababa Bahirdar Dredawa Hawasa Adama Mekelle

Reason for selection of the Cities
Raw material availability
Easily trainable labor force
Large number of consumers
Product Knowledge
Residents are more concerned about their health

Product:
Basic material-thermoplastic

1. cape Machining operation-plastic molding and trimming

Basic material-thermoplastic

2. Plastic upper container Machining operation-plastic molding and trimming

Basic material-ceramic

3. Ceramic disc
Painting operation-painting colloidal silver

Basic material-thermoplastic

4. Plastic lower container Machining operation-plastic molding and trimming

5. Valve Basic material-

Plant capacity:
 Expected number of packing per a day..100

14. SWOT Analysis

Strength: Weakness:

Complete solution for the poor No Brand recognition:-

Start up venture

Can be customized to the need of Low market recognition:-

scale of Business Start up Venture

Simplicity and robustness in design Lack of Business experience

Fast achieving of Breakeven point (3- No solution to complete Waste

4 months) Management eg. inorganic

Unknown Product Features for end

consumer (Indian Market Segment)

Opportunity Threat

Large scale solution can be made out Market not mature enough to accept

of the concept new concept-initial stage of learning

Alternative use of compost can be curve

designed to attract different Not enough stringent rules and

segments of customer regulations in Ethiopia

First Mover Advantage Lack of awareness amongst Customer

Unexplored Market and customer and Consumer

options Competitors with complete solution

 Can reach out to other developing can take our market share and concept

countries in Africa Consumers having alternate options

15. Customer Voice.

need for clean drinking water
the benefits of point-of-use household water treatment technologies like ceramic
water filters
Global Need for Clean Drinking Water

16. Process flow of production

Insert manufacturing process flow diagram