LIGHTING DEVICES TEST RESULTS Kenya Results June 2009

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LIGHTING DEVICES TEST RESULTS Kenya Results June 2009

LIGHTING DEVICES TEST RESULTS Kenya Results June 2009

Report Overview 1 Lighting Africa Overview / Market Intelligence Program 2 Market Research Approach

Report Overview 1 Lighting Africa Overview / Market Intelligence Program 2 Market Research Approach 3 Lighting Devices Testing: Setting the Scene 4 Lighting Devices Tested 5 How Do We Assess Potential? 6 Brief Country Overview 7 Main Product Findings By Country 8 Recommendations By Country 9 Executive Summary KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 2

LIGHTING AFRICA OVERVIEW / MARKET INTELLIGENCE PROGRAM

LIGHTING AFRICA OVERVIEW / MARKET INTELLIGENCE PROGRAM

What is Lighting Africa? Lighting Africa is a World Bank – IFC initiative aimed

What is Lighting Africa? Lighting Africa is a World Bank – IFC initiative aimed at supporting the global lighting industry to catalyze a robust market for off-grid lighting products tailored to the needs of African consumers. The Program’s mission is to make affordable, environmentally sustainable, durable, and safe lighting available to the masses, who currently depend on kerosene lanterns and candles to satisfy their lighting needs. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 4

How does Lighting Africa support the development the lighting market? The Lighting Africa program

How does Lighting Africa support the development the lighting market? The Lighting Africa program is a market-based approach, grounded in the recognition that: § § § There is a considerable commercial market opportunity and willingness to pay for off-grid lighting, substantiated by annual expenditures on kerosene amounting to $38 billion and $17 billion, globally and in Sub-Saharan Africa, respectively Recent technological advancements in lighting, particularly in the area of Light-Emitting Diodes (LED), demonstrate increased promise to deliver affordable technological solutions tailored to the African marketplace and beyond The most expedient and sustainable way to bring affordable, reliable lighting to Africa is by supporting the industry to design and deliver an array of products tailored to the needs of African consumers KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 5

How do we ensure Lighting Africa program activities respond to industry need? All Lighting

How do we ensure Lighting Africa program activities respond to industry need? All Lighting Africa program activities are designed with and for the industry and other stakeholders Through ongoing consultation with a wide array of stakeholders (including private companies, NGOs, financiers, governments and other key players along the supply chain) opportunities are identified where Lighting Africa can play an appropriate role in accelerating the off-grid lighting market in Africa KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 6

Lighting Africa: Program Areas § § § Policy: Addressing policy and regulatory barriers Financing:

Lighting Africa: Program Areas § § § Policy: Addressing policy and regulatory barriers Financing: Improving access to finance along the distribution chain- for example through partnership with financial institutions Product Quality Assurance: Addressing issues of quality with lighting products to help consumers make informed purchase decisions and prevent market spoilage Business-to-Business Linkages: Creating opportunities for different players along international supply chain to meet, exchange information and create business partnerships Market Intelligence: Collecting & disseminating key market information to support successful market penetration Business Environment: Facilitating market entry through the provision of relevant information, such as country-specific policy and regulatory information KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 7

What has the market research provided? Key Market Information on consumer needs, preferences and

What has the market research provided? Key Market Information on consumer needs, preferences and finances. The information has: § Informed on the desired functionality and design attributes of different types of lighting products within several product classes (Torch, Floodlight, Task Light, Lantern, Spot Light) § Enabled the industry to overcome potential challenges that are likely to accompany market entry in the African off-grid lighting market § Created a baseline to quantify the size of potential market segments in volume and value terms KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 8

Lighting Africa: Why Market Research? § While anecdotal evidence shows a substantial opportunity in

Lighting Africa: Why Market Research? § While anecdotal evidence shows a substantial opportunity in the off-grid lighting market in Africa, much of the industry lacks the information needed to develop and market products appropriate to meet the needs of African consumers § This is the result of a premature and undeveloped market, but one with demonstrable potential – the fuel-based lighting market in Africa is currently worth more than $17 billion per year – yet is still largely undefined, untapped, and unrealized § In response to the industry’s call to provide greater comprehension to the scope of this emergent market opportunity, Lighting Africa developed a Market Research program KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 9

MARKET RESEARCH APPROACH

MARKET RESEARCH APPROACH

Research International: Background and Related Experience The research was conducted by Research International East

Research International: Background and Related Experience The research was conducted by Research International East Africa, a subsidiary of the global market research firm: Research International is one of the world's largest custom market research agencies, with offices in 50 countries worldwide and over 30 years of expertise. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 11

Research Methodology § Currently, the Lighting Africa market research program covers 5 countries: Ghana,

Research Methodology § Currently, the Lighting Africa market research program covers 5 countries: Ghana, Kenya, Zambia, Ethiopia and Tanzania § Two key market segments: households & micro-businesses in rural and urban areas § The market study involves studies of the market in Africa to provide insights that form the basis for innovative product ideas; and is comprised of three research methods: An exploratory phase involving a qualitative product testing element 2. A quantitative Habits and Attitudes survey of the population 3. Quantitative Lighting Devices Testing, using the proprietary e. Valuate. TM methodology, to quantify the acceptance and likely uptake of existing, new and revised product ideas for the market in Africa 1. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 12

LIGHTING DEVICES TESTING: SETTING THE SCENE

LIGHTING DEVICES TESTING: SETTING THE SCENE

Lighting Devices Testing Context § The purpose of the lighting devices research is to:

Lighting Devices Testing Context § The purpose of the lighting devices research is to: – – Assess consumer acceptance and potential for each of the lighting devices tested within the context of norms Prioritise and provide guidance as to which products to take forward to the next stage of development KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 14

HOW DO WE ASSESS POTENTIAL?

HOW DO WE ASSESS POTENTIAL?

Sample structure § § § Twenty interviews were conducted per country Main purchasing decision

Sample structure § § § Twenty interviews were conducted per country Main purchasing decision makers were interviewed both prior to use and after recall. Consumers also filled out a questionnaire during usage of the test lights. Interviews were conducted in peoples’ homes to ensure that observations were made about the space lit and the kind of lighting used LOCATION LSM NO. OF INTERVIEWS Urban 1 -4 1 -5 Urban 5 -10 6 -10 Rural 1 -4 11 -15 Rural 5 -10 16 -20 KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved Kenya 16

Key Questions Asked To Qualitatively Evaluate Lighting Devices Would you buy it? Is the

Key Questions Asked To Qualitatively Evaluate Lighting Devices Would you buy it? Is the idea genuinely new and unique? Is the idea clear to you? Do you actually like the idea? Is it relevant to you? Do you think it would offer value for money? Do you find it exciting? How often would you buy it? Do you believe it? Supported by spontaneous likes and dislikes KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 17

Key qualitative questions Interviews focused on answering these questions: Who is the consumer? §

Key qualitative questions Interviews focused on answering these questions: Who is the consumer? § Consumer demographics and characteristics of households How does the consumer use light? § Current lighting habits, attitudes, preferences and needs How do consumers perceive the products? § Assessment of the new products versus product characteristics, features, learning and marketing approach What does the consumer want? § Assessment of needs for current lighting in and around the home Which products do consumers prefer? § Product preferences (performance and design features) and developing a quality standard for lighting How much is the consumer willing to pay? § Consumer economics (intent and capacity to pay for lighting) KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 18

Predicting the likelihood of successful product launch § What we know about successful product

Predicting the likelihood of successful product launch § What we know about successful product launches is that there is a lot more at stake than merely identifying which products should be launched versus which shouldn’t. In predicting the likelihood of a successful product launch we must also identify key drivers that will ensure long term success § Within developing markets, measures of new product success are slightly different from other parts of the world. In developing markets consumers have little disposable income which means their behaviour with regards to new purchases will be quite conservative – they will not take chances buying into new products if they are not sure whether the product will work for them or not § In order to predict the likelihood of successful product launch, it is important to understand 3 critical measures: the “WHAT? ”, the “WHY? ” and the “WOW? ”. These will be discussed in further detail in the next slides § Additional to these three measures, it must be kept in mind that the cost of the new product, in this case the lighting device, will undoubtedly remain a main driver in creating purchase intent amongst consumers with low levels of disposable income KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 19

The WHAT? Test The product must have a recognisable point of difference § The

The WHAT? Test The product must have a recognisable point of difference § The WHAT test involves a check of the consumers’ understanding of the various lighting devices under consideration § For the lighting devices to be successful in the market, consumers need to be sure that the lighting devices: Ø Have a recognisable point of difference, i. e. that it is better than what they are using currently or that it could impact and improve their life in a significant manner Ø Are understood – it has to be clear how the devices will work KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 20

The WHY? Test This point of difference has to be perceived as a benefit

The WHY? Test This point of difference has to be perceived as a benefit § The WHY test involves a check of the consumers’ need for the various lighting devices under consideration § For the lighting devices to be successful in the market, consumers need to be convinced that they will be relevant to their lifestyle § If the lighting device is perceived to be technologically ‘too advanced’ or too difficult to operate, consumers will feel alienated– it will be perceived as a device for ‘them’- i. e. those people who have more money, and not for ‘me’ KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 21

The WOW? Test This benefit must be exciting enough to overcome barriers to trial

The WOW? Test This benefit must be exciting enough to overcome barriers to trial and usage § The WOW test involves a check of the consumers’ excitement for the various lighting devices under consideration § For the lighting devices to be successful in the market, consumers need to be convinced that the devices will be innovative and creative § If the devices do not stand out from what is in the market currently, they won’t generate sufficient interest from consumers to encourage purchase and substitution away from other product types KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 22

Traffic light rating system § A traffic light system has been used to report

Traffic light rating system § A traffic light system has been used to report the overall rating provided by the respondents for the features and characteristics of each of the lighting devices: + +/- Overall, the respondents were positive about the specific feature/characteristic, however some respondents had remarks that require attention Overall, the respondents were negative about the specific feature/characteristic KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 23

BRIEF COUNTRY OVERVIEW Kenya

BRIEF COUNTRY OVERVIEW Kenya

Brief Country Overview: Kenya Interesting facts: The incidence of poverty in Kenya is quite

Brief Country Overview: Kenya Interesting facts: The incidence of poverty in Kenya is quite high; in some parts, as many as 7 out of 10 persons live in poverty The distribution of wealth in Kenya is highly inequitable; with the bulk of the nation’s resources held by a privileged and select few. Much of the population is not connected to the electrical grid. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 25

ELECTRICITY

ELECTRICITY

Suggestions for improvementliving standards Surrounding § § § Need for electricity lines Supply of

Suggestions for improvementliving standards Surrounding § § § Need for electricity lines Supply of water Repair of sewage Regular clearance of garbage Installation of security lights More unity among people Solving of drought problems Creation of employment opportunities Better food accessibility Better housing plans for slums Security In-home § Electricity connection § House renovation § Supply of water (24/7) § Having a toilet on our plot so we do not have to share with neighbours § Having a nearby place to dispose rubbish I would buy household electronics like a TV or a fridge if I had electricity male, urban, lower LSM We need electricity for lighting because we are in darkness every day male, rural, higher LSM When you want to use a toilet you have to walk for about 300 m for a charged toilet services, otherwise we end up going to a bar for a drink and then access a free toilet male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 27

Likes and dislikes of not having electricity Alternative lighting sources Likes of not having

Likes and dislikes of not having electricity Alternative lighting sources Likes of not having Dislikes of not having electricity § Kerosene lamp þ No risk of electrocution ý Darkness/ insufficient light § Torch for outside use þ No risk of fires caused by ý Cannot use electronic appliances e. g. § Tin lamp (koroboi or ngwatira) § Candles ý Ironing is difficult § A hole in the roof to allow ý Cold environment sunlight to enter the house ý Much time is wasted making sure the electricity TV, radio during the day § Car battery § Dry cells (batteries) candles not to burn the house ý Limited use of devices It feels so bad not to have electricity because you miss out on very many things, the only way you can have an update on what is happening is by going to a bar where you can watch TV male, urban, higher LSM Having no electricty makes life dark both inside and outside the house female, urban, higher LSM The hole in the roof allows sunlight to enter the house during the day, if I covered that hole there would be total darkness in the house male, urban, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 28

Electricity connection usage & attitudes Connection Likelihood 0 -3 months Determinants of Perceived benefits

Electricity connection usage & attitudes Connection Likelihood 0 -3 months Determinants of Perceived benefits of connection þ Availability of þ money 3 -6 months þ 6 -12 months þ 12 months plus Not likely Ranging from § = few respondents to Barriers to connection Brighter light to allow children ý Lack of money to do their homework ý No electricity lines in the area Electricity makes the house ý No ownership of house/ plot warmer and landlord (owner) is not For usage of electronic willing to connect to the appliances electricity grid þ More convenient for cooking þ Cheaper lighting ý Price of connection is too high = many respondents Most respondents do not expect any connection to the electricity grid in the near future because they are only tenants and have to rely on the landlord’s decision on electricity connection I have lived here for 30 years now and no electricity has been installed, I do not see that happening any time soon female, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 29

LIGHTING

LIGHTING

Current lighting situation The lighting situation is so difficult because we have school-going children

Current lighting situation The lighting situation is so difficult because we have school-going children who have to study at night so the lamp is on most of the night and that makes it expensive i. e. half a litre of kerosene every night for lighting only female, rural, higher LSM I use a car battery for 150 KW torch bulbs which I have to recharge every 2 days and it is expensive, I pay US$ 0. 60 every 2 days male, LSM 1 - 5, urban, lower LSM I use the kerosene lamp most often but when I do not have enough money for kerosene then I resort to candles or ngwatira (tin lamp) male, rural, higher LSM v KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 31

Current Lighting Products Usage Product Used currently 1. Candles Most often used Least often

Current Lighting Products Usage Product Used currently 1. Candles Most often used Least often used Lapsed usage 2. Firewood 3. Torch 4. Tin lamp (koroboi/ ngwatira) 5. Kerosene lamp 6. Car battery § Most often, kerosene lamps and candles are used for lighting § Though perceived to be expensive, kerosene lamps are mostly used because they offer a brighter light and are healthier to use as they do not emit too much smoke The tin lamp (koroboi) is perceived to be cheap but has greater health risks Car batteries are also used by a few people for lighting and powering TV and radio § § KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 32

Summary of lighting products presently used ADVANTAGES DISADVANTAGES Kerosene lamp - Bright light -

Summary of lighting products presently used ADVANTAGES DISADVANTAGES Kerosene lamp - Bright light - Expensive (cost of kerosene) Candles - Economical - Not safe (may burn the house) Tin lamp - Optimum kerosene consumption (cheap) - Unhealthy (due to smoke produced) Not safe (may burn the house) The smoke emission makes the house dirty and smelly None - Torch - Economical - Car battery - No smoke Healthy - - - Wiring may short-circuit making it expensive for replacement Expensive because of frequent recharging KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 33

Choice determinants & influencers of current lighting product Usage determinants § § § §

Choice determinants & influencers of current lighting product Usage determinants § § § § § Cost/ affordability Convenience (should be able to be switched on & off on a need basis) Bright light Low risk (health and house) Ease of maintenance Availability of fuel Durability Mobility / portability Key influencers § § Mother/wife Father/husband In most cases the father/husband being the main income earner, decides which lighting product is used at home. However, in a few cases the mother/wife influences this decision. I make the decision on what lighting product to use because my children’s father never spend time at home, he always leaves very early at 4 am and he comes back very late at 10 pm so he does not even bother to know what we use female, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 34

Current lighting products KENYA © 2008 International Finance Corporation – The World Bank All

Current lighting products KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 35

Current lighting products useddifferent settings I use the koroboi (tin lamp) because it is

Current lighting products useddifferent settings I use the koroboi (tin lamp) because it is economical male, urban, lower LSM We use these tin lamps but we know that they are not good, the smoke that is emitted from them can be dangerous for our health male, urban, lower LSM A candle is good for a bachelor like me because candles are very easy to use male, urban, lower LSM I only use candles when I do not have enough money to buy kerosene but they have very dim light female, rural, higher LSM A torch is very useful for lighting especially outside female, higher, lower LSM We mostly use a torch to go out for a short call at night male, rural, higher LSM In most cases we use a kerosene lamp, you know it has a bright light and it is healthier than the koroboi (tin lamp) female, urban, lower LSM A kerosene lamp is better for people with families because it is not dangerous like candles female, urban, higher LSM A kerosene lamp has the best light for reading female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 36

Current Lighting Productssatisfaction rating Product used Overall satisfaction Suggestions for improvement Candle Ø Make

Current Lighting Productssatisfaction rating Product used Overall satisfaction Suggestions for improvement Candle Ø Make cheaper candles Firewood Ø Should be replaced with better lighting products, it is not good Torch Ø One with batteries that charge with solar or electricity Tin lamp Ø Should be replaced with better lighting products like kerosene lamp, solar or electricity charged lighting devices Kerosene lamp Ø Make one with a strong durable glass so that we do not needs to replace the glass cover all the time Not satisfied KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved Very satisfied 37

Current lighting productsideal product Ideal product Key characteristics § Electricity (grid) § § Solar

Current lighting productsideal product Ideal product Key characteristics § Electricity (grid) § § Solar power § § § § § Easy to maintain Affordable Bright light/ wide coverage (able to light a big area) Safe to use Can be cabled to supply lights to many rooms in the house Should generate little or no heat Ability to be hung or fixed at a high level far off children's reach High quality/ durable From a prominent manufacturer Can be used for commercial purposes § Grid electricity powered products are perceived as the most ideal lighting products that have the key features of an ideal lighting product § Solar powered products are also considered ideal lighting products Solar is the best because I do not have to carry it for charging like a car battery as it uses natural energy to charge the battery male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 38

MAIN PRODUCT FINDINGS

MAIN PRODUCT FINDINGS

TM 41

TM 41

TEST PRODUCT EVALUATION Before Placement

TEST PRODUCT EVALUATION Before Placement

TM 41 Test product usage demonstration KENYA © 2008 International Finance Corporation – The

TM 41 Test product usage demonstration KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 42

TM 41 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § § §

TM 41 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § § § The product was completely unique to the respondents interviewed Respondents considered the product very relevant to the lifestyle of the poor because it is solar charged and therefore no running costs involved It is very exciting because it has two lamps that can give enough light for the activities in the household none KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved very 43

Test product association TM 41 Very bright light Car lights Nice colour Light for

Test product association TM 41 Very bright light Car lights Nice colour Light for the whole house Good light Modern What comes to mind when you see this product ? Looks like a radio The product is thought to look like a radio to some people and others think it looks like a car light given the bright light and the appearance. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 44

1. Bright like grid electricity 2. Design 3. Colours 4. Size (portability) 5. Controls

1. Bright like grid electricity 2. Design 3. Colours 4. Size (portability) 5. Controls 6. Shape 7. Writings 8. Wires TM 41 Test product evaluation likes The lamps have a good shape and a nice black colour that is suitable for a lighting product male, urban, lower LSM The black colour is good especially for us in rural areas, it does not easily show dirt female, rural, higher LSM Not too many wires that can disturb in the house; also short circuits are limited with short and few wires male, urban, lower LSM The writings are clear and easy to read though some of us can not read male, rural, lower LSM The size is good enough and it’s interesting that it can be hung on the roof and then can supply enough light for the whole house male, urban, lower LSM The controls are easy to use and generally the product can be operated by anyone female, rural, higher LSM This is like grid electricity with no extra usage charges, it is as good as grid electricity female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 45

Test Product Evaluation – Dislikes TM 41 1. Light faces one I do not

Test Product Evaluation – Dislikes TM 41 1. Light faces one I do not understand the text male, urban, lower LSM The light is bright but it faces one direction, it would be better if it could shine in all directions male, rural, higher direction 2. LSM Writings 3. Charging One can not tell if it is charging or not; and there is no indication that shows if the battery is full male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 46

Test Product features evaluation TM 41 Feature § § § Rating Comment Shape §Unique

Test Product features evaluation TM 41 Feature § § § Rating Comment Shape §Unique and modern §The lamps have a good shape, they can support themselves Size The medium size is good enough for domestic usage Design Very smart design Handling/ Controls It is easy to use and also the fact that it only has a few wires makes the wiring very easy Colours Black is the best colour for a lighting product; it does no’t show dirt Writing/ labeling The words are clear and can be read though some people are not able to read The colour black is very appealing, it is believed to be the best colour for a lighting product, mainly because it does not show dirt easily The other appreciated factors for TM 41 are: – The two lamps are expected to offer enough light for most activities in the household – That it can be hung from the roof is much appreciated because in this way the whole house will receive more light TM 41 was also considered easy to operate; no one had a problem using it KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 47

TM 41 Test Product characteristics Suggestions for improvement Summary of satisfaction rating Enable connection

TM 41 Test Product characteristics Suggestions for improvement Summary of satisfaction rating Enable connection of more electronic devices like the TV to the solar panel Quality of service (lighting power) ü Reliability of service- battery life/availability ü Ability to have bulbs of different colours Uniqueness- new & different A product for someone like me Ease of use § § Product satisfaction before placement was high on all aspects One improvement suggestion was to allow extra electronics to be charged by the solar panel (e. g. TV) KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 48

TM 41 Purchase Intent & Price Overall evaluation Likelihood to purchase Worth more than

TM 41 Purchase Intent & Price Overall evaluation Likelihood to purchase Worth more than other products Perceived price § § US$ 38 - 58 Likelihood to purchase was high and TM 41 was perceived to be worth more than other products The price expectation range was US$ 38 – 58 but most respondents expected it to be around US$ 58 KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 49

TM 41 Test product summary before testing § Overall the product is cherished and

TM 41 Test product summary before testing § Overall the product is cherished and the most outstanding features of TM 41 are: § Bright light § The double lamps that can light two rooms simultaneously § Ability to hang the device on the roof which allows more light to be spread in the house § The black colour which is perceived as the best for a lighting product because it does not show dirt easily § Some people we spoke to saw TM 41 as an equipment that can save them from buying expensive kerosene everyday and which solves the problem of the dim light provided by their current lighting devices If I owned this, I would forget about kerosene expenses for good and the dim light female, rural, higher LSM It is cheaper and does not emit smoke like the kerosene lamp we use female, urban, lower LSM § There were only few dislikes for TM 41 before placement – Some respondents mentioned that the product does not have an indicator showing whether it is charging or not – Others recommended having bulbs that allow light to shine in more directions KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 50

TEST PRODUCT EVALUATION After Recall

TEST PRODUCT EVALUATION After Recall

TM 41 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement

TM 41 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement Clarity § § The product was very relevant to their life because it can keep the house lit while maintenance is free Some people who have shops claimed the light encouraged many customers to visit their premises KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 52

TM 41 Feature Test product evaluationgeneral characteristics Rating Comment Product uniqueness § § The

TM 41 Feature Test product evaluationgeneral characteristics Rating Comment Product uniqueness § § The only comparable product it is charged using electricity It provides bright like that of electricity Lighting adequacy § Very bright light equivalent to street light Battery life § The battery is known to be good because it does not take long to charge and it stays charged for a long time Ease of operation § It is considered easy to use Relevance § § Durability Very relevant and some people claimed that it has changed their lives The long wires allow to move the lamps to another room or even outside § Expected to be durable The small battery that supports two very bright lamps is an outstanding feature § TM 41 was perceived to be easy to use and also very relevant given the feedback from respondents: The product has attracted many clients to my shop the period I used it male urban, lower LSM My life has not been the same these five days I have used TM 41, I have been enjoying much light at home female urban, lower LSM I have been living like a rich person male urban, lower LSM § KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 53

Test Product features comparative evaluation TM 41 Feature § § § Rating before Rating

Test Product features comparative evaluation TM 41 Feature § § § Rating before Rating after Comment Shape § § Size § § There are mixed feelings about the shape of the lamps They look like car lights Good medium size, not too heavy and not too light Good battery size, makes the whole system light Design § Quite attractive Handling/Controls § Respondents still found the product easy to operate Colours § The black colour still has much appreciation after recall Writing/ labeling § The words are easy to read though some people are not able to read and thus can’t understand what they mean The shape of TM 41 was not much appreciated though a few respondents said it was nice The most outstanding product features were: the small sized easy to carry battery, black colour and easy to use controls The writings were not liked and should be translated into a language that is understood by the local community e. g. Swahili KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 54

TM 41 1. Portability 2. Controls 3. Colours 4. Two lamps 5. Slot for

TM 41 1. Portability 2. Controls 3. Colours 4. Two lamps 5. Slot for other devices Test Product Evaluation – Likes The two big lamps provide enough light and I can use each in a different room, so the whole house is well lit male urban, lower LSM I like it because it is very portable given the small size of the lamps and the small battery male urban, lower LSM Even when I go upcountry I can carry it with me female urban, lower LSM The colour does not show dirt, it is good for a person like me who handles a lot of dirt from cows female urban, lower LSM It is easy to use, anyone at home can operate it female rural, higher LSM The slot for using a radio makes it very good though the cable is not available male urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 55

TM 41 Test Product Evaluation Dislikes & Suggestions for improvement 1. male rural, higher

TM 41 Test Product Evaluation Dislikes & Suggestions for improvement 1. male rural, higher LSM Lights like a torch 2. Flat shape 3. Writings The writings should be in a language we understand It only lights one spot, like a torch female urban, lower LSM It is flat on top which prevents it to light to the sides, it should be made in a convex way; this will allow it to light a bigger area male urban, lower LSM Suggestions for improvement § Improve the device by adapting the lighting direction in such a way that the lit area lit is increased. § The lamp size is good but it would be even better if the size would was bigger § Respondents suggested that the writings should be translated to Swahili which everyone can understand KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 56

TM 41 Test product evaluation product usage This product was easy to use and

TM 41 Test product evaluation product usage This product was easy to use and well understood. After recall respondents wished they could retain the product and some even pleaded to have the opportunity to buy the product; they thought it is the best lighting they can have without electricity, given that the charging is ‘free from the sun’. In addition, respondents were very pleased with the fact that this device has two bulbs, which can light two areas at the same time. The two big lamps provide enough light and I can use each in a different room, so the whole house is well lit male urban, lower LSM Even The when I go upcountry I can carry it with me female urban, lower LSM controls are easy to use and generally the product can be operated by anyone female, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 57

TM 41 Feature Test product evaluation pricing & purchase intent Before placement After recall

TM 41 Feature Test product evaluation pricing & purchase intent Before placement After recall Likelihood to purchase Worth more than other products § Likelihood to purchase the product remained high after recall I would definitely buy it because it is nice and it is portable, I can take it upcountry female urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 58

Test product pricing scenarios TM 41 Pricing Scenarios Willingness to pay more than perceived

Test product pricing scenarios TM 41 Pricing Scenarios Willingness to pay more than perceived price mentioned before placement Amount US$ Response Reasons § A few respondents were willing to pay a higher price because they felt the product was worth more than they anticipated § Very much willing, the price was perceived good for the product Not willing because the price is much higher than one can afford Some respondents suggested the option to pay in instalments 38 - 58 Willingness to purchase at the RRP 61. 2 § § Willingness to purchase if financing is available to offset part of purchase and maintenance cost § § § All respondents liked this idea The price expectation was close to the RRP though a few thought it was worth more than the RRP; this is an indication of product appreciation Although some were not able to raise the perceived price of US$ 38 -58, majority of the respondents were even willing to pay a higher price than this as long as payment by installment was possible KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 59

KO 13

KO 13

TEST PRODUCT EVALUATION Before Placement

TEST PRODUCT EVALUATION Before Placement

KO 13 Test product usage demonstration KENYA © 2008 International Finance Corporation – The

KO 13 Test product usage demonstration KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 62

KO 13 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § No one

KO 13 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § No one had ever seen a product like KO 13 before, which made it unique § The fact that it uses solar power made it different from other products § The ability to turn the bulb to all directions made it very exciting none KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved very 63

Test product association KO 13 Unique product Bright light Good for a bachelor Happiness

Test product association KO 13 Unique product Bright light Good for a bachelor Happiness Smoke free Portable light § What comes to mind when you see this product ? Long wires Double bulbs The first impressions of this product were very positive; the bright light of the KO 13 and the double bulbs seemed to be the most outstanding product features KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 64

Test product evaluation likes KO 13 Has long wires that make it easy to

Test product evaluation likes KO 13 Has long wires that make it easy to move it to other places in the house male, urban, lower LSM It is nice because of its flexibility; the light can be turned 1. Two lamps 2. Solar charge 3. Long wires 4. Flexibility the kitchen and the other in the bedroom male, urban, 5. Portability (small lower LSM battery) to all directions male, rural, higher LSM It has two lamps that can be distributed in the house to give light in the whole house; one lamp can be placed in It is easy because I can charge it from my roof so I do not have to look for a place with electricity female, urban, lower LSM The small battery makes it easy to carry from one place to another male, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 65

KO 13 1. Durability 2. Charging indication 3. Stands 4. Writings Test Product Evaluation

KO 13 1. Durability 2. Charging indication 3. Stands 4. Writings Test Product Evaluation – Dislikes Writings are not legible male, rural, higher LSM I am not sure but the product does not look durable female, rural, higher LSM The battery does not show if charging is on and you can not easily tell if the battery is full or not male, urban, lower LSM The product should be made with stands so that it can stand alone and not only to be hung on other objects male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 66

Test product features evaluation KO 13 Feature § § Overall rating Comment Shape §

Test product features evaluation KO 13 Feature § § Overall rating Comment Shape § Nice and unique shape Size § Good size since it can be easily carried from one place to another Design § § The design allows to have light in two different rooms It is easy to move the lamps from one place to another Handling/ Controls § Straight forward and easy to use Colours § Looks fine Writing/ labeling § § Easy to read and looks nice Some people can not read the words All product features were highly appreciated The ability of the product to shine in different directions because of its flexible stem and the portability were the most catching features The product was also considered easy to use Respondents did not show much interest in the colour of the product, though none had a problem with its current colour KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 67

KO 13 Test product characteristics Suggestions for improvement Summary of satisfaction rating Make it

KO 13 Test product characteristics Suggestions for improvement Summary of satisfaction rating Make it possible to power other electronics (e. g. TV and radio) Quality of service (lighting power) More lamps so that light can be distributed in all rooms in the house Uniqueness- new & different ü ü Reliability of service- battery life/availability A product for someone like me Ease of use § Respondents gave a few suggestions for product improvement however, the product was seen to be good and can be left as is KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 68

Purchase Intent & Price KO 13 Overall evaluation Likelihood to purchase Worth more than

Purchase Intent & Price KO 13 Overall evaluation Likelihood to purchase Worth more than other products Perceived price § US$ 25 - 38 As the product looked attractive with its nice features and the bright light most respondents were willing to buy the product in the future § Worth more than other products because it uses solar, the bright light and the ability to put the bulbs in two different rooms KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 69

KO 13 Test product summary before testing § Overall the KO 13 was much

KO 13 Test product summary before testing § Overall the KO 13 was much appreciated by the respondents and the likelihood to purchase was high § The product was perceived to be unique, exciting and relevant to respondents’ needs given a combination of interesting product features: § – The long wires, which make portability of the light from one room to another easy – Flexibility of the stems, which allow for having light in any direction – Solar charging (no running costs) – Bright light Respondents came up with a few suggestions to improve the product – A light that indicates when the product is fully charged – Make it possible to power other electronics (e. g. TV and radio) KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 70

TEST PRODUCT EVALUATION After Recall

TEST PRODUCT EVALUATION After Recall

KO 13 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement

KO 13 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement Clarity § § § Respondents had not seen a product like this before. KO 13 was exciting due to the fact that it is a small lighting product but gave bright light and uses both solar and grid electricity to charge Relevant because it provides enough light and it is possible to put the bulbs in two different rooms KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 72

KO 13 Feature § § § Test product evaluationgeneral characteristics Rating Comment Product uniqueness

KO 13 Feature § § § Test product evaluationgeneral characteristics Rating Comment Product uniqueness § KO 13 is not like anything ever seen or ever used before Lighting adequacy § The light is very bright and can light two rooms simultaneously Battery life § Very long battery life, it can last for over 5 days Ease of operation § Very easy to operate, anyone can operate it even children can Relevance § Durability § Very relevant, the lights can used in two different rooms Looks very durable, can last for over 5 years if handled well KO 13 scored high on all aspects The most exciting fact about KO 13 are the two bulbs, flexibility, portability and ability use it different rooms simultaneously; this makes it a relevant lighting product which provides adequate lighting KO 13 was also perceived as durable with a long battery life that can last for over 5 days KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 73

Test Product features comparative evaluation KO 13 Feature § § Rating before Rating after

Test Product features comparative evaluation KO 13 Feature § § Rating before Rating after Comment Shape § Nice shape that can be hung on a wall Size § Good small size Design § The design is nice, it is easy to carry and also to turn in any direction Handling/Controls § Once shown how to operate it one can not fail using it Colours § The colour is attractive Writing/ labeling § Are legible though some people can not read The before placement and after recall product ratings were similar. Overall, ratings were high on all product features except for writings and labeling The shape was perceived to be nice and is liked for the fact that it can be hung to the wall which allows it to provide enough light in the house Still, like before placement, the flexibility of the stems and its portability were the most catching features Respondents preferred labeling in a language they understand (i. e. Swahili) KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 74

KO 13 1. Bright light 2. Both electricity & solar charging 3. Long battery

KO 13 1. Bright light 2. Both electricity & solar charging 3. Long battery life 4. Portability 5. Easy to use controls 6. Long wires 7. No smoke Test Product Evaluation – Likes Very bright light female, urban, lower LSM The light brought happiness to my house and we ended up staying awake for longer hours than we normally do female, urban, lower LSM I like the long wires that allow the light to be used in different rooms male, urban, lower LSM The fact that it can be charged by both electricity and solar male, urban, lower LSM It is very easy to use, you do not have to be educated to know how to operate it female, rural, higher LSM Interesting to have a lighting product that does not produce smoke male, rural, higher LSM It is small and can be carried around easily, one can even take it to the village for visiting female, rural, higher LSM The battery can last for a very long time male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 75

KO 13 1. No stands 2. Battery charging 3. Dim light Test Product Evaluation

KO 13 1. No stands 2. Battery charging 3. Dim light Test Product Evaluation Dislikes & Suggestions for Improvement It does not have stands which makes it hard to put it on the table for reading male urban, lower LSM The battery does not show whether it is charging, nor does it show whether the battery is full or not male urban, lower LSM The amount of light is low, I wish it could be stronger female rural, higher LSM With this type of battery you can not monitor the charging process. Whether it is full or not is all dependent on luck male urban, lower LSM Suggestions for improvement: § The lamp holder and reflector should be widened so that light can be spread to all corners § The solar panel looks delicate, if it is possible the glass should be replaced by another material (probably plastic) § There should be additional ports where TV and radio cables can be plugged in; the battery seems so strong I guess it can support other electronics as well. § It would be better if it stands for the lamps were provided KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 76

KO 13 Test product evaluation product usage Mainly because of its bright light, flexibility

KO 13 Test product evaluation product usage Mainly because of its bright light, flexibility and portability (due to its long wires), this product was used for multiple purposes in various rooms in the house. However, some respondents would like to use it as a reading light but experienced difficulties because KO 13 did not have a stand to place it on the table. It does not have stands which makes it hard to put it on the table for reading male urban, lower LSM I like the long wires that allow the light to be used in different rooms male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 77

KO 13 Feature Test product evaluation pricing & purchase intent Before placement After recall

KO 13 Feature Test product evaluation pricing & purchase intent Before placement After recall Likelihood to purchase Worth more than other products § § The likelihood to buy the product was high and some people thought they could convince us to sell the products to them I would definitely buy it, I have been wondering if you could sell me this one female urban, lower LSM Without considering the price I would definitely buy it male urban, lower LSM It was worth more than other products given the bright light, portability and the ability to charge with solar KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 78

Test product pricing scenarios KO 13 Pricing Scenarios Amount US$ Willingness to pay more

Test product pricing scenarios KO 13 Pricing Scenarios Amount US$ Willingness to pay more than perceived price mentioned before placement Willingness to purchase at the RRP Reasons 25 -38 § Willing to pay more because it is a good product that is worth more 40. 3 § The RRP is perceived as expensive but respondents would buy it as there are no other expenses (no running costs) § Seen as an easier option § It is better to buy every thing at once § Would rather buy it expensively but no other charges Willingness to purchase if financing is available to offset part of purchase and maintenance cost Willingness to purchase without solar panel (KO 13/ HI 65 only ) Response 20. 1 Willingness to purchase solar panel separately Purchase price (without solar panel) with monthly AC running cost § § § 21. 8 The average price expectation was lower than the RRP though there was willingness to buy the product at the RRP, since KO 13 is perceived to be a nice product which is worth it The idea of purchasing the product with an AC charging option only was rejected because respondents try to avoid running costs Given the high price perception, there was much willingness to purchase if financing is available to offset part of purchase price KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 79

UR 83

UR 83

TEST PRODUCT EVALUATION Before Placement

TEST PRODUCT EVALUATION Before Placement

UR 83 Test product usage demonstration KENYA © 2008 International Finance Corporation – The

UR 83 Test product usage demonstration KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 82

UR 83 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § § §

UR 83 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § § § UR 83 was the first of its kind for most respondents, only a few people said they had seen a similar product before UR 83 was perceived to be relevant and exciting because of its size and portability i. e. can be used as a torch Although UR 83 was seen to look like a camera, respondents also said they could easily tell its purpose and it was easy to operate none KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved very 83

UR 83 Free charging Test product association Good light Brightness What comes to mind

UR 83 Free charging Test product association Good light Brightness What comes to mind when you see this product Mobility Good alternative to a torch ? Camera Durability The first impression of the UR 83 was very positive. It is interestingly associated with a camera which depicts high social status and positive image of the user. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 84

UR 83 1. Design 2. Portability 3. Handling/controls 4. Shape (looks like a Test

UR 83 1. Design 2. Portability 3. Handling/controls 4. Shape (looks like a Test product evaluation likes Very portable and one can easily walk with it male, urban, lower LSM The design is very good it even looks like a camera male, urban, lower LSM Looks like a camera or a mobile phone male, urban, lower LSM The design is unique and it has also got very attractive colours male, rural, higher LSM It is very easy to operate even a young child can use it easily female, urban, lower LSM camera) 5. Colours 6. Multiple It can be used like a torch male, rural, higher LSM functionalities It is easy to operate, can be used by both literate and illiterate female, rural, higher LSM It is unique for a lighting product, it looks like a camera male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 85

UR 83 Test Product Evaluation – Dislikes I like everything about it, the only

UR 83 Test Product Evaluation – Dislikes I like everything about it, the only problem about it is that it may become useless during a rainy season because 1. Hard to charge in the rainy season 2. Writings- not legible 3. Colour- can get charging can be hard male, urban, lower LSM rural, higher LSM 5. This is not the best colour for a lighting product male, urban, lower LSM dirty 4. I do not like the writing because I can not read it female, Light- insufficient Not durable The light is not sufficient male, rural, higher LSM I am not sure what to expect but it does not look that durable male, rural, higher LSM The yellow colour can get dirty easily, black or silver would be better female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 86

UR 83 Feature § § Test Product features evaluation Rating Comment Shape Perceived to

UR 83 Feature § § Test Product features evaluation Rating Comment Shape Perceived to be good but not outstanding Size Liked because of its portable size Design Liked and seen as a unique design for a lighting product Handling/ Controls Perceived as very easy to operate Colours Good and attractive but not exceptional Writing/ labeling Easy to understand for most respondents but some could not read them because they are illiterate Some respondents liked the shape because it resembles a camera or mobile phone, others thought it was just ordinary. One can mistake it for a camera and yet it is for lighting so it really looks unique and nice to have male, urban, lower LSM Respondents who did not like the colour said it could easily get dirty - especially the yellow strap - and would prefer plain black or silver Most respondents liked the UR 83 because it is handy and easy to carry around and to operate I can easily walk with it in the pocket to my shop and light my way back home at night male, rural, lower LSM -Even a child can operate the product, it is very easy to use female, rural, lower LSM Overall, the product features were associated with a positive image and higher social status; this excited the respondent KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 87

UR 83 Test Product characteristics Suggestions for improvement Summary of satisfaction rating ü Improve

UR 83 Test Product characteristics Suggestions for improvement Summary of satisfaction rating ü Improve the light intensity Quality of service (lighting power) ü The writing should be more legible ü Black would be better Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use § In general all product features have a positive discernment except for durability and battery life as most respondents did not know what to expect from the battery before placement KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 88

Purchase Intent & Price UR 83 Overall evaluation Likelihood to purchase Worth more than

Purchase Intent & Price UR 83 Overall evaluation Likelihood to purchase Worth more than other products Perceived price § § US$ 8 - 19 Overall the product was perceived to be worth more than other products, however, some respondents felt they could only judge its value after usage All respondents claimed that it is very likely that they would purchase the product because of its perceived good functionality KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 89

UR 83 Test product summary before testing § Overall the UR 83 was well

UR 83 Test product summary before testing § Overall the UR 83 was well received, all product features were liked; it was considered a product with good qualities and easy to use controls. § The size and the design of the product were the main reasons for product liking – Respondents appreciated its portability and that they could put the device in their pocket easily – Many respondents mentioned that the device looked like a camera, which was associated with a high social status – The multi-functional aspect of the UR 83 is also appreciated as it can be used as a lamp and a torch. § Not all the respondents liked the colour of the product, as it was perceived to get dirty easily, especially the yellow strap. Other dislikes were the light intensity which was believed to be insufficient and the fact that recharging would be difficult during rainy season. § Regardless of the price, all respondents confirmed that they would purchase UR 83 if it was in the market based on the first impressions of the product KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 90

TEST PRODUCT EVALUATION After Recall

TEST PRODUCT EVALUATION After Recall

UR 83 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement

UR 83 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement Clarity The product perception before placement and after recall was the same. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 92

UR 83 Feature § § § Test product evaluationgeneral characteristics Rating Comment Product uniqueness

UR 83 Feature § § § Test product evaluationgeneral characteristics Rating Comment Product uniqueness Most respondents have not seen a similar product before Lighting adequacy Some people mentioned that the light was brighter than that of electricity Battery life The battery life is perceived to be quite good, about 5 hours on average before it starts dimming Ease of operation Very easy to operate Relevance Very relevant because it is portable. Relevant to the poor since there are no costs for charging Durability A few people think it is durable and others think UR 83 may be weak UR 83 was still perceived as unique after recall except for a few respondents who claimed to have seen a similar product before which was not as bright as UR 83 that uses batteries (dry cells) This product had a positive perception as it was considered relevant to their lifestyle, mainly due to its portability and adequate light intensity From experience the battery of UR 83 was said to last for an average of 5 hours KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 93

Test Product features comparative evaluation UR 83 Feature § Rating before Rating after Comment

Test Product features comparative evaluation UR 83 Feature § Rating before Rating after Comment Shape Appreciated but not a major part of attraction Size The small size is appreciated Design Resembles other products i. e. mobile phone or a camera, making it a unique lighting product Handling/Controls Very easy to use Colours Attractive colour but yellow is not suitable because it can easily get dirty especially with kids around Writing/ labeling Not clear enough for some respondents In general, the before and after recall evaluations of product features remained the same; § The main areas of product interest remained the size and the design that make it unique and easy to use in different places (portability) § The colours were not appreciated for domestic use because they can easily show dirt; the yellow coloured strap was found dirty at the second visit already § The text could not be read by all respondents and was therefore disliked by some KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 94

UR 83 Test Product Evaluation – Likes It is very nice because you can

UR 83 Test Product Evaluation – Likes It is very nice because you can control the amount of light; it gets very bright when you push the button three 1. Design 2. Portability 3. Unique shape 4. Controllable light times female, urban, lower LSM The product is very nice, it looks like a radio. No one can tell that it is a torch for lighting male, rural, higher LSM Looks so unique no one can tell that you are carrying a intensity lighting device female, rural, higher LSM 5. Durable/ intact 6. Shape- easy to carry Pretty good shape and size, fits in my pocket male, urban, lower LSM The buttons are so firm and the product looks intact, it must be durable male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 95

UR 83 1. Colour 2. Light 3. Labelling 4. Cannot support other devices 5.

UR 83 1. Colour 2. Light 3. Labelling 4. Cannot support other devices 5. Shape Test Product Evaluation Dislikes & Suggestions for Improvement The yellow colour gets dirty very easily female, urban, lower LSM The light provided is not bright enough female, urban, lower LSM I do not understand what the words mean female, rural, higher LSM The battery should also be able to support other electronics like radios male, urban, lower LSM It lights in one direction like a torch; it should be improved to light a bigger area female, rural, higher LSM The shape is not attractive; it does not look like a lighting product male, urban, lower LSM 5 Suggestions for improvement: There were a few suggestions for improvement but it should be noted that UR 83 received much appreciation and most people preferred the product the way it was § § In general the battery was considered as good but some respondents suggested that it could be improved to make it last longer, e. g. for one week if the UR 83 was used as a primary light source The battery should also be able to support other electronics like radios Some respondents were of the opinion that the best colour for a lighting product is black, they suggested change of colour to black or silver Change the language to a legible one i. e. Swahili KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 96

UR 83 Test product evaluation product usage Most respondents were interested in future usage

UR 83 Test product evaluation product usage Most respondents were interested in future usage of UR 83 because of multi-functionality, ease of operation and its portable size. These characteristics make the product suitable for multiple purposes. Respondents can use it to light their house, as a torch or take it outside. No one claimed to have difficulties with product usage; the product operations were perceived as very simple. My friends advised me to ask you whether you can sell me this product, you know it is very nice and they are not sold female, rural, higher LSM From the time you left me I have not used my kerosene lamp to light, I used the UR 83 from 7 pm until 11 pm; I will assure you that it has a good battery life female, rural, lower LSM Pretty good shape and size, fits in my pocket male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 97

UR 83 Feature Test product evaluation pricing & purchase intent Before placement After recall

UR 83 Feature Test product evaluation pricing & purchase intent Before placement After recall Likelihood to purchase Worth more than other products § Purchase intention still remained high after recall. In addition respondents were of the opinion that the product was worth more than other products due to the fact that UR 83 had a long battery life and no running costs It is exciting to charge this device using God given energy and the product provides enough light for such a long time female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 98

Test product pricing scenarios UR 83 Pricing Scenarios Willingness to pay more than was

Test product pricing scenarios UR 83 Pricing Scenarios Willingness to pay more than was willing to pay before placement Amount US$ Response 8 -19 Willingness to purchase at the RRP Willingness to purchase if financing is available to offset part of purchase and maintenance cost § § § Only a small group of the respondents was willing to pay a little bit more for the product, because it was considered relevant in their lives. § 42 § Reasons § § Not willing to purchase at this price The highest price mentioned by respondents was US$ 27, but only if the possibility of paying in installments is available Good arrangement but on the condition that the price is brought down After recall most respondents insisted on paying the same price as suggested before placement as they believed US$ 8 -19 was a fair price given their low income. However it should be noted that the price offer was mainly based on the amount respondents could spend (considering their low income) instead of what they thought the product was worth The RRP for UR 83 (US$ 42) was rejected. The highest possible price mentioned was US$ 27 The respondents were very much interested in payment in installments as they indicated it is hard for them to raise the full amount at once KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 99

HI 65

HI 65

TEST PRODUCT EVALUATION Before Placement

TEST PRODUCT EVALUATION Before Placement

HI 65 Test product usage demonstration KENYA © 2008 International Finance Corporation – The

HI 65 Test product usage demonstration KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 102

HI 65 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § Looks exciting

HI 65 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § Looks exciting § HI 65 clearly looks like a lighting product that is unique and relevant to users none KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved very 103

Test product association HI 65 Portable lamp Study lamp Pleasant shape What comes to

Test product association HI 65 Portable lamp Study lamp Pleasant shape What comes to mind when you see this product Nice orange colour § ? Alternative to grid electricity Bright light The first impression was that HI 65 is a portable lamp or a study lamp. The colour and shape were also appreciated. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 104

HI 65 1. Bright light 2. Design (stands on its own) 3. Solar charge

HI 65 1. Bright light 2. Design (stands on its own) 3. Solar charge 4. Colours 5. Controls 6. Portability Test product evaluation likes HI 65 gives much light even during the day female, urban, lower LSM It has the best colour female, urban, lower LSM The stand makes it nice because you do not have to struggle to find a spot to place it male, urban, lower LSM It is easy to move it from one room to another and even outside male, urban, lower LSM I like it for the fact that it is charged using solar female, rural, higher LSM I like it for the fact that it is small, with a beautiful colour and good light female, urban, lower LSM No spending on batteries, you just put it in the sun and use it in the evening male, urban, lower LSM It is very easy to operate and I like it for the fact that my children can read books well all night female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 105

HI 65 1. Dim light 2. Writings 3. Lighting only Test Product Evaluation –

HI 65 1. Dim light 2. Writings 3. Lighting only Test Product Evaluation – Dislikes The light is not bright enough female, urban, lower LSM The writings are not legible and I do not understand what they mean male, urban, lower LSM The battery should not only be for lighting, it should also be able to power other electronics like a radio and TV male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 106

HI 65 Feature Test Product features evaluation Rating Comment Shape It is nice because

HI 65 Feature Test Product features evaluation Rating Comment Shape It is nice because it can stand alone Size Very small size that one can move around easily Design Nice design that can be twisted to all directions Handling/Controls Can be operated by anyone even the young and the very old Colours Very appealing orange colour Writing/ labeling The writings are clear though some people can not read § § § Overall the product got high ratings on most features; the orange colour and the flexible design are the most outstanding ones. The slimness of the product makes it easy to move around The product was perceived as easy to use with clear operating knobs KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 107

HI 65 Test Product characteristics Suggestions for improvement Summary of satisfaction rating ü Different

HI 65 Test Product characteristics Suggestions for improvement Summary of satisfaction rating ü Different bulbs with different colours Quality of service (lighting power) ü Increase the brightness of the light Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use § § Respondents did not know what to expect of the battery life before product usage HI 65 was perceived to have value for money because: § It has a bright light that illuminates all corners of the house § It is cheaper to use compared to the amount currently spent on kerosene § Some respondents anticipated that HI 65 could last for over 5 years if used well KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 108

Purchase Intent & Price HI 65 Overall evaluation Likelihood to purchase Worth more than

Purchase Intent & Price HI 65 Overall evaluation Likelihood to purchase Worth more than other products Perceived price § § US$ 20 - 40 All were willing to purchase HI 65 and some thought that we would sell the product to them after the test period Respondents could not compare this product with other products they are currently exposed to KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 109

HI 65 Test product summary before testing § HI 65 was considered to be

HI 65 Test product summary before testing § HI 65 was considered to be unique and durable. The shape and colour are also appreciated. It is considered to serve best as a table lamp or a study lamp. § Overall HI 65 is liked because: § It is a portable lighting product i. e. one can move it easily from one place to another § It is flexible (can be twisted to all directions) § No running costs if solar energy is used to recharge the battery § It is easy to operate § The main dislike mentioned for this product was its low light intensity. § The product satisfaction ratings before placement were high on all aspects except on reliability as respondents did not know what to expect from the battery yet. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 110

TEST PRODUCT EVALUATION After Recall

TEST PRODUCT EVALUATION After Recall

HI 65 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement

HI 65 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement Clarity § § § After recall the product was regarded as very exciting because of its smart and small design The product was perceived as unique; some respondents mentioned that they could show off with it HI 65 was considered relevant because of its portability and good light KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 112

HI 65 Feature Test product evaluationgeneral characteristics Rating Comment Product uniqueness § Lighting adequacy

HI 65 Feature Test product evaluationgeneral characteristics Rating Comment Product uniqueness § Lighting adequacy § Has not been seen in the market before Ease of operation Some thought the light was good whereas others felt that the light provided by HI 65 was not bright enough § The battery is perceived to last for a long time and some respondents did not have to charge the product in the test period at all § Very easy to operate Relevance § Durability § HI 65 is expected to be durable and is thought to last for over 5 years Battery life § § § Very relevant, one can light the house at anytime without worrying about kerosene Very high product ratings on all aspects except for lighting adequacy, as some people felt that the product did not provide enough light because of its small size Generally HI 65 was perceived as relevant, easy to operate, durable and it has a good battery life Portability, flexibility, and the fact that it can be used both indoors and outdoors were also mentioned as positive characteristics KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 113

Test Product features comparative evaluation HI 65 Feature Rating before Rating after Comment Shape

Test Product features comparative evaluation HI 65 Feature Rating before Rating after Comment Shape § Looks like a small street light Size § Small which makes it easy to carry and move around Design § Design with a flexible stem that allows to twist the light in any direction Handling/Controls § Very easy to operate Colours § Beautiful colour Writing/ labeling § Easy to read but limited to those who can read § The most outstanding product feature was the flexible design that allows to twist the light in any direction § The product was liked most because of its beautiful colour, nice shape and small, portable size The product has changed the look of my house, making it a very classy place and some of my neighbours asked me where I got it from female , rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 114

HI 65 1. 2. 3. I like it because it is small, has a

HI 65 1. 2. 3. I like it because it is small, has a good light, attractive colour and its battery lasts for a long time male, urban, lower LSM It is portable with a light weight and one can easily move it from one place to another female , urban, lower LSM It can be used as a torch, one can use it to go outside and also to the next room male , rural, higher LSM The fact that it uses solar and electricity makes it cheap to maintain female , rural, higher LSM Solar charge Design (can also be used as a torch) Test Product Evaluation – Likes Size (portability) 4. Controls 5. Durability It is easy to use female , urban, lower LSM 6. Colours This product looks like it can last up to 5 years male , urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 115

HI 65 1. Dim light 2. Battery life 3. Light only 4. Colour Test

HI 65 1. Dim light 2. Battery life 3. Light only 4. Colour Test Product Evaluation Dislikes & Suggestions for Improvement The battery should be improved to make it last for a longer period male, urban, lower LSM The bulbs should be changed to stronger ones that can provide enough light otherwise it is not bright enough male, urban, lower LSM I do not like the colour, I prefer it to be black male, urban, lower LSM Light alone is not enough, there should a possibility of using the battery for other purposes like powering a radio male, urban, lower LSM This requires that one has another source of light in the house so that this can be used as a torch to reach other rooms that are not lit female, urban, lower LSM Suggestions for improvement § The product’s battery life should be improved and it should also have better capacity to provide brighter light § Change the colour to black § Make sure that the solar panel can also be used for other electronic devices like radio and TV KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 116

HI 65 Test product evaluation product usage Overall the product was liked because of

HI 65 Test product evaluation product usage Overall the product was liked because of its size and nice colour as well as the zero running costs involved if the solar charging option was used. The portability and flexibility of the stem made this light suitable for multiple purposes. Most respondents would use HI 65 as a secondary lighting device, i. e. as a reading light or a torch but not as the main lighting device to light the whole living room as the light is not bright enough for that purpose. I like it because it is small, has a good light, attractive colour and its battery lasts for a long time male, urban, lower LSM It is portable with a light weight and one can easily move it from one place to another female , urban, lower LSM This requires that one has another source of light in the house so that this can be used as a torch to reach other rooms that are not lit female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 117

HI 65 Feature Test product evaluation pricing & purchase intent Before placement After recall

HI 65 Feature Test product evaluation pricing & purchase intent Before placement After recall Likelihood to purchase Worth more than other products § After recall respondents indicated that the product was worth more than other products and the willingness to purchase the product in the future remained high KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 118

Test product pricing scenarios HI 65 Pricing Scenarios Willingness to pay more than perceived

Test product pricing scenarios HI 65 Pricing Scenarios Willingness to pay more than perceived price mentioned before placement Willingness to purchase at the RRP Amount US$ 20 -40 17. 7 Willingness to purchase if financing is available to offset part of purchase and maintenance cost Willingness to purchase without solar panel (KO 13/ HI 65 only ) Reasons As there are no running costs involved and the battery last long It is a good price It is an easier way of purchasing regarding the small budget of most of the respondents 12. 8 It is better to buy the whole set together to prevent charging expenses Willingness to purchase solar panel separately Purchase price (without solar panel) with monthly AC running cost Response 18. 8 § The perceived price before placement was US$ 20 -40, which was higher than the RRP § The idea of selling the product without the solar panel was rejected by most respondents, as they try to avoid running costs KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 119

RY 04

RY 04

TEST PRODUCT EVALUATION Before Placement

TEST PRODUCT EVALUATION Before Placement

RY 04 Test product usage demonstration KENYA © 2008 International Finance Corporation – The

RY 04 Test product usage demonstration KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 122

RY 04 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § RY 04

RY 04 Test Product evaluation Overall evaluation Uniqueness Relevance Excitement Clarity § RY 04 was not perceived as new or different because a product like RY 04 had been seen in the market before however it was seen as relevant and exciting to use none KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved very 123

Test product association RY 04 Amazing size Dry cell touch Easy to use Sufficient

Test product association RY 04 Amazing size Dry cell touch Easy to use Sufficient light Light Torch Nice colour § What comes to mind when you see this product ? Good shape Must be important The first product impression was that it was a like a normal dry cell torch with sufficient light. Another respondent mentioned that it had an amazing size KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 124

RY 04 1. Portability 2. Light intensity 3. Test product evaluation likes It has

RY 04 1. Portability 2. Light intensity 3. Test product evaluation likes It has an appealing colour female, urban, lower LSM The charging system is good and easy to operate female, urban, lower LSM I am pleased with the light it provides which is much better than the common torch female, urban, lower LSM Strap 4. Light weight 5. Charging system 6. Colours It is not heavy to carry male, urban, lower LSM You travel with it easily male, urban, lower LSM It has a strap that can be used to hang it male, urban, lower LSM It can not get dirty easily because of its dark colour female, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 125

RY 04 1. Uses electricity 2. Words 3. Too common Test Product Evaluation –

RY 04 1. Uses electricity 2. Words 3. Too common Test Product Evaluation – Dislikes It is charged using electricity and therefore if you are in a place where there is no electricity it becomes useless female, urban, lower LSM The words do not help me because I can not read them male, rural, higher LSM That torch is common, it is not something to pose with male, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 126

Test Product features evaluation RY 04 Feature Overall rating Comment Shape § Size §

Test Product features evaluation RY 04 Feature Overall rating Comment Shape § Size § The small size makes it is easy to carry it around Design § Makes it easy to hold it Handling/Controls § It is easy to use Colours § § It is appealing The colour does not get dirty easily Writing/ labeling § The writings are not legible, it should be written in a language that is understandable § § § It is good and appealing RY 04 was liked because it had a bright light which made it better than an ordinary torch The colour was liked because it did not show dirt easily As it looks like a common torch the controls were easy to use and could be used by anyone KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 127

RY 04 Test Product characteristics Suggestions for improvement Summary of satisfaction rating Increase voltage

RY 04 Test Product characteristics Suggestions for improvement Summary of satisfaction rating Increase voltage so that it Quality of service (lighting power) ü can provide more light ü Make one that uses solar energy Reliability of service- battery life/availability Uniqueness- already in the market A product for someone like me Ease of use § § Not very unique as similar products had been seen in the market before RY 04 was considered to have enough lighting power and people believed it is a product for people like them KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 128

Purchase Intent & Price RY 04 Overall evaluation Likelihood to purchase Worth more than

Purchase Intent & Price RY 04 Overall evaluation Likelihood to purchase Worth more than other products Perceived price § § US$ 2 - 5 The likelihood to buy was high since the product was considered very relevant Not worth more than other products since there were similar products like RY 04 in the market which are also charged using electricity KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 129

RY 04 Test product summary before testing § Although this product was not considered

RY 04 Test product summary before testing § Although this product was not considered unique, overall RY 04 was loved for its bright light that was better than the light of an ordinary torch. In addition, it is light (weight) which makes it easy to move it around and travel with. § Other factors that stand out for RY 04 are: § The green/black colours which do not get dirty easily § Has a strap that one can use to hang it on the wall § It has a small size and good design that make it easy to it hold firmly § On the other hand the product was seen to be made for people with access to electricity. In case one travels it may be a problem given electricity is not easily accessible everywhere. § The battery voltage capacity was perceived as low KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 130

TEST PRODUCT EVALUATION After Recall

TEST PRODUCT EVALUATION After Recall

RY 04 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement

RY 04 Evaluation Test product comparative evaluation Before placement After recall Uniqueness Relevance Excitement Clarity § § The product was not seen as unique because there were similar products in the market; what made RY 04 a little unique was the longer battery life It was seen as more relevant to those who have access to electricity KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 132

RY 04 Feature Product uniqueness § § Rating § Test product evaluationgeneral characteristics Comment

RY 04 Feature Product uniqueness § § Rating § Test product evaluationgeneral characteristics Comment Not unique since there are similar products available in the market As a torch it is really bright Lighting adequacy § Battery life § Ease of operation § It is easy to switch on and off Relevance § Durability § It is perceived as durable – it can last for many years if well maintained The battery lasts longer than the battery of similar products available in the market It is more relevant to those who have access electricity RY 04 was rated as a good product with a battery that lasts long, it is easy to operate, durable and quite portable with a hanging strap. Initially this product was not perceived as unique because there are similar products in the market that have been used by the respondents before. After recall, however, many respondents were of the opinion that the RY 04 is different given its long battery life. RY 04 was perceived to give bright light, portable and durable However, RY 04 was regarded as more relevant to those with access to electricity KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 133

Test Product features comparative evaluation RY 04 Feature § § § Rating before Rating

Test Product features comparative evaluation RY 04 Feature § § § Rating before Rating after Comment Shape § Nice common shape Size § Very small size and easy to carry Design § Good design with a strap for hanging in the middle of the house and the sharp edges help to have a good grip Handling/controls § Very easy to handle Colours § It is appealing Writing/ labeling § The text can not be read RY 04 was not perceived to be unique because there are similar products on the market that have been used before, although after recall most respondents realised that the product is different because of its long battery life The product was liked for the strap that can be used to hang the RY 04 from the roof to light the house Overall RY 04 was liked and regarded as easy to use with very direct controls just like the common torch they are used to KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 134

RY 04 1. Bright light 2. Battery life 3. Portability 4. Shape 5. Strap

RY 04 1. Bright light 2. Battery life 3. Portability 4. Shape 5. Strap 6. Test Product Evaluation – Likes Long battery life male, urban, lower LSM I like its simplicity in handling female, urban, lower LSM The strap makes it easy to hang it on the wall or roof male, urban, lower LSM I like the black colour that does not get dirty easily female, rural, higher LSM Has a small portable size and this easy to carry male, urban, lower LSM Colours Has got a bright light female, urban, lower LSM I like it because it is easy to use, it is like the usual torches female, rural, higher LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 135

RY 04 Test Product Evaluation Dislikes & Suggestions for Improvement This product is only

RY 04 Test Product Evaluation Dislikes & Suggestions for Improvement This product is only good for people who have electricity male, rural, higher LSM 1. Charging with batteries for this torch and I do not have electricity so electricity 2. I do not like it because I do not know where to buy charging can be a problem female, urban, lower LSM Writings I can not read the words, they should be translated to a language we understand female, urban, lower LSM Suggestions for improvement: § RY 04 should have a solar charging option because many respondents do not have access to electricity easily KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 136

RY 04 Test product evaluation product usage Although all respondents were familiar with torches,

RY 04 Test product evaluation product usage Although all respondents were familiar with torches, this torch stood out because of its bright light for its type of lighting device coupled with the long lasting battery. As the colour of the RY 04 was considered practical because it does not show dirt easily, people would not hesitate to use the RY 04 outside or when taking care of their livestock in the dark. The strap is preferred because it allows people to use the torch as a light in the house as well. In addition, it is not heavy which makes it easy to carry the device around and travel with it. The strap makes it easy to hang it on the wall or roof male, urban, lower LSM Has a small portable size and this easy to carry male, urban, lower LSM I am pleased with the light it provides which is much better than the common torch female, urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 137

RY 04 Feature Test product evaluation pricing & purchase intent Before placement After recall

RY 04 Feature Test product evaluation pricing & purchase intent Before placement After recall Likelihood to purchase Worth more than other products § The likelihood to purchase is very high including after recall as RY 04 had a very bright light and the battery lasts for a long time § The long battery life makes it worth more than other products available in the market KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 138

Test product pricing scenarios RY 04 Pricing Scenarios Willingness to pay more than perceived

Test product pricing scenarios RY 04 Pricing Scenarios Willingness to pay more than perceived price mentioned before placement Willingness to purchase at the RRP Willingness to purchase if financing is available to offset part of purchase and maintenance cost § Amount US$ Response Reasons § Some people are willing to pay more than the perceived price mentioned before placement § Others are not willing to pay more because of low income levels § Divided reactions to the RRP were noticed; those who were expecting the price to be lower than the RRP were not willing to pay more and those who were expecting the price to be similar or higher had no problem with the RRP § Provided that the price is brought down first 2 -5 5 As the product was perceived to be comparable to a common dry cell torch, the price expectation was low. Most people were not willing to pay the RRP because in their opinion it was just a torch and a torch should be cheap. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 139

SUMMARY OF PRODUCT EVALUATION

SUMMARY OF PRODUCT EVALUATION

Insights § With the exception of RY 04 which was seen as an ordinary

Insights § With the exception of RY 04 which was seen as an ordinary torch, all products were perceived as new and different. This resulted in a lot of excitement about the tested devices. § The product also received high appreciation overall because the batteries could be charged using solar energy (except for RY 04) and this makes the devices unique, very economical, smoke free and ideal for people that are not connected to the electricity grid. § Although majority of the respondents thought that the products were worth the RRP (except for the UR 83), the price was often considered too high for their budget. Most people would like to buy the products but can not afford the RRP at once. The suggested option to purchase the product with financing to offset part of purchase and maintenance costs is much appreciated. § Respondents were concerned about the colour of products. Black or dark coloured products were preferred, because they do not easily get dirty. Consequently, the yellow strap of UR 83 was not liked and the red and orange colour of UR 83 and HI 65 received mixed responses. Black, silver and dark green were highly accepted and practical colours for lighting devices for the Kenyan consumer. § A suggestion made for many products was the addition of extra slots to the solar panel that would allow support for other electrical equipment, like TV and radio. Another frequently mentioned suggestion was addition of an indicator that shows when the battery is fully charged. § Overall, the labeling did not receive a positive rating for most products as the text was considered too small or not written in the right language. Most respondents suggested translating the writing on label to Swahili. Furthermore it should be considered that a proportion of the target population is illiterate. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 141

Test product average lighting hours Products Tested Average hours product is used during test

Test product average lighting hours Products Tested Average hours product is used during test period (5 days) Average hours product is used before subsequent recharge Average hours product is recharged daily TM 41 RY 04 HI 65 UR 83 KO 13 4 - 5 hrs 1 - 2 hr 2 -3 hrs 3 -5 2 - 4 hrs 3 hrs 10 hrs 2 - 4 hrs 6 hrs 4 - 6 hrs Never 4. 5 hrs charged Never 6 hrs charged General description of weather during recharge of test product Mostly Clear Occasionally Clear N/A Heavy cloud cover KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 142

Test product average lighting hours § Most respondents used the products (excluding RY 04)

Test product average lighting hours § Most respondents used the products (excluding RY 04) between 3 - 5 hrs a day; this was however based on the respondents’ usage habits rather than on the battery life. Therefore this data cannot be used on its own to determine the battery life of the products. § The charging period also depended on respondents’ daily routine and therefore does not reflect the number of hours it takes for the batteries to be fully charged. This may explain why the respondents claim to have charged the products daily. § None of the respondents who used RY 04 charged the product during the test period; the charge of the battery at the beginning of the test period lasted until the second visit. However, this could be attributed to the fact that this device was used as a supplementary lighting device rather than the primary lighting source. The batteries were therefore not fully utilized. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 143

TM 41 Test product overall evaluation § Respondents were very positive about TM 41;

TM 41 Test product overall evaluation § Respondents were very positive about TM 41; the product has very nice features, good functionality, it is perceived to be worth more than other lighting products and thus had a high future purchase likelihood. § Outstanding product features were: § Its bright light; some respondents mentioned that it was comparable with light from grid electricity § § The two bulbs that can be hung on the roof and can be used in two different rooms simultaneously The black colour was perceived as appropriate for a lighting product, especially because it does not getting dirty easily § Overall the pre and post –placement perceptions of the TM 41 were similar; none of the respondents had a major dislike about the product features or functionalities, but some suggestions were mentioned: e. g. add an indicator that shows when the product is fully charged. § Most respondents considered the RRP too high for their budget, but were very positive about the financing option. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 144

RY 04 Test product overall evaluation § RY 04 received much appreciation for its

RY 04 Test product overall evaluation § RY 04 received much appreciation for its bright light and the ability to charge the battery with electricity as opposed to using dry cells. However, as most people do not have access to electricity this charging method was not liked as much as solar charging. § The product was not considered unique and most people regarded RY 04 as a normal torch. § The most outstanding product features were § § Its bright light § Long lasting battery § The small size and square shape which help to have a good grip § The strap that can be used to hang RY 04 on the roof/ceiling to light the house Willingness to purchase at the RRP was high among those who identified the advantages of the product (good battery life and very bright light). The group that thought RY 04 was just like any other torch, was only willing to purchase the product if the price was brought down to a maximum of US$ 2 KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 145

HI 65 § Test product overall evaluation Overall, respondents were positive about HI 65,

HI 65 § Test product overall evaluation Overall, respondents were positive about HI 65, especially because of its design: § § § The product can easily be carried from one place to another The flexibility of the stem, which can easily be twisted to any direction, is very practical Simplicity in usage; any one can operate the product without any training § HI 65 was perceived to be durable and some people believed it could last for over 5 years if handled properly. § The size of HI 65 and the nice colour were also appreciated by most respondents, although some preferred the lighting device to be black. § Majority of the respondents used this product as a secondary lighting device (e. g. reading light) as it is not bright enough to light a whole room. The dim light was the main dislike of this product. § Although the perceived price was lower than the RRP, respondents were still interested in the financing option to offset part of the purchase and maintenance costs. § Respondents were not interested in buying the product without the solar panel, as they try to avoid running costs KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 146

UR 83 § Test product overall evaluation Respondents considered UR 83 unique and relevant

UR 83 § Test product overall evaluation Respondents considered UR 83 unique and relevant to their life style i. e. it costs nothing to charge the battery and the device is multifunctional: § It can be used to light the whole room by simply using the strap § It can be used as a torch to go outside (e. g. to the bathroom) § The product can be put in the pocket easily § Many respondents mentioned that the design of UR 83 looks like a camera, which was associated with a high social status. § The main dislikes of this product were its dim light and the colour, especially the yellow strap which was perceived to get dirty easily. § The difference between the perceived product price and the RRP is significant and respondents clearly indicated that they were not willing to buy the device for the RRP. Although they were interested in financing to offset part of the purchase price, the RRP needs to be brought down first. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 147

KO 13 Test product overall evaluation § Respondents were very positive about this product

KO 13 Test product overall evaluation § Respondents were very positive about this product and the likelihood to purchase KO 13 in the future was high. The product was perceived to be worth more than other products since it can be recharged using both electricity and solar, and the battery lasts a long time. § KO 13 was perceived as unique and exciting. In addition, respondents indicated that this product was very relevant as it met their lighting needs, mainly because of the following features: – – Bright light No running costs as the battery is charged using solar energy Possibility to light two rooms simultaneously Flexibility of the stems which allows to have light in any direction § The major dislike of KO 13 was that the lamps did not have stands, which made it difficult to use them as reading lights. This made it difficult to place them on the table. § The RRP was close to the initial price expectation and thus most people were willing to purchase the product at the RRP. Nevertheless, respondents were very interested in the option of financing to offset part of the purchase price, because their income is low and therefore difficult to pay the total price at once. § Respondents were not interested in buying the product without the solar panel, as they are trying to avoid running costs. Also lack of electricity at home makes it difficult to charge the battery without the solar panel. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 148

RECOMMENDATIONS

RECOMMENDATIONS

General product preference overview § Amongst all the respondents that were interviewed, the following

General product preference overview § Amongst all the respondents that were interviewed, the following were the most preferred lighting devices: – § Amongst all the respondents that were interviewed, the following were the least preferred lighting devices: TM 41: The main drivers were the bright light, solar charging and its two bulbs – KO 13: The main drivers were its bright light, two lamps, solar and AC mains charging option – HI 65: The main drivers were its flexibility and portability, and the fact that is very easy to use TM 41 KO 13 – UR 83: The main barriers were its price and inadequate light intensity – RY 04: The main barriers was in the batteries which needed to be charged using AC mains HI 65 UR 83 RY 04 Decreasing preference KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 150

Product with the highest preference § § TM 41 had the highest overall preference

Product with the highest preference § § TM 41 had the highest overall preference among all products. This is mainly because of the very bright light provided by the two lamps which could be shared among two rooms as the wires are long enough. The usage of solar energy to charge the batteries was much appreciated by the respondents, as this will save them the running costs of their current lighting products (e. g kerosene and dry cells) Other factors that contributed to product appreciation included long battery life, portability, availability of a slot for the radio, and also the black colour which is believed not to get dirty easily It is our recommendation that the product be introduced as is. However, the financing option to offset part of the purchase costs is recommended for this market as most people are not able to pay the full RRP at once. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 151

Product with the lowest preference § § Of the products tested, RY 04 appears

Product with the lowest preference § § Of the products tested, RY 04 appears to be the least preferred lighting product. Majority of the respondents perceived it as an ordinary torch which is not unique and can be charged using electricity. The light of this product is however much brighter than the other torches, which is appreciated. As many respondents did not have easy access to electricity, charging was not convenient for them. Respondents were therefore less enthusiastic about this charging method than about solar charging. In addition, charging a battery using electricity is not ‘running cost-free’. Compared to the other products tested, the RY 04 was mainly used as a secondary lighting device, e. g. for going to the bathroom outside. Respondents still needed another lighting device for the house i. e. kerosene lamp. This therefore reduced the preference for the RY 04. It is our recommendation to introduce RY 04 to the market with the solar charging option; this makes the product ‘running cost-free’ and will help increasing its acceptance. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 152

Barriers to use of preferred product § The most significant barrier to using TM

Barriers to use of preferred product § The most significant barrier to using TM 41 was price. Although the product was perceived to be worth the RRP, the price was high and not affordable for all respondents. Most respondents have a low income and are not able to save money. Therefore, paying the product in installments or using the financing option to offset part of the purchase price, is attractive to most of them. § To improve ease of use, respondents suggested that an indicator be added to the solar panel to show when the battery is fully charged. KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 153

Motivations to use of preferred product Respondents mentioned many motivations to using TM 41:

Motivations to use of preferred product Respondents mentioned many motivations to using TM 41: § There are no running costs involved § The bright light of this product was considered comparable to light bulbs connected to the electricity grid and this was associated with high social status § The fact that TM 41 could light the whole house was much appreciated; the two bulbs and the long wires allowed people to light two rooms simultaneously while hanging the bulbs on the ceiling/roof, which is very convenient § The product does not emit smoke or heat § The device was easy to use § TM 41 is portable; it can easily be moved from one room to another and its size is small enough to be carried along § The availability of financing to offset part of the purchase price would also be a motivation to use TM 41 This is like grid electricity with no extra usage charges, it is as good as grid electricity female, urban, lower LSM The size is good enough and it’s interesting that it can be hung on the roof and then can supply enough light for the whole house male, urban, lower LSM I have been living like a rich person male urban, lower LSM KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 154

Currency Conversion Rate Kenya USD 1 = KES 74 *Approximate, as of May 2009

Currency Conversion Rate Kenya USD 1 = KES 74 *Approximate, as of May 2009 KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 155

KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 156

KENYA © 2008 International Finance Corporation – The World Bank All Rights Reserved 156