Role: Consultant – Project Manager

Responsibilities: Client relations, project operations, customer experience mapping, field research, basic financial modeling

Brief Summary: A fast-paced 9 -week project to understand the Cambodian market for water filtration systems and test viable business models. Deliverable was to make 3 recommendations to Splash on how to proceed with their business strategy.

Challenge

How might Splash Cambodia move away from a non-profit business model to become a self-sustaining and profitable enterprise?

Background

Splash Cambodia is a division of Splash, a US-based non-profit aimed at providing clean and safe water filtration systems for children around the world. Splash Cambodia sought to transition from being funding-dependent (from the US) into a self-sustaining social enterprise by donating one clean water filtration system to a school for every filter sold (one-for-one model). Their goal was to provide filtration systems to all in-need public schools in Cambodia.

Approach and Methods

During the initial research phase, we analyzed market size & growth, staff/delivery models, competition, consumer need and financial viability. We met with water bottling companies and both large and small businesses throughout the capital city, Phnom Penh, to understand water usage and water cleaning processes. Within the first week, rapid prototypes were developed to introduce Splash’s filtration systems to business owners.

Key Findings

• Splash’s current filtration system is too expensive and large for most Cambodian businesses

• The current number of large businesses in Cambodia would not allow Splash Cambodia to meet its one-for-one goal, however the economy is booming

• Water treatment plants in Cambodia produce the cleanest drinking water in Southeast Asia. The issue lies with the pipes - often, older buildings have rusted or dirty pipes.

• Many business owners are under the assumption that advanced water filters remove the good minerals along with the bad, so opt to sell bottled water to their customers or use less effective filters. Splash uses an innovative filtration system that leaves good minerals in the water.

Testing

Our team then developed 3 potential business models for testing:

1. Sell large filtration systems to hotels to subsidise water filters donated to schools with the caveat that the market may not yet be ready for Splash Cambodia to reach its one-for-one goal

2. Sell smaller filtration systems to middle class homes to subsidise water filters donated to schools

3. Provide free bottled water to hotel guests asking for donations to support the donation of filters to schools (images to the left are from this option’s testing phase)

Through rapid prototyping and field tests, only the third option remained viable with the organisation’s current resources. Tests indicated a good potential for the model to be successful due to the amount of donations received. Though Splash would still be a non-profit, it would not be dependent on US funding.

Recommendations

In Option 1, the filtration system is too costly for the current market in Cambodia and there are not enough businesses established in the country to sustain the model. However, as the economy is quickly expanding, Splash may be able to explore this in the future.

The market is large enough for option 2 (selling small filtration systems) to be viable, if Splash is able to source a smaller model from their distributor. Will need further market testing once the small system is sourced.

Although Option 3 meant Splash Cambodia was to remain a non-profit, based on testing, it had the most potential for allowing self-sustainability, which they stated was the main priority.

Splash Cambodia decided to move forward with their own testing of Option 3, while also working with their distributor to sell smaller filtration systems.