Tag: Middle class customer

Kasha opens up access to sanitary pads in East Africa through last-mile distribution

Overview

There are certain products which, let’s face it, are more embarrassing to purchase than others.

You don’t think twice about buying a pint of milk, however things such as contraceptives, or sanitary items make you a bit more self-conscious, especially if you’re an awkward teenage girl.

Kasha an enterprise in Rwanda, started by solving the very discrete problem around girls accessing to affordable, quality sanitary items which can cause long-standing societal issues, such as school drop-out, if not solved.

 

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They are now running an ecommerce platform delivering female products throughout East Africa to women on all levels of the social spectrum.

Joanna, the CEO and I discuss the different customer segments they have on Kasha,the mechanisms by which they reach their users,and how their B2B offering of data-backed insights is funding those customers typically overlooked as unprofitable.

We conducted this interview in Joanna’s office, in Kigali and near the end, there was a huge downpour of rain which you can hear in the background.It doesn’t distort the interview, and if anything brings you closer to appreciating the changing microclimates of Rwanda, but just a heads up, in case you’re wondering.

For now though, let’s get started on this great episode with Joanna.

Kasha is a social enterprise based from Rwanda, but which is soon expanding to Kenya, and then beyond.

Joanna started her career at Microsoft, and then at Gates Foundation, the latter being an early sponsor of a pilot they were running.

The mission driving Kasha is that no girl should be prevented from access affordable, quality healthcare products.

This means having various channels for the different customer types, based on their income, but more importantly geography: we spend time discussing the various routes to market needed for both urban and rural delivery.

More recently Kasha has moved into other products that females wish to buy, namely in the beauty section.

The business makes money from various channels, one of which is the insights and feedback possible from their rural customer base. Companies such as Unilever have no way to get such feedback, and so the Kasha platform is able to provide.

Lessons and Insights

Biggest learning: even though we’re e-commerce, a call centre is incredibly important in building trust.

Biggest insight: “Bottom of the Pyramid” customers are even more aspirational than I imagined.

Social media etc.

Website: http://kasha.co

Twitter: KashaRwanda

Instagram: kasharwanda

Facebook: kasharw

Kenya’s first local producer of coconut goods. Kentaste’s hustle to get in supermarkets and more

Overview

One of the growing international product categories is goods made from coconuts.

The health, and taste, benefits of coconut oil and coconut milk have caused a rise in demand for these types of product

In Kenya, hundreds of thousands of coconuts are grown each year, and yet were not processed into these high value goods.

In this episode I talk with Sakina from Kentaste, Kenya’s first coconut good producer.

We discuss the process of making coconut products from their coastal factory, knocking on doors at supermarkets to get listed and then paid and how to use coconut oil with your dog

As a consumer of Kentaste products, which is part of why I wanted to go and interview them, I can also say that it’s really good stuff.

In any case, I hope you enjoy this packed interview with Sakina about all things coconuts

 

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Here are some of the key quotes:

“Oil, milk and cream”

These are the main coconut products that we produce since 2012. I head up the Sales & Marketing.

“Our farmers supply exclusively to us”

We collect coconuts from up and down the coast, bring them to our factory and then process them into products.

“2,000 farmers”

Supply to both of our companies. One is Kentaste, the other is just oil for export.

“There’s a different processes”

Milk and cream in one way, oil in another. We have to decide how we’ll use a coconut as you can’t do both.

“We choose based on demand”

The oil is a higher margin product, but we decide what to make based on orders that come in.

“Kentaste is in all major supermarkets”

Some buy huge volumes directly from us, though almost all of our customers buy through a supermarket in Kenya.

“The challenge is in getting paid”

Working with supermarkets is difficult. They say they’ll pay in 60 days, but it ends up being 120+ days. This makes running the business really difficult.

“Cash flow is so difficult in this industry”

We’re at the mercy of when supermarkets will pay us, and so we’re always seeking out investment options that can help with us getting cash in the business.

“It’s difficult to get listed in any supermarket”

The process is long-winded, requiring sending samples and price lists. They often forget about you and so it requires you to follow up incessantly.

“Every week we go to the supermarkets”

We go to the Head Offices of each supermarket on rotation, knocking on doors to make sure that they don’t forget about us.

“If sales start moving, orders keep coming”

Though if they’re not, then work needs to be done on markeing to get people buying more. They won’t tell you if sales are down, it’ll just be that the orders stop.

“Middle to upper class, mostly women”

Are the major demographic. A lot are using coconut oil for cosmetic reasons. We know this from supermarket data but also talking to customers at trade shows.

“We’re the only local producers of coconut products”

Compared to imported alternatives. Everything about Kentaste is local, all the way down to where we “source” our employees…

“It’s not an easy business to run…”

Which might be why we’re the only guys doing it. Sometimes there are no coconuts which farmers can bring to us, and there are issues with running a manufacturing business professionally.

“Coconuts grow best at the coast”

The climate is better grown here, rather than in Nairobi. In the rainy season, the farmers can’t climb the trees to bring them down which affects supply. Most is from just having coconuts on their plot of land rather than commercial farms.

“We can roll out products within a day”

If we get coconuts in the morning, then by the afternoon we have tins of coconut milk ready to go.

“Kentaste is ‘The Kenyan Taste’”

It’s not wholly associated with coconuts but with all-natural products, such as flour and other products. For coconuts, we’re also thinking scented baby oils and cosmetics.

“Use coconut oil with your animals”

Add it to their shampoo to give them a glossy coat of fur and remove fleas.

Social Media Follows etc.

Supermarkets: “you will find us everywhere”
Website:  www.kentaste.com
Facebook: Kentaste Products Limited 
Instagram: Kentaste Products Limited

“Netflix for Africa”: how Tango TV is creating a platform for streaming local East African content

Overview

Most people like to be entertained.

Soon after getting a smartphone, people in East Africa start to seek out entertainment in the form of videos on Youtube not even considering the idea of a traditional television which has to stick to a schedule and requires being at home

Internationally, the dominant “on demand” video service is Netflix though the content isn’t very relatable to the African market.

Victor and I discuss Tango TV, the Netflix alternative starting in Tanzania

We discuss the current media distribution model in Tanzania, considerations of building a video streaming app in East Africa and why the local market won’t watch Game of Thrones even if it was in Swahili

It’s a very interesting conversation that we have, and so I hope you enjoy.

 

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Here are some of the key quotes:

“Media streaming service for local content”

You can think of us as Netflix, but for local African content. We started in Swahili with a view of expanding our range across other languages.

“Local comedy films are most popular”

We have lots of different content, and lots of

“The issue is distribution”

Swahili films are very popular however there are many issues with how they distribute. A lot of piracy, DVDs are obsolete.

“It’s just going to get better”

The trend is always towards accessing films and shows over the internet rather than watching linear TV. If we’re early, then we’ll wait for everyone to catch up.

“Streaming beats downloads”

After doing some testing we found that people preferred to stream than download, typically because they don’t have the storage space on their device.

“We looked at different data”

Such as how many people are watching a Swahili film on Youtube. We estimate 11 million people have access to the internet in Tanzania.

“When people get a smartphone…”

First thing is Whatsapp and Facebook. Then it’s used for entertainment.

“Game of Thrones is niche”

Most people are wanting local content. Foreign programmes aren’t really mainstream.

“I targeted key terms”

Through analysing what people were searching for on Play Store and Instagram we made some specific posts which is a good way for us to get users.

“Costs come from infrastructure”

It’s relatively straightforward to work out how Youtube works. The bit that’s difficult is customising it to a local market, such as compressing files and ensuring quality.

“Web development is done in Tanzania”

The team works from Tanzania. Our server is currently based in Europe which means its a bit slower, however there isn’t the reliable infrastructure here.

“Maybe Netflix will acquire us…”

It’s difficult to go and sign up a load of film distribution companies. Netflix might have bigger markets to go to first, but we’ll go on and build our business here regardless.

“We charge a subscription”

This is how we make money (~$4/ month) from our active users. We pay for the content.

“Tanzania X Factor”

The equivalent is called “Ubongo Star Search”. If we are able to get that, then we’d be really happy.

“Most urban households have a TV”

We’re looking at customers who are currently watching TV at home and try and convert them to using Tango TV.

“Not many people have tablets”

If they have a smartphone then there’s not really a need for a tablet. If they want a bigger device, they’ll get a laptop.

“When we expand, it’s not just language”

The most important thing in the content is the cultural significance of the show. Even if it was subtitles in another African language, then people in the region would understand it more than, say, The Dark Knight film spoken in Swahili.

Social Media Follows etc.

Download on Play Store: Tango TV

Website: Tango TV

Facebook: Tango TV TZ

Twitter: Tango TV TZ

Tanzania X Factor: Bongo Star Search

Cycling with elephants: breaking new ground in Tanzanian travel with Mejah Mbuya from Afriroots

Overview

When most people think of East Africa, they visualise safari.

The region is home to many large and exotic animals which parade through the national parks

Mejah runs Afriroots, a tour company which focuses on experiences that are off the beaten track

We discuss the different customer types they have, how he started his company with $200 and what to do if you ever become confronted by a lion.

We were also next to where an aerobics class was taking place, and so if you hear some throbbing beats in the background, it’s just that.

Either way, it’s a really interesting discussion about the tourism market in Tanzania and so I hope you enjoy.

 

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Here are some of the key quotes:

“We’re an adventure and eco-tourism company”

There are bicycle tours, hiking and game drives. We always look to minimise the amount of time that someone is sat in a car.

“Bicycle safari is our big new thing”

We recently got permission to run bicycle tours through a National Park in Tanzania. We’re the first people doing this.

“It was a new idea”

At the beginning we were sent around to many government agencies as they couldn’t decide if we were a sports company, or a tourism company…

“We started with $200”

To start a normal safari company is expensive (buying 4x4s etc.). We didn’t have that.

“The expat/ volunteer market was underserved”

These are people who are here for a while. They want to do something at the weekend, but don’t have tons of money to spend. We started hiking trips at the weekend.

“We’re in every embassay”

Our posters are in each building where tourists go to. We’re also in the guidebooks like Lonely Planet.

“We stopped publicising tour details”

There were other (rogue) tour companies who would just copy our tour schedule when it was on our website. We are now more discrete…

“Attitude is the most important”

When it comes to hiring guides. As well as speaking English. Typically we go for people who have just finished school, rather than getting experienced people.

“The Afriroots vision is…”

Environmentally friendly. Socially concious. Thinking outside of the box.

“Business has been slow this year”

It’s been due to the introduction of VAT. It became an unexpected cost to the tour providers and so some of them had to cancel.

“Patience pays”

I’ve learnt that things need to start small. It doesn’t need a huge input of money, but instead it needs an input of ideas.

“Buying a bicycle”

This was what we spent our first $200 on. Because we were doing something we loved we didn’t mind doing everything and starting small.

“I’m excited about National Park bicycle tours”

We’re looking to do mapping in all of the National Parks so that we can find routes which are safe for people to cycle through.

“Play it cool with lions”

With lions, don’t run and don’t make eye contact. Elephants, make noise at them.

“… but I’m scared of buffalo”

They’re always angry. They will look to trample on humans were as other animals will leave people alone.

“We want to leave a legacy”

We’re not focusing too much on wealth creation, but instead on making jobs and bringing tourists to new sites across Tanzania.

Social Media Follows etc.

Uwaba: Promoting bicycles in Dar es Salaam

Graffiti: interview

Website: www.afriroots.co.tz

Facebook: Afriroots Adventures

Most Popular Tour: Dar Reality Tour

Selling cakes (and training cake makers), with Grace Murugi from Cakes.co.ke

Overview

If you consider businesses that bring people joy, for me at least, cake is one of them.

It’s also a product which is being bought by the emerging middle class especially in Kenya, with custom made ones being sold for up to $180.

Grace not only makes these cakes, but teaches others how to with her Cake Academy.

We discuss the customers who are buying cakes, how she taught her team to run the business when she went on maternity leave and innovations in the cake industry.

The interview took place outside her shop, and so there is a bit of background noise and not all of the answers are fully audible.

 

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Here are some of the key quotes:

“It started when I was at university”

We’ve been going for eight years and now have our own shop which also houses our cake academy.

“We train people to make their own cakes”

There seemed to be room for improvement in teaching people how to make cakes, and so after starting making my own, I now teach others.

“How creative can we get?”

We’re looking at introducing fruit and chocolate on the cakes as well as different shapes. We learn from our customers and from bakeries across the world.

“Instagram!”

Is where we get a lot inspiration.

“We do custom made cakes all the time”

Most people who come into the shop are buying a bespoke cake. These can cost from $30 up to $180.

“Our customers are the upper middle class”

They earn typically earn $20,000 – $30,000 per year. We then have the wedding cake industry too which is even more.

“We’re big on innovation”

Customers come to us to get the latest designs in cakes. We’re at the forefront of cake innovation in Kenya.

“Production is our biggest cost”

Buying things like icing sugar, paying wages and then utilities such as electricity and WiFi.

“We keep several suppliers”

When it comes to critical ingredients like cream, we need to keep accounts open with several in case one of them fails.

“I teach people recipes I’ve perfected”

I took a couple of classes back in 2005 and since then have been changing the recipes to make them better, such as adding an extra egg.

“We’re big on cupcakes”

These come from people who want to buy a present for the office to celebrate, or just as a walk in purchase.

“We reach our customers online”

This is via Facebook marketing, Instagram and we’re considering LinkedIn marketing too. There are also cake festivals and fairs that we attend too.

“People are seeing Cake Academy as a route to employment”

It’s inspirational for people to see success stories of people setting up their own businesses. 100s of people apply to join the course.

“I’ll be focusing on the Cake Academy”

Teaching other people is where my passion lies. We’re wanting to partner with other bakeries internationally.

“… but passion isn’t everything”

It’s important to learn business skills such as financial statements.

“I read business books and took classes”

These gave me some fundamental approaches to how to run the business which I’ve been applying such as allowing me more time strategise about the business. This all came once I was going on maternity leave.

“Franchise is the future”

The way that we’re looking to grow is by documenting everything that we do and then selling the rights to others to set up their own shops.

Social Media Follows etc.

Grace’s favourite book: The E Myth, Michael Gerber

Greatness Business Club: on Facebook

Facebook: Cakes.co.ke

Instagram: Cakes.co.ke

Website: www.cakes.co.ke

Pictures of cakes

Cakes.co.ke Cake 1
Cakes.co.ke Cake 2
Cakes.co.ke Cake 3