LIGHTING DEVICES TEST RESULTS Ghana Results June 2009.

LIGHTING DEVICES TEST RESULTS Ghana Results June 2009

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

LIGHTING AFRICA OVERVIEW / MARKET INTELLIGENCE PROGRAM

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 4 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.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 5 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

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 6 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.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 7 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

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 8 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

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 9 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

MARKET RESEARCH APPROACH

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 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.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 12 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: 1. 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 eValuate TM methodology, to quantify the acceptance and likely uptake of existing, new and revised product ideas for the market in Africa

LIGHTING DEVICES TESTING: SETTING THE SCENE

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 14 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

HOW DO WE ASSESS POTENTIAL?

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 16 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 Ghana LOCATIONLSMNO.OF INTERVIEWS Urban1-41-5 Urban5-106-10 Rural1-411-15 Rural5-1016-20

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

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 18 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)

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA  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 Predicting the likelihood of successful product launch 19

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA The WHAT? Test  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:  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  Are understood – it has to be clear how the devices will work The product must have a recognisable point of difference 20

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 21 The WHY? Test  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’ This point of difference has to be perceived as a benefit

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 22 The WOW? Test  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 This benefit must be exciting enough to overcome barriers to trial and usage

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 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 + +/- 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

BRIEF COUNTRY OVERVIEW Ghana

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 25 Brief Country Overview: Ghana Ghana Interesting Facts: Ghana is well endowed with natural resources, with gold and cocoa being its principal exports. The per capita income of Ghana is twice that of the poorest West African country. Stringent economic policies as well as high prices for gold and cocoa have helped steady economic growth. Six out of ten Ghanaians are employed in the agricultural sector.

ELECTRICITY

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 27 Suggestions for improvement- living standards  Supply of electricity  Street lights  Supply of water  Construction of gutters  Sanitation  Roads  Youth development programs  Electricity (getting connected to the national grid)  Light  Better housing  Proper drainage  Get personal meter, not shared Supply of electricity is the main suggestion in improving living standards. “If we get electricity, we will be happy because we are in the dark” Male, rural, higher LSM SurroundingIn-home

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 28 Likes and dislikes of not having electricity Not having electricity keeps me outdoors because there is no music or movie for entertainment and also no fan to reduce the heat in my room Male, urban, lower LSM We have to go to other people’s homes to charge our mobile phones or to iron Male, rural, higher LSM I can’t sleep well because of the heat in the room Female, rural, higher LSM Alternative lighting sources Likes of not having electricity Dislikes of not having electricity Candles Torchlight Kerosene lamp Lantern Generator Rechargeable light  Power surges destroy equipment  Economical due to high electricity tariffs  Too much heat/no fan  Cannot watch TV, listen to radio  Cannot work at home  Food wastage (no refrigeration)  No chilled drinking water  Cannot charge my mobile phone  Cannot iron

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 29 Electricity connection usage & attitudes Connection Likelihood Determinants of connection Perceived Benefits of connection Barriers to connection 0-3 months  Money/finance  Proximity to the national grid/electric poles  Speed of response by the Electricity Company of Ghana (ECG)  Lighting  Entertainment  Reading (for school going children)  Refrigeration of food  Awareness of current happenings  Cost of connection (to grid)  Cost of running  Outstanding debts with the electricity company  Slow connection process/bureaucracy by ECG 3-6 months 6-12 months 12 months plus Not likely The key barriers to getting connected to electricity are non affordability (either financial constraints or outstanding debts) and the lack of prompt response by the Electricity Company of Ghana (ECG). Ranging from = few respondents to= many respondents

LIGHTING

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 31 Current lighting situation As I was saying, the only source of lighting is the candle and the torch light. I think it is crude, it is an obsolete system of lighting your house… male, urban, lower LSM Oh it’s deplorable, because at times with the lantern I find it difficult to read female, urban, lower LSM Not all that good, because my rechargeable lamp stay on for a few hours then goes off, so most of the time I cannot do the things I would like to do at night male, urban, lower LSM It’s a simple method as I said, l always put these candles on various places in the room male, rural, higher LSM

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 32 Current Lighting Products Usage ProductUsed CurrentlyMost Often UsedLeast Often Used Lapsed usage 1. Candles  2. Firewood  3. Torch  4. Tin lamp (Bobo)  5. Kerosene Lamp  6. OthersRechargeable lamp; Generator Rechargeable lampGenerator Kerosene lamps, also referred to as lanterns locally, are the most commonly used lighting products. Torches and candles are mostly used as supplementary lighting devices. The use of the tin lamp and firewood for lighting is quickly becoming obsolete due to the smoke emitted and the health risks associated with them.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 33 Summary of lighting products presently used LIGHTING PRODUCTADVANTAGESDISADVANTAGES Kerosene lamp (including tin lamp)  Affordable  Durable  Safety as compared to candles  Poor eyesight and pain in the eyes  Shell breaks easily  Cleaning is time consuming  Emits heat  Cannot use it to charge phone or listen to radio  Goes off when there is a draft Candles  Can carry it anywhere  Easy to use  Affordable  Unsafe (can cause fires)  Not durable  Poor eyesight  Breathing problems Torch  Affordable  Can carry it anywhere  Easy to handle  Delicate Other (Rechargeable light, Generator)  Low level of illumination  Does not last  Expensive  Generator is costly and produces fumes

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 34 Choice determinants & influencers of current lighting product  Cost/affordability  Brightness/ lighting need  Durability  Safety  Prestige/ status  Husband/Man  Wife  Children (usage needs like reading)  Parents Choice DeterminantsKey Influencers In most cases the husband, who is the principal bread winner decides which lighting product is used at home. Children’s reading and homework are important choice determinants and most parents buy at least one good quality lamp strictly for these purposes. Safety has a lower priority compared to affordability.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 36 Current lighting products- different settings … and the torch light, I hang it in the kitchen when I want to cook female, urban, lower LSM We use candles in the bathroom, lamp in the bedroom and at times we use a candle in the kitchen male, rural, upper LSM Lighting products generally have a set position in each room, mainly being placed on table tops.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 37 Product UsedOverall satisfactionSuggestions for improvement Candle  Replace with electricity Torch  Use solar energy instead of batteries Kerosene lamp  Produce one that doesn’t generate heat  Produce lantern that’s charged with solar  Reduce electricity tariffs  Electricity Company should help in a way of providing poles and cables Other Rechargeable lamps  Stronger and more durable battery Very satisfiedNot satisfied Current Lighting Products- satisfaction rating

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 38 Current lighting products ideal product  Powered by solar energy  Self-designed  Torch-like  Silver-bowl design with fluorescent bulbs  Easy to use/ handle  Solar with a slot to power television and fan  Uses batteries  Circular  Blue and white in colour  Bright  Has an indicator to show when charging is complete  Lights a large surface  Has many colours Most of the consumers envision their ideal lighting product as one that uses solar energy to recharge; this ideal light is designed with a notion of cost-free running and that’s how solar energy fits in. Generally, it should be as bright as electricity light. Key features Ideal product

MAIN PRODUCT FINDINGS

TEST PRODUCT EVALUATION Before Placement

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 43 Overall evaluation Uniqueness Relevance Excitement Clarity This product is very new and different to consumers in this market. Similarly, the use of solar is a very unique feature of this product as most consumers have never seen solar operated devices before. It is also perceived to be very relevant to the consumers’ lighting needs. Clarity and excitement are rated highly as well. Test product evaluation none very TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 44 What comes to mind when you see this product ? Test product association TM41 Perfection and brilliance I feel I am on top of the world It uses solar power This is new and splendid The first impressions of the product are very positive; consumers see it as a brilliant and innovative idea that can improve their social status within the community. It’s something I can boast of to my friends

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 45 1.Portability 2.Handling - easy to handle 3.Colours - black and white 4.Controls - simple 5.Design and shape It is okay, it is easy to handle and portable so it is possible to carry it anywhere ” female, urban, lower LSM “The handling is good, it is easily carried from place to place” female, urban, lower LSM “The controls are easy and the black and white colour of the lamp is good” male, rural, higher LSM “It’s new, and different, and trendy…” male, urban, lower LSM “The colours are very harmonious and blend perfectly” female, urban, lower LSM “The roundness of the light, the square figure of the solar panel, it’s attractive” female, urban, lower LSM Test product evaluation likes TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 46 1.Battery - big & heavy 2.Writing/labelling of constituent parts 3.Controls I like the shape but it should be a little larger or bigger than the way it is female, rural, higher LSM The writing I think should be written on the charger and lamp to show which is which male, rural, higher LSM “I think the size of the battery is big and should be reduced” male, urban, lower LSM “The controls are complicated, I can’t easily understand it unless someone explains it to me…” female, urban, lower LSM “The battery is what I think is big for the lamps…” male, urban, lower LSM Test Product Evaluation – Dislikes TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 47 Feature Overall rating Comment ShapeSimple, beautiful, attractive SizePortable, handy, manageable, but the battery is too big DesignAttractive, alluring and eye catching Handling/ controlsThe product is viewed as portable, however has no handle ColoursThe colours are good, inviting, bright and attractive Writing/ labellingAttractive but small Test product features evaluation TM41  In general, the TM41 got a very positive assessment for most of the product features especially in the aesthetic qualities such as the shape, design and colours.  Some of the consumers interviewed however, felt that the battery was too big and heavy consequently reducing portability of the product. On functionality, the controls were perceived to be complex, and only understood after the demonstration given by the interviewers.  The writings though considered attractive, were found to be too small by some, especially those who could be having eye problems.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 48 Test product characteristics Suggestions for improvementSummary of satisfaction rating Include a handle/ lamp stand Reduce the size of the battery for portability Make the writing bold/ legible Add a slot for TV charging Simplify the controls Quality of service (lighting power) Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use Though the batteries are considered as having a long battery life, the availability of batteries is a cause for concern amongst the consumers, especially because they have never encountered such a product. TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 49 Overall evaluation Likelihood to purchase Worth more than other products Approximate cost Most consumers are very likely to purchase this product provided they can afford it. They unanimously believe the product is worth much more than other products in the market due to the unique solar charging system. Purchase Intent & Price US$ 24.1 - 27.5 TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 50 Test product summary before testing  This product made a very good first impression on the consumers. The design of the lamps, the colours, the solar recharging aspect, the slot for charging a radio, the brightness of the light, all these unique attributes excited the respondents.  In terms of aesthetic features, the product was very well rated, that is, the shape, design and colours. Though the product is perceived as very easy to use, some respondents found the controls as rather complex, the writings on the label were a little small, and the size of the battery was too big and heavy.  Some of the suggestions for improvement include adding a handle/stand, simplifying controls, making the writings on the label bolder, reducing the battery size and adding a slot for powering the television and mobile phone. TM41

TEST PRODUCT EVALUATION After Recall

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 52  The product received very good ratings both before placement and after recall. The product is viewed as very new and different, and was found relevant as the light it provided was sufficient for their needs.  Consumers are excited because of the adequate light, the opportunity to listen to radio and the long battery life. The consumers were also clear on what to expect from the product especially after the demonstration from the interviewers. Test product comparative evaluation EvaluationBefore PlacementAfter Recall Uniqueness Relevance Excitement Clarity TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 53 FeatureratingComment Product uniqueness No, I have never seen anything like this before…. Some people came to ask how I managed to get it and how they can get some male, rural, higher LSM Lighting adequacy It gives adequate light like what electricity does... male, rural, higher LSM Battery life The battery is good, because when charged it lasts long female, rural, higher LSM Ease of operation I did not have any difficulties at all because you explained the charging process and how to use male, rural, higher LSM Relevance Yeah, it was very relevant to my needs, because when I charge it, it brightens my room well and at the same time it lasts long male, urban, lower LSM Durability I would rate it as very durable because the solar energy on the charger has no effect on it male, urban, lower LSM Test product evaluation- general characteristics TM41  None of the consumers interviewed had seen such a lighting product before and they were generally very impressed by it. The light produced by this product is bright and adequate and was likened to that produced by electricity.  The product is generally easy to operate and most consumers feel it is a product for someone like them as it is perceived to be trendy and stylish while consumers feel they can identify with it.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 54 Feature Rating before Rating after Comment ShapeAppealing; fine and simple SizeCompact size; Size of the battery is too big and heavy DesignGood, very attractive Ease of handlingVery handy and you can carry it about, very easy to handle ColoursVery attractive and enhancing; suitable Writing/ labelingClear; cool with me Test product features comparative evaluation TM41  None of the consumers gave a negative evaluation of the controls or the writings/labelling after placement, probably due to the fact that they got accustomed to the controls and the writings.  The battery is however still perceived as too big and too heavy.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 55 1.Solar recharging 2.Brightness of light 3.Design 4.Colour 5.Radio charging aspect The light, it was very bright…it can last the whole night male, urban, lower LSM What I like about the product is the head, it is very bright female, urban, lower LSM It uses solar energy to charge female, rural, higher LSM The bell-like shape of the lamps, and the silver and black colour make it attractive male, urban, lower LSM I like the mould, the shape, everything about it male, urban, lower LSM I like the radio aspect connection… male, rural, higher LSM Test product evaluation – Likes TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 56 1.Battery life 2.No handle or stand 3.Size of battery It did not last the way I thought it would male, rural, higher LSM I like everything except that when it rains, I have to take it down. male, rural, higher LSM The only thing I dislike about the product is that it doesn’t have anything to hang on, it doesn’t have a handle female, urban, lower LSM My problem is with the size of the battery, I think it is heavy and big so it should be reduced and made lighter male, urban, lower LSM Test product evaluation – Dislikes TM41 Suggestions for improvement:  The solar panel should be water proof so that I don’t have to take it down when it rains. In addition, should water pour on it accidentally, it will not be affected.  Reduce the battery size to make it lighter to carry.  Make the controls simpler and sensitive to touch to ease operating of the product.  Add a handle so that it can be easily carried as well as a stand on which the solar panel can be placed.  Add a slot for charging mobile phones and television.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 57 Test product evaluation product usage TM41 Of course I would use it because it is economical….and it would provide light for me at night male, urban, lower LSM I would use it in the sitting room because I cannot move it around female, rural, higher LSM It wasn’t that hard to use, neither was it too easy female, rural, higher LSM Every area of my room, every corner, because it produced adequate lighting male, rural, higher LSM The product is generally very well understood and simple in terms of usage. After using the product for a few days, all respondents could envision themselves using the product in the future in different settings: the bedroom, living room, kitchen and others in every corner of their homes including the veranda.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 58 The likelihood to purchase this product both before and after placement is very high among consumers. After recall, the price of the product is considered to be much higher than that of other products. Test product evaluation pricing & purchase intent FeatureBefore PlacementAfter Recall Likelihood to purchase Worth more than other products TM41

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 59 Test product pricing scenarios TM41 Pricing Scenarios Amount US$ ResponseReasons Willingness to pay more than was willing to pay before placement 24.1 - 27.5  No because of financial constraints  Yes, I’ve tried it, I know what to expect, easy to use Willingness to purchase at the RRP63.6  No, because of financial constraints Willingness to purchase if financing is available to offset part of purchase and maintenance cost  Financing makes it easier on the consumer’s budget  Reactions were mixed as to how much consumers were willing to pay for the product; most consumers felt the product’s recommended retail price was too high and they could not afford it despite the high rating of the product, i.e. they agree it is worth that price, they just can’t afford it  A good number were comfortable with the price and were willing to pay more than they had quoted before testing  With the option of financing, most consumers who could not afford the product were willing to purchase it at the recommended retail price under the perception that it would be manageable

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 63 Overall evaluation Uniqueness Relevance Excitement Clarity The product is not entirely unique to the consumers as most have seen similar products that have different features such as size or design. The main difference being that the other products use battery and are not solar charged. Otherwise, consumers are very excited about the product, they are clear on what to expect and are convinced the product will directly and positively impact their lighting situation Test product evaluation Not at allvery KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 64 What comes to mind when you see this product ? The cords and switches make me feel like I am using electricity Test product association KO 13 Excitement! I think of light! The first impression of the product is very positive; consumers automatically see it as a solution to their current lighting situation even before using the product. The product is exciting and they immediately compare it to electricity supply. It’s good, it looks solid, durable Exciting but battery looks like a radio set An opportunity to read my book Electricity!

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 65 1.Flexibility of lamp 2.Portability 3.Brightness of the light 4.Ease of use 5.Colour 6.Fashionable because it is very flexible you can turn it at any angle you want female, urban, lower LSM it is portable, simple to handle and the colours are very attractive female, rural, higher LSM I like it because it has 2 illuminating bulbs you can just twist and turn to the direction you want male, rural, higher LSM From what I can see, I would say yes because even though it is small it produces a good amount of light male, urban, lower LSM I like fashion and this is a fashionable lighting product so we match perfectly male, urban, lower LSM Test product evaluation likes KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 66 1.Lack of a handle/ stand 2.Solar panel- fragile and exposed to theft 3.Solar panel- too big 4.Battery availability 5.Long cords & huge battery 6.Product too small It has no hanger to hook it on the wall…and if it can be made to stand on its own without any support I think that will be good female rural Maybe if you have children and they are very stubborn, they can break it and spoil it…. not everybody has time to stay in the house to charge it female urban I think I will prefer the battery to be inserted into the cords or to the wires connecting the bulb so that it will be something small and portable female rural I would like the light to be a bit bigger so that it can even be placed outside or be used to illuminate the whole household well male urban Its solar panel is too big male rural Test product evaluation – Dislikes KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 67 Feature Overall rating Comment ShapeFlexible for convenience during use SizeSmall but the light is bright enough DesignVery unique and fashionable Handling/ controlsGood but lacks a convenient handle ColoursSuitable to the product Writing/ labelingClear and legible except for the Chinese Test product features evaluation KO 13  Overall the product features are highly accepted; consumers perceive them as functional features that add value for money to the product.  The lack of a stand or handle is however a problem, most consumers found it inconvenient to carry the product around as they use it and would recommend that the product hangs or stands on its own during use.  The writing and labeling also scores slightly less due to the use of Chinese language which is not only not understood by most consumers but also depicts cheapness and low quality.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 68 Test product characteristics Suggestions for improvementSummary of satisfaction rating Include a stand or hanger Make the cords and battery more compact The solar panel should be less exposed to damage Battery availability to be ensured Quality of service (lighting power) Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use The product is well received with improvements suggested mainly on the product characteristics that would improve overall functionality. Improvement is emphasized in providing a stand, hook or handle that enable more convenient handling of the product during use. Security of the product during the charging process is also of immediate concern at this stage. KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 69 Overall evaluation Likelihood to purchase Worth more than other products Perceived price  The product records a high purchase intent and is perceived to be worth more than other lighting products previously known to consumers despite similarities with some. Purchase intent stage could be linked to perceptions on quality, value for money and the relevance and excitement that consumers derive from the product.  Most consumers perceive the product price to be lower than the actual value. Purchase Intent & Price US$ 10.3 – 20.7 KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 70 Test product summary before testing  The product is regarded mainly as a reading light for school going children and adults reading before bed-time. Consumers base this perception on the brightness of the product’s light despite being very small in size. The product is designed to sit on a table or desk and is convenient by the bedside or on a stool. It is therefore viewed by consumers as a product to be used more for reading than for other purposes although it is not limited to only this.  Availability of the battery in the local market is a cause of concern to most consumers. They anticipate difficulty in finding the battery within their convenient vicinity after purchasing the product.  The product is not the first in consumer’s knowledge and most say they have seen similar products in the local market before with the main difference being the charging system.  Overall, acceptance is high before product testing and consumers do not state any significant barriers to purchase at this point except for the lack of a convenient product handle. KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 72 Ratings after product testing remained the same as before placement. The product rates lower in uniqueness than the other attributes. On relevance, consumers focus mainly on the lighting brightness and the zero cost of running when solar is used for charging. Excitement is derived from the product features that are new to consumers while clarity is based on the ease with which the product can be operated. Test product comparative evaluation EvaluationBefore placementAfter recall Uniqueness Relevance Excitement Clarity KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 73 FeatureRatingComment Product uniqueness It is not very new and different because there are some in the market which are similar I think male rural Lighting adequacy I even wish you don’t take it away from me because I now feel like I am connected to electricity male urban Battery The battery is too heavy……they should make the battery in such a way that it lasts longer……batteries are not available in the market female urban Ease of operation it was easy….because it is very easy to operate and it is very bright female urban Relevance My children were also able to read their books; I will buy one for them to use and will also use one to read my newspaper male rural Durability It is a long lasting product so long as you take care of it female urban Test product evaluation- general characteristics KO 13  Most consumers would prefer that the product has a stand or a hook so that it does not need to be hand-held during usage.  The power cords are seen to interfere with convenient product portability despite being long enough to allow for product usage. A more compact wiring system is desired.  Fewer consumers preferred bigger lighting bulbs while others prefer that the whole lamp is a little bigger.  Issues around the battery were the strongest, battery availability, battery life, size and weight all received negative reactions after product testing.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 74 Feature rating before rating after Comment ShapeAttractive design and shape SizeSome would prefer the product size to be bigger DesignVery flexible, allows lighting bulbs to face two directions Handling/ controls Lack of a stand/ hook makes it difficult to operate ColoursMixed reactions on colour, some liked, others did not LabelingSimple and easy to read Test product features comparative evaluation KO 13  After testing the product, some consumers still felt the need to have a stand for the product that could enable free standing of the product to increase convenience during use.  Reactions were mixed on both colour and size of the product. Some consumers prefer either a bigger bulb or more light while others preferred different colours on the product.  Overall product features still rate very highly and there are no features that received very negative feedback after testing the product. flexibility of the lamp head remains top on the list of positive features amongst most consumers.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 75 1.Low running costs 2.Flexibility of the lamp head 3.Brightness of light 4.Product design and shape I like the simplicity of the product and the fact that I don’t need to buy any fuel like kerosene male rural I like the shape and the design and everything about it male rural Because they are nice, attractive and easy to use, they give quite an amount of lighting and two people can use it to do two different things altogether female rural Test product evaluation likes KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 76 1.Lack of a handle 2.Colour The handle/stand is my only problem, if only they can put a hook or a handle male, rural, lower LSM I hate the colour, it is too dull for me…..female, urban, lower LSM Orange and silver are my favourite colours female, rural, higher LSM Test product evaluation dislikes & suggestions for improvement KO 13 Suggestions for improvement:  A stand for the lamp so that it may be placed on a table or flat surface to improve convenience  A bigger lamp head to increase brightness “The size is OK but if the lamp was a little bigger, I think it would do. So that it would illuminate the place more” male, urban, lower LSM  Generally this lamp is liked as it is, both before and after testing apart from the areas afore- mentioned

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 77 Test product evaluation product usage This product is mainly regarded as a reading light because of its bright light and how it sits well on a reading table or on a stool next to the couch. Consumers will however, use the light for all purposes in the home and in all settings including the bedroom, living room and kitchen. Some consumers believe that the use of this light would improve their status and therefore prefer to use where friends and neighbours would notice. KO 13 In my bedroom and the hallway because it has long ropes (Connection wires) I can hang it at the top and people might think I am connected to electricity male rural, higher LSM In the bedroom, in the hall and in the kitchen, because that is where the light is mostly needed male, rural, higher LSM

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 78 The product still has a high purchase intent after testing. Consumers actually perceive the product to be worth more than other products and this rating goes up after testing it. Test product evaluation purchase intent FeatureBefore placementAfter recall Likelihood to purchase Worth more than other products KO 13

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 79 Test product pricing scenarios Pricing ScenariosAmount US$ ResponseComments Willingness to pay more than was willing before placement 10.3 – 20.7  Worth more than previously perceived Willingness to purchase at the RRP41.9  Consumers believe it is worth this amount Willingness to purchase if financing is available to offset part of purchase and maintenance cost  Consumers will be able to afford it with financing Willingness to purchase without solar panel (KO13/ HI65 only ) 20.9  The solar panel is the selling point; buying without it implies incurring running costs Willingness to purchase solar panel separately  On condition that they initially buy the device without the solar panel which is unlikely Purchase price (without solar panel) with monthly AC running cost 23.1  Monthly costs are avoided as consumers cannot afford this KO 13  The main usage driver for this product is the zero running costs when solar energy is used. Consumers are therefore willing to make the initial purchase at the recommended retail price with the hope that in the long-run they will save costs in using the device and consequently improve from the current kerosene or battery torch expenses.  Based on this, consumers would rather buy the device with the solar panel, buying without the solar panel is the last option.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 83 Overall evaluation Uniqueness Relevance Excitement Clarity The product is not entirely unique to the consumers as most have seen similar products that have different features such as colour, size or design. The main difference with products already experienced by consumers is that they use batteries and are not solar charged. Test product evaluation UR 83 none very

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 84 What comes to mind when you see this product ? Test product association UR 83 When I first saw it I thought it was a camera but now I know it’s a light It has a nice shape designed to be easily carried around It looks like a camera and it is easy to handle It is very attractive, exquisite…… Overall, the product is associated with prestige like that of a camera; consumers are initially more attracted to the physical features of the product than they are to its perceived functionality. They see it as a trendy option to their current lighting products.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 85 1.Portability & size 2.Solar charging 3.Flexibility on light intensity 4.Compact and easy to operate Because of the way I would charge it, I would not go to use electricity, I will just put it under the sun and it would charge by itself female urban Well, it is very mobile you can use it anywhere, put it in your bag during travel male urban The size is very good at least you can just put it in your pocket or bag and off you go female urban I like it for the fact that you can carry it around, it is very portable and very sizeable as my good friend will say, “bombastic” male rural Because I can adjust the light intensity as I want, dim or bright female rural It is easy to use…..it is very easy to use female rural Test product evaluation likes UR 83

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 86 1.Labelling & writings 2.Weight- a little too heavy 3.Battery availability The colours used for the writings are not legible unlike if they were something like black or white. That is what I dislike about it male, rural I think it is too heavy, they should work on it to make it a bit lighter female, rural For instance, when the battery gets weak or something happens to it, getting a replacement would be a problem and therefore the cost would be higher male, urban Test product evaluation – Dislikes UR 83

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 87 FeatureOverall rating Comment ShapeVery trendy and cute SizeVery portable, good for travel DesignVery unique and fashionable Handling/controlsCan be used even by my grandmother ColoursVery eye catching Writing/ labelingNot easily legible from a distance Test product features evaluation UR 83  This product is highly accepted mainly because of its aesthetic feature as well as its portability and ease of use. Most of its features are linked to these 3 main benefits.  Consumers also appreciate the cost free maintenance on this product. While they may have seen similar products, they have not seen one that is solar charged and that would not require any maintenance fee such as electricity or non- rechargeable batteries.  Labeling is however a problem as some consumers feel that the product is not easily legible from a distance being that the writing is engraved in the same colour as the product.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 88 Test product characteristics UR 83 Suggestions for improvementSummary of satisfaction rating Move lighting bulb to the top where the strap is Bigger rectangular bulb for brighter light Quality of service (lighting power) Reliability of service- battery life/availability Uniqueness - new & different A product for someone like me Ease of use Consumers suggested an adjustment on both size and position of the lighting bulb; this can be linked to them perceiving the lighting intensity not strong enough and therefore looking for ways to increase it.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 89 Overall evaluation Likelihood to purchase Worth more than other products Perceived price Purchase intent is very high before product placement as most consumers perceive the product as highly relevant to their lighting need which is better lighting quality at an affordable cost. The product is perceived to be worth more than the products currently at the consumers’ disposal. UR 83 Purchase Intent & Price US$ 10.3-17.2

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 90 Test product summary before testing  The product is well received by consumers but based mainly on its aesthetic features such as beautiful design and colour rather than on functionality such as lighting intensity. Its portability is however the main selling point.  Consumers do not find the product completely new to them as they have seen similar products with different features in the market; however, the solar charging system is completely new to the consumers and forms a strong basis for purchase intent as they are looking at the long-term benefits of using a product that is maintenance cost-free.  Of major concern is the availability of spare batteries in the market, their cost and how this would affect the long-term overall cost of the product. UR 83

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 92 Consumers confirm product’s lack of uniqueness after testing it and confirm also that the only difference is the solar charging, a feature that the other products do not have. Excitement, relevance and clarity remain high after testing and consumers still believe the product would meet their lighting needs. UR 83 Test product comparative evaluation EvaluationBefore placementAfter recall Uniqueness Relevance Excitement Clarity

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 93 FeatureratingComment Product uniqueness Yes I have seen many, mostly the Chinese made male urban Lighting adequacy When I charged it, it became bright and illuminated every corner of the room female urban Battery life Oh this one lights only for a short while then it goes off.. the light exhausted the battery; I would say that it is power consuming male urban Ease of operation It is very easy to use male, urban Relevance It is a relief to our lighting problem, it is also very easy to operate male, rural Durability It is durable since it would not break when it falls male, rural Overall opinion When I used it, the light was good, I enjoyed it and it was very strong with its high voltage…it is a very good quality product male, urban UR 83 Test product evaluation- general characteristics  Uniqueness and battery life/availability received mixed responses from consumers: some were familiar with similar products and others felt the battery wasn’t powerful enough to illuminate the lamp for long. They feared that battery replacement would pose a problem.  Overall, consumers mainly concentrated on the product’s ability to meet their current lighting needs. The few negative product characteristics stated were not barriers to purchase.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 94 FeaturebeforeafterComment ShapeShape is good because it resembles a camera SizeOn one hand, they like the small portable size, on the other, they feel a bigger size would increase light intensity DesignVery trendy, very friendly to users Handling/ controls Product is a bit too heavy especially for kids ColoursThe yellow and orange look very much like a toy Writing/ labelingColours on the label are similar to those of the product so not legible Test product features comparative evaluation UR 83  Some consumers felt the size of the product was not big enough to produce adequate lighting and therefore proposed either a bigger product or bigger bulbs to increase light intensity. This was deduced from the product not producing enough lighting and therefore light intensity maybe the problems and not necessarily the size of the product.  Other consumers felt the product looked like a toy because of the yellow and red colours. They felt this did not depict quality and durability. Most consumers felt the colours were warm, trendy and prestigious as they would be compared to more expensive gadgets like cameras.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 95 1.Portability 2.Flexibility with lighting intensity 3.No heat produced 4.Design 5.Cheaper to maintain As a matter of fact, from the beginning I preferred the RY 04 but I realized that with this even when I go to the village I would always have the solar panel on me male urban The way it is switched on and off, it can be adjusted to high, medium and low female rural Well we have the medium, lower and the higher so I can adjust it how I want male urban I don’t like heat and this light does not produce heat female urban You can carry it around, its portable, trendy, fashionable, excellent male rural When I use a lantern, I buy kerosene but using UR83 does not require this, it only requires solar to charge female rural Test product evaluation – Likes UR 83

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 96 1.Security 2.Colour 3.Too heavy for kids 4.Labelling not legible Yellow and red colours are toy-like, I think they should improve on the colours male, urban I was afraid someone would come and steal it while charging because I cannot stand there watching it, maybe if the cables were longer, I would connect it to the light in the room and put the panel on the roof so that nobody would know that I am charging something….I can’t be standing in the sun watching. It should be charging as I do other things male urban Test product evaluation dislikes & suggestions for improvement UR 83 Suggestions for improvement:  Overall brighter light but maintaining the intensity options by maybe making the bulb or the lamp as a whole bigger.  Increase the length of the cable to the solar panel so that while charging, the light would be in the room and the solar panel remains outside to reduce risk of theft.  Make it easy to access spare batteries in the market.  Change the handle to the top where the strap is so that it can be used in a similar way as a battery torch light.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 97 Test product evaluation product usage UR 83 Most consumers concur that the product is very easy to use. It can be used everywhere and in different settings of the home i.e. bedroom, kitchen and living room. The size goes along way to improve its future purchase intent because it is small and portable. Overall, the product is very relevant to the consumers even though it does not seem to completely replace their current lighting products but works more as a supplement. I use it in the bedroom….because of the brightness and also because it does not produce heat female rural Yes, I would use it whenever I find myself in darkness….wherever I don’t have any source of lighting male urban My bedroom, kitchen and living room because it is portable and can be easily carried everywhere male rural

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 98 The product is still perceived to be worth more than similar products because of the low maintenance costs related to solar charging. However, the purchase intent -though still high has slightly decreased as consumers feel that there are certain risks involved in buying the product. Perceived risks involved are exposure to theft while charging and the presumed unavailability of spare batteries in the market. UR 83 Test product evaluation pricing & purchase intent FeatureBefore placementAfter recall Likelihood to purchase Worth more than other products

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 102 Overall evaluation Uniqueness Relevance Excitement Clarity This design of the product is very new and unique because its features have never been seen before even though consumers may have seen similar concepts in the local market. The excitement about it is due to the solar charging system and because it is brighter than currently used products. Test product evaluation nonevery HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 103 What comes to mind when you see this product ? Test product association It’s a lighting product which I would like to use in the future I can take it along with me anywhere I am going I feel we are making head way as far as lighting is concerned It is very nice, more people will be willing to buy it HI 65 Shock because I wonder how they can come up with such a lighting product which only uses solar It is like light from electricity Consumers thought the product was very innovative and unique. Their first impression was excitement and motivation to trial. Other consumers felt the product was a good solution to their current lighting problems.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 104 1.Portability 2.Affordability 3.Ease of regulating It’s movable, just like a torch light male, urban, lower LSM The solar panel….getting sunlight is easy so I prefer it to be my source of energy, you don’t have to buy batteries male, rural, higher LSM Ease of regulating it, putting it on and off and ease of recharging male, urban, lower LSM I like the way it lights, the way it shines female, urban, lower LSM Test product evaluation likes HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 105 1.Size and intensity of light 2.Not bright enough 3.Charging system is time-consuming What I don’t really like about this product is where the light is, it should have been a little bigger, its too small male, rural, higher LSM It should light brighter than this, it is not bright enough for my liking male, urban, lower LSM The solar charging system, I’m not always in the house to charge it male, rural, higher LSM It cannot power a TV male, urban, lower LSM Test product evaluation – Dislikes HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 106 Feature Overall rating Comment ShapeTrendy SizeEasy to handle though should be bigger and brighter DesignGood looking, especially the flexible cord connecting the bulbs to the base Handling/ controls Easy to handle ColoursBright and attractive, catching Writing/ labellingClear, legible, attractive Test product features evaluation HI 65  The product received a high rating in all of the features except in size. Most consumers thought the lamp is conveniently small and easy to carry around, a few differed as they felt the size of the bulb area is too small making the light dim.  Overall, the product features were perceived to improve functionality; convenience was the key benefit with this product, consumers felt that all features were leading to the product being convenient and easy to use.  The product is considered trendy, it improves consumers’ social status which is important to them and as most cannot afford electricity, this is the closest they get.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 107 Test product characteristics Suggestions for improvementSummary of satisfaction rating Increase the size of the bulbs, and thus increase the amount of light Put a protector around the bulbs to prevent them from breakage Introduce an electricity charging system, not only solar Should have a handle Quality of service (lighting power) Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use The product is not entirely new, as there are similar ones available in the market. It is however different in terms of the solar recharging system. The availability of batteries is a concern among consumers should the need arise to replace them. HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 108 Overall evaluation Likelihood to purchase Worth more than other products Approximate cost Most of the consumers are very likely to purchase this product. The product is seen to be worth much more than other products because it provides more light than the ones currently available, and because of the way it is charged, using solar energy. Purchase Intent & Price US$ 6.9 - 10.3 HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 109 Test product summary before testing  Even though similar lighting devices are already existing, the HI65 was seen to have an innovative design and the solar charging system was also unique. Overall it was perceived as catchy, attractive and trendy.  However, the size of the product, especially of the bulbs was a point of contention with a section of consumers seeing it as rather small and thus producing inadequate light.  As much as consumers appreciate the advantages of a solar charging system, most do not like the idea of sitting by the solar panel for long hours during recharge to guard it from theft.  Other consumers feel this device does not produce a very strong light, therefore limiting its usage. However, this was entirely judged by the size of the product rather than the actual light intensity and was also in comparison to electricity.  The likelihood to purchase is nevertheless very high for this product. HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 111 The ratings of this product went up after testing, consumers thought the product had very unique features. After using the product excitement rose equally high as the consumers tied in the relevance of the product to their lighting needs and the social status that came with using the product. Overall, the product benefits are very clear and the consumers find it very easy to operate. Test product comparative evaluation EvaluationBefore PlacementAfter Recall Uniqueness Relevance Excitement Clarity HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 112 FeatureratingComment Product uniqueness Yes, I have seen it In the market but without the solar male, urban, lower LSM Lighting adequacy Just for reading and nothing more male, rural, higher LSM Battery life It doesn’t last long, between 6-8 hours male, urban, lower LSM Ease of operation No difficulty at all male, urban, lower LSM Relevance Yes because I love to read at night. It’s good for people without electricity connection like myself male, urban, lower LSM Durability It’s durable, if they can maintain the batteries very well male, rural, higher LSM Test product evaluation- general characteristics HI 65  Building on each product feature, consumers could identify with this concept from products previously seen in the market, however, they still thought the product features and the solar charging aspect were very unique. Even though some consumers found the lighting sufficient for their needs, some only found it sufficient as a reading light.  Most of the consumers found the battery life too short with the longest period quoted being a day. The product is however very easy to operate as nobody experienced any difficulties.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 113 FeatureBeforeAfterComment Shape It is a fascinating shape Size Is too small, should be a little bigger Design It is attractive and very useful Handling/ controls It is easy to use Colours Has an appealing orange colour Writing/ labelling Very eye-catching and legible Test product features comparative evaluation HI 65  The overall rating of the features remained the same both before placement and after recall; the product features remain highly likeable by most consumers and the only question remains on the overall size of the product.  Some of the adjectives used in describing the features include: attractive, fascinating, eye- catching, good, appealing, and artistic.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 114 1.Handy 2.Design 3.Portability 4.Solar energy It is so handy, I manipulated it without any difficulties male, urban, lower LSM I like how you are able to twist it and it does not take too long to charge female, urban, lower LSM How they made the shape which can turn everywhere male, rural, higher LSM How the design is simple and can be carried to any place male, rural, higher LSM Its portability male, urban, lower LSM Its solar panels for charging the battery male, rural, higher LSM Test product evaluation - Likes HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 115 1.Size 2.Brightness 3.Durability 4.Limited coverage 5.Recharge duration It’s too small male, rural, higher LSM It is the lighting system, I am advising that if it can be, it should be a little bigger male, urban, lower LSM It does not last for long male, rural, higher LSM The light doesn’t cover a big area, just a small portion of my room male, urban, lower LSM Test product evaluation dislikes & suggestions for improvements HI 65 Suggestions for improvements:  Increase the size of the bulbs and the device in general as it is perceived to directly affect both brightness and area covered by the light.  Provide an option for recharging with electricity as there is not always time to use the solar method.  Add a handle to enhance portability.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 116 Test product evaluation product usage I think it would be placed in my kitchen because it is small and can brighten the place better female, urban, lower LSM I would always like to “flex” and impress people all the time with what I have, so this being a new product, I know people would acknowledge me for using such a product female, urban, lower LSM Yes I would use it because it would encourage me to read more at night male, rural, higher LSM I don’t often read, and I only use this light when I want to read so I don’t think it’s for someone like me male, urban, lower LSM The product was easily understood by consumers and they found it easy to use. Most of them are likely to use this product in the future and especially in the bedroom and living room. Other settings mentioned were in the hall, in the kitchen, or even everywhere due to its portability. The product is however also perceived as a unique product for reading, and thus those who don’t read often feel that it is not a product for them HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 117 The likelihood to purchase the device is less after recall because some consumers were not satisfied with the intensity of the brightness, the size of the device, and the battery life. It is still considered to be worth much more than other products especially because of the solar charging aspect. Test product evaluation pricing & purchase intent FeatureBefore PlacementAfter Recall Likelihood to purchase Worth more than other products HI 65

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 118 Test product pricing scenarios Pricing ScenariosAmount US$ ResponseComment Willingness to pay more than perceived price mentioned before placement 6.9 - 10.3  Not willing because their expectations were not met, they were not satisfied with the size and illumination Willingness to purchase at the RRP18.4  Most are not willing as it is perceived as expensive  US$ 10.3 was proposed by several people Willingness to purchase if financing is available to offset part of purchase and maintenance cost  This would be easier on their budget Willingness to purchase without solar panel (KO13/ HI65 only ) 11.6  Are mainly interested in the solar energy and therefore find this option uneconomical Willingness to purchase solar panel separately  Are willing as it is an economic method of recharging Purchase price (without solar panel) with monthly AC running cost 19.5  Respondents want to avoid running costs and electricity is not easily accessible to them HI 65  Most respondents were not willing to pay more than they had mentioned before placement as they were not fully satisfied with the brightness and the size of the product.  Consumers feel that they have to invest in other lighting sources along with this device as it cannot function as a primary source of lighting.  Consumers are mainly keen on the benefits of solar energy and are therefore not interested in buying the product without the solar panel.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 122 Overall evaluation Uniqueness Relevance Excitement Clarity RY04 is not entirely unique and different because consumers have come across similar products in the market. It is equally not very relevant especially because the consumers do not have electricity to recharge it. The excitement is also not too high as there are similar products in the market. The clarity however received a high evaluation as they have encountered similar products before and are aware of their usage. Test Product evaluation nonevery RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 123 What comes to mind when you see this product ? Test product association RY 04 It appears to me like the normal torch light Does not use batteries It’s a new thing I think it would be good, a quality light This idea is not entirely new to them as they compare it to similar products available in the market. However there are some unique features especially the recharging aspect and the quality of light. This one is four square, the others are rounded It’s new so it will work

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 124 1.Portability 2.Design 3.Shape 4.Colour 5.Switch button 6.Easy to use It is easy to handle female, urban, lower LSM I like its portability male, rural, higher LSM I like the shape, colour and the design, it is a nice square female, rural, higher LSM I like the switch on button and how it is shaped female, rural, higher LSM I like the design of RY04 because it is simple and easy to use male, rural, higher LSM Test product evaluation likes RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 125 1.Electricity charging system 2.Size of head and length of handle 3.Writing in Chinese The Chinese writing on it male, rural, higher LSM I don’t like the electricity charging system, I can’t read the writing, it should be in English male, rural, higher LSM I don’t have access to electricity, that is the problem, and if they can design it like TM41, that anytime you want to charge it, you can use the solar male, rural, higher LSM I don’t have electricity to charge it male, urban, lower LSM The head is too big and the handle is too long male, urban, lower LSM Test product evaluation – Dislikes RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 126 FeatureOverall rating Comment ShapeSimple, attractive, easy to carry SizeSuggestions to reduce its size to increase portability DesignAttractive, similar to those in the market Handling/ControlsPortable; easy to handle ColoursAttractive Writing/ labellingThough bold and visible, the Chinese is irrelevant Test product features evaluation RY 04 The features of the product were accorded good ratings. The device rated highly in both the aesthetic features such as shape, design and colour, and the functional features. Even though the concept of this product exists in the market, there is uniqueness in the features of this particular device.  The size is generally acceptable to most of the consumers, however some of them would prefer a smaller size to enhance portability.  The writings are bold and clearly written however they are not understandable as they are in Chinese.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 127 Test Product characteristics Suggestions for improvementSummary of satisfaction rating Translate the Chinese writing into English Replace the electric charging system with solar charging system Reduce the size of the head and the length of the handle It should use ordinary batteries Quality of service (lighting power) Reliability of service- battery life/availability Uniqueness- new & different A product for someone like me Ease of use Though the product is perceived to have long battery life, consumers feel the batteries may not be easy to access. Though it has some unique features, it is not entirely new as there are similar products available in the market. As it requires electricity to recharge, some consumers do not see it as ‘a product for someone like me’. RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 128 Overall evaluation Likelihood to purchase Worth more than other products Approximate cost Consumers are very likely to purchase this product because it is rechargeable and because of the brightness. It is also seen as worth more than other products for the same reasons. Purchase Intent & Price US$ 1.4 – 2.8 RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 129 Test product summary before testing RY 04  Despite being similar to other products in the market, there was some excitement over the product as it lights brightly and its aesthetic features such as the shape and colours are unique and attractive.  The product however is not very relevant to those who have no access to electricity as they cannot recharge it. The battery availability is also a cause for concern among the consumers.  Nevertheless, this product is perceived to be worth more than other products in the market due to the brightness of the light and the long battery life and most of the consumers interviewed are very likely to purchase it.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 131 After recall, even those who had not rated it as unique before placement now rate it as unique due to the brightness of the light produced and the durability of the light before recharging. This also raised the level of excitement and the relevance. Test product comparative evaluation EvaluationBefore PlacementAfter Recall Uniqueness Relevance Excitement Clarity RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 132 FeatureratingComment Product uniqueness I have seen a similar thing but that one uses batteries… male rural, higher LSM Lighting adequacy It produces enough light for me and I feel happy using it for the first time in my life and also being the first to use it in the area. female, rural, higher LSM Battery life I can’t see the batteries so I can’t comment so much about it. But because I was able to use it at night I think it would be durable female, rural, higher LSM Ease of operation No, I did not have any difficulties in operating the product, but you taught me how to use it male, urban, lower LSM Relevance Yes, because I can use it anywhere and anytime male, urban, lower LSM Durability It’s very durable because it lasts long female, urban, lower LSM Test product evaluation- general characteristics RY 04  In general, this product is very well perceived in comparison to the already existing similar products  The light produced is brighter than they are accustomed to from such a device, it is sufficient for all consumers’ needs  After using the device, the product was rated very highly in terms of relevance, durability and ease of operation

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 133 Feature Rating before Rating after Comment ShapeAttractive, portable SizeA good size that makes it easy to carry DesignEasy to handle Handling/ controls Simple and easy to operate ColoursAttractive and unique colours Writing/ labellingBold and legible but in Chinese therefore not comprehensible Test product features comparative evaluation RY 04  In general, the assessment of the product is better than before usage. The size of the device that had seemed too large before placement now feels appropriate to the consumers after having used it.  The writings however still receive a poor rating due to the fact that they are in Chinese and therefore not relevant in an English-speaking country.  The product is seen as straightforward in the controls and handling as it is not an entirely new concept.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 134 1.Brightness 2.Durability 3.Portability 4.Shape 5.Controls 6.Does not emit heat I like its brightness, the shape and colour female, rural, higher LSM I use it in the night and I see clearly male, rural, higher LSM What I like about it is that it lasts long and doesn’t generate heat. It can taken anywhere male, rural, higher LSM During charging the red indicator that comes on is something that I like so much about it male, rural, higher LSM Its shape, ease of usage, i.e. how to control the switch female, rural, higher LSM Test product evaluation – Likes RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 135 1.Electricity charging system 2.Small coverage area 3.Chinese handwriting I don’t have anything apart from the electricity aspect of charging, I think it should be made solar as well male, rural, higher LSM The RY04 brightens only one point at a time male, urban, lower LSM I don’t like the Chinese handwriting male, rural, higher LSM Test product evaluation: dislikes & suggestions for improvement RY 04 Suggestions for improvement:  Instead of restricting the charging system to electricity, introduce an option to charge it with solar as many of the consumers interviewed have no access to electricity and have to ask their friends and neighbours to charge it for them  Adjust it so that the lighting can cover a wider area instead of lighting one spot at a time  Change the writing from Chinese to English as the Chinese is incomprehensible

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 136 Test product evaluation product usage Yes, this is a lighting product for someone like me because it does not produce heat female, rural, higher LSM I like how it is, and it can be used in different types of settings male, urban, lower LSM Oh yes, because you showed me how to use it, I was able to use it without any difficulties male, rural, higher LSM I would use it for going to church at night, in the room for reading male, urban, lower LSM In my bedroom because it will help me to locate my things male, urban, lower LSM The product was generally very easy to use. Consumers found that they could easily use it anytime and anywhere because of its portability. Consumers enjoyed the usage because of its brightness and the fact that it does not emit any heat. RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 137 The likelihood to purchase is still very high after recall. The product is considered as one that gives value for money. Consumers still perceive the product to be worth much more than currently existing products. Test product evaluation pricing & purchase intent FeatureBefore PlacementAfter Recall Likelihood to purchase Worth more than other products RY 04

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 138 Test product pricing scenarios Pricing Scenarios Amount US$ ResponseReasons Willingness to pay more than perceived price mentioned before placement 1.4 – 2.8  Are willing to pay more than they had earlier quoted because they perceive the device to be of higher quality and durability Willingness to purchase at the RRP4.5  Are willing to pay at this price because it lasts long and is sufficient Willingness to purchase if financing is available to offset part of purchase and maintenance cost  All were comfortable with the retail price and were therefore not interested in the financing. RY 04  The consumers interviewed were willing to pay more that they had quoted before placement  The product is perceived to give value for money as it is more durable and produces a brighter light than similar devices that are available in the market  All consumers interviewed were willing to purchase the product at the recommended retail price

SUMMARY OF PRODUCT EVALUATION

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 140 Insights  Solar energy is the driving force behind consumers’ motivation to use the new lighting devices. Products that do not use solar energy like the RY 04, were generally rejected and termed as ordinary. Solar energy was generally preferred where products had options for both solar and electricity as sources of energy. Consumers generally viewed solar energy as cost free and natural.  Light intensity is an important consideration as it determines to what extent the product replaces their current lighting sources, here again, the RY 04 was not considered a primary source of lighting and could only be used as a supplementary lighting source.  Consumers generally prefer lamps that have stands, most devices, including the highly preferred TM 41, lack this. Improvements should include the addition of this feature.  Living in a very hot country, Ghanaian consumers are very keen on lighting products that do not produce any heat during use and this is one of the benefits of most lighting devices tested.  Price consideration is very important and consumer and purchase intent was negative on certain products otherwise rated highly on other features and functionality.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 141 Products Tested TM41RY41HI 65UR83KO13 Average hours product is used during test period (5 days) 10 – 12 hrs3 – 5 hrs4 – 8 hrs6 – 8 hrs5 – 7 hrs Average hours product is used before subsequent recharge 13 hrs8 – 12 hrs*3 – 6 hrs6 – 8 hrs7 – 9 hrs Average hours product is recharged daily 4 – 6 hrs2 – 3 hrs*4 – 6 hrs2 – 3 hrs3 – 4 hrs General description of weather during recharge of test product Mostly Clear  Occasionally Clear Heavy cloud cover Test product average lighting hours

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 142 Test product average lighting hours  On average, the devices were used in the evening hours.  Some of the respondents never recharged the RY04 during the entire test period. In this cases it was only used as a supplementary product for between half an hour to one hour per day.  The TM 41 was reportedly used for the highest number of hours as compared to other products, while the RY 04 was least used.  It is worth noting that in terms of average hours used before subsequent recharge, the charging period and frequency of charging by respondents was based on their normal usage habits rather than the actual battery life.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 143 Test product overall evaluation TM41  This product has a high potential in the Ghanaian market but only amongst consumers of higher LSM. Generally all consumers rate the product highly both in functionality and physical features; the light produced by the product is strong and most consumers feel that it gives them the same quality they would get from electricity light.  The product features improve consumers’ social status as they are assumed to be connected to the electricity grid. However, when it comes to actual purchase, only few consumers can afford it although many more are willing to purchase the product if financing is offered to them.  With a little improvement, the product stands a high chance in this market. Suggestions include: a stand for the lamp, more compact battery and a waterproof solar panel.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 144 Test product overall evaluation RY 04  This product is not an entirely new concept, nevertheless the consumers interviewed were excited about it due to the brightness and the durability of the product. Its aesthetic features were also rated as attractive and unique compared to similar products available in the market.  The product is very relevant especially due to its portability and ease of handling/operating. It is mainly expected to serve as supplementary lighting device for specific uses like searching for lost items, taking a walk in the night and going to the restroom in the night.  The product is perceived to offer value for money as all of the respondents are willing to purchase the product at the recommended retail price.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 145 Test product overall evaluation HI 65  This product was highly rated in terms of its features; it was perceived as being attractive and very handy especially due to its size and portability. The design was rated as very unique and many respondents liked the that fact that the lamp could twist around to face any angle.  However, in terms of functionality, there were some aspects that dampened their overall perception of the product such as the size of the bulbs as well as the area covered by the light. Most respondents felt that the lighting intensity was not adequate to cover all the household lighting needs. The light could only be used as a reading light and would contribute very little to other lighting needs in the home.  As a reading light, the product is regarded highly, but the belief that consumers have to invest in other lighting devices for other purposes makes the retail price too high for most of them. Generally, they are not willing to pay more after placement than they were willing to before.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 146 Test product overall evaluation UR 83  This product has good potential in the Ghanaian market. Consumers like it mainly for its portability and the aesthetic features. Consumers find the product very trendy and believe that it improves their social status.  Most consumers are happy with the recommended retail price and this is driven by the long- term gain attributed to the use of solar energy; consumers believe that using this product will directly improve their living conditions as far as lighting is concerned.  Suggestions for improvement include assuring the security of both lamp and solar panel during recharge, increasing light brightness while maintaining intensity options, a few consumers suggested changing position of the bulb to resemble a torch and a few others insisted on a bigger light altogether.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 147 Test product overall evaluation  This product has high potential in the Ghanaian market; consumers like it mainly for its bright light that is likened to that of electricity and they believe that it would be a good replacement to their current lighting products.  Parents look at it as a reading option for their school-going children and for their own newspaper reading as well. The use of this lighting device would however go beyond reading to be used for all other purposes in the home.  Solar energy is the driver to usage as consumers perceive the product cost to work out cheap in the long-run after they make their initial investment; they are not too keen on the AC option as many do not have hope of electricity connection in the near future. Those who were previously connected lost it due to un-paid bills or because it was not affordable.  Of importance are the suggestions for improvement, key among them being the addition of a stand so that it is free-standing for ease of use. There are mixed perceptions on size but this could be tested further. KO 13

RECOMMENDATIONS

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA General product preference overview  Amongst all the respondents that were interviewed, the following were the most preferred lighting devices: – TM 41: The device is attractive and prestigious, durable, and the light covers a large area. – KO 13: The device produces bright light and it is a reading option for the school-going kids. The solar charging option is also much appreciated.  Amongst all the respondents that were interviewed, the following were the least preferred lighting devices: – HI 65: The main barrier was the light intensity which was not adequate to cover all the household lighting needs. Consumers therefore believe they still have to invest in another lighting device. – UR 83: The product was not big enough to produce adequate lighting. – RY 04: The main barriers were in the recharging method which requires electricity. The light was also considered not bright enough TM 41KO 13UR 83 RY 04 HI 65 Decreasing preference

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 150 Product with the highest preference  The TM 41 has the highest product preference as it is believed to serve the most functions of all the lighting devices tested. It is a new idea, it is closest to electricity both in design and in light intensity, it is attractive and durable, and the light it provides covers a large area. It is the best option for the off-grid community as they will be able to enjoy all the benefits of electricity at no running costs.  This product is considered prestigious as users believe it improves their social status in the community.  Concerns from a few consumers are centered around the high cost of purchasing the device.  The product however has a few areas of weaknesses and suggestions for improvements have been made.  With a little improvement (including communication and more consumer training) the product is ready for the market.  Incase of marketing communication, the product should flaunt its bright light, long-lasting energy, multi-purpose usage, dual lamp, prestige and wide area coverage.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 151 Product with the lowest preference  Another main deterrent in using this product is that it requires electricity for recharging; the consumers would have to ask neighbours and friends who have electricity to charge it for them, this is a somewhat embarrassing and short-term solution.  The light produced by this product covers a smaller area than the other products and thus cannot be used as the primary lighting source in the household; it is mainly used as a supplementary lighting product as it cannot meet the lighting needs of most of the consumers.  Overall, this light has little chance in this market despite the cost being friendly to most consumers. Off-grid consumers do not view it as an improvement to their current living conditions. They still have to invest in more reliable lighting devices.  The RY 04 is the least preferred lighting product among those tested. It was not an entirely new idea as similar products already exist. In addition, the light produced by this product is not perceived as bright enough in comparison to the other products.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 152 Barriers to use of preferred product  The main barrier to using TM 41 is the initial cost of purchase especially to the lower income group of consumers who found it un-affordable.  The other key barrier is the uncertainty of safety and protection of the panel from water, accidents and other elements during recharge. Consumers generally perceive this as a pricy investment which requires guarantee of longevity.  Consumers also feel that the lack of a stand would make it difficult to operate the device. Flexibility by using the two lamps in different settings is a key motivation to use. Lack of lamp stands limits consumers on this usage flexibility.  Our recommendation is that the option of consumer financing be explored to enable more consumers afford the product.  Safety and protection of the solar panel needs to be ensured and communicated to re-assure consumers on quality of the product.  Optional stands for the product could be explored for the benefit of those who do not wish to hang it up on the roof/wall.

© 2008 International Finance Corporation – The World Bank All Rights ReservedGHANA 153 Motivations to use of preferred product  The main motivation to using TM 41 is the bright light that consumers quickly compare to that of electricity. It not only directly adds value to their living conditions but it also improves their social standing within the community because people think they are connected to the electricity grid.  The availability of two lamps give this device value for money because consumers have the benefit of using each lamp in a different setting of the home and for different purposes simultaneously. The long power cords only help to increase this flexibility.  The other important element of this product is the ability to power other electronic devices such as radio and TV. Consumers feel this would be an added advantage and cost friendly way of operating these devices.  The product features depict durability and quality  Our recommendation is that a slot for charging the mobile phone is added  Other key barriers like solar panel safety and lamp stand, need to be looked into in improving the product. The product stands a high chance in this market.

LIGHTING DEVICES TEST RESULTS Ghana Results June 2009.

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LIGHTING DEVICES TEST RESULTS Ghana Results June 2009.

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