VIP Project PDF Final

8/8/2019 VIP Project PDF Final

http://slidepdf.com/reader/full/vip-project-pdf-final 1/48

Value Initiative Program (VIP)

URBAN VALUE CHAINDEVELOPMENT: TOFU AND

TEMPE SECTOR IN GREATER JAKARTA







Sector Tofu and Tempe (Soy bean based product)

Focus Area Greater Jakarta (Jakarta, Bekasi, Depok, Tangerang and Bogor)

Enterprise Tofu and Tempe Producers including Renter Producers;“Lopper /middlemen and Wet Market vendors; and Streetvendors

Goal Increase income, improve working conditions, and diminishenvironmental impact of production for 40,000 enterprises inGreater Jakarta. Provision of safe food to 7.2 million consumersin Greater Jakarta

Purpose Increase efficiency and product quality for 4,500 entrepreneurs

Potential MarketImplementationPartners

America Soybean Association, Forum Tempe, Cleaner Production Centre, Research Agency, Business ServiceProviders, Bank/MFI, Local Government, Metal Workshop

Association, Vendor Association, MoE, Bank Indonesia

Background

Background



Indonesia Map

Indonesia Map



Project Target Areas

Project phase expansion plan across greater Jakarta



•In 2007, the total population of Indonesia was232.9 Million people; approximately 40% of thepopulation categorized as poor people

•The National Survey conducted in 2002

revealed that 34.64% of total poor people livingin urban area

•50% of the total population live in urban areas;and 40% of urban residents are employed in

the informal sector.

Why Urban?



Why Tofu/Tempe?

•Tofu/tempe a staple food for approximately 40million poor people

•Most tempe/tofu producers and vendors live inurban areas and are informal workers.

•The tempe/tofu industry and vendors offersemployment opportunities for individuals withlimited formal education. It also offers anadditional source of income for their extendedfamilies (remittances).



Owner Renter Factory, rawmaterial,housing for workers

Rent space andall equipmentfrom owners

Fresh tofu,

60-500 kgsoybean /day

Fresh tofu,

5-30 kg

Soybean

/day

$ 100/day $ 8-9/day

Avg : 6 workers;@ $ 4/day

No workers

Owner Renter Factory, rawmaterial,housing for workers

Rent space andall equipmentfrom owners

Fresh tempe;

40-150 kg

Soybean

/day

Fresh tempe;

10-70 kg

Soybean

/day

$ 17/day $ 8-9/day

Avg : 2 workers;@ $ 2/day

No workers

Asset/Provision

Product-Capacity

Income

Tofu Producers Tempe Producers

Worker

Enterprises in the sector



Cart Owner Vendor

Owns cart. Rents cart and other equipment fromowner

Cooked tofu/tempe

Cooked tofu &tempe

USD

14-15/day

USD

3-4/day

No workers No workers

Asset/Provision

Product-Capacity

Income

Cart Vendors

Worker

Continued Enterprises…

Motorbike, kiosk.

Only sell fresh tofu/tempe andtake margin

USD $ 8-10/day

No workers

Lopper (middlemen) /Wet market vendors



“Outdoor

eaters”

Consumerassociations

ProcessingFood Preparation

& Snack

Food Vendor

Consumption

Input SupplyInformal and

Formal Marketing

Soybeanwholesaler

s

Soybean

Agents

Producer

Group

Large/leadproducers

Renterproducers

Smallproducers

Takehomeconsu-mers

Medium

sizedproducers

Renterproducers

Wholesaler/Agents

Food stalls

Wet Market /Cart Vendors

Association of soybean, tofu/tempeproducers, and vendors; cooperative

Ministry of Environment, Ministry of Trade and Industry, Governments,Banks/ MFI, Research Institute

Food and hygiene inspection Body(BPOM)

Mini-Mart

Hospital

Catering

School

Formal

Market

Analyzing the Sector: Value Chain Map

10%

50%

20%

20%

80%10%

10%



Value Chain Analysis

In

putsupply

Processing

Inputsupply

Processing

Food&snack

streetvendor

Informal&

formal

marketing

Long term availability of traditional fuel

Used cooking oil & other toxic additives effect

human health

informal markets is thebiggest market

Liquid waste can beused for biogasInefficient production

Use of formaldehydein tofu

Cleaner productioncan reduce cost

Opportunity

Limitedshelflife

Lackofa

ccess

tofinance

Re-used oil stove for cartvendor will attract consumer

Constraints Consumed by largepoor people

Bad

env

ironmentaleffec

tduetoliquid

wasteof

tofuproduction

Consumpti

on

Only use 100% of fresh cooking oilwill lead to increase sales



Constraint UnderlyingCauses

Service Market SupplyAssessment

DemandAssessment

Interven-tion

Activity

Inefficientproduction (tofu)

Producers don’tknow :

-How To do it

-Where to get info

-Provideinformation

-Training to applycleaner production

MOE and BSMprovide the loanfor producers whowill apply cleaner production

Many producersinterest on how toreduce costenergy andincrease timeefficiency

ImproveProduction

-Renovate 1 tofufactory as model

-Conduct TOT incooperate w/ MOE

- Linkages financialinstitution andproducers

Unhygienicprocessproduction(tempe)

-Lack capital toinvest in newhygieneequipment

-Don’t know whereto get theequipment

-Financial product-Provideinformation onappropriatehygieneequipment

- Many localworkshops areavailable to beequipmentsuppliers

-Lack info onproductionprocess of tempe

Most producersaware: low qualityof equipment(used drum)

ImproveProduction

-Renovate 1 tempefactory as model

- Linkages betweenequipment supplier andproducers

-Linkages financialinstitution andproducers

Health issue : useused cooking oil(street vendor)

-Lack of awareness

-Use used cookingoil can keep lowcost production

-Don’t know thealternative tech

-Provide thealternative tech(used cooking oilstove)

-Promote usedcooking oil stove

- 2 local workshopare interested todevelop andmarket usedcooking oil stove

Introduce theused cookingoil stove

-Develop the design of used cooking oil stovein cooperation withconsultant

-Technical assistant bythe consultant supportfrom VIP

-Linkages S-D

Analyzing the sector: Constraints and Interventions



Constraint UnderlyingCauses

Service Market SupplyAssessment

DemandAssessment

Interven-tion

Activity

Consumers eatingunsafe food

-Consumers haveno choice and thisis the best foodthey get with their money

-Producers do notknow where they

can getinformation ongood hygienepractice

- Information ongood hygienepractice

- Forum Tempefunded byAmerica SoybeanAssociationinterest thehygiene issues of tempe and tofu

-The hygieneequipment givesbenefit such aslonger shelf life,better quality, etc

Improveproduction

-Hygiene practice willbe inserted in IP experttraining

- GHP training for equipment supplier

No differencebetween healthyand non healthy

product

-Producers andvendor do notunderstand about

the importance of branding andmarketing

-Information onbetter qualityproduct

-No supplies of branding andmarketing

-MoE can givecertification for CP

-Cooperative mayhave an interest inusing logo as safefood product

-Producers andvendor are lookingway to promote

their better qualityproduct

-Sales is the mostimportant factor

-Producers do notmind to put sticker in their product

Branding andmarketing

- Product registration

- Designing the labeland packaging

-Promote the labeledproduct to consumers

Analyzing the sector: Constraints and Interventions



• Improve production process

– Improve production in tofu – Improve production in tempe

– Improve the stoves for street vendors

• Promotion of cleaner healthy products – Branding and marketing

Strategy & Interventions



Intervention Outreach

Intervention

Plan

Pilot Uptake

Project support Final

beneficiaries

Improve

production tofu

400 8000 20000

Improveproduction

tempe

450 4500 15000

Improve Streetvendors

600 600 5000

Improve

branding and

marketing

102* 2040* 20000*

Total 1450 13,100 40,000

Contract deliverable with SEEP reach 40,000 beneficiaries at goal level while4,500 beneficiaries at purpose level

Note : * not counted due to the double counting with other interventions



Intervention Plans



Background

• What?

– Producers improve their facilities so that there is an increase inefficiency, hygienic production and improved environment in termsof reducing pollution and smoke

• Why? – Reduce cost and improve the environment

– More hygienic and healthy products available in the market

• Problem?

– Producers are unaware of the options for improving productionand addressing environmental issues

– Weak linkages with equipment supplies and technical assistance

Improve Production in Tofu




What Service? Pilot stage

• Information on cleaner production (CP) and goodhygiene practice (GHP) provided with equipment as anembedded service to producers

• Information on CP and GHP provided byconsultants to producers

• Information on successful pilot project to banks andthe bank works with the IP experts developed byMoE.

Uptake• Training by MOE for new IP experts



• How?

– Establish a pre-pilot

• Demonstration tofu factory that provides a working example to other producers and IP experts

Project will facilitate:

– Pilot: 3 models

– Uptake : 2 models





Tofu producers improveproductivityand hygiene and produce lesspollution

Tofu producers improve product qualityIndicator : Rentersand vendors’ commentsonbetter product qualityof tofu

Causal Chain for Intervention : Improve Production for Tofu - Pilot

Tofu enterprises applied Cleaner Production and GHPand use newequipmentIndicator : 1000 tofuenterprise appliedCleaner ProductionandGHPin their enterprisewithin the project period

Tofu enterprises increase salesIndicator : Salesof tofu in informal marketincreases 15% for tofuenterpriseswho appliedCPand /or GHPin the Greater Jakartaareawithin the project period

Tofu enterprises increased incomeIndicator : Increased 15% of income for 8,000tofuenterprisesin the Greater Jakartaarea

within the project period asa result of applyingCPandGHP .

Tofu enterprises increase profit

Indicator : Profitsof tofuenterpriseswho appliedCPandGHPin theGreater Jakarta targetingthe informal market increase 15% withintheproject period

Tofu producers reducecostIndicator : Production cost reduces 15%for tofu producerswho appliedCPin the Greater Jakarta area withinthe project period

Community experience lessodor

Indicator : Environmentalconditionof 400 tofu enterprises

inthe Greater Jakarta areaimprove within the project period

Producersmore secure

Tofu producers provide information onbetter product quality of tofu to vendors

Indicator : 8,000 vendorsprovide informationonbetter product qualityof tofuto their

customers

Workers experience improveworking condition

Indicator : Working conditionfor 4,000 tofu enterprisesand

employeesin the Greater Jakarta area improvewithin theproject period

Tofu producers purchaseIPPackage /newequipments fromIPExpertsIndicators : 400 tofu producerspurchaseIPpackage /newequipmentswithinthe project period

MoEand NADFCconduct thepilot training to IPExperts in CPand GHPwith supportsfromVIP

Indicator : Participants’ comments /interest toenter tofusector after attending CPandGHPtraining

1. VIP talksto National Agencyfor Drug andFood Control (NADFC) onIPExpert training .2. VIPhave a deal with NADFC , whichwill have the following :- VIPhelpsNADFCto produce trainingmaterials on GoodHealth Practice(GHP), if necessary .- NADFCwill conduct the GHPpilottraining with support fromVIPIndicator : NADFC’scomments /interestto participate in thisprogram

1. VIPtalksto Ministryof Environment (MoE) on IPExpert training .2. VIPhave adeal withMoE , which will have thefollowing :- VIPhelpsMoEto identifytheparticipantswhich will be the IPExpertsthat consist of equipment supplier , lead producers , andfinancial institution .- VIPhelpsMoEtoproduce training materials , if necessary .- MoEwill conduct the Cleaner Production (CP) pilot training withsupport from VIP- VIPwill help MoEtohelpthe traineesin providing the services (IPPackage ) to theproducers , if necessary . Thissupport package mustbedeveloped .Indicator : MoE’scomments /interest toparticipatein thisprogram

INTERVENTION

ACTIVITIES

VIPtr oubleshootsimplementation bybui lding

atofu factorymodel inJakarta . While for Bekasi ,thefactory model isbuiltthrough MOEprogram .

Indicator : Tofuenterprise’ssatisfaction towardsthe IPPackage /newequipmentsin pilot

PILOT

BUSINESS

MODEL

OUTCOMES

IMPACT

Equipment suppliers provideinformationon CPand GHPto tofu enterprises

Indicator : 5 businessservice i .e equipmentsupplier related to CPand GHPdeveloped ,introduced , and rolled out withinthe projectperiod

Lead producersprovide informationon CPand GHPto t ofu enterprises

Indicator : 12 businessservicei .e leadproducersrelated to CPand GHPdeveloped , introduced , and rolled outwithin the project period

Financial institutions provideinformation on CPand GHPand

financial support to tofu enterprises3 financial servicesrelated to CPand GHPdeveloped , introduced , and rolled out

Tofu enterprisesare awareof theCP , GHP, and accessto finance forproducers in terms of improving their productivity and quality of tofuIndicator : 1000 tofu enterprisesareawareof the CP , GHP , and accessto finance for producerswithin the project period




1. VIP will develop a businessanalysison tofuwhich will be delivered to the Bank .

2. V IPidentifieswhich Bankthat would be

interested to provide accessto finance to financial

institutions

3. VIP will talkand give the businessanalysisresult to Bankand then have a deal with Banki .e.

Bankwill provide accessto finance to at least 10

financial institutions . VIPwill just help the Bankto

provide detail information to selected FI .

VIPwill have a deal with MOEwhich will have the following :

1. VIPwill raise awarenessabout the IP expert training

2. VIPwill provide database on the potential IP expertsin some

areas.

3. MoE will then prepare a training plan for the next coming years(dependson MoEbut at least 2 years ).

4. MoEwill conduct trainingson their own during the uptake stage .

VIPwil l just help in the document preparation and marketing to the

producers .

5. VIPhelpsMoEto produce marketing documents – brochure /prospectusMoEwill displaythe marketing documents /prospectus . •

MoEconduct IPExperts trainings on t heir ownIndicator : a. MoEconduct 2 IPExpertst rainingson their own

b . Participants’ comments /interest to enter tofu sector

after attending CPand GHPtraining

INTERVENTION

ACTIVITIES

Many tofu producers improve

product quality

Indicator : Rentersand vendors’commentson better product qualityof

tofu

Causal Chain for Intervention : Improve Production for Tofu - Uptake

Many tofu enterprises applied Cleaner Production and GHPand use newequipment

Indicator : 10 ,000 tofu enterprise applied Cleaner Production and GHPin their enterprise within the project period

Many tofu enterprises increase sales

Indicator : Salesof tofu in informal market

increases 15% for tofu enterpriseswho appliedCPand /or GHPin the Greater Jakarta area within

the project period

Many tofu enterprises increased income

Indicator : Increased 15% of income for 20,000

tofu enterprisesin the Greater Jakarta area withinthe project period asa result of applying CPand

GHP .

Many tofu enterprises increase profit

Indicator : Profitsof tofu enterpriseswho applied

CPand GHPin the Greater Jakarta targeting the

informal market increase 15% within the project

period

Many tofu producers reduce cost

Indicator : Production cost reduces

15% for tofu producers who appliedCPin the Greater Jakarta area

within the project period

Many community experienceless odor

Indicator : Environmental condition

of 1,000 tofu enterprisesin the

Greater Jakarta area improvewithin the project period

Many producers more secure

Many tofu producers provide

information on better productquality of tofu to many vendors

Indicator : 20,000 vendorsprovide

information on better product quality

of tofu to their customers

Many Workers experience improveworking condition

Indicator : Working condition for

10,000 tofu enterprisesand

employeesin the Greater Jakartaarea improve within the project period

Many tofu producers purchase IPPackage /newequipments fromIPExperts

Indicators : 1,000 tofu producerspurchase IPpackage /newequipmentswithin the project period

UPTAKE

BUSINESS

MODEL

OUTCOMES

IMPACT

More IPExpert provide information on CPand GHPto tof uenterprises

Indicator : 40 businessservice related to CPand GHPdeveloped ,

introduced , and rolled out within the project period

More Financial institutions provide information on CPandGHPand financial support to tofu enterprises

Indicator : 10 financial servicesrelated to CPand GHPdeveloped ,

introduced , and rolled out

Many Tofu enterprises are aware of the CP , GHP, and access to finance for producers in terms of improving their productivity and quality of tofu

Indicator : 4000 tofu enterprisesare aware of the CP , GHP, and accessto finance for producerswithin the project period

Tofu sector increasesmarket position / competitiveness regarding productivity , hygiene and environmental

friendliness

Bank provide access to f inance to many financial institutions

Indicator : Financial institutions’ comments /interest to enter tofu

sector



Business Models - Pilot

(5)Equipme

nt supplier

(100)Tofu

ProducersInformation

Independentconsultant

C o n s

u l t a n

c yFee

IDR

(60) TofuProducers

E q u i p m

e n

t s

(3) FinancialInstitution

Information &consultancy

Fee

IDR

IDR

Equipment

supplier

E q u i p

m e n t s

Information&consultancy

(240) TofuProducers

(12) Leadproducer

IDR throughcommission

in sales

Equipmentsupplier


#1 Business Model #3 Business Model

#2Business Model



#1 Business Model – Market Uptake


Ministry of Environme

nt

IPExperts

Training

IP

Experts

IPExperts

Producers

Vendors

Producers

Producers

Vendors

Vendors

2 timeconduct training

40 IP’s Expert 800 Producers 16000 vendors




#2 Business Model – Market Uptake

BankAccesstofinance

FinancialInstitution

Producers

Vendors

Producers

Producers

Vendors

VendorsFinancial

Institution

FinancialInstitution Info

10 financial institution 200 producers 4000 Vendors



Background

Improve Production in Tempe

• What?

– Producers improve their facilities and technology so that there isincreased efficiency and improved hygiene during the productionprocess

• Why?

– Improved efficiency will enable greater quantities to be producedin less time and the working environment will be improved

– More hygienic and healthy products available in the market

• Problem? – Producers are unaware of the options related to new technology

and good health production standards





• Information on equipment as an embedded service toproducers

• Information on access to financing options fromfinancial institutions

• Metal Workshop Association provides information on

equipment and design to workshops who then provideequipment to producers

• Access to financing from Banks and other financialinstitutions

Uptake



• How?

– Establish a pre-pilot

• Build a demonstration tempe factory that provides a working exampleto other producers and IP experts


– Pilot: 2 models

– Uptake : 2 models





Tempe producers improve productivity and hygiene and produce less pollution

Tempe enterprises use newequipment and apply GHP

Indicator : 900 tempe enterprisesuse new equipmentsand apply GHP in their enterprise within theproject period

Metal workshops provide information on tempenewequipments and GHPto tempe producers

Indicator : 10 businessservice i .e. metal workshops

related to equipmentsand GHPon tempe developed ,

introduced , and rolled out within the project period

MFIs provide information on tempe equipments ,GHP, and financial support to tempe producers

Indicator : 5 financial services related to equipmentsandGHPon tempe developed , introduced , and rolled outwithin the project period

1. VIPidentifies metal workshops that will be interested to enter /accesstempe sector

2. VIPhave a deal with GHPsupplier such as Forumtempe , NADFC, etc.

which will have the following :

-VIPhelpsGHPsupplier to produce materialson GHP , if necessary .- GHP supplier will be a keynote speaker on the GHP workshop event

3. VIPtalksto metal workshop and have deal , which will have the following :

- VIPwill help metal workshopsto identifyproducerswho want to purchase

equipment- VIPwill or ganize a workshop event on GHPfor metal workshops- VIPwill facili tate a businessmeeting between metal workshopsand

producers

- VIPwill helps metal workshops to produce some marketing documents

such asbrochure , leaflet , etc.- Metal workshopsshould provide information on new equipmentsto

minimally 20 producers .

Indicator : Metal workshops’ comments /interest to enter tempe sector

INTERVENTION

ACTIVITIES

VIP

troubleshootsimplementation

by renovating a

tempe factoryincluding

changing its

equipmentsas a

model in JakartaIndicator :

Tempeenterprises’satisfaction

towardsnew

equipmentsin

pilot .

PILOT

BUSINESS

MODEL

OUTCOMES

IMPACT

1. VIPidentifiesMFIswho will be

interested to enter /accesstempesector

2. VIPwill develop a business

analysison tempe which will bedelivered to the MFI3. VIPwill talk with MFIs and have

deal which will have the following :

- VIPwill help MFIsin preparingand making financial product for

tempe producers- MFIsshould provide informationon new equipmentsand financial

support to minimally 20 producers

Indicator : MFIs’ comments /interest

to enter tempe sector

Tempe producers purchase newequipments and /or receive financial support (If needed )

frommetal workshop or MFI

Indicators : 450 tempe producerspurchase newequipments within the project period

Tempe enterprises are aware of the newequipments , GHP , and financial product on tempe

Indicator : 1500 tempe enterprisesare aware of the new equipments , GHP, and financial productwithin the project period

Causal Chain for Intervention : Improve Production for Tempe - Pilot

Tempe producers improve product qualit y

Indicator : Rentersand vendors’ commentson better productqualityof tempe

Tempe enterprises increase salesIndicator : Salesof tempe in informal market increases 15%

for tempe enterpriseswho use new equipmentsand applyGHPin the Greater Jakarta area within the pr oject period

Tempe enterprises increased incomeIndicator : Increased 15% of income for 4,500 tempe

enterprises in the Greater Jakarta area within the projectperiod asa result of producersusing new equipmentsandapplying GHP .

Tempe enterprises increase profitIndicator : Profitsof tempe enterprises who use newequipments and applyGHPin the Greater Jakarta tar geting

the informal market increase 15% within the project period

Tempe producers provide information on better productquality of tempe to vendors

Indicator : 4,500 vendorsprovide information on better

product qualityof t empe to their customers

Workers experience improve working condition

Indicator : Working condition for 450 employees in theGreater Jakarta area improve within the project period




Tempe sector increases market position /competitiveness regarding productivity , hygiene

and environmental friendliness

Tempe enterprises use newequipment and applied GHP

Indicator : 3,000 tempe enterprises use new equipments and applied GHPin their enterprise withinthe project period

Metal workshops provide information on tempe newequipments and GHP to tempe producers

Indicator : 25 businessservice i .e. metal workshops relatedto equipments and GHPon tempe developed , introduced ,

and rolled out within the project period

More MFIs provide information on tempe equipments , GHP,

and financial support to tempe producers

Indicator : 20 financial servicesr elated to equipments and GHPdeveloped , introduced , and rolled out within the project period

1. VIP talksto metal workshop association and have deal , which will have thefollowing :

- VIP will provide information about tempe business analysis .- VIP will provide database on the potential tempe producers as targetcustomers .- VIP will provide information on the appropriate design of tempe equipmentreferred to the pilot tempe factory in Jakarta .

- VIP will help the association to produce marketing documents – brochure /

prospectus- Metal workshop association will deliver information on design to its member minimally 25 workshops so that each workshops can deliver the information to

minimally 20 producers .

INTERVENTION

ACTIVITIES

UPTAKE

BUSINESS

MODEL

OUTCOMES

1. VIP identifies which Bank that would be

interested to provide access to finance to MFIs2. VIP will talk and give the Bank the business

analysis on tempe and have deal which willhave the following :

- Bank will provide access to finance to at least20 MFIs

- VIPwill just help the Bank to provide detailinformation to selected MFIs

Indicator : Banks’ comments /interest to enter

tempe sector

Tempe producers purchase newequipments and receive financial support (If needed) from

metal workshop or MFIIndicators : 1,500 tempe producers purchase IP package /new equipments within the project period

Tempe enterprises are aware of the newequipments , GHP, and financial product on tempe

Indicator : 3,000 tempe enterprises are aware of the new equipments , GHP, and financial productwithin the project period

Causal Chain for Intervention : Improve Production for Tempe - Uptake

Bank provide access to finance to many MFIsIndicator : Financial institutions’ comments /interest to enter tempesector

Metal workshops association provide information on

equipment designs to many metal workshopsIndicator : Metal workshop’s comments /interest to enter tofusector

IMPACT

Many tempe producers improve product qualityIndicator : Renters and vendors’ comments on better productquality of tempe

Many tempe enterprises increase sales

Indicator : Sales of tempe in informal market increases 15% for

tempe enterprises who use new equipments and apply GHPinthe Greater Jakarta area within the project period

Many tempe enterprises increased income

Indicator : Increased 15%of income for 15,000 tempe

enterprises in the Greater Jakarta area within the project periodas a result of using new equipments and applying GHP .

Many tempe enterprises increase profitIndicator : Profits of tempe enterprises who use new equipments

and apply GHPin the Greater Jakarta targeting the informal

market increase 15% within the project period

Many tempe producers provide access to good qualityproduct of tempe to many vendors

Indicator : 15,000 vendors provide access to good quality

product of tempe to their customers

Many workers experience improve working conditionIndicator : Working condition for 3,000 employees in the

Greater Jakarta area improve within the project period




Business Models - Pilot

Equipmentsupplier

TempeProducers

EquipmentInformation

IDR

Renters/

Vendors

Info on goodquality product

MFI Tempe

Producers

Access to

finance

Interest

Renters/

Vendors

info on good

quality product

#1 Business Model

#2 Business Model

(10) (200) (2000)

(5) (250) (2500)




Business Model - Uptake

Info on

designWorkshop Producers

Workshop Producers

Workshop Producers Renters/

Vendors

Metal

Workshop

Association

(MWA)

Renters/

Vendors

Renters/Vendors

Access togood quality

product

EquipmentInformation

#1 Business Model- Uptake

(1) (25) (500) (5000)




#2 Business Model- Uptake

BankFinancial

Institution Producers Vendors

FinancialInstitution Producers Vendors

Producers VendorsFinancial

Institution

Access tofinance

Information

Access togood quality

product

(1) (20) (500) (5000)



Improve Production for street vendor

Background

• What? – Producers want to improve their productivity through reducing

fuel costs. Per day, a street vendor has available 3 liters of used cooking oil. This used cooking oil has potential to be usedfor fuel rather then used again for cooking the following day

• Why?

– By using old cooking oil as a fuel instead of for cooking willhave an impact on the quality of the product as it will be morehygienic and vendors will be able to reduce the food hazard risk

• Problem?

– Information gap: where can street producers can getinformation on the options for alternative stoves





Uptake

• Information on availability of stoves thatburn used cooking oil

• Information and linkages to suppliers of cooking stovethat burns used cooking oil



• How?

– Project will facilitate the establishment of a pre-pilot that will:• Develop the basic design of a stove that burns used cooking oil and is

appropriate for street vendors


– Pilot: 2 models

– Uptake: 2 models





Causal Chain for Intervention 3 : Improve Production for Street Vendors - Pilot

Street vendors improve hygiene and production efficiency

Street vendors use the re -used cooking oil stove in their cart

Indicator : - 600 cart vendors replace their cooking oil daily

Street vendors reduce production cost

Indicator : Fuel expenditures of street vendors who use

re-used cooking oil stove decrease by 20%

Stove supplier provide information on this newtechnology of re -used cooking oil stove to street

vendorsIndicator : 5 stove suppliers related to energy efficiencyof the

street vendors developed , introduced and rolled out

Street vendors purchase re -used cooking oil stove fromstove

suppliers or lead vendor Indicator : 600 street vendors in the Greater Jakarta purchase re -used

cooking oil stove after the stove isavailable in the market within the projectperiod

INTERVENTION

ACTIVITIES

PILOT

BUSINESS

MODEL

OUTCOMES

IMPACT

Street vendors improve product qualityIndicator : consumer’s comments on product quality

Consumers reduce risk of poison and disease

Street vendors increase sales

Indicator : Salesof 600 street vendors who use re -used cooking oilstove increases 15% in the Greater Jakarta area within the project

period

Increased income of street vendors

Indicator : Enterprise income of 600 street vendors who use re -used

cooking oil stove increases 15% within the project period

Street vendors increase profit

Indicator : Profitsof 600 street vendors who use re -used cooking oilstove in the Greater Jakarta increase 15% within the project period

1. VIP identifies stove supplier that would be interested to

modify the preliminary design of re -used cooking oil stove inorder to commercialize

2. VIP talks with stove supplier and have a deal which willhave the following :- VIPwil l contribute in a process of modifying the preliminarydesign of stove .

- Stove supplier modifies the preliminary design of stove intoa sufficient re -used cooking oil stove-VIPwill help stove supplier identifying the street vendors /lead vendors who want to purchase the stove- VIPwil l conduct business meeting between stove suppliers

and street vendors /lead vendors- VIPwil l help stove suppliers to produce some marketing

documents such as brochure , leaflet , etc.Indicators :

-Stove suppliers’ comments /interest to commercialize the re -used cooking oil stove

1. VIP identifies lead vendor who might beinterested to use and sell the re -used cooking oil

stove

2. VIPtalkswith lead vendor and have a deal :- VIP will contribute three re -used cooking oilstove to be installed in lead vendor’s carts aspilot- Lead vendor use the re -used cooking oil stoves

(funded by VIP ) in his cart vendors- Lead vendor will market the stove to other cartvendors VIPwill help link lead vendor to the stovesupplier

- If needed , VIP will help lead vendor to link withre-used cooking oil suppliers- Lead vendors’ comments /interest to adopt andmarket the re -used cooking oil stove-Lead vendors’ satisfaction towards the re -used

cooking oil stove installed in his carts as pilot

Lead vendor provide information on re -used cookingoil stove to street vendors

Indicator : 5 lead vendors related to production processimprovement introduced , developed and rolled out

Street vendors are aware of the re -used cooking oil stove technology

Indicator : 1000 street vendors in the Greater Jakarta are aware of the re -used cooking oil stove within the project period

Preliminary

activity : VIPin

cooperate withstove researcher

develop proper preliminary

design of re -usedcooking oil stove

Indicator :- Lead vendors’comments on thestove design

Stove supplier successfully developed feasible re -used cooking oil stove and lead vendor is willing to

use it in his carts as pilotIndicator : 1 new technology for reducing health hazard i .e. re-used cooking oil stove introduced




Causal Chain for Intervention 3 :Improve Production for Cart Vendors - Uptake

Many street vendors improve hygiene and production eff iciency

Many street vendors use the re -used cooking oil stove in their cart

Many street vendors reduce production cost

Indicator : Fuel expenditures of street vendors who use

re- used cooking oil stove decrease by 20%

More stove suppliers provide information on this newtechnology of re -

used cooking oil stove to street vendors

Indicator : 50 stove suppliers related to energy efficiency of the street vendors

developed , introduced and rolled out

Many street vendors purchase re -used cooking oil stove fromstove

suppliers or Vendors Association

Indicator : 5,000 street vendors in the Greater Jakarta purchase re -used cooking

oil stove within the project period

INTERVENTION

ACTIVITIES

UPTAKE

BUSINESS

MODEL

OUTCOMES

IMPACT

Many street vendors improve product quality

Indicator : consumer’s comments on product quality

Many consumers reduce risk of

poison and disease

Many street vendors increase sales

Indicator : Sales of street vendors who use re -used cooking oil stoveincreases 15% in the Greater Jakarta area within the project period

Increased income of many street vendorsIndicator : Enterprise income of 5,000 street vendors who use re -

used cooking oil stove increases 15% within the project period

Many street vendors increase profit

Indicator : Profits of street vendors who use re -used cooking oil

stove in the Greater Jakarta increase 15% within the project period

1. VIP will develop business analysis on re -used cooking oil stove to be delivered

to the Metal Workshop Association2. VIP will talk with existing Metal Workshop Association and have a deal which

will have the following :

- VIP will provide database on the potential street vendors in some areas .

- Metal workshop will provide information to its members on re -used cooking oil

stove design- VIP will help stove suppliers to produce some marketing documents such as

brochure , leaflet , etc.

Indicator : Metal Workshops Association comments /interest to enter the sector

Many street vendors are aware of the re -used cooking oil stove technologyIndicator : 10,000 street vendors in the Greater Jakarta are aware of the re -used

cooking oil stove within the project period

Metal Workshop Associations provide information on re -used cooking oil

stove designs to its members

Indicator : Metal workshop’s (member of the association ) comments /interest to

enter the sector




#1 Business Model – pilot

Stovesupplier

IDR

Street vendor

info onstove

Lead streetvendors

Street vendor

info onstove

#2 Business Model – pilot

(5) (500)

(5) (100)




#1 Business Model – uptake

Info on stove

design

Stove

supplier Street

vendors

Stove

supplier

Street

vendors

Stove

supplier Street

vendors

Metal

Workshop

Association

(MWA)

Info on stove

(1) (50) (5000)



Background

Improve Branding and Marketing

What?

– Producers want to differentiate between healthy and non-healthytempe and tofu product through labeling and certification.Producers and vendors should know how to market their improved products to their consumers

Why?

– Labeling and certification may lead to increased sales.

Problem?

– Information gap: where can producers get information aboutproduct registration, labeling regulation and certification

– Where can producers access marketing and promotion tools




How?Project will facilitate:- Pilot: 2 Models, - Uptake: 1 Model

What Service?

Pilot:

Producers provide information on product quality to vendors

Primary cooperatives provide information on branding and marketing toproducers

Uptake

Secondary cooperative provide labeling services to primary cooperativesand other producers




Causal Chain for Intervention 4 : Improve Branding and Marketing - Pilot

Tofu/ tempe enterprise increase sales

Indicator : Salesof tempe and tofu for the local market increases 15% asaresult of the enterprises branded their product and improve their marketing

Tofu/ tempe enterprise increase incomeIndicator : Enterprise income for 2,040 tofu /tempe enterprises who brand

their product and able to improve their marketing increases 15% within the

project period

Tofu/ tempe enterprise increase profitIndicator : Profits of tempe and tofu for the local market increases 15% as a

result of the enterprises branded their product and improve their marketing

INTERVENTION

ACTIVITIES

PILOT

BUSINESS

MODEL

OUTCOMES

IMPACT

Primary Cooperative provide information on branding

using cooperative label and marketing to producersIndicator : Producers’ commentson information given fromPC

Producers are aware of the benefit of branding using

cooperative label and improving their marketingIndicator : 200 producers are aware of the benefit of branding

using cooperative label and to improve their marketing

Producers brand their product using cooperative label

and improve their marketing

Indicator : 100 producers brand their product using

cooperative label and improve their marketing

Consumers are aware of the branded tofu and tempe product having better quality

Indicator : 4 ,000 consumers are aware of the branded tofu and tempe products having better quality

Consumers tends to purchase branded tofu and tempe products having better quality

VIPtalk to the producers who applyCP and GHPto

encourage themto brand their products . Then VIPwillhave a deal which will have the following :

1. Producers will go to the government agency to

process their product registration .

2. VIP will help the producers to design and produce thelabel

3. VIP will help promote the new label to the customers

i.e. vendors and consumers

Indicator : 100 producers and vendors aware of the

benefit of branding their product

VIPtalk to PrimaryCooperative (PC) and have deal which willhave the following :

1. VIP will help PC on making Standard Operational

Procedures (SOP ) of CP and GHP for tofu and tempe

enterprise .

2. PC will put their logo in tempe /tofu productsowned byproducerswho have applied CPand GHPfor fr ee as a pilot

model .

3. PC will provide information on branding , labeling and

certification to producersas cooperative members .

Indicator : Primary Cooperative’s interest to provide brandingand labeling to producers

Producers provide information on branded tofu /tempe product having better product

quality to vendorsIndicator : Vendors’ comments on product quality

Vendors provide information on branded tofu and tempe product having better quality

to consumersIndicator : Consumers comments on product quality

Producers brand their product using their own label

Indicator : Two producersbrand their product using their own label

Consumers are eating healthy tofu /tempe

product

Consumers reduce risk of poison and

disease

Vendors are aware of t he branded tofu and tempe product having better qualityIndicator : 2,040 vendorsare aware of the branded tofu and tempe products having better quality




Causal Chain for Intervention 4 : Improve Branding and Marketing - Uptake

Many ofu /tempe enterprise increase sales

Indicator : Salesof tempe and tofu for the local marketincreases 15% asa result of the enterprisesbranded their product and improve their marketing

Many tofu /tempe enterprise increase incomeIndicator : Enterprise income for 20,000 tofu/tempe enterpriseswho brand their product and able to improve their marketingincreases 15% within the project period

Many tofu /tempe enterprise increase profitIndicator : Profits of tempe and tofu for the local marketincreases 15% asa result of the enterprisesbranded their product and improve their marketing

INTERVENTION

ACTIVITIES

UPTAKE

BUSINESS

MODEL

OUTCOMES

IMPACT

Many Primary Cooperative provide information on branding using cooperativelabel and marketing to producers

Indicator : 10 PrimaryCooperativesprovide information on branding and marketingasembedded service .

Producers are aware of the benefit of branding using cooperative label andimproving their marketing

Indicator : Producers’ interest to brand their products and to improve their marketing

Producers brand their product using cooperative label and improve their marketing

Indicator : 1000 producersbrand their product using cooperative label and improve

their marketing

Many consumers are aware of the branded tofu and tempe product that havebetter quality

Indicator : 200,000 consumersare aware of the branded tofu and tempe products

Many consumers tends to purchase branded tofu and tempe products

Many producers provide information on better product quality of tofu /tempeto vendors

Indicator : 20,000 vendorsprovide information on better product qualityof tofu /tempe to their customers

Many producers provide information on better product quality to consumersIndicator : 1,000 producersare aware of the benefit of branding and improving their

marketing

Many consumers are eating healthy tofu /tempe

product

Many consumers reduce risk of poison and disease

Secondary Cooperative provide “one label”Indicator : SecondaryCooperative’scomments /interest to brand /label the tofu /tempeproduct

1. VIPtalkswith the SecondaryCooperative about branding /labeling since thebeginning of the intervention (pilot ) so that theyare aware of the plan /model2. VIPwill have a deal which will have the following :- VIPwill help SCto develop a mechanism /systemof “one label”

- SecondaryCooperative will have a single brand- VIPwil l help Secondary Cooperative to produce some marketing documentssuchasbrochure , leaflet , etc.




Business Model - Pilot

Producers

Info on better

product quality

Vendor

s

#1 Business Model

Primary

Cooperative Producers

Info onbranding and

marketing Vendors

Info on betterproduct quality

#2 Business Model

(2) (40)

(1) (100) (2000)




Business Model - Uptake

LabelingProducers

Producers

Primary

Cooperative Producers Vendors

Secondary

CooperativeVendors

Vendors

PrimaryCooperative

Primary

Cooperative

Info on brandingand marketing

Info on betterproduct quality

#1 Business Model

(1) (10) (1000) (20000)



• How a project engages with social networks

• Women’s role in production• How to convince the Government to provide better

services from small and micro businesses?• What are the impacts of the sector on rural/urban

linkages?• How does branding work for consumer awareness in

products that matter for the poor?• How will financing work for small informal producers

(tempe)?

• How can we make a difference when there are other programs that have not been effective – what did we dodifferently?

• How can we work with large associations?

Some Key Learning Areas



1) Certification for the products (tofu and tempe) may not work?2) Given the dispersed nature of the industry and the lack of clear

industry leaders communications problems may hinder movingfrom pilot to uptake

3) How does the sector engage the relevant government agencies

to support and facilitate the market uptake of specificinterventions related to improving the environment andaccessing financing.

4) Knowledge and awareness increases brought about by theproject may not be transferred to other workers due to themigratory nature of the workers

Potential Challenges

VIP Project PDF Final

Documents

Transcript of VIP Project PDF Final