93918 Social Marketing Plan for Indonesia Clean Stove Initiative Results Based Financing Pilot Program January 2015 E P A C L E A N S T O V E I N I T I AT I V E K N O W L E D G E E X C H A N G E S E R I E S Background Analysis The market survey conducted among peri-urban households Indoor air pollution (IAP), caused by the burning of solid outside Yogyakarta confirms that, even though households fuels—including biomass (mainly firewood and agricultural would like to reduce the smoke emitted from the burning residues), animal dung, and coal—in traditional cookstoves of solid cooking fuels from their kitchen environment, most is a leading risk factor attributed to mortality and burden of are unaware of the associated health risks.1 The findings also disease. More than half of the world’s population still relies reveal that the vast majority of households in the surveyed on solid fuels for cooking and heating. In Indonesia, where area strongly desire to change their cooking environment. about 40 percent of households (located mainly in rural However, this desire is not linked to the health threat and some peri-urban areas) still depend on biomass to meet from IAP or inhalation of smoke emitted from burning of their daily cooking needs, household burning of traditional solid fuels. Rather, it is related to the soot deposited on biomass for cooking is a major health-risk factor. IAP the kitchen walls, ceiling, and pots and pans. In addition, caused by burning traditional biomass is responsible for an switching to liquefied petroleum gas (LPG) is low priority estimated 45,000 premature deaths each year. Women and for how households would like to change the cooking children are particularly affected since they tend to spend environment. These findings suggest that biomass-using more time in the kitchen or cooking area. Although the households will continue to use biomass in an unhealthy share of households using biomass has declined slightly in environment, confirming the need for public awareness- recent years, some 24.5 million households still use biomass raising and education campaigns to help them understand as their primary cooking fuel. the health threat from IAP caused by the inefficient burning of biomass fuels using traditional cookstoves. The widespread use of biomass can be attributed mainly to the lack of access to more advanced fuels and stoves and the affordability of such products. To reduce the IAP problem in Indonesia, the Ministry of Energy and Mineral Resources (MEMR) and the World Bank jointly initiated the Indonesia Clean Stove Initiative (CSI), a four-phase program designed to increase household access to cleaner and more efficient cookstoves. Launched in 2012, the Indonesia CSI program is currently in its second phase (phase II), which focuses on piloting the results-based financing (RBF) approach. The main objective of this document is to develop a social marketing roadmap to promote commercially viable clean cookstoves in Central Java, as well as document lessons learned for the scaled-up program planned for phase III. 1 The market survey was conducted in July–October 2013. Customer Profile Analysis of the survey reveals that biomass fuels and cookstoves are more popular among older cooks, while younger cooks prefer LPG. It appears that younger people are more attracted to more convenient and modern fuels than older people, who tend to be more accustomed to traditional cooking methods. Single-fuel (biomass only) users tend to be older than dual-fuel (biomass and LPG) users. The average age of biomass users is 48 years, compared to 45 years for dual-fuel users. Single-fuel (biomass- only) households not only tend to be older than dual- fuel households but also poorer; the average monthly cash income of biomass-only households is estimated at IDR 1.4 million, compared to 2.0 million among households that use both LPG and biomass. Based on households’ monthly income and exposure to higher-priced LPG stoves, it is Our proposed approach to helping households dependent on expected that dual-fuel households may be better able to traditional biomass cooking energy access cleaner cooking afford higher-priced clean biomass cookstoves. The survey solutions is to introduce and promote their adoption and use of also shows that biomass-only users tend to have a lower level clean biomass cookstoves. In terms of marketing, these are new of educational attainment. Only 21 percent of single-fuel products, meaning that most households do not know what a users had completed high school, compared to 32 percent of clean cookstove is and thus cannot visualize it. The challenge is dual-fuel users. to create a way to introduce the clean stove products to ensure that households (i.e., market consumers) can recognize them as such. The key strategy that we use in our marketing plan, outlined below, is brand recognition. Although we cannot promote specific stove brands, we use program-endorsed, clean stove logos, which are affixed to all qualified stoves, to ensure that consumers can identify clean stoves. Market Overview The main target group of the Indonesia CSI pilot program consists of women living in Central Java and Yogyakarta—areas where the pilot is being implemented—who currently use traditional biomass cookstoves. Because women bear higher risk of exposure from smoke compared to other household members and are often the family’s key health-care providers, selecting them as the target group provides a more direct way to raise household awareness of the IAP problem from cooking smoke and the proposed solution. The market survey among peri-urban households outside Yogyakarta reveals that 96 percent of cooks in households are women. Women who still use biomass for cooking can be classified into two mutually exclusive groups: (1) those who use only biomass for cooking or “single-fuel” users and (2) those who use both biomass and LPG for cooking or “dual-fuel” users. Women who use dual fuels can be further classified into three groups: (1) those who use biomass to boil water and supplement LPG for cooking, (2) those who use LPG to supplement biomass, and (3) those who use only biomass to boil water. 2 Results of the household survey show that the public is and that it is also critical to involve men. generally unaware of the health risks associated with smoke emitted from the burning of biomass cooking fuels. Among Competitors respondent households, 35 percent disagreed with the Four types of traditional biomass cookstoves currently being statement that smoke from cooking is a big health problem, sold and used by consumers are targeted for replacement by compared to only 6 percent that strongly agreed. Moreover, the CSI program–endorsed clean stoves. These traditional most of the surveyed households do not believe cooking competitor stoves are the (1) “Keren,” (2) one/two pothole with biomass makes breathing more difficult, and three- fixed stove, (3) stove made of stone, and (4) three/five stones. quarters agree that food tastes good when cooked with The Keren stove is the most important competitor to the firewood. The survey findings also reveal that the majority new clean stoves. Considered the most popular type of stove of households have a strong desire to change their cooking in Central Java, the Keren is inexpensive, costing only about environment (i.e., based on the observed soot deposited US$1; however, it is not durable, lasting about 16 month on their kitchen walls, ceiling, and pots and pans). But on average. Households with the Keren stove tend to be switching to LPG as a solution to improving the cooking slightly poorer than those without it. Among households environment was selected as a first priority by only 8 percent that own and use the Keren, the average monthly income of the households surveyed. This finding provides a key is estimated at IDR 2.264 million, 0.411 million less than insight into the potential drivers of household adoption and that of households that do not own and use it. Cooks in how they might be used to convince consumers to buy and households with the Keren stove tend to be slightly older use the new clean cookstoves. (i.e., averaging 47 versus 45 years of age). However, average family size and total number of family members eating meals The survey confirms that most biomass users collect, rather in the household are the same for both Keren users and non- than purchase, the fuel. In addition, a larger proportion users, at four persons per household. of single-fuel users collect biomass compared to dual-fuel users (i.e., 82 percent versus 76 percent). Furthermore, most The one/two pothole fixed stove—the second most consumers regard biomass fuel as cheap and abundant. About important competitor to the new clean stoves—can be 79 percent of respondent households disagreed that firewood classified into self-built fixed stoves made from either (1) is expensive to use for cooking. Similarly, 74 percent mud and brick or (2) brick and cement. Among the 22 disagreed that firewood is getting harder to collect. Moreover, percent of households that own self-built fixed stoves made about 70 percent of the surveyed households disagreed that from mud and brick, 15 percent own the two-hole version, preparing or cutting wood for firewood is a burden for the while 7 percent own the one-hole version. Compared to all family. Finally, 67 of the surveyed households disagreed that other stove owners, those who own self-built mud and brick firewood is hard to obtain in the market, and 58 percent stoves are slightly poorer, with an average monthly household disagreed that cooking with firewood is inconvenient. These income of IDR 2.140 million versus 2.494 million, and findings suggest that the financial benefits and time savings older, with an average age of 47 versus 45 years; however, all obtained from using more energy-efficient, clean stoves households cook for a total of four persons on average. would not be sufficient motivation for consumers to switch to clean stoves. Therefore, the application of rational behavior to motivate or convince consumers may need to be used in conjunction with other behavioral-change techniques (e.g., awareness-raising activities and education on the health threats linked to cooking smoke and direct advice from community health workers). With respect to decision-making on stove purchases, the survey results reveal that women are the key household members that decide when to replace an older stove and which one to buy. A woman can independently decide to purchase a lower-cost biomass stove but must consult and/or jointly decide with her husband on the purchase of a more expensive stove. This finding provides further evidence that women are the target audience for the new clean cookstoves 3 tastes good when cooked with firewood. Therefore, public education and aware-raising campaigns, along with other social marketing activities, are quite critical to changing ingrained beliefs and traditions. Social Marketing Objectives The main objectives of our social marketing efforts are threefold. The first objective is to raise public awareness and educate consumers about the danger of smoke emitted from burning biomass fuels in traditional biomass cookstoves. The second objective is to introduce clean biomass stoves that have passed the designated stove-testing laboratory’s requirements for stove emissions, efficiency, and safety. It is considered that these clean stoves, which are endorsed by the CSI program, can provide a cleaner living environment than traditional biomass stoves, save fuel, and meet safety requirements. Finally, the third objective is to convince consumers to replace traditional biomass stoves with the clean cookstoves endorsed by the CSI program. Consumers can distinguish program-endorsed clean cookstoves from traditional biomass stoves by observing the endorsement logo affixed to the side of all qualified clean cookstoves. It should be noted that each specific brand of clean stoves endorsed by the CSI program will be promoted by its Self-built fixed stoves made of br ick and cement are respective Market Aggregator (MA). In this respect, the considered more durable than the mud-and-brick type due program will focus only on recognizing all clean cookstoves to the use of cement as the main material. But owing to endorsed by the CSI program. the cost of cement and need for more skillful builders, the proportion of households using this stove type is estimated Marketing Strategy (Mix) at only 9 percent. Like the mud-and-brick, self-built fixed To meet these social marketing objectives, the CSI pilot- stoves, most brick-and-cement types have two potholes. The program promotion effort consists of two major activities.2 average monthly income of households that own and use The first is to raise public awareness and educate the public the brick-and-cement type is US$290, $54 higher than that about the danger of smoke emitted from the burning of of non-user households. Also, the average age of cooks in biomass fuels using traditional biomass stoves. The second is households that use the brick-and-cement, self-built fixed to promote the use of clean cookstoves, as distinguished by stoves is slightly higher than that of non-user households (i.e., the program-endorsed logo affixed to all clean stoves sold in 47 versus 45 years old). However, the average number of the market. In short, we communicate with consumers on household members consuming food at home is the same, at the problem and identify its cause. We then introduce the four persons. solution by encouraging consumers to replace traditional biomass stoves with program-endorsed clean stoves. The Beyond competition from traditional biomass stoves, lack emphasis is on making sure that consumers can correctly of knowledge and adherence to long-held beliefs and identify program-endorsed clean stoves simply by viewing traditions comprise perhaps the second largest “competitor” the CSI endorsement logo. Endorsement logo recognition to adopting and using the new clean stoves. Our survey is emphasized because (1) consumers are not able to visualize confirms that the general public is unaware of the health what clean cookstoves look like, (2) clean cookstoves come threat linked to biomass cooking smoke. As mentioned, in various shapes and designs, and (3) each MA is responsible three-quarters of the surveyed households agree that food for promoting its own brand. 2 In the commonly known “4P” marketing mix, these related activities fall within the Promotion category (figure 1). 4 Product resemble modern home appliances when compared with traditional biomass stoves, which are made of terracotta, clay In the context of our marketing efforts, “product” refers to and cement, cement and brick, or stone.  all CSI program-endorsed clean cookstove products (figure 1). At the program-promotion level, “clean stove product” refers to all clean stoves that receive endorsement since each MA Price is responsible for marketing its own brand. On the contrary, Each MA is responsible for setting the price and/or pricing the CSI program is responsible for promoting all clean stoves policy of its own brand of stove. However, it is expected that that receive endorsement from the program. Since clean the Results-Based Financing (RBF) subsidy provided by the stoves are more expensive than most traditional biomass program to each MA and CSI marketing efforts carried out stoves, our promotion strategy, described below, is to place all by the program will have some impact on the overall stove program-endorsed clean stoves above all traditional biomass costs and ultimately the retail price of program-endorsed stoves. All program-endorsed clean stoves have higher value clean stoves. In any case, it is certain that retail prices of all than all other biomass stoves. The main justification is that, program-endorsed clean stoves will be significantly higher as a result of thorough testing, these stoves have proven to than those of most traditional biomass cookstoves. To justify be significantly better than the baseline stoves in terms of the higher price, the CSI program will communicate with particulate matter (PM) emissions, carbon monoxide (CO) consumers as part of its promotion campaign to reinforce emissions, and thermal efficiency.3 In addition, all program- the notion that program-endorsed clean stoves have positive endorsed clean stoves are made of metal, have passed safety value (e.g., provide healthy living), compared to all traditional requirements, and are expected to last at least one year. They biomass stoves (figure 1). Figure 1. Marketing Mix for Clean Cookstoves in Indonesia Product • All Clean Stoves with CSI Endorsement Logo, regardless of brand or model • Stoves with CSI Endorsement are placed above (have higher value than) all traditional biomass stoves Promotion Price • Recognize stoves with CSI • Clean stoves are more Endorsement Logo expensive than traditional • CSI-endorsed stoves provide biomass stoves, but have higher healthy living and save fuel value; they provide healthy Target living for everyone in the • They emit less smoke and deposit less soot Customer household, emit less smoke and soot deposits, use less fuel, and • Generally, clean stoves are save time collecting and cheaper than many pots and preparing biomass fuel pans Place • Available in the market, stops/stores, and kiosks in every neighborhood (must check with MAs) Source: Author. 3 Testing results are available in the public domain. 5 (i) Raise awareness and educate consumers about the danger from indoor air pollution (IAP) created by burning biomass fuel in traditional cookstoves, (ii) Introduce clean cookstoves (new stove products) as the solution, and (iii) Ensure that consumers can correctly identify program-endorsed clean stoves simply by viewing the program-endorsement logo affixed to qualified stoves. While similar to brand-recognition promotion campaigns, the recognition emphasis of this approach is on the program-endorsement logo placed on all qualified clean stoves. After setting up our promotion objectives, the next steps are to ask what promotion activities we will carry out, where we will implement them (area/scope of coverage), and how we will carry them out. Since the CSI pilot program involves a broad range of stakeholders (including the Directorate of Bioenergy of the MEMR, the World Bank, Yayasan Dian Desa [YDD], Renewable Energy, Environment, and Solidarity Group [GERES], and several MAs), two final questions are who will conduct which activities and who will coordinate them. What? Promotion activities usually involve communicating with our target audiences. Therefore, the simple question is what are we communicating to them? The simple answer Place is the danger of IAP, the introduction of new stove products The CSI program is based on the market mechanism and as the solution, and ensuring that they can recognize has no direct influence on where and how the MAs sell their program-endorsed clean stoves. The household survey has stove products. However, it is expected that the program confirmed that fuel and time savings are not the main drivers will indirectly influence the MAs’ decision on where to of household adoption and thus are insufficient reasons to place their stoves (e.g., in local shops/stores, kiosks, and convince consumers to switch to program-endorsed clean markets) in order to reach as many customers as possible. stoves. Therefore, we need to combine rational behavior The awareness-raising and education campaigns, which are (e.g., recognition of fuel and time savings and less observed part of the promotion activity, will cover the Central Java soot deposits) with other behavioral-change techniques (e.g., region where the pilot program is being implemented. It raising awareness that the health threat from cooking smoke is expected that the area coverage of campaign activities exists, promoting education, and involving direct advice from will influence each MA to place its own stove brand in the community health workers) to convince consumers so they same area where such activities are occurring. However, we will be motivated to switch to program-endorsed clean stoves. recognize that this is a pilot; as the first step for selling stoves, some MAs may still rely on existing distribution and retail Where? We will communicate with our target audiences networks or establish their own. We should therefore consult at both the regional and community levels. At the regional with the Market Facilitator in order to inform the public of level, the goal is to reach as many potential household where they can shop for and purchase program-endorsed consumers as possible; at the level of selected local clean stoves. communities, the aim is to reinforce these messages through direct contact (box 1). Promotion The fundamental objectives of the CSI promotion activities How? At the regional level, the program will communicate are to: with target audiences through mass media, including 6 newspapers, TV, radio, billboards, posters, and competition Box 1. Communicating with Target Audiences to to produce promotional material (video and print media). Promote Clean Stoves At the community level, we will rely on social-support Regional Level techniques, including mobilization of local government officials to introduce the CSI program, engaging community • Mass media (TV, radio, and newspapers, including talk shows, health workers to raise awareness and educate our audiences interviews, news, and advertisement) in the selected communities, and conducting cooking • Billboards and posters demonstrations and road shows in the selected communities • Competion to produce campaign materials and local markets (box 1). It is important to note that we cannot carry out promotion campaigns in every community. Community Level (Selected) However, to reach wider audiences, we should invite the local media to record and air or advertise the events for TV • Mobilizing local government officials to introduce CSI program news and/or newspaper. • Engaging local health workers in awareness-raising and education campaigns Who? As mentioned, the Indonesia CSI prog ram • Conducting cooking demonstrations and road shows in encompasses a variety of organizations, including the communities and markets Directorate of Bioenergy, the World Bank,YDD, GERES, the Source: Author. Market Facilitator, and several MAs. Therefore, it is important that each organization has specific roles and responsibilities. It is clear that each MA is responsible for promoting its own Promotion Activities. At both the regional and community brand and all other organizations are responsible for raising levels, the promotion activities implemented must be quite public awareness and promoting all program-endorsed clean focused and aim at meeting our three social marketing cookstoves. However, close coordination among the program objectives (tables 1 and 2). Simply stated, we will inform supporters and between the program supporters and each MA consumers about the cookstove smoke problem, introduce is critical to ensure that promotion activities are implemented a solution, and introduce clean cookstoves. The strategy to effectively and efficiently. introduce clean cookstoves focuses on a brand recognition approach, which, in our case, is the program-endorsed clean Leading and Coordinating. The Indonesia CSI cookstove logo. Each MA will promote its own brand, Program Management Office (PMO), set up within but every qualified stove sold under the program will have the Directorate of Bioenergy to oversee pilot-program an endorsement logo affixed to its side. By promoting all implementation, will lead and coordinate all promotion program-endorsed stoves, we remain neutral. activities. It is important that the PMO, which can represent the government and overall program, contact mass media and With respect to the timing for implementing each of these local government officials to convey the promotional messages. promotion activities, the PMO will coordinate with YDD, Table 1. Promotion Activities: Regional Level Media activity Lead agency Supporting agency • Radio/TV talk show • Press release • YDD/Alliance to provide technical • Advertisement or public-service messages via radio and TV (e.g., infor mation, implement selected air short video clip) activities, and facilitate information • Contact news media to publicize other promotion activities, dissemination. including: PMO/Directorate of Bioenergy • M a r k e t F a c i l i t a t o r t o p r ov i d e o Workshops to educate local health officials; information linking with MAs. o Cooking demonstrations in selected villages and local markets; • Additional consultants may be hired and with World Bank funding support. o Meetings with village officials to raise awareness and introduce CSI program and program-endorsed clean stoves. Source: Author. 7 Table 2. Promotion Activities: Community Level Media activity Key implementers/responsibilities • Directorate of Bioenergy/PMO send invitation and • Conduct workshops to educate and raise awareness of local health offices coordinate local government agencies • Conduct public awareness, introduce CSI program and program-endorsed clean stoves • YDD implements in selected villages (also invite media to participate) • Market Facilitator may suggest focused areas • Conduct road shows and cooking demonstrations (e.g., a mobile cooking demonstration • GERES, with support from YDD, conducts road shows focused on traditional market days (“hari pasaran”) or particular days when large and cooking demonstrations traditional markets are in operation and/or a rented kiosk in selected villages to conduct • MAs cooking demonstrations • Market Facilitator coordinates MAs • Print posters, CSI program logo, and program-endorsed clean stove logo and distribute to PMO and MAs. For example, print a poster with a program logo and the message “We • YDD or additional consultants with World Bank sell clean stoves with program-endorsed logo;” the poster can be given to the MAs for funding support distribution to their retail shops/stores. Recognition of the program-endorsement logo is key to consumers’ ability to identify clean cookstoves in the market. Source: Author. GERES, and especially the MAs to ensure that every MA Providing a solution to IAP caused by the burning of has the opportunity to participate directly in the promotion biomass in traditional cookstoves—one of Indonesia’s least activities and/or reach out to the community and are visible recognized, serious public-health issues—requires changing in the community and media. long-held traditions and ingrained cooking practices and habits. As a result, marketing and promoting clean Conclusion coookstoves, compared to introducing other new products to the market, tend to be more complex. To ensure the The clean cookstoves that we are promoting are completely effectiveness of our marketing and promotion activities, new products to consumers, and each brand has its own the planned engagement with consumers and stakeholders design, shape, and look. The marketing activities carried consists of implementing various activities based on empirical out by the CSI program cannot promote any specific evidence and behavioral-change frameworks. These activities design, shape, and look. Rather, the program emphasis include (1) launching campaigns to shape public knowledge, is on promoting stoves that pass the testing requirements (2) providing community and social support, (3) offering of program-designated laboratories. As a result, the CSI financial incentives in the form of RBF subsidy, (4) providing program has chosen to market and promote clean cookstoves stove choices by ensuring that consumers have several brands using consumer recognition of the program-endorsed, clean and models/types of clean stoves from which to choose in cookstove logo, which is affixed to all qualified clean stoves— the market, (5) establishing clean-cookstove standards, and (6) a strategy similar to the brand-name recognition approach. empowering women’s decision-making ability to purchase clean stoves. This note was written by Voravate Tuntivate with inputs from Yabei Zhang and edited by Norma Adams. The findings, interpretations, and conclusions are those of the authors and do not necessarily reflect the views of the World Bank or funding agencies. Photo Credit: The Indonesian Clean Cookstove Alliance 8