Ideating Market-Driven Solutions for Urban Food Security. Case Study: Kampala, Uganda

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1 Ideating Market-Driven Solutions for Urban Food Security Case Study: Kampala, Uganda

2 Ideation Session Goal Ideate minimum viable products that create demand for and increase access to nutritious, affordable food } Ideation: a design process where you generate ideas and solutions using creative techniques focused on the end users and their needs } Minimum Viable Product: the bare bones of a business concept that you can take to the field to test, incorporate feedback, and iterate before investing a large sum of money

3 Ideation Session Goal Ideate minimum viable products that create demand for and increase access to nutritious, affordable food Analyze the attributes of urban low-income, food insecure consumers Identify opportunities to meet the needs of and align with the existing behaviors of our target customer segment Create your Value Proposition Canvas and pitch your solution

4 Rapid Population Growth By 2050, 66% of the globe s population will live in cities Surging Demand for Affordable Food Rise of the Double Burden Global food production must increase 50 60% by 2050 to meet projected rural and urban demand Coexistence of undernutrition and overnutrition is on the rise Urban residents consume a larger share of total food value than rural residents Undernutrition: stunting, vitamin deficiency, underweight India: 30% urban but 40% of total consumption and 50% of food market value Overnutrition: obesity, anemia, diabetes Asia: 48% to 64% Africa: 40% to 56%

5 Physical AVAILABILITY of food Economic and physical ACCESS to food Food UTILIZATION STABILITY over time Food security exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life - World Food Summit, 1996

6 Urban Consumers AVAILABILITY ACCESS UTILIZATION STABILITY 60 80% of food purchased from domestic or international sources More meat and dairy available for consumption relative to rural areas Long supply chains Diverse yet fragmented and costly retail market Pre-prepared and packaged food least costly High reliance on informal food vendors and preprepared food Insufficient space and time for cooking and storage Double burden of malnutrition Advertising influences food choices High rate of human and zoonotic diseases High vulnerability to price shocks and flash flooding Weaker familial safety nets

7 Research shows the post-farm segment of the food system or the food environment offer compelling intervention points. FOOD ENVIRONMENT David Tschirley, Ph.D., MSU: Keynote Address for Hungry Cities: EXTERNAL FOOD PERSONAL FOOD The Global Revolution ENVIRONMENT in Food ENVIRONMENT Systems Diet transformations mean the post-farm segment of the agrifood system is becoming ever more important Availability: Presence or not of food sources and products in a given context Prices: Cost of Products Accessibility: Geographical distance, space and place, daily individual activity and travel routes Desirability: Food-related preferences, tastes, desires, attitudes, culture, knowledge, and skills HEALTH & NUTRITION OUTCOMES FOOD Affordability: ACQUISITION/ SYSTEM ANH-Academy Food Environment Relative cost Working of products Group Convenience: CONSUMPTION to consumers The food environment Including level of is the interface where food acquisition occurs processing, shelf-life, Convenience: within the food packaging, system. disposal It encompasses Relative ease of preparing, the physical, economic and cooking, and consuming a socio-cultural domains Desirability: that affect product, the time allocation availability, accessibility, Quality and marketing of affordability, stores desirability, and products and convenience of food sources and products. Source: ANH-Academy

8 CASE STUDY: Kampala embodies the challenges presented by urbanization, diet transformation, and the double burden. Kampala, a primary city with a large food insecure population, has an average annual growth rate of 6.75%. The population is projected to double from 1.7 million in 2011 to 3.5 million by Uganda suffers both high levels of macro- and micronutrient deficiencies. 12.6% of children in Kampala are stunted 6% of urban women are underweight and 34% are obese Food insecurity among low-income Kampala residents is the norm 15% have poor or borderline food consumption scores 85% live in informal settlements, where more than 75% of households are severely food insecure

9 The market size and opportunity in Uganda is valued at a total of $2.7 billion. Annual Value of Food Market (USD, millions) Urban (excluding Kampala): $523 Uganda (Rural): $1,875 Kampala (slums only): $301 Kla: $81

10 Value Proposition Canvas 2. Design 1. Observe Gain Creators: How will our value proposition create customer gains (benefits) for Grace? You achieve Customer Fit when your value map meets your customer profile when your products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to Grace. Gains: What are the benefits that Grace wants to attain from a healthy diet? Products and Services: List the products and services that can create real value for Grace by alleviating key pains and enhancing key gains. Pain Relievers: How will our idea reduce pains (the obstacles or challenges) we identified for Grace? Pains: What are the challenges to achieving a healthy diet and its negative consequences? Customer Jobs: What specific tasks does Grace need to accomplish to provide her family with a healthy diet? Adapted from Strategyzer.com

11 Building a customer profile can illuminate the food environment constraints that prevent nutritious diets. } What is their daily life like? } What are their food purchasing behaviors and consumption patterns? } What are their nutritional needs and constraints? } What are their attitudes and beliefs about food? } What are their aspirations and preferences? Who are they influenced by?

12 CUSTOMER PROFILE: Grace, 31 Household Head, Resident of Bwaise Slum } Buys food from small shops or street vendors for price and convenience } Frequently skips meals, averaging one-two meals per day

13 Value Proposition Canvas 2. Design 1. Observe Gain Creators: How will our value proposition create customer gains (benefits) for Grace? You achieve Customer Fit when your value map meets your customer profile when your products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to Grace. Gains: What are the benefits that Grace wants to attain from a healthy diet? Products and Services: List the products and services that can create real value for Grace by alleviating key pains and enhancing key gains. Pain Relievers: How will our idea reduce pains (the obstacles or challenges) we identified for Grace? Pains: What are the challenges to achieving a healthy diet and its negative consequences? Customer Jobs: What specific tasks does Grace need to accomplish to provide her family with a healthy diet? Adapted from Strategyzer.com

14 Imagine: Step into the shoes of a local business actor. Young Entrepreneur Informal Food Vendor Small Shop Owner Supermarket Store Manager

15 Timeline for Ideation Activity 1. Ideate using the value proposition canvas (40 min) 2. Pitch your value proposition (20 min 5 minutes for each group) 3. Discuss (10 min)

16 Value Proposition Canvas Resources 1. Download the canvas: strategyzer.com/canvas/value-propositioncanvas 2. Tips for using the canvas: blog.strategyzer.com/posts/2015/2/19/5- common-mistakes-to-avoid-when-using-thevalue-proposition-canvas

17 Thank You

18 Annex

19 Some Tips and Hints Step into the customer s shoes to understand their motivations. Try asking why five times to get to the root of the problem. Consumers are not only conscious of affordability, but desirability and convenience. Think about the functional, social, and emotional. Effective promotion leverages trust and aspirations.

20 Example Challenge Solution Lack of cold storage in homes to preserve animal-sourced products and fresh produce For vendors, unsold goods perish overnight Coldhubs (Nigeria) Flexible, pay-as-you-store subscription model for solarpowered cold storage Children suffering from acute malnutrition, anemia, and stunted growth Adults are under- or unemployed KeBAL (Indonesia) Colorfully designed food carts selling affordable, local, healthy snacks and employing local workers

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