or
Market Research
The Lighting Africa market research assessment aims to provide manufacturers, businesses and project developers with a thorough understanding of consumer needs, preferences and finances, thereby arming them with necessary information to inform product design; identify appropriate business models, project designs and marketing strategies; and provide baseline information to quantify the market, both in volume and value terms.
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.
- In fact, while the fuel-based lighting market in Africa (e.g. kerosene, paraffin and candles) is currently worth more than $17 billion per year, the off-grid lighting market is still largely undefined, untapped, and unrealized, lending itself to substantial emergent investment opportunities.
In response to the industry's call to provide greater comprehension to the scope of this promising market opportunity, Lighting Africa developed a Market Research program. Specifically, this research will provide information that will serve to:
- Create a baseline to quantify the size of potential market segments for appropriate lighting products in volume and value terms
- Inform on the desired functionality and design attributes of different types of lighting products within several different product classes (Torch, Floodlight, Task Light, Lantern, Spot Light)
- Enable the industry to understand, quantify current lighting expenditures and willingness to pay for modern off-grid lighting products, and establish reasonable product price points in the market
Scope and Methodology
Currently the Lighting Africa market research program covers:
- 5 countries: Ghana, Kenya, Zambia, Ethiopia and Tanzania
- 2 key market segments: households & micro-businesses in both rural and urban areas
The project methodology consists of three distinct research collection types:
1. An Exploratory Qualitative Study
2. A Quantitative Usage and Attitudes Study
3. A Product and Concept Testing Study, involving the physical placement of products with household and retail consumers
1. Exploratory Qualitative Study consisting of both consumer and business interviews, including demonstration of sample products.
Objective: To gain an in-depth understanding of the usage, habits and attitudes towards current and modern lighting projects amongst consumers and traders. Additionally, the product test serves to identify which types of modern lighting devices are most suitable within various African markets. Surveys were undertaken simultaneously in all 5 countries in March and April 2008.
The qualitative phase of the research process functions primarily to define the off-grid lighting market in selected African countries or, effectively, as a 'prelude' to the quantitative phase, used to scope specific determinants of consumer behavior, wants and needs, in preparation for the quantitative work. The Lighting Africa qualitative phase consisted of 55 in-depth interviews coupled with an off-grid lighting product placement with each respondent, in each of the two market segments. This research method was selected based on its ability to enable a high level of observation and questioning of respondents, within the confines of their own environments (residence or shop), in addition to allowing them to test an array of modern off-grid lighting devices in their conventional lighting settings and daily usage patterns.
Because of the low number of respondents involved, the results of the qualitative research cannot be generalized to extended populations. The strength of the method however, lies in its ability to provide a comprehensive understanding of what drives and motivates behavior and, in turn, serves as an invaluable tool in identifying specific lighting preferences and needs common to the African consumer base.
Download Reports (PDF files):
Ethiopia Ghana Kenya Tanzania Zambia
2. Quantitative Usage and Attitudes Study consisting of consumer surveys (which took place during the months of May, June and July 2008, simultaneously in all 5 research countries)
Objective: To quantify the usage, habits and attitudes of consumers and traders, specifically to determine current spending on fuel-based lighting as well as willingness to pay for various types of modern lighting products.
The Quantitative research phase differs from the Qualitative phase primarily due to the increased number of respondents included in the research and the scientific rigor of the statistical analysis of the data. Lighting Africa's Quantitative phase involved interviews with 1000 households and 400 small business owners in each country. Interviews were conducted using structured questionnaires. As opposed to the qualitative research, the quantitative sample can be extrapolated to the larger population, resultant from the scientific representation of the sample selection, validated by the proportion of respondents covered within each market segment, in both rural and urban areas, as relative to national averages.
Download Reports (PDF files):
Ethiopia Ghana Kenya Tanzania Zambia
3. Product and Concept Testing Study in parallel with a second qualitative study, consisting of in depth interviews and product placements in rural and urban households and micro-businesses.
Objective: The concept test serves to identify additional types of lighting products preferred by households and micro-businesses in the 5 target markets, across rural and urban populations. Relative strengths and weaknesses of different products are identified, in addition to a perspective on the trade-offs between different functionalities and design attributes.
