Entrepreneur: Start & Grow Your Business

Micro marketing Indonesian cassava.


by MEDIA CONTACT RESOURCES, INC.
Market Asia Pacific • April 1, 2005 •

Mini hydro electric projects are popular in many parts of the developing world. And for that matter they're also popular in country squire areas of highly developed countries. Here's the way they work: You build a mini hydro plant on a stream or small river, use what electricity you need, and sell the rest back to the power grid.

What's the connection, then, between a mini hydro power project and marketing in an Indonesian village of 646 households and a total population of 2,050 inhabitants?

The village, Cinta Mekar, about three hours from Jakarta, recently built a 120 kwh mini hydro power plant to supply the electricity needs of the village in partnership with Pro-Poor Public Private Partnerships. According to a recent story in the Jakarta Post (Jakarta) the plant supplies access to electricity for the village, and the income from the plant, which generates revenue of US$2,970 monthly results in a profit of US$1,088, is used for social services, health, and other cooperative development projects.

And marketing.

The village is a farming community, and one of its products is cassava chips. Cassava is an important food worldwide. World production of cassava grows at about 2 percent per year. Southeast Asia is the second biggest world region producer (after Africa). About two-thirds of cassava (also known as yucca and tapioca) is used as food for humans. Cassava is an important source of starch. Industrial uses for starch include glue, fillers of various kinds, and even fuel (ethanol).

The marketing angle? The Cinta Mekar chip makers began packaging its product attractively and putting the Cinta Mekar name on its bags of chips. Thus, from a tiny hydro plant in the middle of nowhere, a brand is born.


COPYRIGHT 2005 Media Contact Resources, Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.



Copyright © Entrepreneur.com, Inc. All rights reserved. Privacy Policy