Case Study of VisionSpring

Team C8
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 Table of Contents

1. Market Potential

2. Current Business Model

3. Areas to improve

4. New Business Model

5. Conclusion

6. Q & A

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1. Market Potential

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1. Market Potential

Vision Spring? Products

Awards

Vision Spring is social

enterprise with the mission
of expanding access to
radically affordable eyewear
in emerging markets.

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1. Market Potential

ECONOMIC DRIVERS SOCIAL DRIVERS

✓ 880 million earn < $2/day ✓ Potential to increase monthly
income by 35%
✓ 92.4 million suffered from
presbyopia ✓ Earning potential of an average
customer increases by 381% over
✓ One eye care professional per course of 2 years
30,200 people
✓ A pair of reading glasses increases
✓ BoP distribution network is worker activity by 35%
untapped
✓ Create livelihood for poor rural
youth

✓ Generate income for Women

✓ Help people suffering from

Presbyopia to earn living more
efficiently than before
2. Current Business model

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2. Current Business Model

Market Approach

• The conventional Optical industry

operates with a ‘high margin-low
volume’ approach,
• BoP segment is different, because the
primary driver of sales is low cost

BoP Indian
Market
High Volume, Low Margin
880 million < $2/day Approach

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2. Current Business Model

Distribution Mix Wholesale Channel

18%5%
Franchise Partner Channel 30% Vision Entrepreneur Channel

52%

52%
2. Current Business Model
Channel Overview
Vision Entrepreneur Franchise Partner Wholesale
Channel Channel Channel

Product Channel Mix 30% 52% 18%

Price 95Rs / Margin 50Rs 165Rs / Margin 50Rs 199Rs / Margin 94Rs

Trading Mode/ Money Receivable Prepayment Additional Expenses

Limited human resources Additional training /
Manpower Trained pharmacists
(6 vs 100) Human resources leveraged

Limited access / Non-profit / For-profit /

Network / Partnership Medicine Shoppe
Channel Partners Private Organizations

Different philosophy
Corporate Right of control 100%
(subsidize)
Flexibility Door to door/ In factory Cannot move around Pharmacies
25,000 women Earn better Leverage
Social Impact
entrepreneurs livelihoods social brand 12
2. Current Business Model

Distribution Mix – Profit Analysis

Operating Profit Per Unit Sold (VE Channel)
Operating Profit Per Unit Sold (Wholesale Channel)
Operating Profit Per Unit Sold (Partner Channel)
(Currency : INR)
105.16
104.34 101.09 100.37
18%5% 100.37
90.75 30% 100.37
91.15
88.62 91.61 92.76 91.59 91.15 91.15
81.14
81.14 81.14
52%
70.82
65.37
53.43 52%

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2006 2007 2008 2009 2010 2011 2012

2. Current Business Model

Distribution Mix – Cost Analysis

Operating Costs as a % of Sales (VE Channel)
Operating Costs as a % of Sales (Wholesale Channel)
Operating Costs as a % of Sales (Partner Channel)
85%
18%5%
30%
58%
49%
44%
52% 36% 36%
27% 36%
16% 19% 19% 19%
16% 52% 19%
13%
16% 13% 13% 13% 13%
12%

2006 2007 2008 2009 2010 2011 2012

3. Areas to improve

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Business of
Sustainability!!

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3. Areas to improve

New Mission
Mission Statement
Statement
“VisionSpring
VisionSpring improves
Improves economic
the
condition condition
economic of BoP families
of familiesin the
in
developing
the economies,
developing worldthrough by
the availability of affordable
broadening the availability of
reading glassesand– other
reading glasses to increase
health
economic
products productivity
and services. and overall
well-being of the BoP population.
We
We achieve
achieve this this through
through
VisionSpring entrepreneurs
empowering new entrepreneurs, and
other
through market-based
scales distribution
of market
solutions”
distribution, tailored specifically
for our beneficiary segment
3. Areas to improve

Go-To-Market Strategy Brand Building

Measuring Success Financing Growth Sustainably

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4. New Business Model

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4. New Business Model Go-To-Market Strategy

Boost go-to-market strategy

Empower entrepreneurs
leveraging third parties VisionSpring Partners
• Increase customer base through
new entrepreneurs & referrals
› ICICI Foundation
› Horticultural Cooperatives

Target high
Revenue
Channels VisionSpring Franchise Partners
• Unlock potential distribution
network to reach more
Entrepreneurs & BoP customers
faster & more affordably
› Kiosks in Transport Terminals
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› ASHA NGO
4. New Business Model Brand Building

Build Strong Brand Equity

• Branding Materials in local

Brand languages
Awareness • PR with BoP influencers/
National Rural Health Mission

• New geographies & partners

Penetration • Price Promotions
Growth • Gain Medical Professional
referrals

• Amplify reach of entrepreneur

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Expand customer testimonials
Impact • Attribute income increase to
“See well, do well”
4. New Business Model Measuring Success

Social Success
• Viable Business Model

• Strong financial performance

• Impact as a powerful marketing tool

Economic Success • Theory of Change

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4. New Business Model Measuring Success

Measuring Success – Social

INPUTS
Provision of prescription/ reading glasses for
BoP

OUTPUTS
Measurable correction in vision,
Improvement in ability to do routine tasks etc.

Theory of Change
OBJECTIVES OUTCOMES
Improvements in productivity of the customer
Associated secondary benefits such as Income

IMPACT
Contribution to overall improvements in the
livelihoods – education attainment, improved
healthcare
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4. New Business Model Financing Growth Sustainably

Supplier Management
Donor Acquisition and Consolidate current revenue streams
for lower cost of goods
Retention - Institutional
Open additional revenue streams Focus on profitable
Tailored approaches to distribution channels
newer geographies Reduce costs through
Adjust the donor mix
• lower import tariffs
Impact Investors & to reduce costs of
• distribution channel optimization
Social Impact Bonds fundraising
• lower costs of capital
5. Conclusion

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5. Conclusion

Costs
Reduction in operating costs and 01
overall procurement Scaling Up
Potential to achieve scale
through cost reduction,
Earnings customer awareness,
Current and New Revenue Streams 02 distribution efficiency and
cheaper capital

Risks Impact Maximization

Study Product Diffusion in various BoP Higher impact through
Markets, Push vs Pull Product and heavy 03 improvements in productivity of
reliance on partners’ distribution network the customers;

Costs of Capital
New and cheap sources of capital –
ability to link it to funding gaps in SDGs 04
to generate additional funding options
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5. Conclusion
Social and Economic Value

High

Focus
Social benefits

Sustainable livelihoods business

Localize
Low
Not-for-profit For-profit
Economic benefits 27
Commercial ventures Commercial ventures
5. Conclusion

Please Donate
6. Q & A

Q&A

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Thank you

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