MOROGORO MARKET ANALYSIS

Author:- Daniel Mwalyayo.

TABLE OF CONTENTS :

1 Background
2. Key Drivers that Impacted Business Performance in 2020
3 Market Analysis Findings
4. What We Need Do to Improve Sales Productivity & Performance
5. Summary

BACKGROUND:

This aim of this report is to inform and educate the Simusolar Management to
understand, learn and appreciate the performance trends and the issues that have
that have led to the performance we have seen for Morogoro region in 2020, re -
assess it’s potential as region for Simusolar and propose a way forward.

At the beginning of the 2020 financial year, the sales team in Morogoro consisted of
Regional Sales Manager and 5 Sales Officers, with a annual sales target of 100 solar
water pump solutions for the year 2020, approximately 1.6 solar water solutions sold
per month per Sales Officer per month . This was the performance until in August
2020 as per Sales APP and Power BI reports:

MO RO G O RO - LEAD G ENERATIO N TREND

400 377

350
300
250
200
150 127 128

100
47 43
50 23 34
13 5
0
0
JAN FEB MARCH APR MAY JUN JULY AUG SALES PBI

The lead target was 600 leads as of August 2020, the team managed to collect only
377 leads (63% achievement) according to information on the Sales App and only 43
leads (7% achievement) according to PBI.
 MOROGORO SALES PERFORMANCE
TREND AS OF AUGUST 2020
31

11
8
6
4
2 2 2 1

JAN FEB MAR APR MAY JUN JUL AUG TOTAL

According to PBI reports, a total 31 solar water pump solutions were sold up to August
2020, this means average sales of 3.9 solar water solutions sold per month, which
translates to less than 1 solar water pump solution sold per SO per month, which is
below the company target. Based on the Sales App data, only 8% conversion rate and
in relation to Power BI data, there is 72% conversion rate.

Monthly Sales Per SO

3.5
3
2.5
2
1.5
1
0.5
0
JAN FEB MARCH APR MAY JUN JUL AUG

Allan Rogers Killo Adamu Nh'ogoki Seko Jacqueline Ally Mbwanga

Tausi Jumanne Mgahi Erick Masunga

Sales performance comparison between Aug 2019 to Feb 2020 versus Mar 2020 to
August 2020
 SALES PERFORMANCE - AUG 19 TO FEB 20
VS MAR 20 TO AUG 20
Adam Nh'ogoki Seko Morogoro
Allan Rogers Killo Morogoro
Erick Masunga Morogoro
Jacqueline Ally Mbwanga Morogoro
Tausi Jumanne Mgahi Morogoro

34

15 14
11
4 4 5 2 4 2
0 1

TOTAL SWP SALES ( Aug 19 to TOTAL SWP SALES (Mar 20 to

Feb 20 ) Aug 20)

The Sales Performance dropped in 2020 during a six month period the only SO that
maintain the same performance is Jacqueline & Eric’s performance improved in 2020,
however the two main performers Allan and Adam in 2019, their performance in 2020
significantly declined. The team is performance moved from an average of 5.7 to 2.3
solar water pumps being sold per month despite the leads that were generated by the
team from January to August 2020:

LEADS, SALES AND CONVERSATION

RATE
200
153
150
102
100 81
44
50 30 27
4 4 5 2 8 3 4 6 5
0
LEADS SALES CON %

Adamu Nh'ogoki Seko Tausi Jumanne Mgahi Jacqueline Ally Mbwanga

Erick Masunga Allan Rogers Killo

The ones with the most leads, have the lowest sales and the ones with less leads, are
generating more sales.
This is performance of the portfolio in Morogoro in August 2020 as per This was the
Pump Credit Report – 200811:

PAR 30+ PAR 60+ PAR 90+

Morogoro 20% 20% 14%

This is means that 54% of the total portfolio were late in terms of making their monthly
installments, this means that the Morogoro team had only received 46% of the
planned targeted revenue as of August 11th, 2020 , instead of 64% if the team was
meeting the target of PAR 30 at 10% and below.

This was the performance of the team in terms of portfolio management:

Team PAR 30+ PAR 60+ PAR 90+ Portfolio Balance

Edson Danford Zephania 52% 50% 29% 54,250,000
Allan Rogers Killo 7% 7% 7% 5,230,375
Adamu Nh'ogoki Seko 24% 24% 24% 20,873,000
Jacqueline Ally Mbwanga 0% 0% 0% 16,450,000
Erick Masunga 0% 0% 0% 950,000
Tausi Jumanne Mgahi 0% 0% 0% 15,195,000

The Regional Manager was managing the bulk (48%) of the portfolio in Morogoro,
based on the above table he was not managing portfolio effective and setting a good
example to the team by maintaining PAR 30 at below 10% delinquency for his
portfolio.

In August, the incumbent Regional Sales Manager resigned and the team was left
under the leadership one of the SO’s (Allan Rodgers) following the recommendation
of the former incumbent, this performance from August until after concluding
investment of around 2,270,000 Tanzanian shillings for the team to participate in Nane
Nane exhibition which the team confirmed to be major driver for leads and also main
contributor to the sales performance of the region in 2019. This is the team
performance after participation in Nane Nane in 2020 :
 LEADS & SALES - AUG TO OCT 2020
140
115
120
100
80 63
60
40 25
20 6
0 2 1 1 1 1
0
LEADS SALES

Adamu Nh'ogoki Seko Tausi Jumanne Mgahi Jacqueline Ally Mbwanga

Erick Masunga Allan Rogers Killo

The performance of the portfolio management :

Region Portfolio
Offices PAR 30+ PAR 60+ PAR 90+ Balances
Morogoro 22% 20% 14% 252,023,750

Source: Credit Report – Solar Water Pump -201008

A total of 65 solar water pumps solutions (Kina, Mto, Kina Plus, Mto Plus, Kisima 2 and
Kilimo Kwanza) were sold during period of 2018 -2019 , that is an average of 3.6
pumps sold per month in 18 month period. This year the team has sold a total of 39
YTD, which is only 39% of the annual target and average 3.5 solar water pump
solutions in a market where we have 5 full time SO’s. This is market where also had
the freelacknce project which we were made to believe was adding value without any
data to back to confirm the impact this initiative was having on the business.

1. Ring fencing the sale geographical location in 2020 to the 3 hours drive policy
around the branch office, unable to sell to Kilombero, Ifakara etc.
2. Covid 19 Pandemic – resulted in close down sale period in April and May 2020.
3. Increased competition – AG Energies revising their sales approach similar to
Simusolar, financing for micro & small ticket solar water pump solutions.
4. Lead generation process capabilities (analytical competencies to assess the stage
of the customer interest in our service offering)
5. Target based Planning vs Market Dynamics Planning - In the light of the revised 3
hour policy, the team needed to assess, evaluate and identify key learnings from
2019 and use those learnings to determine the key drivers that will enable them
to achieve their sales target in 2020, understand barriers that might impact them
to attain that target and develop mitigation plan to address those barriers.
MARKET ANALYSIS

Farming coverage

Morogoro Region is one of Tanzania's 31 administrative regions. The regional capital

is the municipality of Morogoro. According to the 2012 national census, the region
had a population of 2,218,492. The regional comprises with six districts which are
Gairo, Kilombero, Kilosa, Morogoro, Mvomero and Ulanga. While Morogoro Urban is
the most populated district with 602,114 individuals.

Most of the official communications mentioned annual crop farming as key activity
that provides most of the cash income followed by off farm income, tree/forest
resources, livestock keeping/herding, permanent crop farming, remittances and
fishing/hunting and gathering.

In Morogoro region, the area of annual crops and vegetables under irrigation it is
about 64,685 that represents 16 percent of the total area planted. The area under
irrigation during the short rainy season is about 6,810 accounting for 11 percent of the
total area under irrigation. However, the percentage of the planted area under
irrigation during the long rainy season is 20 percent compared with only 5 percent in
the short rainy season.

Market Size:

The demand for Pumps for Irrigation in Morogoro seems to be high, this is reference
is made from the diesel generator units sold per month by distributors such as Asslam
& Shabbir Shop distributors who sell an average of 45 pumps per month. AG Energies
sold 9 solar water surface pump solutions in the month October in Morogoro. Most of
the pumps purchased by farmers from different areas around Morogoro region. Based
on the data secured from regional office department of Agriculture and Livestock
keeping, the number of agricultural households in Morogoro region is 260,746. The
largest number of agriculture households in Kilosa (73,435) followed by Morogoro
Rural (53,117), Mvomero (50,069), Kilombero (48,782), Ulanga (30,908) and
Morogoro Urban (4,434) (Map 3.1below). The highest density of household was found
in Mvomero (20 km2) and Kilosa (14km2) (Map 3.2 below). Most household (224,222,
86%) were involved in growing crops only, 1,500 (0.6%) rearing livestock only and
35,024, (13%) were involved in crop production as well as livestock keepin g.
Source:
http://www.fao.org/tempref/AG/Reserved/PPLPF/ftpOUT/GLiPHA/DATA/Queue/Working/tanzania/MOROGOR
O%20REPORT.pdf

Potential Target Customers: Small hold farmers, Outgrower associations of Kidodi &
Ilovo & Partnerships with organizations

Most of the organizations that deal in the development of the agricultural value chain
in Tanzania are located in Morogoro region, such as : MVIWATA, TAHA, Petrobena,
Sustainable Agriculture Tanzania (SAT), EFTA, PASS, TARI, Holy Green Agriculture,
Tushikamane, African Seeds Agent (ASA), Sokoine University – SUGECO, Rijkzwaan
and Feed the Future.

Simusolar ‘s Geographical Sales Coverage within 3 hours drive policy :

o Morogoro Urban
o Morogoro Rural which includes Kisaki, Matombo, Ngerengere, Dutumi and Mvuha.
o Turiani
o Kilosa which includes Ulaya, Madizini, Zombo and Kidete
o Gairo
 The main areas where farming is done in the region:

Land area utilised per household in five districts were below the national average with
exception of Kilombero district which had the national average of 2.0 ha. It was followed by
Mvomero 1.9ha, Ulanga 1.8ha, Kilosa 1.8ha, Morogoro Rural 1.6ha and Morogoro Urban
1.5ha.

The percentage utilized of the usable land per household is highest in Morogoro Rural (90%)
and lowest in Kilombero (78%).

o Kilombero - Cash Crop Market - Most their farmers are operate in medium
to large Outgrower Association cultivating sugar cane and paddy. During the
Illovo exhibition, most of the farmers seems to have rivers and boreholes as
a source of water. Their requirement is solar water pump solutions that can
provide around 40,000 liters per day , use sprinklers, currently use large diesel
surface pumps with three inch outlets to irrigate.
o Morogoro Urban – Horticulture Market -Tomatoes, Vegetables, Fruits, Hoho
and Tomato (Potential for SWP market)
o Morogoro Rural – Cash Crop and Horticulture Market - Kilosa (Onions, Paddy,
Tomatoes and Maize) Potential for SWP market
o Turiani – Subsistence Farming Market - Paddy, Vegetables and Cane
o Mikumi – Cash Crop and Horticulture Market - Onions, Tomatoes, Livestock
Keeping, Paddy (Potential for SWP)
o Mzumbe and Mgeta – Horticulture Market - Tomato, Carrots, Beans, Maize,
Hoho, Peppers (Potential for SWP)
o Ruaha Mbuyuni –Horticulture Market - Onions and Vegetables (Potential for
SWP)
o Gairo – Horticulture Market - Potatoes, Tomatoes and Corns (Potential for
SWP)
o Dumila – Subsistence Farming Market - Paddy, Maize, Vegatable, Tomatoes
and spices (Potential for SWP)
o Ulanga – Subsistence Farming Market - Varieties (Potential for SWP)

Competition Solar Water Pumps Players:

In Morogoro we have discovered few distributors/sellers of water pumps such as AG

Energies,Steps Solar, Mo Heat Patani, Power Provider, Shabri Distributors and Aslam Ltd.
AG Energies looks like the most likely threat to our business compared to other water
pump sellers and providers.

AG Energies – They provide sustainable and affordable solar power solutions. The
company designs and distributes plug and play solar systems ranging from 5 to 1,000
watts, solar from 1,500 to 5000, both productive and home systems.

Products:
- Solar water pumps (Surface and Submersible)
- Solar water heaters
- Solar street lights, fans and television sets.
Solar Water Pump Solution Offering:

Design: Yes
Service Offering Price Range: 3,900,000 – 6,000,000/= for solar water pumping package
Mode of Payment: Cash and Financing up to 2 years for smaller pumps (surface pumps
with 0.5hp)
Regions of operation: All regions but they have offices in Dar, Mbeya, Morogoro and a
distributor in Mwanza.
Target Market: Farmers and for domestic use purposes.
After sales support: Their service offering comes with a 2 years’ warranty and they
provide after sales service support at fee within the warranty period to ensure that the
system works in the most efficient manner. Customer service line is available during
working hours where customers can call to lodge their complaints/issues and they
promptly respond to resolve it.

Competitive Advantage: Geographical not limited, can provide service anywhere in the
region.

Power Providers - Power Providers Designs, supplies and installs high-quality solar power
solutions and provides professional support services for its clients an offer including
consultation, design and installation. The claim is service is their strength.

Products:
- Solar water pumps - Lorentz, Sun Pumps, Future Pump
- Solar Power system
- Solar water heating, Backup power system and consultation

Solar Water Pump Solution Offering:

Design: Yes
Service Offering Price Range: Based on SWP, the design and requirements.
Mode of Payment: Cash (50% upfront and 50% after project completion)
Regions of operations: All regions but office in Arusha and distributor in Morogoro
Target Market: Big projects, Farmers and domestic use.
After sales support:All of their products comes with two years warrant and provides
after sale service so as to ensure that the system works in most efficient manner but
the service is not for free the customer should pay for it.

Competitive Advantage: Capacity to provide products and solutions to Big Projects.

Aslaam Distributors and Shabbir Shop – These are solar and other electrical equipment’s
distributors available in Morogoro.

Products:
- Solar water Pumps (Hybrid and Non hybrid)
- Diesel Pumps
- Generators 6.5 KVA
 Pricing:
 Solar water pumps hybrid 3HP with panels - 4,500,000/= and Non – hybrid
1,900,000/=
 Generators 6.5 KVA – 2,900,000/=
 Diesel pumps – Yamaha surface pump 3’’ – 290,000 /= (Uses 3 ltrs to irrigate 4 -
5 acres
 Flexible pipe 3’’ – 1,500 per meter

Mode of Payment: Cash

Regions of operations: Morogoro
Target Market: All
After sales support: All products with a year warranty

Competitive Advantage: Price (affordable entry price to irrigation) based product

offering

opt
1. Re look at the size team versus current sales productivity trend, 3.5 sales per
month in a team of 5 Sales Officer, it is a market for Sales Officers or a
maximum of 3 Sales Officers. Need to identify optimal size sales team for
Morogoro.
2. Team building (Belbin Personallity profiles) and training the team in Sales App
& Process, SOPs, Identification of the right customer – Customer Persona and
Credit Profile, Lead generation, Selling, Negotiation & Closing Sales (Benefits),
Portfolio Management to ensure “Right Execution Daily” by the team.
3. A dedicated focus and clean up of the current delinquency rate in Morogoro
region in sales planning at least one day of the week per Sales Officer should
be dedicated for customer portfolio management (no 5 days field visits) to try
and recover the revenue that could be potential generated in the region.
4. Re –look and use the freelance programme to demonstrate the financial
viability of potential areas that we currently do not operate but could be
potential sales area, by developing lead generation process for freelance,
doing bulk field visits when we gathered enough leads (optimize our
resources), monitor and track leads vs potential sales orders, identify risks &
migitation plan & confirm the number of small holder farmers for potential
revenue monthly to be generated .
5. To expand to Kilombero and Kilosa district through established in Outgrower
associations and other partnership Illovo to build awareness of Simusolar in
the region and focusing, targeting & selling our medium & large ticket solar
water pump solutions because of none of the competitors offer financing on
medium & large ticket solar pumps, by organizing various DEMOs in the area
& leveraging business development team to create viable partnerships with
Illovo.
6. Improve our planning, evaluation and for the region by being data rich in terms
of knowledge and the number of small holder farmers in region where they
are located, being more analytical driven (based on customer location, facts,
 channels (source) and trends), targets broken down based on source & also
identify potential risks & develop mitigations.

7. Huge sales of diesel water pumps that can irrigate 3 -5 acres, we have
opportunity to launch surface solar water pump solutions, that can irrigate 3 -
5 acres per day and a monthly payment of around 167,000 shillings for
financed, because they spending 3 litres per day (@ 1865 Tshs per liter @ 30
days).

Based on the above analysis, Morogoro region is a still a potential sales region for Simusolar,
we need to focus and solve the below issues before we effectively enhance our performance
and productivity in the region:

1. Possibly we are overstaff for sales in Morogoro for the area we currently operate, our
sales productivity is ranges between 3.6 (2019) to 3.5 (2020) sales per month.
2. Evaluate our lead generation process, where we have the most leads, the sales
conversion is low and where we have a few leads the sales conversion is high.
3. We have a huge customer portfolio which is underperforming 48%, we need to clearly
focus why these customers are underperforming before we recruit new customers,
to avoid making the same mistakes again. A dedicated survey of these customers is
required.
4. The opportunity to introduce a solar water pump solution that can irrigate 3 -5 acres

We still have a strong competitive advantage for wide range of portfolio of solar pump
solutions (not just micro/ small tickets), on financing and we offer free after sales services
(team is focus on price versus selling benefits).