The proposal considers offering progressive improvement modules for kitchens and bathrooms that can be adapted to the DIY processes that the residents customarily use to construct their homes. Our goal is to construct 12000 modules by 2012.

The Project:

Since an alliance between Fundación Pro Vivienda Social with the company Ferrum F.V., we found ourselves designing a program of housing improvement modules and integral solutions in order to provide water inside houses, with the end goal of installing appliances in the kitchens and bathrooms. These modules would adapt to the needs of each house. The program also forecasts modules of larger scale which will facilitate access to water for over 40 blocks.
This program plans to use credit lines with characteristics suitable for the socio-economic condition of the residents. The work necessary for the execution of the project will be carried out by micro-entreprenuers and mini-businesses, preferably comprised of the neighborhood residents who are receiving the program.
The model seeks to create a business unit inside of FERRUM (the leading provider of kitchen and bath accessories and fittings in the Argentine market) through which housing improvement modules for the bathrooms, kitchens, and laundry rooms can be provided to low-income families. The business unit will occupy itself with providing technical advice, the procurement of materials, work supervision, the contracting and training of workers, and the financing of the modules.
Ferrum has recently participated in the gas program by taking on the management of our Technical office and the execution of home installations. This includes purchasing materials as well as the training and supervision of the registered gas workers.

Business Model:

• Clients and ways to reach them (distribution channels): Clients are reached by the residents themselves, which, organized in a multi-level sales system, will participate in the profits.
• Promise of value: All of the completed works are constructed with quality materials obtained at lower prices than the existing supply by making bulk purchases. The quality of the work will be guaranteed by Ferrum’s new business unit.
• Value generating process: Economic value is generated through the revaluation of the home.
• Process of attaining and placing clients in the Trust Fund: Upon receiving financing for an improvement module, the clients begin a process of housing improvements that allows them to continue incorporating new models in the near future.
• Process for using resources: Resources are used in market analysis, training (of workers and local promoters), promotion, the completion of the improvement projects, the purchasing of materials, evaluation of the clients and contract management, work supervision, and in collection.
• Marketing and Communication Strategy: The strategy will be to contact former clients of FPVS starting with the database of more than 12,000 clients. A campaign will be designed, suitable to the target population accompanied with the training of the local promoters who will carry out the sale of the improvement products.