Who is Involved
Sodigaz’s primary stakeholders are the end-users—primarily women living in rural areas—and distributors. Prior to purchasing an LPG system, most end-users were using charcoal to cook their food. The end-user’s decision to switch to LPG, and their choice of Sodigaz instead of another competitor makes them essential to the company’s future.
The majority of Sodigaz’s sales are through distributors. Each of the company’s 600 distributors supplies, on average, 36 six-kilogram bottles and a few 12.5 kilogram bottles; a few supply over 1,000 bottles. Though they do not directly work for Sodigaz, they indirectly represent the company and act as an intermediary between Sodigaz and the end-user.
Government agencies, including the Ministry of Energy and Ministry of Finance, also play an important role, as the LPG market is heavily regulated in an effort to cut down on charcoal use and prevent deforestation. The ministries provide a subsidy for 2.75 kg and 6 kg bottles. As these two bottle sizes represent 90 percent of Sodigaz’s sales, these subsidies have a large impact on the company. It is the company’s responsibility to collect the subsidy from the government; when there are delays, this can create a cash flow issue.