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    D. Light Design: Marketing Channel Strategies in India

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    SHUBAM JAIN
    D.light is a 2-year old startup that focuses on designing affordable solar lighting products for rural India. In 2009, 70% of India's population lived in rural areas with lower annual incomes and less access to electricity compared to urban areas. D.light's products include the S250 solar lantern priced at Rs. 1,699 and the S10 solar light priced at Rs. 549. As a startup with limited resources, d.light must determine the most effective and low-cost distribution channels to reach rural customers at scale. Key constraints include education, brand recognition, purchasing power, and limited infrastructure in rural areas.

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    D. Light Design: Marketing Channel Strategies in India

    Uploaded by

    SHUBAM JAIN
    40 views14 pages
    D.light is a 2-year old startup that focuses on designing affordable solar lighting products for rural India. In 2009, 70% of India's population lived in rural areas with lower annual incomes and less access to electricity compared to urban areas. D.light's products include the S250 solar lantern priced at Rs. 1,699 and the S10 solar light priced at Rs. 549. As a startup with limited resources, d.light must determine the most effective and low-cost distribution channels to reach rural customers at scale. Key constraints include education, brand recognition, purchasing power, and limited infrastructure in rural areas.

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    Group_2_d._light_SDM.pptx

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    D.light is a 2-year old startup that focuses on designing affordable solar lighting products for rural India. In 2009, 70% of India's population lived in rural areas with lower annual incomes and less access to electricity compared to urban areas. D.light's products include the S250 solar lantern priced at Rs. 1,699 and the S10 solar light priced at Rs. 549. As a startup with limited resources, d.light must determine the most effective and low-cost distribution channels to reach rural customers at scale. Key constraints include education, brand recognition, purchasing power, and limited infrastructure in rural areas.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    40 views14 pages

    D. Light Design: Marketing Channel Strategies in India

    Uploaded by

    SHUBAM JAIN
    D.light is a 2-year old startup that focuses on designing affordable solar lighting products for rural India. In 2009, 70% of India's population lived in rural areas with lower annual incomes and less access to electricity compared to urban areas. D.light's products include the S250 solar lantern priced at Rs. 1,699 and the S10 solar light priced at Rs. 549. As a startup with limited resources, d.light must determine the most effective and low-cost distribution channels to reach rural customers at scale. Key constraints include education, brand recognition, purchasing power, and limited infrastructure in rural areas.

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    You are on page 1of 14

    d.

    light design

    Marketing Channel
    Strategies in India
    Sales and Distribution
    Management Group 2:

    Disha Garg (68)


    Gayathri Radhakrishnan (70)
    Harsheeta Jha (71)
    Hemant Jadhav (72)
    Ila Gayakwad (73)
    Discussion 01

    Do you think rural India back in


    2009 was a profitable and
    lucrative market, or forget that,
    even a potential market to tap?
    Yes/No

    Ila | 73
    Discussion 02

    Do you know some interesting


    ways in which companies have
    reached rural India?

    Ila | 73
    Background (2009)

    Products
    Company

    • 2 year old start-up (founded in 2007)


    • Product that was being substituted : Kerosene lamp S250 (Nova)
    • Target: Rural India Rs. 1,699
    • Focus: Designed for extreme affordability

    Economic constraints

    • 70% people (830m) in rural areas


    • Annual incomes - Rural (Rs. 41,194) & Urban (Rs. 77,612)
    • Access to electricity – 68% (Rural) and 94% (Urban) S10
    • Limited company resources Rs. 549

    Ila | 73
    Discussion 03

    Which distribution channels


    should d. light follow?

    •Rural Entrepreneurs (REs)


    •Village retailers
    •Centralized shops and distributors
    •Partnering with non-profit organizations
    •Corporate partnerships "piggybacking"

    Ila & Gayathri | 73 & 70


    Discussion 04

    What are the important


    factors while setting up a
    channel?

    Gayathri | 70
    Creating the best channel

    Channel Design Process Channel Implementation Process

    Segmentation Primary segments Channel power Channel Conflict


    Identify sources for all Identify actual and
    channel members potential sources
    Channel Structure Primarily three, here

    Manage /Defuse
    Splitting the workload Each structure has a role
    Conflict
    Use power strategically,
    subject to constraints
    Organization aligning
    Degree of commitment
    itself to the structures

    Sources Goal
    Gap analysis
    Types Channel Co-ordination

    Gayathri | 70
    Discussion 05

    According to you, what can be


    constraints in reaching the rural
    masses for a business?

    Hemant | 72
    Constraints in reaching rural India
    • Education
    Environment • Brand recognition and trust
    al • Purchasing power
    • Limited resources

    • Need to implement pricing strategy


    Managerial • Financial constraints
    • Adapting appropriate business model
    and marketing strategies

    • JV should be in accordance with govt.


    regulation
    • Manufacturing plant is in China
    Legal
    • Govt. oil company wanted to help d.
    light but low support from retailers
    Hemant | 72
    Discussion 06 – Single or multiple
    channel? S250 - Rs 1,699 and S10 - Rs 549
    Annual average rural
    Affordability Yes No household income - Rs. 41,194
    Monthly income spent on kerosene - Rs 200

    68% rural household had


    Accessibility Yes No access to electricity
    9.79 hours of daily access

    Start-up launched in 2009


    Brand trust Yes No Low quality products available
    Customers enjoy a trial

    Company Limited funding


    Yes No Limited managerial bandwidth
    resources

    Disha | 68
    • NGOs
    • Village retailers
    Discussion 07 - Channels •
    •
    Rural entrepreneurs (REs)
    Centralized shops & Haats
    • Corporate partnerships

    Retailers/Corporates

    Retailers 3
    2
    Centralised shops
    Personal selling

    Cost of Primary: Village retailers


    1
    Secondary: Haats Urban
    channel
    Primary: REs
    Secondary: SHGs Rural
    Rural
    Lowest
    Rural Lowest 40%
    Lowest
    Lowest 60%-80%
    20%-60%
    20%-60%
    Lowest 20%

    Customer segmentation - Average annual household income Disha | 68


    Discussion 08

    Examine d. lights current


    cost structure and overhead
    expenditure in India and
    ensure it makes profit. Own
    the start up while discussing
    issues & solutions.  

    Harsheeta | 71
    Ayush | 66
    Problems
    • Payment issue by Re
    • Village retailers were not successful in
    Push based selling
    • Can’t spend much on multi-channel
    • Not much funds available

    Harsheeta | 71 Ayush | 66
    Thank you!

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