Go To Market, Strategy for LED lights made by Navin and Rahul

1. TEAM LEONIDAS
Schneider Electric’s Bip-Bop Programme

2. Demographics Shopping
Behaviour
Collectivism
•Farmers or Agri
workers
• Limited education.
• Family structure
• Unit price is critical.
• Paisa vasool paradigm
• Cost per dose
equation
• High-volume
purchases at Haats
• Inter-personal
acquaintance
• Social norms
• Enjoy social
gatherings
• Free time chatting
• Follow opinion
leaders
Who is the rural consumer?Who is the rural consumer?

3.  Highlight multiple uses from the same product
-Work/ Home Chores/ Children Studies/ Cattle rearing
- Portable feature of the light.
 A little (of the product) goes a long way
-One time investment results in long term return
 The rural consumer is sensitive about being portrayed as poor
-Don’t do it!
- Play on their aspirations instead
 Fantasy, Song & Dance, Idiom of the cinema
- Use the Aspiration how light leads to development- Serials & Movies
 Use opinion leaders
 Exploit the warmth of emotion among family members
- Light as the symbol of Unity
 Understand and leverage your local culture, beliefs and customs
- Diwali- Festival of lights
Targeting rural consumersTargeting rural consumers

4. Consumer
Class
Annual
Income
1995-96 2006-07
Very Rich Above Rs 215,000 0.3 0.9
Consuming Class Rs 45,001- 215,000 13.5 25.0
Climbers Rs 22,001- 45,000 31.6 49.0
Aspirants Rs 16,001 - 22,000 31.2 14.0
Destitutes Rs 16,000 & Below 23.4 11.1
Total 100.0 100.0
n 7.2% GDP Growth
useholds in rural nearly equal to urban.
ower higher due to lower expenses on food, shelter, education & health
All figures in %
Source : NCAER Indian Market Demographics Report
Rural Income Dispersal ProjectionRural Income Dispersal Projection

5. Source: Census 2001
Population No of villages % of total villages
Less than 200 92,541 15.6
200-500 127,054 21.4
501-1000 144,817 24.4
1001-2000 129,662 21.9
2001-5000 80,313 13.5
5001-10000 18,758 3.2
Total no of villages 593,154* 100.0
17% of villages
account for 50%
of rural
population &
60% rural wealth
Hardly any
shops in these
2.2 lac villages
*Inhabited villages, total number of villages is 638, 691
Distribution of VillagesDistribution of Villages

6. Town Class Population No of towns % of total
towns
Class I 1 lac and above 423* 8.2
Class II 50,000-99,999 498 9.6
Class III 20,000- 49,999 1386 26.9
Class IV 10,000- 19,999 1560 30.2
Class V 5,000- 9,999 1057 20.5
Class VI less than 5000 237 4.6
Total no of
towns
5161 100.0
Source: Census 2001
90 % of
durables
purchased by
rural people
are from these
1900 towns
*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354
Distribution of Towns in IndiaDistribution of Towns in India

7. Company Product Offering Distribution Key Points
Dlight
Design
-Hub & Spoke Model
- NGOs & SHG
CDM Mechanism
 Good Investors
 Product Innovation
 International AID
 Yet to be profitable
SELCO
-Hub & Spoke Model
- Regioanl HQ,
Centres, Direct Selling
Profitable Venture-
Experienced
leadership
Customization &
service
 Product Expansion
Competitors * Primary ResearchCompetitors * Primary Research

8. Target Group- Uttar Pradesh (U.P.) and Bihar
Households are in deep need for better, saver and cleaner light
sources.
Main sources of energy for lighting in rural Uttar Pradesh and Bihar -India
2004-2005
Source of lighting for rural households Bihar UP
Kerosene 89.4% 74.9%
Electricity 10.1% 24%
Other Energy Sources 0.5% 1.1%
(source: Indian Ministry of Statistics and Programme Implementation (2007), NSS Report No. 511)
Place- Target LocationPlace- Target Location

9. Jeep based advertising
Wall Painting
Bus Stand
Bus Panels
Haats
Hoardings
Postal branding
Van Based Advertising
Melas
Direct to Home
Folklore groups
Exhibitions/Created events
Co-operative Notice Board
Shop Front Painting
Tin Plating – House
Dealer Boards
Village Boards
Well Tiles
Calendars/Lables
Tin Plating – Trees/Shops
Leaflets
Posters
Banners
Streamers/Danglers
High
Reach
Low
Reach
High Frequency Low Frequency
Rural media usage gridRural media usage grid

10.  Word of Mouth from Local opinion
leaders- Sarpanch/Doctors/ Retired Military
Officer (fauji)/ Teachers
 Session in Schools/ Panchayat- educating
people about the benefits
 Experiences from farmers/ tailers/
Handicrafts Makers
 Mobile Marketing – Local Language Voice
calls
 Cinema – Bioscope. In Movie promotions
 Through NREGA- Advertisement at the
sites
 At Seeds/Insecticides/ Fertilisers centers
Promotion at the School/ Panchayat
Promotion
Through
BioScope
PromotionPromotion

11.  Build customization
 Customization to meet every household needs. For
example a solar panel to meet two adjacent house
requirement. Cost can be shared
 Build Empathy / Relevance
 Show them the money saved in numbers- Like “Ek
Saal main 500 rupaiyee ki Bachat”. Or “Aaj hazaar to kal
Sunaar”
 Build Recognition
 In Diya is a gud name. But it should be more funny or
daily lingo like- “In Diya ki Bindiya waali lite”
In Diya Ki Bindiya waali lite
Rural Haats- Promotion
& Brand Building
BRAND Building in Rural IndiaBRAND Building in Rural India

12.  Hub & Spoke Model
 Distributors in Trading hubs like-
Gorakhpur/ Azamgarh/ Kanpur/ Jaunpur/ Rae
Bareilly/ Aligarh/ Meerut in UP
 Patna/ Bhagalpur/ Katihar/ Samastipur/
Gaya/ Muzzafarpur/ Vaishali/ Buxar in Bihar
Distribution ModelDistribution Model

13. Syndicated Distribution- Ties ups with existing
channels like Project Shakti by HUL
Also good retailers in these areas- FMCG/ Fevicol/
Telecom products/ other known branded products
Local Dealers- Inverter Dealers/ Mobile phone shops/
Electric Shops/ Small Cement/Urea Shops
 FMCG Logistics- Truck/Tempo driver/assistan
visiting rural market.
 Local Tailors/ Handicraft dealer/ Doctors or Vaidh/
Teachers or entrepreneurs
Tie ups with NGOs/ SHGs to distribute them with the
help of micro finance
 Midwives- Delivering Babies
Distribution Model contd…Distribution Model contd…

14. Rural EntrepreneursRural Entrepreneurs

15. SCHNEIDER
DISTRIBUTION
CENTRE
Battery Charging/
In Diya Retail Centre
Demonstrators
Trained Retired Individuals
Opinion leaders
Popular Village Areas
Strategic Tie Ups
Sample- Distribution ModelSample- Distribution Model

16.  National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cooking
and Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department Of
Statistics, Government Of India,April 2007
 Selco website
 Dlight Design website & CompanyVisit
 Entrepreneurs & Engineers
REFERENCEREFERENCE

17. EXHIBITSEXHIBITS

18. 18
Rural Income Dispersal
Projection
Consumer
Class
Annual
Income
1995-96 2006-07
Very Rich Above Rs 215,000 0.3 0.9
Consuming Class Rs 45,001- 215,000 13.5 25.0
Climbers Rs 22,001- 45,000 31.6 49.0
Aspirants Rs 16,001 - 22,000 31.2 14.0
Destitutes Rs 16,000 & Below 23.4 11.1
Total 100.0 100.0
n 7.2% GDP Growth
useholds in rural nearly equal to urban.
ower higher due to lower expenses on food, shelter, education & health
All figures in %
Source : NCAER Indian Market Demographics Report

19. Choice of States
Identified
state
Average
Population per
vilage Rural literacy
% of working
rural population
No. of rural
HH
HH availing
banking
services
HH with
electricity Average score
UP 0.35 0.54 0.48 1.32 0.50 1.28 0.74
Bihar 1.48 0.44 0.46 0.81 0.45 0.10 0.63
Rajasthan 0.72 0.63 0.52 0.72 0.67 0.41 0.61
West Bengal 0.53 0.56 0.63 0.46 0.57 0.91 0.61
MP 0.41 0.58 0.64 0.52 1.00 0.41 0.59
Chhattisgarh 0.42 0.61 0.68 0.22 0.45 0.95 0.55
Orissa 0.31 0.60 0.54 0.44 0.48 0.39 0.46
Assam 0.45 0.61 0.49 0.27 0.36 0.35 0.42
Jharkhand 0.33 0.46 0.56 0.24 0.50 0.21 0.38