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D.

LIGHT DESIGN: MARKETING CHANNEL STRATEGIES


IN INDIA

By
ELAVARASAN.K
GAUTHAM BHARATI
PRABHU BAGAI

Agenda
Background on d.light Design
Framework for Marketing Channel Success in Rural
India
d.light Marketing Channel

d.Light Designs Founding


Inspiration

Product Solution

Many people in
rural Africa and India
do not have access
to grid electricity
Kerosene is
expensive,
dangerous,
unhealthy, and
provides weak light
Founders burned
hand in rural Africa

Affordable, bright lights for


rural consumers to promote
health and livelihood
Founded out of the Stanford
B-school by Sam Goldman
and Ned Tozun

Affordability
S250
Powerful spotlight
Mobile phone charger
Rs.1699 ($37.75)
Six hours Bright Light
S10
Great performance for cost
Perfect to light a room at night
Rs.549 ($12.20)
Eight Hours Bright Light

d.Light Products for Health and


Livelihood

Benefits of d.light products for rural


Indian consumers
Safer cooking
More effective studying
Increased time for business activities

Urban Vs Rural
2009 70% (830 million) of Indian citizen lives in
rural areas
Average Annual household income of Rural people
Rs.41,194
Average Annual household income of Urban people
Rs.77,612
2011 Census 68% people in rural areas could read
and write
- 84% of people in urban areas could
read and write

Agenda
Background on d.light Design
Framework for Marketing Channel Success in Rural
India
d.light Marketing Channel

Distribution Network Design:


Example
Aggregating Consumer
Demand

Consumer Durables: Aggregate


demand in cities and hypermarts

FMCG Products:
Aggregate demand in
villages

Distribution Network Design:


Example
Hub-and-Spoke Model
CocaCola

Hu
b
Independent
Entrepreneurs
Autorickshaw Delivering CocaCola in an Indian Village
Small

Distribution Network Logistics:


Example
Corporate Partnerships

Both Sara Lee and Proctor & Gamble entered into joint
ventures with local Indian companies to more
effectively distribute their products.

Distribution Network Logistics:


Example
Local Non-Profit
Hindustan Unilevers
Project Shakti
Organizations

Unilever uses womens Self Help Groups to reach


small villages deep in rural India
The women buy the products with cash from
Unilever, and then distribute them in nearby villages
Project Shakti currently employs over 40,000
women entrepreneurs

A women entrepreneur delivers Unilever products


in rural India

Distribution Network Logistics:


Example
Business-to-Business Sales
Distributi
on
Rider
Compa
ny

Sales

Pros
Bulk Sales to carrier
company
Manage fewer
relationships

Carrier
Compa
ny

Cons
Low visibility into end
customer sales and product
reception

Agenda
Background on d.light Design
Framework for Marketing Channel Success in Rural
India
d.light Marketing Channel

d.lights New Distribution Partner


2009-2010:
d.light set up a custom distribution network in Uttar
Pradesh to supply solar lamps into small retail stores in
villages.
The network failed due to high distribution costs and
low consumer demand.
2011
d.light forms a piggybacking relationship with Bharat
Petroleum (BPCL), the second largest oil-product
distributor in India, to distribute solar lamps in Uttar
Pradesh.

Analysis of BPCL Distribution


Network

BPCL has 281 cooking gas retail stores in


Uttar Pradesh. Each stores serves thousands
of consumers, effectively aggregating
demand for d.light.

BPCL also sells FMCG and consumer goods in


its retail stores in order to have other non-oil
revenue stream. D.light products will be sold
as part of this program.

50% of BPCL customers come to the retail


store to pick up their cooking gas. While at
the store they may buy other products or
schedule their next cooking gas pick-up.

The other 50% of BPCL customers have their


cooking gas delivered to them. The delivery
men are a true last-mile link to rural
consumers in India. The delivery men are
often poorly educated and have little or no

Analysis and Recommendations


Analysis of the BPCL Distribution Channel
Pros
Consolidates demand into central retail points
Established and successful warehousing and logistics
network
BPCL is a very trusted brand with Indian consumers
Cons
Retail store owners not motivated to sell d.light products
BPCL end customers may not need d.light products
Recommendations
Incentivize BPCL management and retail store owners to
sell d.light products
Piggyback off of the BPCL brand to establish the d.light
brand
Educate consumers in Uttar Pradesh who use kerosene for
light about solar lamps, and drive sales at BPCL retail stores