Marketing of Inverters

(Batteries) in Rural
Areas

Marketing of Inverters
(Batteries) in Rural
Areas

Market Research
Our company has done certain research and
found out details about how the villagers
purchases and who all can influences them
in buying washing machine

OPINION LEADERS
Electrician
Head of village (Sarpanch)
Other villagers or user
Educated youth or Head Master
Dealer

Market Research

According to the National Council for

Applied Economic Research in New Delhi,
50% of durables and consumer goods are
now sold in rural markets.

Economic growth in India's agricultural

sector last year was over 7%, compared
with 3% in the industrial sector.

Market Research
Word-of-mouth is best means of
promotion
Locally available inverters lack on quality
and after-sale service.
Indian inverter market is highly
unorganized, and full of local players, and
Chinese competition.

Facts

Almost 44% households in India are without electricity, and

majority of these are in rural areas.

The present size of the inverter market in India is about

1.5 million units a year and growing at a compound
annual growth rate (CAGR) of 12 to 14 per cent

There are constant energy shortages and blackouts.

The typical family spends 50 rupees on kerosene each

month, (i.e 4% of their income)

Electricity is 20 times less expensive for lighting than

kerosene

SWOT
Strengths

As on December 2007, there were 106381

villages yet to be electrified

The domestic inverter market is almost Rs

1,000 crore. Opportunity are waiting for our
company

Economic growth in India's agricultural sector

last year was over 7%, compared with 3% in
the industrial sector

SWOT
Weakness
Rural India for instance, had a per capita
Consumption of Rs 981 per month
Difficult to understand the psyche of rural
consumer
Limited knowledge of consumer
Poor infrastructure facility

SWOT
Opportunity
Last year rural per capita consumption
expenditure grew by 11.5 per cent while the
urban one grew by 9.6 per cent
Apart from the faster growth in rural
consumption, what's equally important from a
marketer's point of view is the change in
consumption habits in rural India, now their
wants are converting into needs
According to a survey a rural household, saves Rs
11,613 on an average pa

SWOT
Threats
Rural income levels are largely determined by the
vagaries of monsoon and, hence, the demand
there is not an easy horse to ride on.
Nearly 60 % of the rural income is from
agriculture. Hence rural prosperity is tied with
agricultural prosperity
The rural consumer values old customs and
tradition. They do not prefer changes, they still
have traditional outlook.
Threat of failure in converting the wants into
needs.

Marketing Strategy

Market segmentation has been done on basis of

rural electrification situation, as under:
Rural Market

Non- electrified
Villages

Electrified
Villages

Designing of products has been done on the

basis of this segmentation.

Products for Nonelectrified villages

In non electrified villages our company
will be providing the battery charging
services also. For that it will set up a
Generator with a charger to charge
batteries everyday.

Products
Product - Suraj
Price - Rs 1,100/ Guarantee - 1 Year
Scheme - pay 100/- down payment (at
the time of purchase) and rest 1000/- Rs
will be paid in 10 monthly installment of
100/- each.

Products
Product Lal
Price Rs 1600/ Guarantee 1 Year
Scheme Payment of 400/- down
payment on the time of purchases and
300/- per month for 4 months installment
payment.

Products
Product Bhaskar
Price Rs 2900/ Guarantee 1 Year
Scheme 1000/- for 3 months
installment payment Or 2900/- cash
payment.

Battery charging centers in

non electrified areas

There will be a generator costing 20,000/- Rs and

Battery charger. Charger are available for Rs. 3,000 to
3,500 can charge 30 batteries at a time and with 2
shifts in 4 hours 60 batteries can be charged to serve 60
home accounts
30 days power supply total cost for recharging a battery
is around Rs.35 Where as Each poor household spends
up to Rs. 50 per month to buy kerosene at government
subsidized prices

PRODUTS FOR
ELECTRIFIED VILLAGES

PRODUTS FOR
ELECTRIFIED VILLAGES
Product Lalten
Guarantee 1 Year
Price Rs 400/

PRODUTS FOR
ELECTRIFIED VILLAGES
Product - Prakash
Price Rs 1100/ Guarantee 1 Year
Installment Scheme Monthly payment
of 210/- for 6 months or he can buy this
product by making a Cash Payment of Rs
1100/

PRODUTS FOR
ELECTRIFIED VILLAGES
Product - Ujaala
Price Rs 1800/ Guarantee 1 Year
Scheme Make a down payment of 435/and after that Rs 1500/- in 5 months with
a monthly installment of Rs 300/

PRODUTS FOR
ELECTRIFIED VILLAGES
Product - Kiran
Price Rs 4000/ Guarantee 1 year
Scheme Making a down payment of
1200/- in 1st month and 1000/- Rs
installment in next 3 months.

Segmentation & Targeting

Companys Distribution
Channel
Company
Company
Agency
Agency
CityDistributors
Distributors
City

CityDistributors
Distributors
City
Taluka
Taluka

Taluka
Taluka
Village 11
Village

Village 11
Village

Village 22
Village

Village22
Village

Village 33
Village

Village33
Village

Village 44
Village

Village44
Village

Promotion ITC's E-choupal is used by over 35

companies to sell their products, ranging
from bicycle to insurance policy; so
Inverters are also been sold the same way
Syndicate Distribution: we are having
exclusive van for delivery of goods to the
rural market

Our Van Promoting

and Selling Our
Inverters

Place & Promotion Word-of-mouth is a very good way of

promotion in rural areas
Haats & Melas: Traditionally on a certain
day of a week, both the seller and the
buyer meet in the village to buy and sell
goods and services, for us this is one of
the best places to sell our products

Photo of one of the

Haats (Weekly Bazar)

Place & Promotion

Special Promotion vehicle: We promote

our brand by using this (Picture) vehicle
and it has been very successful in rural
areas

Place & Promotion Advertisement in Radio and Local

Music
Wall Painting: Our Companys
advertisements will be easily seen in
village walls

Wall Painting

Other Promotion

People using the demonstration batteries

and enjoying the joy of electricity

Sponsorship in KUSTI &

other Competition

Place & Promotion House to House Live demonstration

Group Meetings & opinion leader

Future Strategies for Rural

Markets

Planning to have tie up with the B&W T.V

and Tape Company so that the needs for
light will increase by such habits which will
increase the demand for more battries.

Future Strategies for Rural

Markets

Getting the demand of such work from

urban which requires labour and light, This
will be employment opportunity for Rural.

Your Space