To eliminate this problem, many manufacturers have to add a feature that creates a barrier to these particles. Nanoparticles make of bonded silver are added, and this prevents the growth of these pathogens. Activated charcoal is also a popular choice for purifying water in a portable system. These are capable of removing protozoa, bacteria and other extremely small contaminants, but not viruses. The only systems that can destroy viruses are those that use chemicals or ultraviolet light. About 50 million people in West Bengal are presently affected by arsenic PoisoningIn addition, about 60 million people across India, mainly in Rajasthan, Gujarat, and Andhra Pradesh, consume water with high fluoride contentAs per World Bank, 80 % of communicablediseases in India are water related. 30% rural population have no access to pure water.It is estimated that about 10 million illnesses and 700,000 deaths in India could be attributed to diarrhoea of which 400,000 are children under the age of five.
Innovators dais faded flame iimk
TEAM: FADED FLAME IIM KOZHIKODE INNOVATORS DAIS Amrit Tulya: Solar Powered Water Purification System NATIONAL FINALIST Ashutosh Vikram Arnab Guha Mallik Abhisek Paulashutoshv15@iimk.ac.in firstname.lastname@example.org email@example.com Ph: 8943994677 Ph:8943707444
Amrit Tulya: Solar Powered Water Purification SystemConcept: The Features Water Purifiers: the gaps Break through green technology system to treat water Integrates and uses the renewable solar energy A portable water filtering system is the need of the hour in rural areas Reverse Osmosis system. Less energy consumption to run a Reverse Osmosis Cities filter water at the incoming source, but most rural areas do system thus reducing capital cost of installing expansive not have such systems solar PV panels. Allows costs of Solar based RO systems to be affordable and less of O&M even in remotest regions. 50LPH Reverse Osmosis plant is functional Lowest Cost, 30p per Litre An older version of portable water filtering systems tend to leave a taste to the water. Reports of residual iodine left in the drinking water. bacterium and fungus may stay in the filter portion and start to grow there.Differentiation from current scenario Doesn’t depend on external power like grid power supply Needs Much lower capital requirement then other solar based products Safe and purified water: portable and capable water filtering Lower operational cost and complexity system Water filter with no external power Easily deployable and setup No continuous water supply Can work through out Portable so that they can be carried around Target SegmentBENEFIT SEGMENTATION WITH DEMOGRAPHICS AS A The major segment of the market being targeted is the ruralSURROGATE: FOCUS ON THE BENEFITS. market People in villages, tier 2 and 3 cities with problems of external power supply, running water and highly price conscious
Amrit Tulya: Solar Powered Water Purification SystemCompetitors Market OpportunityThe low-cost offering targeted at households in Total Market Size: Rs 2000 crore small towns and rural India are the water purifiers Water purifier segment in India is growing at a compounded from the house of Eureka Forbes (Aqua Sure) and annual growth rate of about 25%, largely driven by rising sales Hindustan Unilever.(Pureit) of low-cost variants triggered by extreme shortage of drinking-Other brands available in the offline category are water and dwindling water table Kent, Zero B, Bajaj, and Tata. Total Water Purifier Penetration in India: 3.6%Eureka is straddling the retail and also direct selling Urban: 10.8%, Rural: 0.72% (HUGE OPPORTUNITY) model offline water purifiers contributed for about 18.4 % of theWhile HUL is selling its water purifier at Rs 1,800, market. Eureka has priced one of its models at Rs 1,600. Trend: by 2016, offline water purifier segment is expected toBoth HUL and Eureka had test marketed their grow at a very rapid pace and increase its share to about 38 % products in southern states before India launch of the total market which is 1900 crore in IndiaAs HUL airs its TV campaigns on how using Pureit will give freedom from boiling water, Eureka Forbes has signed on celebrity Smriti Irani for communicating its benefits.RECOMMNEDED PACKAGING upmarket(Stylish)looks: Aspirational Value and conveys hygiene and purity easy to clean & simple in construction easy to use and assemble incorporates an indicator that shows the life of the filter Available in 2-3 colours
RURAL MATHSCHALLENGESOne of the greatest challenges in the rural landscape also remains the lack of capital Access to formal banking would not only eliminate unbearable debt for the poor but also bring Key drivers behind this capital investments into rural. growth includeconsistent implementation of education-centric policies and Government initiatives programmes. There is also the need for rigorous accountability and schemes, and sharing of best practices to raise the quality of programme infrastructure execution. There is a scope of e-learning in transforming the development, industry cost and access to education. projects across theSkill building is another crucial factor to the growth of the country and the rural economy. The need of the hour is not to take the lead in emphasis on local- setting up the programmes, but also provide training and employability employment assistant.
WHY RURALMarket Prospects Implications Indias large rural population Indias rural population is Indias large rural population represents a significant forecast to rise to 877 million reached 829 million people in “BOTTOM OF THE PYRAMID” people by 2020 2010, accounting for 69.9% of market with much potential As rural incomes continue to the countrys and 12.1% of the Annual disposable income and grow, the importance of Indias worlds total population. consumer expenditure per rural market will continue rising Indias rural population capita reached Rs53,547 to become a significant driver of constitutes an important (US$1,171) and Rs38,083 Indias economic growth; consumer market that is vital to (US$833) in Rural development will continue the domestic economy due to 2010, respectively, representing to be a priority in the agenda of its sheer number. Rising a period growth of 29.2% and the Indian government. The consumer expenditure has been 28.0%. government has a wide range of a driver of Indias impressive Increase in incomes and rural development programmes economic growth over 2005- purchasing power, provides focusing on alleviating poverty 2010 and accounted for 57.3% of opportunities for businesses and improving rural the countrys total GDP in 2010; given their large numbers. infrastructure, education and healthcare. Rural Connect Insights Needs of Rural Consumers Amrit Tulya features The features that the customers want in Water Purifier The solar water purifier has following features: • Doesn’t depend on external power like grid power supply • Solar Based Power • Low Cost • Reverse Osmosis: Ensures good quality water purified • Highly Efficient • Best Efficiency and Easy to use • Easily deployable and setup • Lowest Cost: It costs around 30p per litre
Psychographic Profiling & InsightsThe Psychographic Profiling is done on the basis of their personality, values, attributes, interests & lifestyle IAO Parameters Influencers Cultures There are many reference group in villages. These include Majority of rural consumers are traditional in outlook. teachers, panchayat members, health workers, bank manger and They associate faster with message that match their co-operative board member- must be kept in mind while developing cultural behavior such as traditional values. marketing strategy Attitude & Value Parameter Product Product Usability • Product Durability is still valued and don’t believe in use & Durability through urban mentality • Product Usability helps in making decision to buy a product. Added features always help in Decision Making • Look for brand in all the products they buys and even ready to Customer pay little premium Price Sensitivity • Price Sensitivity is still there but value for money is also a strong Engagement force • Believe in word of mouth publicity of product from a neighbor co-relative • Engaging Customers in the buying process also helps in generating the sales of the product Word Of mouth Brand Loyality
Market Penetration StrategyAt Village Level: At District Level: Income Level: At HDI & GDI Level: • Village coverage in the • The Launch Strategy • HDI & GDI helps in • Per-capita income level district should be done would focus on initial identifying regions of different states can on the basis of its size launches in the which are upcoming be utilized to identify such that bigger villages developed districts in and where people want the buying power of will be targeted first the selected regions to have better living the majority i.e. rural and also their (on basis of point 1 &2 standards. people living in that respective distances ), leaving the • In these regions there region from these high density undeveloped ones in exists high chance of locations: initial phases of the product acceptance • Villages near Urban launch Centers • Developed district Head Quarter • Taluka/Tehseel • Mandi
Marketing Strategy – 4A approach The 4A approach deals with the problems of Low per capita marketing and distribution disposable in the rural India by income that is providing affordable almost half of the solutions and being widely urban disposable accepted among the income Poor roads, lack customers by creating of continuous awareness about the power product supply, lack of conventional media advertising AvailabilityRural marketing challenges The first challenge is to ensure availability of the product or service. Indias 627,000 villages are spread over 3.2 million Seasonal sq km. consumption However, given the poor state of roads, it is an even linked to harvests greater challenge to regularly reach products to the and festivals and far-flung villages special occasions Any serious marketer must strive to reach at least 13,113 Large number of villages with a population of more than 5,000 daily wage Study on buying behaviour of rural consumer indicates earners, acute that the rural retailers influences 35% of purchase occasions. dependence on • Therefore sheer product availability can affect the uncertainties decision of brand choice, volumes and market share of the monsoon Marketers must trade off the distribution cost with incremental market saturation
Marketing Strategy – 4A approach Affordability Acceptability Awareness With low disposable Third challenge is to gain acceptability Different promotional eventsincomes, products need to be - therefore, there is a need to offer organised by stockists and otheraffordable to the rural consumer, most products that suit the rural market stakeholders of the productof who are on daily wages – pricing in Product localization – coming up with Creating an optimal mix of massthe range of Rs 1000 – Rs 3000 regional language product manuals and media, local and personalized media Product innovation is important Product menus Tie up with non-traditional channels Promotional StrategiesConvert the ignorants into the informed, the informed into the adopters through proper communication strategy. Make them aware ofthe availability of the brand, generate interest, educate about the usage and the benefits through proper demonstrations, trials,convince them and hence convert to purchasers Create ProductReach the Consumer Generate Interest Educate and Persuade Knowledge Mass Media StrategiesAdvertisements on Mass media be it radio or television or press: The ads should focus on the benefits of the products and how using them will help the people. We can use models dressed as doctors for promotionThe concept of family can be used as an imagery as Indian customers are more family oriented and consider family’s happiness to be the most important thing.Through the expert we will be targeting the cognitive elements and following the central route of perception. By using the family imagery we will be targeting the affective components which would lead to an emotional connect also
Wide networkNon Conventional Media StrategiesAdvertising with interactivity:Advertisements in newspapers and magazines have limited Remove unwanted featuresvalue in rural areas.Compared to ads on TV, live demonstrations, programs likestory telling or skits will be more powerful media as theyprovide scope for direct interaction with the audience.During such shows, we can show the functioning of the Tell about value for moneyproducts, explain the usefulness of the products and createmore visibilitytry and reach out and connect to the people directly. Print Product localization and low pricingads in local dailies, posters within shops and paintings onthe walls should be undertaken. Pictures, dramatizingvoices, attractive expressions and color have more influenceon rural consumers Interactive communication at point of contact: Audio Visual Vans: Visit selected villages and towns (high population and moreOpinion Leaders: The message becomes credible if it comes people with higher propensity to spend) on weekly marketfrom a credible source. Tie up with primary health care days to communicate the benefits of the product in a waycentres, get the village heads or panchayats to spread the that’s relevant to the target audienceuse of the product and the associated benefits with it.School headmasters and teachers can also help in The vans will be carrying a banner or large cutouts.promoting the usage of the product. A proper BTL strategywould be joining hands with NGOs to spread the word and Where the haat or melas takes place on both sides of thebenefits road, the van is to be mobile throughout the day. Posters and handbills are distributed and product demonstrations and samplings are held
STRATEGIES IN BOTH RURAL AND SEMI URBAN MARKETING Cold Calls (door to door selling): salesmen have to go through the "cold calls" to get a sale. Outreach (Kiosk) within the villages to sell the products, provide demonstration for usage Clinics/Primary health Care centers: Product displayed prominently clinic with all necessary brochures and inquiry forms. Using the influencing power of the medical fraternity to its advantage, more credibility to the products. For the doctor , it just means that his patient has access to pure water while waiting but for the brand “AMRIT TULYA” this small gesture adds lot of authenticityAlternatives tie up with the Indian Postal department to sell these small products to village homes.Local men and women in villages can be roped in as sales associates, who will sell these products at a pre-decided commissionUse of syndicates like forming up of cooperates in semi urban and rural areas to sell to the masses Roadbloacks Execution Standard of living Low cost advantage of product, providing VALUE Breaking the Price sensitivity Low literacy levels Poster, Wall Painting in vernacular language Target audience traders and service men who have regular a) Active subscription Low per capita income cash stream throughout the years immediately Ineffective distribution Used parallel distribution channel. Vans to provide retailers b) Right time installation of channels plus serve as point of sale and promotion products c) Properly repair services Many languages and diversity The promotion, demonstration, education to be done in in against paid AMC’s. in culture local languages d) Service during contract period Coverage of unconventional channels like Radio (Vivadh Lack of communication Bharati), Local TV channels (Doordarshan), Locally circulated system publications, (Newspaper), Point of purchase promotions. Wall paintings, pamphlets and other rural promotions. Low Demand/ low Disruptive innovations, leveraging PHILIPS’ brand name and acceptance distribution strategies to create awareness and adoption
Rural Distribution Challenges • The long distances to be covered from Multiple tiers, higher the product points and the scattered costs and locations of the consuming households administrative cause this situation problems • Push up costs and make channel management a major problem • there are a limited number of suitable dealers Non- availability of dealers • Even if the firm is willing to start from scratch and try out rank newcomers, the choice of candidates is really limited • the business volume is not enough to sustain the profitability of all the groups Poor viability of retail outlets • scattered nature of the market and the multiplicity of tiers in the chain use up the additional fundsAlternate Distribution StrategiesUse of a Carrying and Forwarding Agent (C&FA) as the stock point. He receives the consignment and is a stock point. The C&FA therefore results in improved servicing of Re-distribution Stockist efficiently.Indirect Coverage: Under the Indirect Coverage method, company vans were replaced by vans belonging to Redistribution Stockists, which serviced a select group of neighbouring markets. Use of SHGs or village women as distributors – both a source of good margins as well as self-employment A hub-and-spoke model can also b developed to reach the villages. To ensure full loads, the, large distributors can be suppliedtwice a week or so, who act as hubs. These distributors appoint and supply, once a week, smaller distributors in adjoining areas Area Offices (AO) and Rural/Remote Area Offices (RAO) to tap unexplored markets
Product wind-up strategiesIn case it is unable to meet the targets, winding up the product in the pilot phase itself would be very effective onthe part of the company in order to prevent further losses Price reduction and discounts Product bundling helps to Reduce the price in order to sell off the old Special discounts in case gifts are bought for bundle two or more inventory special occasions e.g. marriage products together and sell them at a lower price Effective during festive season and helps in Product placement in tier 2 and tier 3 cities generating high sales In case the product becomes a success, we can To use up excess inventory further explore the option of marketing it Recovery of Cost – products that are already being manufactured and those in Product bundling the inventory Company’s brand value is Combining the water purifier product with other similar innovative products not diluted Dumping of productSelling the brands as unbranded products (dump), since the product has already been dumped by the company