DLight design case study

1. DLight
Design
Submitted By-
GROUP 1
Aakriti Pathania - 035001
Abhishek Madaan - 035004
Anusmita Das - 035015
Ishita Jain - 035025
Ramanpreet Kaur - 035042
Saurav Priyadarshi - 035050

2. The main problem D. Light must address is how to design the
best marketing channel strategy- Should the
Company employ a single or a multi-channel strategy. Below
are key consideration areas to tackle:
Create demand for solar lamps
Create trust in the brand
Achieve affordability and easier access for D. Light products
Choosing to distribute products to retailers and/or consumers
PROBLEM STATEMENT

3. Has success in the given segment
remained elusive for D.Light Design in
India?
Disorganized Indian solar market
Problem with solar industry business model- difficulty in gathering investments at
the macro
Lack of consumer awareness and high illiteracy rate in the rural bottom of pyramid
Lack of Affordability
Threat of competition because of the “saathi” strategy adopted by the home
producers and availability of substitutes.
Not easy to convince BOP for initial outlay
Low credit availability for solar lamps
Distributor did not promote the product
Although, the market share has been more than 50% for 5 years there is still lot of
potential customers

4. D.Light has made no investment in the distribution
network. Is this decision appropriate? Give substantial
reason for your points of view.
The distributors had a wide customer base, and D. Light was able to distribute their goods
widely and at the lowest possible cost.
D. Light had extensive ties with LPG dealers, general shops, and CSCs, which provided it
an edge over its regional rivals.
Selling through dealer partnerships was more cost effective.
Because of transportation, warehousing, and other channels, the internal distribution
channel is quite expensive.
Delivery can be motivated to sell the product for a higher commission rates or through
competitive deals

5. Pricing Strategy
Market Penetration Pricing
Good Value Pricing
Cost Based Pricing
Market Skimming Pricing
Competition Based Pricing
By releasing a product at a loss or with a very low profit, D. light can establish a presence in the market.
By releasing a productProviding an attractive combination of product functionality, quality, and service at
a fair price. Customers can try out the product for less money if you provide a stripped-down version of it.
at a loss or with a very low profit, D. light can establish a presence in the market.
D. light may determine the production cost and markup based on the desired profit margin.
D. light may increase prices for some recognizable brands if demand justifies it.
D. light intends to meet the pricing of its rivals while also cutting its own operating expenses to increase its profit
margins.

6. Alternatives
D.Light can ensure that the
company has a larger reach
by collaborating with
cooperatives and NGOs.
Renting out of solar kerosene lamps is
a low-cost business strategy. The
initial cost of purchasing solar-
powered lamps is more, but the cost
of maintenance is substantially
cheaper, so they should look into
more financial choices.
Partnerships & Associations Rent out

7. Porter's Five Forces Analysis
Unique distribution model
4 different types of channels - post office, CSCs,
LPG distribution, and general retailers
Not an easy task to convince the BOP customers to
purchase
Lack of affordability of solar lights
Mostly illiterate, lack access to basic necessitities
Majority have no bank accounts
Limited choice
Exploited by intermediaries
1.BARGAINING POWER OF SUPPLIERS
2.BARGAINING POWER OF BUYERS

8. TATA, Reliance Power etc setting up large
manufacturing divisions
Social enterprises focusing on single solar product and
single market segment
Competitors setting up Direct-to-home (DTH) model
and imdependent promoters called 'Saathis'
Comparatively lower cost than DLight
Kerosene substitute for solar light
Affordable by the BOP
People habitutated by their routine of purchasing
Phillips and Panasonic which newly entered into the
market by adding solar lights to their portfolio
3. RIVALRY AMONG EXISTING FIRMS
4. THREAT OF SUBSTITUTES
5. THREAT OF NEW ENTRANTS

9. Porter's Five Forces Analysis
Rivalry
amongst
existing
competitors
Bargaining
power of
buyers
Threat of
new
entrants
Threat of
Substitutes
Bargaining
power of
suppliers
(Low)
(High)
(High) (Moderate-High)
(Moderate-High)

10. Thank
You