Go To Market, Strategy

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

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  • This leads to linear and simple thinking, abstract logic tends to go over their heads
  • Go To Market, Strategy

    1. 1. TEAM LEONIDASSchneider Electric’s Bip-Bop Programme
    2. 2. Demographics ShoppingBehaviourCollectivism•Farmers or Agriworkers• Limited education.• Family structure• Unit price is critical.• Paisa vasool paradigm• Cost per doseequation• High-volumepurchases at Haats• Inter-personalacquaintance• Social norms• Enjoy socialgatherings• Free time chatting• Follow opinionleadersWho is the rural consumer?Who is the rural consumer?
    3. 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 lightsTargeting rural consumersTargeting rural consumers
    4. 4. ConsumerClassAnnualIncome1995-96 2006-07Very Rich Above Rs 215,000 0.3 0.9Consuming Class Rs 45,001- 215,000 13.5 25.0Climbers Rs 22,001- 45,000 31.6 49.0Aspirants Rs 16,001 - 22,000 31.2 14.0Destitutes Rs 16,000 & Below 23.4 11.1Total 100.0 100.0n 7.2% GDP Growthuseholds in rural nearly equal to urban.ower higher due to lower expenses on food, shelter, education & healthAll figures in %Source : NCAER Indian Market Demographics ReportRural Income Dispersal ProjectionRural Income Dispersal Projection
    5. 5. Source: Census 2001Population No of villages % of total villagesLess than 200 92,541 15.6200-500 127,054 21.4501-1000 144,817 24.41001-2000 129,662 21.92001-5000 80,313 13.55001-10000 18,758 3.2Total no of villages 593,154* 100.017% of villagesaccount for 50%of ruralpopulation &60% rural wealthHardly anyshops in these2.2 lac villages*Inhabited villages, total number of villages is 638, 691Distribution of VillagesDistribution of Villages
    6. 6. Town Class Population No of towns % of totaltownsClass I 1 lac and above 423* 8.2Class II 50,000-99,999 498 9.6Class III 20,000- 49,999 1386 26.9Class IV 10,000- 19,999 1560 30.2Class V 5,000- 9,999 1057 20.5Class VI less than 5000 237 4.6Total no oftowns5161 100.0Source: Census 200190 % ofdurablespurchased byrural peopleare from these1900 towns*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354Distribution of Towns in IndiaDistribution of Towns in India
    7. 7. Company Product Offering Distribution Key PointsDlightDesign-Hub & Spoke Model- NGOs & SHGCDM Mechanism Good Investors Product Innovation International AID Yet to be profitableSELCO-Hub & Spoke Model- Regioanl HQ,Centres, Direct SellingProfitable Venture-ExperiencedleadershipCustomization &service Product ExpansionCompetitors * Primary ResearchCompetitors * Primary Research
    8. 8. Target Group- Uttar Pradesh (U.P.) and BiharHouseholds are in deep need for better, saver and cleaner lightsources.Main sources of energy for lighting in rural Uttar Pradesh and Bihar -India2004-2005Source of lighting for rural households Bihar UPKerosene 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. 9. Jeep based advertisingWall PaintingBus StandBus PanelsHaatsHoardingsPostal brandingVan Based AdvertisingMelasDirect to HomeFolklore groupsExhibitions/Created eventsCo-operative Notice BoardShop Front PaintingTin Plating – HouseDealer BoardsVillage BoardsWell TilesCalendars/LablesTin Plating – Trees/ShopsLeafletsPostersBannersStreamers/DanglersHighReachLowReachHigh Frequency Low FrequencyRural media usage gridRural media usage grid
    10. 10.  Word of Mouth from Local opinionleaders- Sarpanch/Doctors/ Retired MilitaryOfficer (fauji)/ Teachers Session in Schools/ Panchayat- educatingpeople about the benefits Experiences from farmers/ tailers/Handicrafts Makers Mobile Marketing – Local Language Voicecalls Cinema – Bioscope. In Movie promotions Through NREGA- Advertisement at thesites At Seeds/Insecticides/ Fertilisers centersPromotion at the School/ PanchayatPromotionThroughBioScopePromotionPromotion
    11. 11.  Build customization Customization to meet every household needs. Forexample a solar panel to meet two adjacent houserequirement. Cost can be shared Build Empathy / Relevance Show them the money saved in numbers- Like “EkSaal main 500 rupaiyee ki Bachat”. Or “Aaj hazaar to kalSunaar” Build Recognition In Diya is a gud name. But it should be more funny ordaily lingo like- “In Diya ki Bindiya waali lite”In Diya Ki Bindiya waali liteRural Haats- Promotion& Brand BuildingBRAND Building in Rural IndiaBRAND Building in Rural India
    12. 12.  Hub & Spoke Model Distributors in Trading hubs like-Gorakhpur/ Azamgarh/ Kanpur/ Jaunpur/ RaeBareilly/ Aligarh/ Meerut in UP Patna/ Bhagalpur/ Katihar/ Samastipur/Gaya/ Muzzafarpur/ Vaishali/ Buxar in BiharDistribution ModelDistribution Model
    13. 13. Syndicated Distribution- Ties ups with existingchannels 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/assistanvisiting rural market. Local Tailors/ Handicraft dealer/ Doctors or Vaidh/Teachers or entrepreneursTie ups with NGOs/ SHGs to distribute them with thehelp of micro finance Midwives- Delivering BabiesDistribution Model contd…Distribution Model contd…
    14. 14. Rural EntrepreneursRural Entrepreneurs
    15. 15. SCHNEIDERDISTRIBUTIONCENTREBattery Charging/In Diya Retail CentreDemonstratorsTrained Retired IndividualsOpinion leadersPopular Village AreasStrategic Tie UpsSample- Distribution ModelSample- Distribution Model
    16. 16.  National Sample Survey (NSS) Report No. 511, Energy Sources of Indian Households for Cookingand Lighting, 2004-05, 61st Round, National Sample Survey Organisation, Department OfStatistics, Government Of India,April 2007 Selco website Dlight Design website & CompanyVisit Entrepreneurs & EngineersREFERENCEREFERENCE
    17. 17. EXHIBITSEXHIBITS
    18. 18. 18Rural Income DispersalProjectionConsumerClassAnnualIncome1995-96 2006-07Very Rich Above Rs 215,000 0.3 0.9Consuming Class Rs 45,001- 215,000 13.5 25.0Climbers Rs 22,001- 45,000 31.6 49.0Aspirants Rs 16,001 - 22,000 31.2 14.0Destitutes Rs 16,000 & Below 23.4 11.1Total 100.0 100.0n 7.2% GDP Growthuseholds in rural nearly equal to urban.ower higher due to lower expenses on food, shelter, education & healthAll figures in %Source : NCAER Indian Market Demographics Report
    19. 19. Choice of StatesIdentifiedstateAveragePopulation pervilage Rural literacy% of workingrural populationNo. of ruralHHHH availingbankingservicesHH withelectricity Average scoreUP 0.35 0.54 0.48 1.32 0.50 1.28 0.74Bihar 1.48 0.44 0.46 0.81 0.45 0.10 0.63Rajasthan 0.72 0.63 0.52 0.72 0.67 0.41 0.61West Bengal 0.53 0.56 0.63 0.46 0.57 0.91 0.61MP 0.41 0.58 0.64 0.52 1.00 0.41 0.59Chhattisgarh 0.42 0.61 0.68 0.22 0.45 0.95 0.55Orissa 0.31 0.60 0.54 0.44 0.48 0.39 0.46Assam 0.45 0.61 0.49 0.27 0.36 0.35 0.42Jharkhand 0.33 0.46 0.56 0.24 0.50 0.21 0.38

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