The document summarizes a study on the feasibility of LED lamps in India. It describes LED technology and its usage in various fields. It then compares LEDs to incandescent bulbs and outlines the vision, competition, consumer needs, proposed product, target customers, market size, and marketing and distribution plans for an LED company called IllumiCorp. The document also includes details on production costs, pricing, and projected sales and cashflow.

1. Business Communication ProjectA study of the feasibility of LED lamps in India

2. Business Communication ProjectSubmitted to:Prof. SajithBy Group OneGouri Shankar Das

3. SahilChanna

4. SheetalKoul

5. SouravBiswal

6. KandarpVaria

7. Rajput Bharat Singh

8. PratikMullickWhat is LED?LED or Light Emitting Diode is a semiconductor diode emitting light at visible, infrared and ultraviolet wavelengths with very high brightness.Red, Green and Blue LEDs.

9. LED Usage in various fieldsA bus with LED display board showing destination and stoppage.

10. LED usage in various fieldsA traffic light in Shanghai, China with LED lamps

11. LED vs. IncandescentA 5 watt LED produces approx. 18-22 lumens/watt.LEDs can be very small, less than 2mm.LEDs waste very little energy used.A 60-100 watt incandescent bulb produces 17 lumens per watt.The smallest lightbulb is around 2 inches in length.Incandescent bulbs waste nearly 98% of its energy as heat.

12. LED vs. Incandescent (contd)LEDs have a long useful lifespan, estimated to be 35,000 hours of useful life.LEDs fail by dimming over time.LEDs are shock resistant, due to solid-state parts.Incandescent bulbs have a relative lifespan of 1,500 hours.Incandescent bulbs fail abruptly.Incandescent bulbs are extremely fragile.

13. Vision Statement of IllumiCorp.Availability of cheap and reliable light source to rural areas with electrical connection.Availability of light source to undeveloped urban areas, especially slums.Reduce unaccounted light wastage from tampering of electricity sources.Decrease usage of electricity through efficient use of electricity.

14. CompetitionRural AreasKerosene Wick LampsKerosene Hurricane LampsIncandescent TorchesHome Solar Systems

15. CompetitionUrban AreasIncandescent BulbsFluorescent Tube LampsCompact Fluorescent Lamps (CFL)

16. Consumer Needs (Rural)Brighter light with wider diffusion.Lower daily expenditure.Wind-proofingMulti-user usabilityLED lamps diffuse light evenly.Kerosene lamp runs for 6 hrs per Rs. 10. LED runs for 50 hours.LEDs are very ruggedThe same light source is bright enough for 3 people.

17. Consumer Needs (Urban)Low power consumption.PortabilityLonger duration of usage.Incandescent : LED ratio for power consumption is 1:98LED lamps are portable, since they are lightweight and rugged.1 LED lasts for 35,000 hours.

18. ProductIllumiCorp’s LED lamp is designed for multi-use.It is portableIt has 2 energy sources, both solar as well as AC Mains.Contains a rechargeable battery.Priced at Rs. 199/-

19. Product (contd.)Gives 4.2 hours of light on batteries.Designed to be hung from a wall, a ceiling or kept on a bed.

20. Target CustomerThe availability of artificial light is dismal in the interior districts of quite a few states in India.The product is targeted at the rural poor, in the pilot phase.Data from Stanford Social Studies Report, June 2003

21. Market Size and TrendsData from Stanford Social Studies Report, June 2003

22. Marketing PlanShort Term GoalsStreamline the process of penetrating new markets.Emphasize incentives for poor users, both rural and urban.After-sales customer serviceEstablish good reputation with customers

23. Marketing PlanLong Term GoalsRetain market focus.Accessible to even the poorest consumer.Make customers feel as consumers and not charity recipients.

24. Marketing StrategyStimulate demand, in form of cheap and robust technology.Build positive brand recognition, especially over CFL Lamps.Emphasize product quality rather than cheapness to overcome stereotype.

25. DistributionThe supply chain should have minimum handovers.Use of existing distribution channels.IllumiCorp to act as purchasing and manufacturing channel with zero inventory costs.

26. Organization Structure

27. Organization StructureIllumicorp HQ coordinates marketing activity at the national and regional level.The HQ also coordinates with the factory for manufacturing, operations and resources, especially national and imported raw materials.

28. PricingThe product sells for Rs. 199These prices, based on the retail price, includes a 10% margin to IllumiCorp, 10% margin to distributor and 15% margin to retailer.

29. Production Cost per Unit