Introduction

It seems reasonable to borrow a leaf from Dunkin Donuts slogan which says
America runs on Dunkin to say humanity runs on energy. Global energy needs
cuts across ethic, racial and economic status background. Everyone needs energy in
one form or the other to enable us access other basic human needs. People need to
be able to cook their food, generate heat during cold seasons etc. If upper and
middle classes people get their energy needs from healthier and more
environmentally sources, the poorer or lower class who are mostly uneducated
about the heath and environmentally friendly sources, will continue to rely on felling
of trees, indoor burning of biomass to meet their need. There are at most times,
oblivious of the severe negative impact on their health and environment. If left
uncontrolled, it leads to erosion, deforestation, flooding etc. According to the text, it
is also a leading cause of mortality and premature death due to respiratory
complications. Besides being a silent cause of miscarriage and womens health
complications, it also accounts for the death of about one million children under the
age of five annually.
About three billion households still cook in smoky kitchens and hence household air
pollution has been the 4th biggest cause of pre-mature deaths with estimated 4
million people dying per annum, globally and around 7,500 per annum in Nepal. The
number of user of solid cooking fuels in inefficient traditional stoves has remained
almost the same globally for the last 3 decades, and promotion of a rather simple
product that has a better efficiency like an Improved Cookstove has been a
challenge for the world. Besides the health problem emanating from household air
pollution, perennial use of traditional fuels like firewood, cattle dung and agrowaste
burnt in traditional stoves also result drudgery, mainly for women and children, as
well as deforestation and climate change.
Nepal presents an interesting case study. Out of 5.43 million families in Nepal, 4.50
million (83%) live in rural areas and most of them have no access to any clean
cooking energy. These households are using fuels like firewood, cattle dung or agro
waste in traditional three-stone or metal tri-pod stoves. Roughly 1.78 million
households are using some kind of clean cooking energy like Improved Cook-stoves
(ICS), biogas, kerosene, LPG and electricity. This figure is obtained by adding an
estimated 450,000 households using ICS and around 1.33 million households using
cleaner fuels like biogas (131,596), kerosene (55,610), LPG (1,140,662) and
electricity (4,523)1, as primary cooking fuel. Thus, roughly 3.65 million rural
households are cooking in traditional stoves with fuel like firewood, dung and agrowaste and almost 2.85 million households may qualify only for ICS at least in short
term and some 800 thousand households may qualify for domestic biogas,
particularly those currently using cattle dung for cooking (563,126) 2. Of course,
solar cookers can be promoted as cooking energy solution in some mountain
districts, where firewood is really scarce and biogas is also not feasible.
Nepal has made quite a name among the developing countries in promoting
decentralized, alternative and rural/renewable energy solutions. The Nepal model is
characterised by a multi-stakeholder approach with public-private partnership and a

good combination of technical assistance for capacity building, quality assurance,

etc. limited investment subsidy and increasingly better linkage with credit.
Different internal and external development partners, including donors have been
very much part of the design, testing and scaling up of the models and have been
increasingly supportive to the governments leadership in development of the
sector. The biogas and micro hydropower projects of Nepal have been exemplary
and the biogas programme, in particular has been replicated in many countries in
Asia and Africa.
The national ICS programme has been able to bring ICS to some 67 districts out of
75, with a cumulative installation figure of around 650,000 units so far, mostly with
mud ICS with chimney. The national ICS programme and other smaller programs or
projects have developed awareness and capacity, particular with national, regional
and local NGOs across the country and with this, currently around 100,000 ICS are
being installed annually. However, quality assurance and continued functionality
have been challenging as the stoves
The case allows a discussion of several important issues. At a broad level, the case
deals with selling a relatively technical breakthrough that could have tremendous
social value in a developing country. It shows how marketing principles can be used
to help a less-fortunate population.
But marketing a product in a developing country can be a real challenge. Channels
of distribution are often limited. Consumer incomes are low and the Starlight Stove
might cost one third of the average per capita income.

The selling price on the stove, which has not been set, might range from $80 - $100
or more. This is a considerable expense in a country where the gross per capita
national income is only $400. The case mentions microfinancing and a 20% interest
rate is typical. Broken down to $.68 per week, customers may better understand
costs and benefits. The stove offers significant economic benefit by allowing owners
to spend more time on education or income-generating activities.

The case may work best later in the course because it offers an opportunity to
discuss many elements of the marketing strategy planning process model. Lets
briefly walk through some of these elements and possible discussion points.

External environment. An instructor might discuss the impact of cultural values on

aid for developing countries. Traditionally, most aid to impoverished nations was in
the form of grants, government relief, and/or donations. But this approach has its
pitfalls as each form dries up
and tends not to motivate the recipients. More recently, many donor countries and
philanthropists emphasize aid that gives people a hand up instead of a hand out.
Bright Light Innovations reflects this approach.

Competition. The case provides some information about competing technologies

though none are identical. The lack of a similar technology can make the job of
selling the Starlight Stove both easier and harder. While the product offers
significant advantages to its target market, these consumers do not have a direct
basis of comparison and may not understand how they will benefit.

Demographics. The customer market in Nepal should be discussed. An instructor

might suggest that students go to the Michigan State Universitys global Edge
(described in the Internet Exercise on page 74 of the text) to gather more
information about Nepal. Ask students to imagine how these people might typically
learn about new technology. The low literacy rate may be discussed suggesting the
need for radio advertising, demonstrations, or personal selling.

Company resources. It can be surmised that the company does not have extensive
resources and is motivated to make at least some profit. Students might rightly
question the companys experience which is very limited.

Marketing strategy. The target market is pretty much defined by the case, but the
marketing mix is left wide open.

4Ps. There can be a strategic discussion about pricing, margins for distributors, and
how to promote more rapid adoption of the product.

Innovation. An instructor might use the case as an opportunity to expand on a topic

only briefly touched on in the text the diffusion of innovation. See the work of
Everett Rogers (Diffusion of Innovations, 4th edition, 1995). Some of these ideas
and their relationship to marketing strategy decisions and the Bright Light
Innovations case are discussed below.

Rogers framework may help students to think about how to market the Starlight
Stove in Nepal. Rogers notes five characteristics of an innovation that influence its
speed of adoption:
1) The relative advantage it offers,
2) Its compatibility with existing values and past experiences of adopters,
3) the complexity or difficulty of understanding how a new product works or how the
consumer will realize value,
4) triability or the degree to which adopters can experiment with the product, and
5) observability or the extent to which the results of the innovation can be seen by
others.

An instructor could briefly introduce these five concepts and ask the class, how does
the Starlight Stove score on each of these factors? The product appears to offer a
strong relative advantage as compared to alternatives.

Although the health benefits may be difficult for users to immediately appreciate,
the potential economic value generated by spending less time collecting fuel and
having longer working days should be more apparent. The stoves features fit with
existing values and experiences, but the production of electricity does not fit well.
These closely correlate with complexity. How the product actually works and the
benefits it offers may not be understood without further explanation.

The product is not something that users can easily experiment with. Observability
might be moderate possibly depending upon the extent to which Nepalese invite
others into their homes.

Interestingly, using these same criteria, marketing managers may be able to make
the product more appealing. For example, they could provide a sample stove in the
center of a village where people could view and test it increasing its triability and
observability. This experience may also reduce confusion about how it could
produce electricity. Perhaps guarantees could make it easier for people to try the
product. Personal selling may be necessary to explain the benefits.

Another way to stimulate discussion would be to remind students of the adoption

process introduced in Chapter 5. The six-step process involves:
1) Awareness (Would demonstrations or a traveling road show help generate
awareness and interest?)
2) Interest (How could BLI or its distributors stimulate interest?)
3) Evaluation (Where and how do consumers evaluate how the product might help
them?)
4) Trial (see paragraph above)
5) Adoption (Would explaining microfinancing terms help overcome objections?)
6) Confirmation (How would buyers be reminded about the value of the process?)

Simply putting the steps of the adoption process on the board might help to
stimulate discussion about specific marketing activities that could help guide
customers through these steps.

Why 8% of sales people get 80% of the sales

Research suggests only one in 50 deals are struck at a first meeting, yet many sales people give up after just
one or two knock-backs. Perseverance will give you a major edge on competitors, says founder of Marketing
Wizdom, Robert Clay
You can sometimes be so close to your business that you can miss the simple solutions for growing it, where the
greatest opportunities often lie. Solutions that are blindingly obvious, once you're aware of them - but are amongst
the best kept secrets on the planet if you're not. For example:

Only 2% of sales occur at a first meeting

People in business often hope and expect to do business the first time they meet a prospect. Yet studies reveal that
only 2% of sales occur when two parties meet for the first time.
The 2% who buy at a first meeting tend to be people who have already looked into the subject matter, and already
know what they're looking for. If they meet someone who ticks all the right boxes and they get on well, then business
may well be transacted. But that is far from the norm. The other 98% will only buy once a certain level of trust has
been built up.
Anyone who believes they can go into a sales situation armed with '101 sure fire sales closes' and make sales is
seriously misinformed - and about 20 years behind the times. Professional sales people get to know their prospects;
understand their issues; solve their prospect's problems; and provide irrefutable proof. They build relationships and
trust by engaging in ongoing dialogue (otherwise known as follow-up). They don't just peddle their products and
services with an armoury of closing tricks.
There are many reasons why people who could benefit from your product, service or expertise do not buy. At least
not without further prodding. Inertia. Lack of time. Too many other things on their mind. Concern about cost. cash
flow. Budget constraints. More pressing matters. Your failure to do enough marketing to establish your name in your
field so they'll buy without question - and more. None of the these, by the way, is a negative. They are just
psychological and transactional realities you must become aware of and recognise - which is why follow-ups are SO
important.
Yet isn't it amazing how often you express interest in a product or service, but never hear from the person or
company again? It happens all the time. Research shows, amazingly, that only 20% of sales leads are ever followed
up. In other words, 80% of potential opportunities are lost without trace simply due to lack of follow-up.

People and companies who don't follow-up, who do nothing to build up that trust and relationship, cannot succeed,
especially in today's tough economic climate. People need to be sure they're making the right decision before they
commit to a purchase.

Tenacity results in sales

Different studies carried out at different times, in different places, by different market research companies over a
number of years all reveal that 80% of non-routine sales occur only after at least five follow-ups.
Think about that. It takes at least five continuous follow up efforts after the initial sales contact, before a customer
says yes. FIVE!
There are some fascinating statistics on this:

44% of sales people give up after one "no"

22% give up after two "nos"

14% give up after three "nos"

12% give up after four "nos"

That tells you that 92% of sales people give up after four "no's", and only 8% cent of sales people ask for the order a
fifth time.
When you consider that 80% of prospects say "no" four times before they say "yes", the inference is that 8% of sales
people are getting 80% of the sales.

Introduce a five "nos" follow-up strategy

Once you're aware of these statistics you should stack the odds in your favour by introducing a 'Five nos' strategy,
where you maintain contact with prospects until each one of them has said "no", or "not now", or "not yet" at least five
times. Every time you're in contact you have an opportunity to advance and build the relationship.
Businesses with a "five nos" strategy will always enjoy a conversion rate many times higher than their competitors
who have no such strategy. What strategies do you have in your business right now to ensure that you contact your
prospects regularly in a gentle and meaningful way so that you win their business and their loyalty?

'Top of mind' awareness

There's also the fact that 63% of people requesting information on your company today will not purchase for at least
three months - and 20% will take more than 12 months to buy.
Contacting your prospective and existing customers every three months or sooner builds trust and professionalism
and keeps 'top of mind' awareness. In this context, your customers do not regard contact for orders, payments and
appointments, or the obligatory Christmas card as a meaningful communication.
What meaningful communication strategies do you have in place right now to maintain top of mind awareness once
someone has been in contact with you? How do you nurture your clients so that they learn to trust you and see you
as a professional organisation?
This simple strategy could be critical to your survival in the current economic downturn. Implement it and prosper.
Ignore it at your peril.
Written by Robert Clay of Marketing Wizdom.

Criteri
a

Identifies
Major
Issues of
the Case

Exceed
s
Expect
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(25
Points)

Identifies the
major issues
of the case
AND related
issue(s)

Identifiesthe
major issues
of the case,
but does
NOT
identifyrelat
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Doesnotiden
Needs tifythe major
Improv issue of the
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identify
(15
Points) related
issue(s)

Meets
Expect
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(20
Points)

Considers
Stakeholders

Analyzes Alternatives
and Consequences

IdentifiesstakeholdersA
ND
discussespotentialimpac
tonstakeholders

Clarifies TWO or
More alternative
actions and
discusses possible
consequences to the
stakeholders

Identifiesstakeholdersbu
Identifies at least One
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failstodiscusspotentialim
consequences on stakeholders
pactonstakeholders

Failstoidentifystakehold
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DoesnotidentifyAlternativesorinco
rrectlyidentifiesalternatives.

Chooses an Act

Identifiesacourseof
actionwithsufficientdetailthatindica
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Identifiesacourseof actionbut fails

discuss the benefits and risks of th

Doesnotidentifyan appropriateplan