D’light

Design

Group 6
281002 Aarushi Dureja
281009 Ankita Murarka
281016 Ayushi Verma
281026 Karan Arora
281031 Muskan Sharma
281053 Stuti Sinha
 Introduction

● U.S. for profit organization headquartered in San Francisco,

California
● Vision is to “empower lives of at least 100 million people by
2020”
● Company Developed product line of solar rechargeable LED
lanterns to provide clean and affordable source of lighting.
● Advantage of being the first mover in the solar market in India
 Case Synopsis

1) Target BOP’s segment

2) Entered India in 2009
3) Main target rural India with no electricity
4) High product quality was the advantage
5) Launched three variants each priced differently
6) Unique Distribution system
a) Post Offices
b) LPG Distributors
c) General Retailers
d) Common Service Centres
 Issues and Challenges
● Indian customers do not easily want to change their
habits
● The focus of d’Light was single product and single
market segment
● The legacy of Kerosene lanterns
● Attracting Investments was difficult
● Category creation for the solar lamps
● Rural customers willing to pay the lamps
● Apply for subsidy scheme of MNRE
● Distributors do not market solar lamps
● Creating a distribution network
Benefits
● No Recurring cost

● Longer studying hours for children

● The price will pay for itself in the long run

Solutions
● Partner with village heads to spread awareness

● Reduce the middlemen by directly supplying to village

retailers

● Provide higher profit margin to distributors

● Try to get MNRE subsidies by emphasizing of benefit of Cfls

over LEDs
Assignment Questions
Q1. What channel alignment constraints face d’Light as it thinks about how to
establish a channel structure in India? List and describe any possible
constraint(s).
Legal-Channel alignment constraint was that it it did not have government subsidy so it
was difficult for distribution.
Environment-The competitors had more established distribution network
Possible Constraints are-
● All post offices were managed by single postal worker this could lead to limited reach.
● General retailers, CSCs and LPG cylinders dealers,postal workers did not put efforts
to market the product, they just distributed it as it was not their core operation and
contributed small proportion of their income. Thus, emphasis on brand awareness
was difficult.
● Market penetration was difficult with the existing channel as it could not create
emotional connect between brand and target customers.
● Limited finance options, eg credit financing, credit schemes and mobile banking
generally not operated or accepted in the rural areas
Q2. What Channel Structure will be the most apt in the case under present
context for D’Light? Give reasons.
1. Employ local Sales people - It will strengthen interpersonal trust between
consumers also they can better influence rural members to use the product

2. Village Retailers - People can buy goods on credit from local retailers also
shop owner’s considerable power over villagers product purchases consist of
personal relationship with customer

3. Partnering with non profit organisations - Non profit organisations have

strong network in rural areas so by leveraging this network product can be
distributed in a cost effective manner.

4. Centralised (Company Owned) distribution -Large retailers often well

known and trusted by customers.
THANK YOU