Objectives Goldman and Tozun decided that the economic and ethnographic evidence pointed to a clear latent demand among Indian consumers for reliable
Goldman and Tozun decided that the economic and ethnographic evidence pointed to a clear latent demand among Indian consumers for reliable, affordable light and power solutions.
In response, d.light would like to set the following objectives aligned with their marketing –channel strategy:
1.) Identify ways on how to create demand for solar lamps.
2.) Determine ways on how to build trust with unknown brand to customer.
3.) Understand ways on how to set price aligned of providing product access to different market segments
4.) Define ways on how to distribute d. light products to different marketing channel specifically for retailers and consumers.
In addition, the marketing channel strategy should be aligned to the desire of the founders to manage d.light as a for-profit social enterprise – reconciling money and mission.
Areas of Considerations and Major Assumptions
Our team assumes the following:
1. The team has limited resources, therefore has limitations on adapting all distribution channel.
2. As stated in the case’s synopsis, it is in the best interest of the founders to reconcile both money and mission – they must choose the best marketing channel strategy that allows them to profit while at the same time helping a particular segment. The ideal is to profit by helping a particular segment solve their social problems.
Our areas of consideration per objective to be met:
Objective Areas for Consideration
Create demand for solar lamps
• Need to stimulate trial
• Consumers not actively looking, though there is huge latent demand
• Consider partnering with institutions who can educate people how to use product
Create trust in the brand
• Trust is hard to earn given plethora of fake and poor-quality brands
• Consider partnering with institutions that consumers already trust, and halo from them, as long as the institutions are aligned with d.light’s mission.
Achieve affordability and easier access for d.light products
• Favorable economics for middle to high quintile segments
• Prices are still not accessible to the poorest consumers of rural India – lowest quintile
Choosing to distribute products to retailers and/or consumers.
Below also is a preliminary SWOT analysis to better explore areas of considerations.
Strength of Product:
• The advantage of using d. light product compared to kerosene users has been proven to greatly improve family conditions.
• The product has been reported to be dependable especially to unreliable electric connection.
Weakness of Product:
• The lack of education and information access in rural India meant that companies often had to educate consumers (before initiating sales). Because consumers are not seeking alternatives to kerosene lamps.
• Company product lack brand recognition and trust in rural India would be a significant barrier to consumer adoption of its products.
• Purchasing power of rural household was diminished not only by low incomes but also by the unpredictability of income streams.
• Problem with the distribution and placement of product due to lack of well-developed transportation & infrastructure on the country.
• D. Light was a startup and had limited access to financial capital, therefore it is sensitive to potential cost on different distribution channels available.
• It can eradicate the use of kerosene in a safe and cost efficient manner
• Generate inclined growth and demand for D. light product
• Increase marketing channel may possess the possibility to reduce cost
• Increase operations efficiency and effectivity if the distribution channel are properly allocated
• Limited access to electricity being solved by the product