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Project: Sales and Distribution of Lighting and

Luminary Products
SALES AND DISTRIBUTION PROJECT REPORT

SUBMITTED
TO
Prof. D.K. Batra

SUBMITTED BY: GROUP 2


DHRUV BANKA 18PGDM082
SHIVANGI SHARMA 18PGDM106
SHREYA SAXENA 18PGDM108
SHUBHAM GUSAIN 18PGDM113
TANYA SETH 18PGDM117
VIDUSHI JAIN 18PGDM123
Acknowledgment
We would like to express our heartfelt gratitude to Prof. D.K. Batra for giving us the opportunity
to work on the project “To analyze the Sales and Distribution of Lighting and Luminary Products”.
We would not have been able to complete the project without his constant support and guidance.
We also extend our gratitude to our friends and family who have directly or indirectly contributed
to the successful completion of the project.
We also extend our gratitude to IMI New Delhi for providing us with the platform to work on this
project.

SDM-LIGHTING AND LUMINARY PRODUCTS 2


Table of Contents
Executive Summary ....................................................................................................................................... 5
Introduction .................................................................................................................................................. 6
Market Analysis ............................................................................................................................................. 6
Objectives of the study ................................................................................................................................. 9
Methodology of the study ............................................................................................................................ 9
Schneider Electric ........................................................................................................................................ 10
Distribution Channel ............................................................................................................................... 10
Sales Force and Territory Management.................................................................................................. 11
Order Booking ......................................................................................................................................... 12
Distributor/Dealer Management ............................................................................................................ 12
Bajaj Electricals ........................................................................................................................................... 14
Distribution Channel ............................................................................................................................... 14
Route to Market ...................................................................................................................................... 15
Order Booking ......................................................................................................................................... 16
Sales Force and Territory Management.................................................................................................. 17
Distributor/ Dealer Management ........................................................................................................... 18
Territory Analysis- Bhagirath Place and Khan Market ................................................................................ 20
Target Market- Bhagirath Place, Chandni Chowk ................................................................................... 20
Market Place: Bhagirath Palace, Chhippy Wada, Chandni Chowk, New Delhi. .......................................... 20
Target Market- Lok Nayak Bhavan market, Khan Market ...................................................................... 22
E-market for Lighting and Luminary Products ............................................................................................ 33
For Government Offices .......................................................................................................................... 33
Government e-Marketplace (GeM) ............................................................................................................. 33
For industrial buyers ............................................................................................................................... 36
For Residential/Industrial Buyers ............................................................................................................ 37
End user Analysis ........................................................................................................................................ 40
Architects ................................................................................................................................................ 40
Customers ............................................................................................................................................... 40
Institutional Buyer................................................................................................................................... 41
Customer promotional strategy.................................................................................................................. 41
Bajaj Electricals ....................................................................................................................................... 42
Schneider Electric .................................................................................................................................... 44

SDM-LIGHTING AND LUMINARY PRODUCTS 3


Advertisements ........................................................................................................................................... 45
Bajaj Electricals ....................................................................................................................................... 45
Schneider Electric .................................................................................................................................... 47
Recommendations .................................................................................................................................. 48
Challenges & Alternatives ........................................................................................................................... 49
Schneider Electric .................................................................................................................................... 49
Bajaj Electricals ....................................................................................................................................... 50
Conclusion ................................................................................................................................................... 52
Learning from the study .............................................................................................................................. 52
Recommendations ...................................................................................................................................... 53
References .................................................................................................................................................. 55
Appendix ..................................................................................................................................................... 56

SDM-LIGHTING AND LUMINARY PRODUCTS 4


Executive Summary
This project deals with the sales and distribution of Lighting and Luminary products mainly in
LED segments. The main objectives of this project were to understand the sales and distribution
network of Indian Lighting and Luminary market, evaluating competitors in terms to pricing,
average sales and sales margins and identifying the challenges, drivers and opportunities.
This project follows both primary and secondary research. Secondary research through already
published reports, company profiles (to study product profiles) and government sites (to study
government tenders). Primary research included personal and telephonic interview through
structured and semi structured interview, to study the territory analysis of Bhagirath Place and
Khan Market and to carry the End user analysis of architects, builders and customers.
The main touch points through which the primary information was gathered included the retail
store managers, area sales managers and territory sales manager of respective chosen branded
companies, Bajaj and Schneider.
The identified sales route included the offline and online route, to government tenders and
commercial, institutional and household orders. Different product offerings were made to these
buyers. Among the several offering the LED lightings and Luminary products were popular and
disrupting the market share due to its energy efficiency, decreased price etc.

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Introduction
A rapid change has been witnessed globally in the lighting industry related to the style, trend and
appearances. This change is attributed to the increasing consumer disposable income which is
leading to a replacement of older lighting designs with more efficient designs. With the growing
awareness of LED lighting, people are replacing their old incandescent lights. Also, government
of several countries specially the emerging countries like India are encouraging the replacement
of old lights with the energy efficient LEDs owing to the benefits of LED lighting. Additionally,
increasing construction and infrastructure in emerging countries is providing massive opportunity
for the growth of the lighting and luminary market.
Market Analysis
Global Market
LED market globally is set to rise due
to an increase in demand for power
efficient illuminating systems across
residential, commercial, and
industrial sectors, rising concern over
reduction of non-renewable sources
of power, and decreasing price of
Light Emitting Diodes (LED) lights
are likely to propel the growth. This
increase will further be led by the
government push towards renewable
energy sources and environmental
Fig 1: Global revenue growth for packaged LEDs
protection schemes.
The lighting and luminaire segment have been seeing the biggest jump due to the huge demand
pertaining to the huge increase in the Replacement Lamps segment with an increase of 12%
CAGR pushing the market of LED lighting to around $9 billion by 2019. Replacement Lamps
usually range from 5W to 150W, they are easy to replace and offers longevity of life.

Fig 2: Revenue growth application wise

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Lamp are generally the indoor household Illuminating device, in such segment LED replacement
lamps has larger market share capturing the market of CFL, halogen and incandescent lamps. So,
this LED replacement lamp market has an opportunity to further the growth by innovating the
products increasing the product offering.

Fig 3: Global Lamp growth technology wise

The below mentioned image shows an increase in the market of Troffers which is the indoor
lighting equipment usually used in office and institutions spaces, so from 7% to 21% increase
could be due to the increase in the industrial and office spaces thus leading to the larger tender for
such products.

Fig 4: Global LED revenue

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Indian Market
The Indian lighting market is currently witnessing strong growth. Smart lighting is an innovative
technology that is replacing convention lightings such as incandescent bulbs, halogens, CFLs, etc.
with more efficient LED lights and sensors for energy conservation. With India being the second
most populated country in the world and one of the largest consumers of electricity, it has been
witnessing an increasing electricity demand-supply gap. This has resulted in regular power
shortages and blackouts across the country. The lighting sector currently accounts for around 18%
of the total electricity consumption in India. As a result, the government is playing an active role
in replacing the current lighting sector with more energy efficient products. This is expected to
drive the market for smart lighting in India. Some of the other major factors driving the smart light
market in India include technological advancements, development of various smart cities,
increasing awareness levels, easy availability at affordable prices coupled with distribution of LED
bulbs by Indian government at subsidized rates to promote the use of LED lights over halogens
and incandescent lighting products.
India LED lighting market stood at $ 918.70 million in 2016, and is projected to grow at a CAGR
of 24.66%, in value terms, during 2016-2022, to reach $ 3,758.74 million by 2022. This is on
account of increasing government initiatives to boost LED adoption and growing awareness
regarding lower power consumption of LED lighting products. Also, easy availability at affordable
prices coupled with distribution of LED bulbs by Indian government at subsidized rates to promote
the use of LED lights over halogens and incandescent lighting products is augmenting demand for
LEDs in the country.
There is increasing government initiatives to boost LED adoption and growing awareness
regarding the lower power consumption of LED lighting products. EESL’s Unnat Jyoti by
Affordable Lamps for All (UJALA) scheme is playing a driving force in conversion from old
technology to LED. Government has played a very supportive role in augmenting demand for the
lighting industry.
Major players operating in the Indian market
 Philips India Ltd
 Bajaj Electricals Ltd
 Havells Electricals
 Crompton Greaves Consumer Electricals Ltd

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Objectives of the study
The overall analysis objective is as follows
 To understand the sales and distribution network of Indian Lighting and Luminary market,
in terms of sales and volume
 To identify challenges, drivers and opportunities in the Indian LED market
 To evaluate the competitors including the pricing, average sales and sales margin
 To strategically profile the leading players in the supply of the LED lighting market
Methodology of the study
 For our study, we have segmented the Indian LED Lighting market into the following
categories
Market, by Type:
→ LED Bulbs and Lamps
→ Batten Lights
→ Downlights
→ Switchgears
→ Spotlights
→ Others
Market, by Application:
→ Outdoor Lighting
→ Indoor Lighting
→ Automotive Lighting
→ Others
Market, by End Use Sector:
→ Commercial
→ Residential
→ Institutional
→ Industrial
Approach Followed to conduct an end user analysis
 Different questionnaires are prepared to gather relevant information from the respondents.
 Survey has been done considering various factors that are taken into consideration while
making an LED purchase.
 The survey is conducted through in-depth interviews of the respondents.
 Responses so collected have been thoroughly analyzed.

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Product Study

For our study, we have researched the sales and distribution of two lighting brands- Schneider
Electric and Bajaj Electricals

Schneider Electric

Distribution Channel

The end product is transferred from the manufacturing plants to the Distribution centers (DC).
These distribution centers are completely managed by the company. There is no third part
intervention till the distribution center.
Since, the end users are primarily institutional buyers, architects, and contractors; the company
does not take into account the retailer. The company only recognizes the distributor. The
distributor in this case also acts as the dealer. The distributor/dealer can further sell the products
to retailers or the end users.
The distribution channel of Schneider Electric is customer oriented. The distribution framework is
aligned according to the set target objectives. The target objectives are:
Assortment: The end users demand an assortment of products. Schneider Electric has a diverse
product portfolio. Also, end users usually buy competitor products like electrical wires and switch
boards along with Schneider products. Therefore, it is difficult for the distributor to stock the
complete product range along with the competitor product range. The assortment is carefully
planned for each distributor by the mapped TSI.
Availability/Waiting time: The waiting time for each segment of customer is different. The
architect customer segment expects the product to be delivered within a week. Whereas, the
institutional buyer specifies the date for the delivery of product. It can range from 1 week to 2
months. Therefore, the products have to be available with the DC or the distributor.

SDM-LIGHTING AND LUMINARY PRODUCTS 10


Sales Force and Territory Management
The territory size is decided according to the market potential and growth rates observed over the
previous years. There are Regional Heads for North, South, East and West regions. Territories are
allocated accordingly to each region. The territories are managed by Territory Head. Each territory
is divided according to customer segment. The sales force in a territory is further bifurcated on the
basis of these customer segments:
→ End User
→ Panel Builder/OEMs
→ Government Departments/Government Suppliers
→ High Tension Division
Sales Quota: The Company allocates sales quota in a simple manner as it becomes difficult for
the sales managers to understand the targets. The Sales Quota is flexible in nature as it depends
upon factors like prevailing market conditions, market share and previous growth rates. The sales
quota is set according to product sales volume. The growth rate is generally set at 15-20% of the
previous year sales target. The sales target for regions having large sales volume is set at lower
growth rates. This is due to the fact that the possible market penetration in these regions is less.
The growth rates for regions having small sales volume is set at much higher rates. The sales
volume targets are bifurcated according to:
• Core Products: Schneider Electric has identified a particular product range as its core
products. The sales volume quota set for each manager comprises of 98-99% of the core
product sale. The Switch gear product range is considered under the core product set. Core
products are primarily Stock and Sell products.
• Cross Products: The sales volume quota for each manager comprises of 1-2% of the cross-
product sale. The cross products are tailor made products that are custom made according
to the customer requirements. The customer mentions the specifications of the product
which is then manufactured by the company.

SDM-LIGHTING AND LUMINARY PRODUCTS 11


Sales Force Performance Review: Each sales executive has to go through quarterly. half yearly
and annual reviews. Each executive is expected to report their performance in the last week of
each month to their senior.
Order Booking
Each distributor is mapped with a TSI (Territory Sales InCharge). The TSI is responsible for
generating the required sales target from the distributor. Order booking for the distributor is carried
out by the TSI using the SAP software. The order is booked for the nearest Distribution Center
(DC). In the case of New Delhi territory, the nearest Distribution Center is in Kundli Barrier.
Kundli Barrier DC is located at the Haryana New Delhi border. The billed products are dispatched
from this Distribution center to the authorized distributor. SAP software also has the facility of
inventory management where the stock available in each DC can be viewed by the executive while
booking an order.
The daily visits are punched in BFO software. Customer key accounts are created in this software.
The sales executives have to enter the Potential Area Market (PAM) for each account. The sales
executive has to mention the amount of order expected from each account. Therefore, sales
executive is expected to prepare daily sales report in this software. This software also has the
facility of location tracking.

Distributor/Dealer Management

The company has allocated a Territory Head and Sales Executive to each distributor. This sales
unit mapped to the dealer is responsible for assuring the optimum dealer margins. The territory
head looks after the relationship and trust building between the dealer and the company.
Lead Management for Distributor: Schneider Electric provides a flexible lead management
system to the dealer. The leads generated by the distributor sales team can be handled completely
by the dealer or they can be handed over to the company sales executive. The company sales
executive then helps the dealer salesmen to effectively execute the trade and book the order.
Sometime, the company has internal contacts that can help execute the deal. The company does

SDM-LIGHTING AND LUMINARY PRODUCTS 12


not hesitate in sharing its contacts with the dealer. Therefore, leads can be managed independently
by the dealer or by the joint effort of the dealer as well as the company.
Dealer Margins: As per the Schneider Electric dealer management policy, the company has to
ensure a minimum 3% margin to the distributor. This margin can be extended easily up to 10 %.
It depends upon the negotiation between the end user and the distributor. The conversation that we
had with the authorized distributor revealed that the distributor earned a margin of 10-15%. The
distributor also specified that the survival of the business in this competitive environment was
highly dependent upon trade promotion schemes.
Sales Trade Promotion
Trade Promotion refers to marketing activities that are executed between the channel partners
which is aimed at promotion related activity (expenditure or incentives) that pushes the product
through various channels in order to increase demand and thereby sales.
Cash Discount: If the distributor makes full payment in cash for the placed order, a cash
discount of 2% is awarded to the dealer. Also, if the dealer places an order for selected items
during a stipulated period, he is awarded another benefit of 1% on the total amount billed. This
scheme is known as Early Invoicing Bonus.
Performance Incentives (Turnover Discount): A yearly and quarterly target is set for the
distributor. Progressive Slabs are defined according to the set targets. If the dealer is able to
achieve the set quarterly target, he is awarded with 0.5% benefit. Therefore, the distributor
stands a chance to score 0.5% benefit in every quarter. If the distributor is able to achieve the
yearly set target, he is awarded with an extra 1% benefit. These benefits are awarded in the
form of credit memos.
Loyalty Incentive: If the distributor is an exclusive Schneider Electric Distributor, then he is
awarded with 1% benefit.
Prompt payment incentive: If the dealer has no overdue in the last 12 months, he is awarded
with 0.5% incentive. This ensures no clogging of financial transactions between the dealer and
the company.
Gift Cards/Coupons: If the distributor succeeds in achieving the sales target for 3 consecutive
quarters, he is awarded with gift cards or coupons. These can be Amazon Gift cards or Tanishq
gift cards.
Product Bundling: The company provides product bundling offers in different quarters. If the
distributor places an order for a particular product, he becomes eligible to avail special discount
on other category of products as well.
Sales Training for Channels Partner: The company organizes the sales training program for
distributors every year at their Gurgaon office. The distributor can send their sales team for
this advanced training. The participants are introduced to new products and market trends.
They are imparted technical training for different product lines. If the nominated salesperson
completes the training, the distributor becomes eligible for 0.5% incentive.

SDM-LIGHTING AND LUMINARY PRODUCTS 13


Point of Purchase Displays: The company has
placed in store dedicated shelf space to promote its
products, which it stands out from the competitors
and help in brand coherence to the products thus
increase in the purchase.
It in 2018 Schneider Electrics opened its first
Experiential Store in Gurgaon aimed to offer value
proposition to the customers with a wide range of
products to suit different budgets under one roof.

Credit Terms
The credit period offered to the distributor by the company is of 40 days. If the distributor is unable
to pay the full billed amount by 40 days, he is charged with heavy interest rates. There is no
Channel Finance facility available to the distributor. All financial dealings with the distributor are
carried out by the company.

Bajaj Electricals

Distribution Channel
The largest manufacturing facility of Bajaj Electricals is at Ranjangaon. It is around 50 kms from
Pune, Maharashtra. The finished goods are transferred from the manufacturing units to the Central
Warehouses. The largest warehouses are in Vapi, Gujrat and Kundli, Delhi. These warehouses are
managed by third party vendors. The company has outsourced these warehouses through their
logistic partners. The products are forwarded to the distributors through these warehouses.

Manufacturer C&F Distributor End User

SDM-LIGHTING AND LUMINARY PRODUCTS 14


Route to Market
There are two primary routes to market:
1. Government Infrastructure Projects allocated to Private Firms (Lead managed by
Distributor and Company)
The government projects are issued to government construction and infrastructure firms like
NBCC. NBCC is responsible for formulating various tenders by mentioning the optimum
specifications and allocating the required budget for it. These finalized tenders are floated online.
Various private companies like NCC, Reliance Infra, GMR Infrastructure, L&T Infrastructure etc
apply for these tenders online by mentioning their bid prices. The tender is allocated to the lowest
bid that meets the minimum eligibility criteria of the tender.
The company that is awarded the tender then floats its own tenders to procure the necessary
products for completing the projects. The total valuation for the electrical project is considered to
be 2% of the total value of the project. Eg. A new project has been posted by the Government for
building AIMS hospital in Bilaspur, Himachal Pradesh. The total construction project is valued at
200 crores. The electrical project will be valued at 4 crores (2% of total value).
Bajaj Electricals sends it TSIs (Territory Sales InCharge) to tap these private organizations. TSIs
are responsible for generating and managing these leads. It is a joint effort of the Distributor
salesmen and TSI of that region. They approach the Procuring manager of the firm. In order to
qualify for the tender, Bajaj Electrical has to issue product samples to this manager. The manager
forwards these samples to Government regulatory authority like NBCC for approval. After
rigorous testing in government labs, NBCC approves the product. Only after the approval is
granted, the procuring manager can put the company name in the tender. When the tender is floated
online, companies like Bajaj Electricals, Philips etc. that have been approved by NBCC apply for
the projects. The company which is able to meet the eligibility criteria and has the lowest bid is
allocated the tender.
2. Government Projects tendered to Civil/Electrical contractors (Lead managed by
Distributor and Company) 
Government projects are floated online through government websites and portals. Various
government PSUs and authorities like Central Public Works Department, Delhi Jal Board, Delhi
Transport Corporation, Hindustan Copper Limited, IITs, NITs, AIMs etc float tenders on e-
procurement websites like eprocure.gov.in and govtprocurement.delhi.gov.in.
Company TSIs and ASMs are responsible for tapping these authorities and getting the required
approvals for their products. The company executives have to ensure that these authorities
recognize their products and mention them in their tenders.

SDM-LIGHTING AND LUMINARY PRODUCTS 15


Civil and Electrical contractors can bid online through these portals for these tenders. The
contractors that are allocated the tenders can place orders for the products through the authorized
dealers.
3. EPC Project (Solely managed by the company)
There are certain projects which are managed by the company. The company is responsible for
generating leads and converting them. The margins for these projects are around 50% for the
organization. These projects are known as SIPC (Supply, Installation, testing and
commissioning) jobs. There is no involvement of the authorized dealer. The products are directly
invoiced through the company and are finally installed by the EPC (Engineering, Procurement and
Construction) business unit of Bajaj Electricals.
Order Booking
The order booking and invoicing for each distributor is done through SAP software.

SDM-LIGHTING AND LUMINARY PRODUCTS 16


Sales Force and Territory Management
Bajaj Electricals has revamped its hierarchy. Lighting and Luminaires have been placed under the
Illumination Business Unit. This is managed by the BU (Business Unit) Head. Bajaj Electricals
has divided the Indian Territory into two circles:
 North Circle
 South Circle
North Circle comprises of Northern and Western Indian states. It includes states like J&K,
Himachal Pradesh, Punjab, Haryana and extends upto Rajasthan in the west. It also includes
Maharashtra and Karnataka.
South Circle comprises of Southern and Eastern states. It includes states like Tamil Nadu, Kerala
and extends up to 7 sisters in the north east.
Regional managers have to report directly to the BU Head. 2 Regional Managers have been
appointed for each circle. The Regional managers for North circle are stationed in New Delhi.
Each RM has 2 branch offices under him. One RM has Chandigarh and New Delhi office under
his supervision while the other RM manages Lucknow and Jaipur branches. These branches are
managed by Area Managers who have to report directly to the RM. Therefore, each RM has 2
AMs reporting to him from their respective branches.
Each Area Manager has 4 Territory Sales In Charge (TSI) reporting to his branch office. The
territory is equally allocated to each TSI. Currently there are 3 TSI working in the Chandigarh
branch. The territory has been bifurcated as follows:
TSI 1: Chandigarh, Himachal Pradesh and part of Punjab
TSI 2: Punjab
TSI 3: J&K and Ladakh
Each TSI is expected to cover all the private and public companies. There is no particular product
assigned to TSIs. Each TSI is expected to push all the products. They are responsible for assisting
distributors and retailers across their territory.
There is two independent units:
→ Marketing Business Unit
→ Business Development Unit
→ R&D Business Unit
Bajaj Electricals has built the India’s largest product R&D lab in Mumbai.
Sales target and Quota
Sales, Marketing and Business Development Business units (BU) decide the sales target for a
particular year. The sales target is bifurcated among the North and South circle according to the
market potential, previous year sales, growth rate and market share. Further, the circle heads divide
the allocated target among the area managers. The area managers then allocate the target among
the TSIs.

SDM-LIGHTING AND LUMINARY PRODUCTS 17


Distributor/ Dealer Management
Types of Authorized Dealers
1. Stockists: Selected authorized dealers are required to maintain a particular amount of
inventory. They are automatically billed a certain amount of lighting and luminaire
products through the software.
2. Order driven: Some dealers work only against orders. They are invoiced the material only
if they have procured an order.

Lead Management for Distributor


Each distributor has been mapped with 2 TSIs. These TSIs are responsible for assisting the
distributor salesmen. They ensure enough leads are generated and converted. TSIs assist the
dealer in ordering the products and ensure that optimum quantity of product is ordered. They
focus on de clogging the channel. They help the dealer by ensuing that credit and inventory
chocking does not occur. Also, the TSIs have to make suitable margins for the distributor.
Trade Promotions
Cash Discount: This is awarded to the dealer against orders when the dealer is able to provide
money within the stipulated period of 40 days. The cash discount is fixed at 2 %.
TOD benefit: Turn over discount is awarded to the dealer on completion of yearly and
quarterly targets. TOD benefit is around 1.75% for the distributor.
Loyalty incentives: The dealer is awarded loyalty points on completion of yearly and quarterly
targets. On achieving certain loyalty points, a dealer becomes eligible for annual Bandhan
Foreign Trip. This is a special foreign trip for the distributor where he gets an opportunity to
meet the CEO and upper management of Bajaj Electricals.
Trade Fairs & Expo: The company engaged in various trade fairs which provides a cost
effective and targeted market base promotion. This provide a platform for the company to
promote brand and its products through experts and maintain brand presence in the market.
The company organize and take part in these Fairs and Expos around the year to ensure market
presence.

SDM-LIGHTING AND LUMINARY PRODUCTS 18


Credit Terms
Bajaj Electricals has strategic alliance with ICICI Bank. The company has started channel
finance network through ICICI bank where the financial transactions are handled by the bank. If
the dealer is able to pay the complete amount against the invoice in within 40 days, the dealer is
ensured Cash Discount by the company. However, if the dealer fails to pay within 40 days, the
dealer is levied 9-10% by the ICICI bank through channel finance network.
Distributor Margin
The stockiest distributor has an edge over the order driven distributor. He is ensured higher
margins over the order driven distributor. The TSIs mapped with the distributors ensure that
enough margins are awarded to the distributor. The distributors in Bhagirath Palace have a
minimum margin of 10%. However, these can be increased easily to 20% based upon the
negotiations and order volumes.

SDM-LIGHTING AND LUMINARY PRODUCTS 19


Territory Analysis- Bhagirath Place and Khan Market

We have covered the LED Lighting Market of Bhagirath place, Chandni Chowk and Lok Nayak
Bhavan Plaza, Khan Market (North Zone). The interview majorly covered the Sales and
Distribution of LED Lighting and Luminary from the salesperson’s perspective and our inferences
have been added. The interview transcript is given as follows:

Target Market- Bhagirath Place, Chandni Chowk


Market Place: Bhagirath Palace, Chhippy Wada, Chandni Chowk, New Delhi.

Inferences from Bhagirath Palace Lighting Market


 Customer are mostly retailers, distributors and cash and forwarding agents
 Unbranded products include Chinese products that offer heavy competition to branded
players
 Market is mostly owned by the small scale and wholesale manufacturers
 Sales Margin is generally around 2-3%
 Customer come from all over India
The interview questions transcript is given below
Shop Name: Fair deal Electrical Company
Address: Head office Shop no 1, 1st floor, 1858 Mahalaxmi Market Branch Office: 2065, Chah
Indara, Bhagirath Palace, Bhagirath Palace, Chhippy Wada, Chandni Chowk, New Delhi, Delhi
110006
→ Deals only in the local brands such as Kuldeep, Nordusk
→ Sales Margins: Approximately 2-3%
→ Shopkeeper himself was a manufacturer and sells his products to the distributors

Shop Name: Fair deal Electrical Company

SDM-LIGHTING AND LUMINARY PRODUCTS 20


Shop Name: Philips Light Lounge
Address: 1568 A, Bhagirath Palace, Chandni Chowk, New Delhi, Delhi 110006
→ Deals in branded and non-branded Chinese products
o Branded Products - Philips Electricals
o Unbranded Products- Chinese Imported products
→ Directly procures from the company and follows the promotional schemes as given by the
company
→ Follows Pre and post sales services as stated by the company
→ Price is directly controlled by them. 50-60 % discounts are offered by the shop
→ Customer base: Retailer, Wholesalers, retail customers

Shop Name: Philips Light Lounge

Shop Name: Sykz Electricals


→ Small size manufacturer and deals with retailers, carrying and forwarding agents,
wholesalers and distributors.
→ Deals in all categories of products except LED bulbs.

Shope Name: Sykz Electricals

SDM-LIGHTING AND LUMINARY PRODUCTS 21


Shop Name: Supreme lite Electricals
Address: 1875/2, Bhagirath Palace, Chandni Chowk, Delhi-110006
→ It’s 57-year-old shop. It has tie-up with government agencies such as Central Public Works
department (CPWD)
→ Brands available- Compact, Legero, Jupiter, Ledure, Hyglow
→ Mainly sells the above-mentioned brands and offers Philips only on customer’s demand
→ Supplies products all over India
→ Deals only through offline mode as the rotation in online is slow and the product and price
list are outdated

Shop Name: Jain Sons Electricals


Address: No.1934, 2nd and 3rd floor, HC Sen Road Opposite Fountain Near, Bhagirath Palace,
Chandni Chowk, New Delhi, Delhi 110006
→ They are manufacturers and retailers and directly deal with the end users; they do not sell
to retailers and wholesalers.

Shop Name: Jain Sons Lights

Target Market- Lok Nayak Bhavan market, Khan Market


Lok Nayak Bhavan plaza is an old building in one of the
posh areas of New Delhi- Khan Market. The plaza is famous for its indoor and outdoor lights
market. The lights include modern light lamps, flood lights, smart lights, fancy lamps, Chandelier
lamps
Inferences from Khan Market Territory
 Indoor light and outdoor lights are mainly sold
 Time taken to sell the goods is not fixed. It completely depends on the market conditions.
Currently, market is not favorable due to economic slowdown in the country.
 Bajaj Electricals, OSRAM Electricals and Philips Electricals are the leading brands
 Sale is high during the festive season – mainly Diwali and Christmas

SDM-LIGHTING AND LUMINARY PRODUCTS 22


 Distributor visits the store once a week
 Due to economic slowdown in the country, the sale of the goods is not very high
 Sales promotion strategies are mainly bundle discounts, company schemes, free shipping
 Retail customers who mostly purchase for residential purposes such as LED lamps,
Chandeliers
 Smart LED is not having high demand due to high pricing
 Sales margin of the salesperson is generally around 10-15%
 Monthly sales target is around INR 10-15 Lakh
The interview questions are majorly around the Sales and Distribution of LED Lighting and
Luminary from the salesperson’s perspective. The interview transcript is given as follows:
Dominant LED light players operating in the khan market
 Philips Electricals
 Bajaj Electricals
 Schneider Electric
 OSRAM India Private Limited
 Lustre Illuminations
 Havells Electric
Shop1: RM Lights & Switch Gears
About the Shop: Established in 2005, RM Enterprises deals in LED Lights, Pole LED lights and
Tube lights
Interviewee Name: Mr. Devender
Address: K-5, Lok Nayak Bhawan, Khan Market, Delhi - 110003, Taj Man Singh Hotel
Targeted Questions Answers
Product Portfolio LED Lights,
Pole LED light
Tube Lights
Brands Mainly Philips Electricals
OSRAM India Pvt. Ltd
Bajaj Electricals
Distributor name R.S. Enterprises – Philips
Rahul Enterprises- Bajaj Electricals

Wholesalers of LED lights, outdoor lights and


LED bulbs
How many times the distributor visits the Once in a week
store
Type of customers visiting the store Retail customers who buy in smaller
quantities, mostly for residential lighting
purposes

SDM-LIGHTING AND LUMINARY PRODUCTS 23


Time taken to sell the goods Depends on the market conditions- usually a
week to a month
Can you share the monthly sales target? Target is around INR 10 lakh (approx.)
Online Presence No
Challenges and struggles faced Rate issue is one of the major challenges –
Prices are very low
Intense competition from Chinese
manufacturers, who are flooding the market
space
Most preferred brand by the customers Philips Electricals and Bajaj Electricals due to
having the dominant market presence
Do you offer Smart LED? No, as the demand is not very much from the
customers, we are dealing with
Why don’t you offer? Any specific reason? Yes, Lack of awareness of the customers and
the high pricing are few struggles with Smart
LED
Sales Margin of Philips and OSRAM? For Philips 10-15 percent approx.

RM Lights, Lok Nayak Bhavan Palace

Shop 2: Ankur Lighting


About the Shop: Established in 1979, Ankur Lighting is largest Original Equipment
Manufacturer, started with a philosophy of providing State-of-the-art Lighting solutions. The
company leads in selling specialty items such as LED’s, CFL’s, Tracking Lights, Halogens,
Chandeliers, etc. The company has grown to become one of the largest manufacturers, retailers,
wholesalers and distributors in the world of Lighting.
Address: 15 & 17, Lok Nayak Shopping Centre, Khan Market, Delhi - 110003, Near Tajman
Singh Hotel

SDM-LIGHTING AND LUMINARY PRODUCTS 24


Targeted Questions Answers
Product Portfolio Indoor Lights – Decorative Lights include
Gate Lights, Chandeliers, Wall Scones,
pendant Lighting and Architectural lights
include Step light, cover light, etc.
Outdoor Lights- Gate Light, Street Light,
Façade Light, Underwater Light, Drive-way
lights, Ground Burial lights
Automation Lights- Switches and Hubs
Lamps and Accessories- LED and Edison
Lights
Brands Ankur Lighting is the manufacturer itself,
spread across Delhi in Khan Market, East of
Kailash and Vikas Marg, New Delhi
Distributor name No distributor.
Ankur Lighting is itself managing the sales and
distribution across its stores
How many times the distributor visits the Once in a week
store
Type of customers visiting the store Retail customers who buy in smaller
quantities, mostly for residential lighting
purposes
Corporate Customers- High profile clientele
with brands such as the CCD, Mc Donalds,
Nike, BATA, Haldiram’s, Nestle, Adidas,
Pizza Hut
Time taken to sell the goods Depends on the market conditions- usually a
week to a month
Can you share the monthly sales target? Cannot reveal
Sales promotion strategies Coupons, Bulk discounts, 1-year replacement
warranty
Online Presence Yes, amazon.in (https://www.amazon.in/ANKUR-
LIGHTING-Aluminum-Indoor-7873-
2/dp/B01LY425EU)
Challenges and struggles faced Rate issue is one of the major challenges –
Prices are very low
Intense competition from Chinese
manufacturers, who are flooding the market
space
Do you offer Smart LED? No, as the demand is not very much from the
customers, we are dealing with.
Sales margin of your products? Cannot reveal

SDM-LIGHTING AND LUMINARY PRODUCTS 25


Promotion of Ankur Lighting during Christmas

Ankur Lighting, Lok Nayak, Bhavan Palace

Shop 3: Anup Marketing House


About the Store: Established in 1984, Anup Marketing House is a wholesale manufacturer and
trader of LED Lights, indoor fancy lights, flood lights, Pole Lights, etc.
Address: Shop no 23, Lok Nayak Bhavan, Main khan market, Khan Market, Delhi - 110003, Near
the central bank

Targeted Questions Answers


Product Portfolio Indoor Lights – LED Lamps, Wall Lights,
Indoor fancy lights.
Outdoor Lights- Gate Light, Street Light,
Façade Light, Drive-way lights, Pole lights
Brands Lustre Illuminations
Earlier we were also a distributor for Philips
lights too, but not anymore
Why don’t you distribute Philips products  There were too many complaints with
anymore? Advantage with Lustre illumination Philips lights
over Philips  Once the light filament got broken, it
took a lot of time to get it changed/
replaced

SDM-LIGHTING AND LUMINARY PRODUCTS 26


 Advantage with Lustre is the fast lead
time
 Also, Lustre Illuminations is an Indian
company, so the filament glass is easily
available
Distributor name We, Anup Marketing House are ourselves the
distributor. We distribute our products all over
India
Type of customers visiting the store Mostly walk in customers
Retail customers who buy in smaller
quantities, mostly for residential lighting
purposes
Few corporate customers such as builders,
architects and institutional buyers. These
customers buy mostly in bulk
Time taken to sell the goods Not fixed. Depends on the market conditions.
Sale is mostly high on festive season,
especially Diwali
Diwali season is the busiest
Right now, off-season is there, with no major
sale. May be due to the economic slowdown
consumers are not purchasing
Can you share the monthly sales target? Cannot reveal
Sales promotion strategies Festive discounts
bulk discounts are given to loyal customers
Free Shipping in India and a 1-year warranty
Bundle offers
Online Presence No, we don’t
Challenges and struggles faced Due to the economic slowdown, the sale is not
very high
Rate issue is one of the major challenges –
Prices are very low
Intense competition from Chinese
manufacturers, who are flooding the market
space
Do you offer Smart LED? No, as the demand is not very much from the
customers, we are dealing with.
Sales margin of your products? 10-15 Percent approx.

SDM-LIGHTING AND LUMINARY PRODUCTS 27


Anup Marketing House

Shop 4: Philips Hue Smart Lighting Hub


About the Store: Philips Hue offers a wide range of smart light bulbs, lamps, fixtures and
accessories.
Address: Shop no 33, Lok Nayak Bhavan, Main khan market, Khan Market, Delhi - 110003, Near
the central bank
Interviewee name 1- Salesperson: Mr. Imtiaz Ahmed
Interviewee name 2 – Distributor of Philips for Khan Market territory: Mr. Nitin Gupta
Targeted Questions Answers
Product Portfolio Indoor Lights – Hue white and color LED
bulbs, Light strips, suspension lights, ceiling
lights, Wellness Table Lamps, Beyond Ceiling
Lights
Brands Philips Hue smart lights
Distributor name Mr. Nitin Gupta takes care of the Philips Khan
Market territory
Type of customers visiting the store Mostly walk in customers
Retail customers who buy in smaller
quantities, mostly for residential lighting
purposes
Professional customers- Who buy in bulk,
mostly architectural lights. Mostly builders,
architects and institutional buyers
Time taken to sell the goods Not fixed. Depends on the market conditions.
Sale is mostly high on festive season,
especially Diwali
Diwali season is the busiest

SDM-LIGHTING AND LUMINARY PRODUCTS 28


Right now, off-season is there, with no major
sale. May be due to the economic slowdown
consumers are not purchasing
Can you share the monthly sales target? As per Mr. Imtiaz Ahmed (Salesperson), his
monthly target is of INR 12 Lakhs
Company target is INR 10 lakhs
Sales promotion strategies Free shipping
2-year warranty
Setup in minutes
Bundle discounts
Online Presence Yes, we have it
Philips Hue official site
Amazon, Flipkart and other e-commerce sites
Challenges and struggles faced Due to the economic slowdown, the sale is not
very high
Rate issue is one of the major challenges –
Prices are very low
Intense competition from Chinese
manufacturers, who are flooding the market
space
Do you offer Smart LED? Yes, the entire structure of Philips Hue Smart
light Hub is built on smart LED.
Do you have more demand for smart lights No, demand for both is relatively same. The
than normal? target customer for smart lights is altogether
different
Since, smart light is relatively expensive and
people usually find it not very cost effective,
so the target group is mostly high-end
customers who are willing to spend for the
newer trend, new technology and high quality.
Sales margin of your products? 10 approx. (For the distributor, Mr. Nitin
Gupta)

Philips Hue Smart Light hub, Lok Nayak Bhavan Palace

SDM-LIGHTING AND LUMINARY PRODUCTS 29


Shop 5: LYNX lighting
About the store: Mostly deals in switchgears
Address: K-7, Lok Nayak Bhawan, Khan Market, Delhi - 110003, Near Hotel Taj, Main Khan
Market
Interviewee Name: Mr. Tejbeer
Targeted Questions Answers
Product Portfolio Indoor Lights: LED bulbs, Light strips,
suspension lights
Switchgears
LED Lamps
Halogen lights
Brands Bajaj Electricals
Philips Electricals
OSRAM India Pvt. Ltd
Schneider Electricals for switchgears
Distributor name R.S. Enterprises- Philips Electricals
Wholesalers of LED lights, outdoor lights and
LED bulbs
Rahul Enterprises- Bajaj Electricals
Havells Electrics – Calvin Electric
OSRAM India Pvt. Ltd.- Maya Distributors
Type of customers visiting the store Mostly walk in customers
Retail customers who buy in smaller
quantities, mostly for residential lighting
purposes
Time taken to sell the goods Not fixed. Depends on the market conditions.
Sale is mostly high on festive season,
especially Diwali
Diwali season is the busiest
Right now, off-season is there, with no major
sale. May be due to the economic slowdown
consumers are not purchasing
Can you share the monthly sales target? As given by the company. Generally, INR 5-
10 lakhs monthly
Sales promotion strategies Constant promotion as given by the company
Company schemes/ discounts/offers
Online Presence No, we don’t have it
Challenges and struggles faced Due to the economic slowdown, the sale is not
very high
Rate issue is one of the major challenges –
Prices are very low

SDM-LIGHTING AND LUMINARY PRODUCTS 30


Intense competition from Chinese
manufacturers, who are flooding the market
space
Most preferred LED brands among customers Bajaj Electricals and Philips, since these are
the market leader
Do you offer Smart LED? No, as the demand is not very much from the
customers, we are dealing with.
Sales margin of your products? 10-15 approx. (For the distributor, Mr. Nitin
Gupta)

LYNX Lok Nayak Bhavan Place

SDM-LIGHTING AND LUMINARY PRODUCTS 31


DGS&D (Directorate General of Supplies and Disposals)
DGS&D is the central purchase and quality assurance organization of the Indian government,
functioning under the Ministry of Commerce & Industry. Its role is to finalize the rate contracts
to be used by Government departments to procure items of general use. Because of these
DGS&D contract rates the state, central and government owned entities have to buy the required
goods at the DGS&D specified prices. These rates are fixed every year for such purchases by
government departments and Public Sector Undertakings (PSUs). These DGS&D rate contracts
help the government buyers to procure the goods at the bulk rate pricing and avoid the hassle of
re-tendering. It also allows them to buy the goods at the same rate throughout the year. This
contract helps the government agencies to maintain their budget and manage their inventory
more efficiently. These rate contracts provide the supplier with the access to a fixed customer
and large volume of purchases for a specific time period without having to respond to tenders
frequently.
DGS&D has its origin in the India Stores Department, which was established in 1860 in London
for purchase of imported stores.
The directorate has two professional service cadres -- Indian Supply Service and Indian
Inspection Service.
Last year, GeM was launched by the ministry to bring greater transparency and efficiency in
public procurement. The public procurement of goods and services is being managed by the
ministry's e-market platform (GeM) since then.
Currently, the directorate has four regional offices including Mumbai, Kolkata and Chennai. It
has 12 Purchase Directorates (Commodity-wise) at its headquarters here. Besides, there are 20
offices /sub centres and the staff strength is over 1,200. The GeM portal has eliminated human
interface in vendor registration, order placement and payment processing to a great extent. The
central and state governments procure goods and services worth over Rs 5 lakh crore annually.
Currently, over 20,000 sellers are registered on this portal for selling over 50,000 products.

Few names mentioned in the 2013-14 financial report of DGS&D were:

• SURYA ROSHNI LIMITED - cfl (self-ballasted lamps for general lighting services)
• SURYA ROSHNI LIMITED - fluorescent tubular lamps
• BAJAJ ELECTRICALS LIMITED - cfl (self-ballasted lamps for general lighting
services)

SDM-LIGHTING AND LUMINARY PRODUCTS 32


E-market for Lighting and Luminary Products

For Government Offices


Government e-Marketplace (GeM)
Government e-Marketplace (GeM) is a one stop portal to facilitate online procurement of common
use Goods & Services required by various Government Departments / Organizations / PSUs. GeM
aims to enhance transparency, efficiency and speed in public procurement. It provides the tools of
e-bidding, reverse e-auction and demand aggregation to facilitate the government users achieve
the best value for their money.
The purchases through GeM by Government users have been authorized and made mandatory by
Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
GeM Advantages for Buyers
 Offers rich listing of products for individual categories of Goods/Services
 Makes available search, compare, select and buy facility
 Enables buying Goods and Services online, as and when required.
 Provides transparency and ease of buying
 Ensures continuous vendor rating system
 Up-to-date user-friendly dashboard for buying, monitoring supplies and payments
 Provisions of easy return policy

SDM-LIGHTING AND LUMINARY PRODUCTS 33


GeM Advantages for Sellers
 Direct access to all Government departments.
 One-stop shop for marketing with minimal efforts
 One-stop shop for the bids / reverse auction on products / services
 New Product Suggestion facility available to Sellers
 Dynamic pricing: Price can be changed based on market conditions
 Seller friendly dashboard for selling, and monitoring of supplies and payments
 Consistent and uniform purchase procedures
Lighting and luminaries’ products from Schneider Electric, Bajaj Electric, Syska, Philips,
Crompton Greaves and other brands are available at GeM portal to be bought by the GOI.
Examples are:
 Flood Light

SDM-LIGHTING AND LUMINARY PRODUCTS 34


 LED Lights

SDM-LIGHTING AND LUMINARY PRODUCTS 35


For industrial buyers

Industrybuying.com
It is a platform featuring an exclusive range of utility products for all industrial purposes.
The options available in lighting and luminary products on the website are:
 Conventional Lighting
 Decorative Lights
 Garden Lights
 Hand Torch & Lamps
 Industrial Lights
 Inground & Underwater Light
 LED Accessories
 LED Bay Lights
 LED Bollard Light
 LED Bulbs
 LED Canopy Light
 LED Ceiling Light
 LED Combo
 LED Diodes
 LED Down Light
 LED Emergency Light
 LED Exit Signage
 LED Flood & Outdoor Lights
 LED Flood Light
 LED Footlight
 LED Panel Light
 LED Tube Lights
 LED Wall Lights
 Lighting Accessories
Thousands of products of different brands are available for industrial buying purposes.

SDM-LIGHTING AND LUMINARY PRODUCTS 36


For Residential/Industrial Buyers
Amazon.in
Amazon is one of the many one-stop-shop portals for buying good. It has a variety of lighting and
luminaries’ products available. The categories available in LED are:
 Smart Lights
 LED Bulbs
 Emergency Lights
 Ceiling Lights

SDM-LIGHTING AND LUMINARY PRODUCTS 37


Amazon.in has hundreds of options in Indoor lighting, outdoor lighting, and other types of lighting
products available. Below is a snapshot with the different options of lighting products available at
amazon.in

SDM-LIGHTING AND LUMINARY PRODUCTS 38


Flipkart.com
Flipkart has hundreds of lighting and luminary products classified under Home Lighting and
Utility Lighting Categories, for online customers to buy.
Made-In-China.com
There are websites like made-in-China.com, which have thousands of Chinese products listed.
These products can be purchased, paid for, and shipped.

SDM-LIGHTING AND LUMINARY PRODUCTS 39


End user Analysis

Architects
Architectural lighting fixtures are not only a matter of taste and style but also a major safety
concern and functional part of the building being designed. Therefore, understanding the
concerns of the architects while choosing products will enable us to gain insights on the overall
sales and distribution of lighting and luminary products.
Insights gathered from the interaction with architects:
As per our survey, architects prefer LED lights because of the following reasons: Energy
efficiency, reduction in greenhouse gas emission, enhanced safety, cost effectiveness, wide
variety, easy installation.
The architects buy the products mainly from the distributor. The factors considered while
making a purchase are: free installation, site inspection facility, extended warranties, easy
replacement, lead time for the order, discounts offered on bulk purchases.
The choice of branded or unbranded products depends on the budget of the project. Branded
products offer guarantee and trust whereas unbranded products are affordable and are available
in a variety of designs.
Due to the expansion of the e-commerce market, architects also prefer buying light fixtures
online. There are various websites such as croma.com, havells.in, amazon.com, flipkart.com,
indiamart.com which are preferred by these architects.

Customers
Insights gathered by interviewing the customers:
Customer prefers LED over other lights due to high efficiency and low energy consumption.
People mostly go for replacement of older lights with new LEDs. The customers are not very
much aware about the latest LED technology as the hidden benefits are not properly
communicated to the users. It also affects the purchase of the smart LED lights as the customer
is unaware about the technological advancements in these products.
The choice of branded and unbranded lights depends upon its purpose. If the lights are to be
installed in the living area and for the aesthetics point of view the lights chosen are mostly
unbranded due to the wider variety of designs available whereas branded lights are preferred
because of their quality and longer life span.

SDM-LIGHTING AND LUMINARY PRODUCTS 40


Institutional Buyer
Insights gathered by interviewing the institutional buyer:
As per the survey the institutional buyers usually have no choice other than LED since the
government float tenders for LED lighting products through. These government tenders have
a duration of 1 month to 4 years, like for new building it would be around 2 years, since it
includes the electrical work of whole building also and for renovation would be around 3-6
months this only have the replacement work majorly.
The material including electrical wires, tools and LED lighting products, are procured from
directly from distributors. Generally, for these tenders the workforce would depend on the
load of work like for High-Tension work and Low-Tension work force would be around 30-
40 and 25-30 respectively and for renovation it would be 5.
The payment would be on the basis of running payment. Government would divide the whole
work into countable slabs and each of these slabs would then contain the percentage payment
amount. In up front these institutional buyers would ask for the 2% of the tender value to
protect then against any unforeseen financial needs.
The government float tender to specific institution on the basis of - bid value, tender duration
and contractor ship license. Contractor ship license means, each institution would be assigned
A, B and C panelment based on the order size. The interviewee has panelment A.
These government tender requires the institution to follow on certain standards of LM79 and
LM80 which was checked by NABL Lab testing.

Customer promotional strategy

Consumer promotion is one of the major strategy used by both Bajaj Electricals and Schneider
Electric to attract new customers and expand the customer base. This play an important role for
new companies or new product launches.
The sources used to study the consumer promotion of Bajaj Electricals and Schneider Electric are
mentioned below:
• E-market Analysis
• End User Analysis
• Field work on various stores selling Bajaj LEDs and Schneider products

SDM-LIGHTING AND LUMINARY PRODUCTS 41


Bajaj Electricals

• Brand Promise: Bajaj Electricals assures its customers with high quality consumer goods
and its brand promise “Enhancing quality of life and bringing happiness with
sustainability”.
• Promotional Activities: The company is mostly active on traditional media such as TV
ads, radio magazines, billboards and newspapers for its promotion. Also, the company is
moving towards its digital and social media presence with ads on internet
• Redefining the brand: Bajaj has taken active initiatives to redefine the image of its
company. It has launched creative and innovative ads using animated characters. The
company was one of the first in its competitors to go for animated characters instead of
traditional celebrity endorsements.
• TV Ad Campaigns: Bajaj ad campaigns are created by the Bajaj’s ad agency OnAds
Communication Agency
#IndiansWhoShine Ad Campaign: This piece of work was executed for the LED
segment of Bajaj Electricals on Nov, 2018. This campaign was planned with a purpose to
refuel pride in the brand that blended patriotism with the product. The campaign was
dedicated to the brave souls who brighten the lives of Indian by protecting the nation.

YouTube Link:
https://www.youtube.com/watch?v=XLXa6CjPMdc&feature=youtu.be

#MagicofLight Ad Campaign: The company launched series of three Television Ads.


The main aim of the campaign was to show the role of Bajaj Electrical in the rural
electrification over the years
The first campaign focuses on the how every year, millions of women in India are forced
to quit their dreams of career and self-sufficiency because of the dangers of poor street
lights. Bajaj Electricals has been working towards lighting up the poor lit streets. This is
an initiative to make India a safer place for women

SDM-LIGHTING AND LUMINARY PRODUCTS 42


YouTube Link: https://www.youtube.com/watch?v=Zqo72P3fgZk
• Print campaign
Bajaj Electricals uses print campaigns to revamps its image and make its brand relevant to
youth as well

• Competitive Pricing: The brand has played its price and offered discounts and various
coupons under its sales schemes. It has even allowed part or monthly payments to some of
the products.
• Quantity Discounts: Company mostly offer special discounts on the purchase of bulk
order quantity
• Special discounts/ Festive Discounts: As a part of promotional strategy, the brand offers
special discounts or festive discounts on product prices at periodic intervals.
• Focus on modern trade practices and e-commerce:
Shop for Bajaj LED Lights online at the Best Price: Led lights are available for online
purchase and special discounts are given to buy online with no shipping charges on bulk
purchase
As quoted on its site
“Bajaj LED lights consume less energy that adds to their safety mechanism, while keeping
the electricity bills light on your pockets. All our products are reasonably priced and are
SDM-LIGHTING AND LUMINARY PRODUCTS 43
budget friendly considering excellent features that are offered by our unique products. Buy
LED lights online to light up your home, directly from our site and avail our various
discounts and offers”

• Warranty: LED products carry a warranty of 2 years


• Post Sales Service: Bajaj’s post sale service or consumer care is a key differentiator among
the plethora of its competitors. It has a strong network in after sales service and developed
a setup to service within 72 hours irrespective of where the customer has brought the
product. It has around 400 service centers and 2800 service mechanics across the country

Schneider Electric

• Promotional activities: Schneider Electric has launched ad campaigns via television,


magazines, YouTube, and Facebook to gain maximum visibility.
• “Switch on India” Campaign: Schneider Electric launched ‘Switch on India’ campaign
in different states across India to expand its presence across the country. The initiative was
in line with the Government’s “Smart City Mission” and “Digital India” initiatives. The
focus was to facilitate a deeper engagement with the electrical base and retail network
across the country. The campaign was also focused to generate awareness about the
importance of safety, standardization, and sustainable solutions for the end-users
• WATConsult Ad agency- Schneider Electric has recently appointed WATConsult to
build innovative, creative and, efficient ad campaigns for its digital and social media.
WATConsult ad agency will strategize, plan and execute a comprehensive social media
strategy for all Schneider Electric’s business verticals in India. It is a full service digital
agency

SDM-LIGHTING AND LUMINARY PRODUCTS 44


• Social Media Presence: The company is present on Facebook, Twitter, YouTube, and
LinkedIn to reach its customers at every level. Schneider has an active presence on
Facebook with a large social community of over 2 million followers
• Environmental responsibility: The company has taken several steps to promote green
attributes, leveraging wastes and strategies to build green supply chain.
• Quantity Discounts: The brand has played its price and offered discounts and various
coupons under its sales schemes. The Company mostly offer special discounts on the
purchase of bulk order quantity
• Special discounts/ Festive Discounts: As a part of promotional strategy, the brand offers
special discounts or festive discounts on product prices at periodic intervals.

Advertisements

Bajaj Electricals

They market their products through ads in newspapers, radio, TV, as well as social media
campaigns. They have presence on social media channels. They have a facebook page which they
use to engage customers and promote their product. Some popular campaigns which Bajaj
Electricals have done are:

#Magic of Lights Campaign


The main aim of the campaign is to show crucial role played by Bajaj Electrical in the
electrification of rural parts of India. This is the first campaign from the Bajaj Electrical to aware
the people about their role in Infrastructure building of the country.
The campaign includes three Tv commercials based on three different stories set in remote areas
of India where the electricity has still not reached.
• The first campaign narrates the story of several women who live in a rural area and forced
to give up on their dreams and ability because of the fear of going out in the dark as there
are no street lights in the village. The commercial shows how Bajaj Electricals is working
to light up the every street of India.
SDM-LIGHTING AND LUMINARY PRODUCTS 45
• The second ad campaign tells a story of a man who drives a taxi to earn his wage in an
Urban area and how he was forced to leave his village and his family behind in village to
earn the livelihood for him and his family. As there is no electricity in the village so he
only returns to his home when there was electricity in the village. The main aim of the
campaign is to show how Bajaj Electricals has electrified over 25,000 villages so that
families can stay together.
• The third campaign showcase the effort of a forest officer who helped Bajaj Electricals to
distribute the electricity in a remote area near to a forest. For electricity to reach there Bajaj
Electricals have made special double height transmission pole so that electricity can be
given to villagers without harming any animal.
All these stories are inspired by real life incidents and show case the magic of light which is also
the theme of this whole campaign. Apart from television, the campaign is also hit on digital
platforms.

Social Media Engagement – Onam Contest


Bajaj Electricals has been active at social media sites to engage customers from time-to-time. One
such engagement was the Onam Contest launched on Facebook and Twitter.
• Objective
The brand was motivated to celebrate the 10-day long festival of Onam with their followers
through social media by engaging them in a contest based around the theme of the festival.
• Execution
A day prior to the contest announcement, the campaign was commenced with a teaser on
September 12. The contest was kicked off with crossword clues for ‘Across’ and ‘Down’ based
completely on the history and activities around Onam which ran for a day on 13th September on
their official handles on Facebook and Twitter.
Participants were required to post their entries for the crossword in the form of comments on
Facebook and replies on Twitter.
• Results
The contest was well received, although participation was not considerably high as the crossword
was based on a traditional festival exclusive to Keralites, and additionally it ran only for 24 hours.
It amassed a collective reach of 17,602 on Facebook, with interaction peaking at 1687. On
Facebook, the contest posts racked up 645 comments and 416 shares. The engagement rate on
Facebook was 9.58%.
On Twitter, the contest achieved 13,241 impressions, 200 retweets, 156 likes and 357 replies. The
engagement rate on Twitter was 9.20%

SDM-LIGHTING AND LUMINARY PRODUCTS 46


The campaign was an overall success as the results were organic and received a good response
from social media users on both Facebook and Twitter.

Besides these campaigns, the company has also created ads and campaigns around other messages
intending for an impact on the society. One of Bajaj Electricals’ popular ad with a social message
was - “Jab tyohar milkar sab manaayen, toh khaana sirf bahu hi kyun pakaaye”,
There was another ad emphasizing the fact that Bajaj is there with its customers, with tagline -
“Aapke har safar me hum aapke saath hain, kyunki aapke bina hum, aur humare bina aap, bilkul
adhoore hain”.
They position themselves to be a part of everyday life of people with #WeAreFamily.
The oldest ad our generation remembers of Bajaj Electrcials is “Jab me chota ladka tha, badi
shararat karta tha, meri chori pakdi jaati, jab roshan hota Bajaj, ab me bilkul budha hoon, goli
khakar jeeta hun, lekin aaj bhi ghar ke andar, Roshni deta Bajaj” – showing Bajaj’s presence in
people’s lives for generations, and the amount of trust built over decades.

Schneider Electric

Schneider Electric launched its first major integrated, multi-platform marketing campaign in 2017
to highlight its continued leadership in digital transformation powering the digital economy. The
campaign brings together world-class content partnerships with the Financial Times, Wall Street
Journal, and the Economist with sponsored programming from CNBC including thought
leadership and content marketing outreach. The digital-centric campaign includes activation
through social media, viral marketing, and owned media properties. A central focus of the
campaign is Schneider Electric’s Innovation Summit World Tour, which invites customers and
partners to experience EcoStruxure solutions including EcoStruxure World Premieres.
#WhatsYourBoldIdea
The future will be shaped by three of the biggest megatrends: urbanization, digitization, and
industrialization, leading to increased energy demand. Schneider Electric views this as an exciting
opportunity for our generation to solve the energy paradox: balancing our planet’s carbon footprint
with the irrefutable human right to quality energy.
Many consider this to be a bold vision. Schneider Electric constantly challenges itself to rethink
the future, re-write the rules of the game, and to re-access the possibilities. A bold vision calls for
bold ideas - ideas that are tangible and applicable right now and deliver measurable results.
Schneider Electric is bringing these to life by making businesses safer, more reliable, connected,
efficient, and sustainable through digital transformation.
Reaching bold thinkers

SDM-LIGHTING AND LUMINARY PRODUCTS 47


The campaign also seeks to prompt bold ideas from thought leaders, partners, and customers
worldwide. In 2018, Schneider Electric planned to launch a specific initiative targeting developers
and helping them realize their bold ideas to address the energy paradox. This builds on existing
campaigns such as the Schneider Electric ‘’Go Green in the City’’ competition. The campaign also
features co-marketing with stories of how Schneider Electric collaborates with its ecosystem.
Together with Accenture and Microsoft and its digital alliance partners, Schneider Electric co-
innovates to design new IoT-enabled digital offers and services to make bold ideas a reality.

Inspiring thought leadership


A core component of the campaign is a focus on deep thought leadership content. Over 2019,
Schneider Electric plans to publish a suite of content pieces from deep-dive white papers to social
media activations based around eight themes promoting Schneider Electric’s deep and broad
expertise across industry, building, homes, IT, and sustainability.
Additionally, throughout the campaign, Schneider Electric will share real-life customer stories that
demonstrate bold ideas and tangible results. It will also showcase a series of 30-second television
commercials featuring authentic customer voices such as those from Nemours Children’s Hospital,
which serves as the guardian of the next generation, with reliable power for critical applications
that demonstrate Schneider Electric’s brand vision of ensuring Life Is On everywhere, for
everyone, and at every moment.

Recommendations
• To boost the SMART led sales, company should focus more on consumer promotion
strategies to increase consumer awareness. (As inferred from the end user analysis,
customer was not aware of the smart LEDs)
• Schneider can enter into e-commerce distribution for India as well via Amazon, Flipkart
etc.

SDM-LIGHTING AND LUMINARY PRODUCTS 48


Challenges & Alternatives

Schneider Electric
• Territory Invasion: Distributors from tier 1 cities (Large regions) have started penetrating the
smaller territories in order to procure more orders. E.g.: A large distributor of New Delhi region
can procure orders from a smaller territory like Punjab. The distributors of Punjab region have to
face revenue losses due to this territory invasion. Distributors of large regions continue to flourish
whereas it has become difficult for smaller distributors to survive.

Proposed Solution Pros Cons


Use of SAP Funnel software to • This software will • Training the employees
map the distributor with the ensure that the for the same would be
generated lead. distributor who first an added cost to the
generated the lead gets company.
the margin. • The earlier mapped
• This will ensure better distributor will reap all
after sales service for the benefits irrespective
the customer. of any efforts in selling
the product. The dealer
who is actually
converting the lead is
not getting the deserved
reward.

• Increasing unauthorized dealers: The Company is unable to control the increasing numbers of
unauthorized dealers in small regions like Punjab and Haryana. Various retailers place bulk orders
and procure products from authorized dealers of large regions like New Delhi. As these retailers
are placing bulk orders, they are able to procure products at a much cheaper price as compared to
the authorized dealers of the same region. Therefore, these small retailers act as Pseudo Authorized
Dealers. Therefore, the Authorized distributors have to face revenue losses.

Proposed Solution Pros Cons


Creating awareness among the • This will reduce the • The sales of the
customers regarding certain number of retailers company might be
benefits that will only be posing as authorized hampered
provided by the authorized dealers • Reduction in reach of
dealers like extended warranty, • Improves brand name the company
instant replacements, NABL • Accurate Sales data will
certifications against the be available
product, etc.

SDM-LIGHTING AND LUMINARY PRODUCTS 49


• Distributor cartel: The distributors of large regions like New Delhi have started forming cartels.
Each dealer places bulk order of a particular product only. This enables the dealer to place bulk
orders which become eligible for huge product discount. These dealers then evenly distribute the
products among themselves. This enables them to procure products at the cheapest rate possible.

Proposed Solution Pros Cons


Setting up the threshold for the • The company’s margin • Reduction in the sales of
quantity of order placement for a will improve as the the company as the
particular product. Turnover Discount quantity ordered will be
(TOD) will reduce reduced

• Uneven Credit terms: Distributors are offered longer credit periods therefore, leading to reduced
liquidity for the company.

Proposed Solution Pros Cons


Channel finance to be deployed. • Improvement in the cash • High interest rates for
Where the company ties up with cycle the distributors
a bank which gives credit to the • Increased availability of
distributor and the company gets cash which can be
the payment through the bank reinvested in the
itself. business

• After Sales Service: Due to the inefficient logistics of the company the repair and replacement of
the products takes longer than the expected time which hampers the company’s trust worthiness
and effectiveness.

Proposed Solution Pros Cons


The company should have a • Customer satisfaction Added cost to the company to
stronger after-sales services • Improved Brand loyalty recruit more employees and
team and more service centers training.

Bajaj Electricals
• Dealer Cartels: The distributors of large regions like New Delhi have started forming cartels.
Each dealer places bulk order of a particular product only. This enables the dealer to place bulk
orders which become eligible for huge product discount. These dealers then evenly distribute the
products among themselves. This enables them to procure products at the cheapest rate possible.

Proposed Solution Pros Cons


Setting up the threshold for the • The company’s margin • Reduction in the sales of
quantity of order placement for a will improve as the the company as the
particular product. Turnover Discount quantity ordered will be
(TOD) will reduce. reduced.

SDM-LIGHTING AND LUMINARY PRODUCTS 50


• After Sales Service: Bajaj Electricals is unable to ensure a particular time for after sales service
of the LED product. There is no proper in-house team at the branch offices.

Proposed Solution Pros Cons


The company should have a • Customer satisfaction • Added cost to the
stronger after-sales services • Improved Brand loyalty company to recruit more
team. employees and training.

• Dealers want Transportation/Logistics to be reimbursed by the company: Dealers insist on


reimbursing the transportation charges when the product is to be delivered to a site other than the
dealer’s warehouse.

Proposed Solution Pros Cons


The company should incentivize • Satisfied dealers as the Added cost to the company.
the distributors by offering cost of transferring the
freight charges lower than the products from the
market price. company’s warehouse
to the end user are
reduced

• Company directly supplying bulk order: In certain cases, the company can supply the order
directly to the end user without including the distributor in the negotiations. Therefore, the
distributor feels cheated when the company directly deals with the end user to earn better margins.

Proposed Solution Pros Cons


The company should increase • It will reduce the current • Loss to the company.
the minimum order limit that losses faced by the
will be directly supplied by them distributors and will
help in maintaining the
company’s relationship
with its distributors.

• Poor logistics: Bajaj Electricals has outsourced the Central warehouses and the logistics of the
company. Therefore, they are unable to ensure a particular delivery date. The end user suffers due
to delayed deliveries. The customer buys from distributor of other companies.

Proposed Solution Pros Cons


Ensure proper hand shake on IT • Efficient supply chain
front between the warehouse and distribution channel
and manufacturing unit • Cost effective

SDM-LIGHTING AND LUMINARY PRODUCTS 51


Conclusion
Through the project, we analyzed the sales and distribution of Lighting and Luminary products -
mainly in the LED segments. We worked on understanding the sales and distribution network of
Indian Lighting and Luminary market, evaluating competitors in terms of pricing, average sales,
sales margins and identifying the challenges, drivers and opportunities.
For our project to be successful, we did both primary and secondary research. Secondary research
through already published reports, company profiles (to study product profiles) and government
sites (to study government tenders). Primary research included personal and telephonic interviews
through structured and semi structured interview, to study the territory analysis of Bhagirath Place
and Khan Market and to carry the end-user analysis of architects, builders and customers. The
main touch points through which primary information was gathered includes retail store managers,
area sales managers and territory sales managers of respective chosen branded companies, Bajaj
and Schneider.
We worked on understanding the sales and distribution network of the Indian LED Lighting
market, the sales structure of Bajaj Electricals and Schneider Electricals and complexities involved
in managing sales for the company, importance of the efficiency in the supply chain and
distribution channel for better customer satisfaction ,scope and growth of Smart LED lights across
consumer segments, and analyzed how unauthorized dealers are impacting the market. The
identified sales route included the offline and online route, government tenders and commercial,
institutional and household orders. Different product offerings are made to these buyers. Among
the several offerings the LED lightings and Luminary products are popular and disrupting the
market share due to their energy efficiency, decreased price etc.
In totality, we have tried our best to do justice to understanding the overall sales and distribution
of lighting and luminary products for the two chosen brands.

Learning from the study


 Understanding the sales and distribution network of the Indian LED Lighting market
 Understanding the sales structure of Bajaj Electricals and Schneider Electricals and its
complexity in managing sales
 Importance of the efficiency in the supply chain and distribution channel for better
customer satisfaction
 Scope and growth of Smart LED lights across consumer segments
 How unauthorized dealers are impacting the market

SDM-LIGHTING AND LUMINARY PRODUCTS 52


Recommendations
Both Bajaj and Schneider
 From our end user analysis (Customer analysis), we came to know that consumers are not
well informed about smart LED technology, therefore the companies can invest in the
promotion of Smart LEDs as these products offer higher margins to the company.
 Our analysis suggests that architects look for extended warranties and easy replacement of
products purchased. Therefore, the companies can work on their replacement policies and
reduce the time taken for replacement.
 The distributors lack sales support from the company. Therefore, the companies should
provide their salesmen to the distributors to offer sales support

For Schneider
SAP Funnel
In-depth interviews with Bajaj Electrical ASM and TSI revealed an intriguing
road block in the sales process. They were facing two major challenges:
• Sales Poaching
• Territory Invasion
Territory invasion by large dealers from Tier 1 metro cities like New Delhi and Mumbai is still
prevalent. These deep pocketed dealers have the capacity to penetrate the territories of small
dealers. Thus, hampering the business margins and opportunity of small dealers.
Bajaj recently adopted the SAP sales funnel as a measure to overcome this obstacle. This SAP
sales funnel has been incorporated in the current SAP dashboard provided to the TSIs and ASMs.
When the team was interviewing Mr. Bhandari (TSI, Bajaj Electricals), he shared some
screenshots of his SAP dashboard and funnel (attached below). He showed us the method of
reporting and punching a generated lead.

SDM-LIGHTING AND LUMINARY PRODUCTS 53


Objective of SAP Funnel:
• KPIs and tasks-based dashboard: This KPI based dashboard enables a salesperson to plan
out his day successfully. In this competitive environment, it becomes difficult for the sales
team to stay focused on the key metrics.
• Opportunity management and intelligence: The leads generated by the dealer salesmen are
crucial for the revenues. There is a high probability of these leads getting poached by other
dealer salesmen or TSIs mapped with other dealers. Therefore, causing huge losses to the
original dealer. Here, lead management keeps a tab on sales poaching. The leads generated
by a dealer are carefully punched by the mapped TSIs. These TSIs are then given a unique
client ID for the corresponding lead. This lead now belongs to that particular dealer.
However, if the lead is contacted by another dealer salesmen or TSI, the lead still remains punched
with the original dealer. If this lead goes on to get converted by other dealer, the basic margin (3%)
is still awarded to the original dealer.
Therefore, this has been a path breaking digital integration in the sales process.
Dashboard features:
1. Lead Analysis- The generated leads are added under this category. These are updated on
every call or client visit. The progress mentioned in this category is closely monitored by
the reporting officer.
2. Opportunity Analysis- The leads generated are allocated unique client ID. This ID is
utilized to map the lead to a particular dealer.
3. Quotation Funnel- The orders placed by the clients are sorted in this category. This feature
enables the sales team to apply filters like order value, amount, delivery time etc on the
list.
4. Campaign Funnel- The latest trade and sales promotion activities are updated under this
feature. This feature comes in handy while negotiating with the dealers and clients.

SDM-LIGHTING AND LUMINARY PRODUCTS 54


References
https://www.bajajelectricals.com/

https://www.schneider-electric.co.in/en/

https://www.techsciresearch.com/report/india-led-lighting-market-by-type-led-bulbs-lamps-
batten-lights-downlights-etc-by-end-use-sector-commercial-residential-etc-by-application-
outdoor-lighting-indoor-lighting-etc-competition-forecast-opportunities/1102.html
https://economictimes.indiatimes.com/industry/cons-products/durables/withdraw-led-bulb-
distribution-scheme-industry-to-government/articleshow/57781946.cms

SDM-LIGHTING AND LUMINARY PRODUCTS 55


Appendix
Transcript of the Interview with Architects
 Architect Name: Priya Israni
• What are the different kinds of products used for indoor, outdoor, commercial and
industrial lighting?
o Basic types of lighting products used according to the needs are as follows:
o Ambient indoor lighting - Chandelier, ceiling mounted fixture, wall mounted
fixture, led downlights, track lights, floor lamps & table lamps are some examples.
o Ambient outdoor lighting - spotlight, hanging fixture, garage and canopy lighting,
post lantern, wall lighting and a recessed fixture in over-hanging structures.
o Task lighting - pendant lighting, slim line bar, under-cabinet and desk lamp.
o Accent lighting- wall mounted fixtures and track light.
• Types of light bulbs you prefer?
o Incandescent light bulbs
o Compact Fluorescent Lamp (CFL)
o Light Emitting Diodes
o Halogen light bulbs
o LED as they consume a quarter of the energy that incandescent bulbs do and last
10 times longer.
• What is your take on LED technology?
o Many people don’t realize that LED light technology has been around for many
years and is now becoming increasingly popular and cost effective in residential
applications like digital clocks, flashlights and light bulbs, and due to significant
improvements in the technology, LED is now a great choice for many commercial
applications. In the 1960’s, the earliest LEDs emitted low-intensity infra-red light,
which are still frequently used as transmitting elements in remote control circuits
for example. Due to improvements in commercial LED technology, more
businesses are investing in upgrading their lighting fixtures to commercial grade
LEDs. Governments are also adopting LED lighting.
• Do you consider the following factors before making an LED product purchase?
o Installation and maintenance cost
o Are the lights certified or approved?
o Is the LED light fixture cohesive with the latest technology?
o Expected lead time for an order
o Brand name/ Reputation of the manufacturer or supplier
o Terms of the warranty
o Service and technical support function offered by the supplier
o Yes, warranty should be considered as you may find yourself in a situation where
the standard warranty lasts three years, but you'd like to ensure that you're
covered for, say, six years. If you're looking for coverage beyond the standard
manufacturer warranty, you can actually purchase the equivalent of an “extended
warranty” for LED lighting projects.
• Do you purchase LED lights directly from the manufacturer or via a distributor?
o Led purchased through the distributor.

SDM-LIGHTING AND LUMINARY PRODUCTS 56


• What are the services offered to you by the supplier?
o Warranty and replacement guarantee in case of a dysfunctional fixture.
• Do you purchase LED lights from branded or non-branded outlets?
o Mostly from branded outlets, as they offer good, working and guaranteed products
and are trustable.
• Have you purchased LED lights online? If yes, which site?
o Croma.com, Amazon.co.in, Flipkart.com and Indianmart.com
• Which is the most important factor that influences your buying decision?
o Price
o Quality
o Energy
o Efficiency
o Color type
o Life span
o Better the quality better the efficiency and longevity of the light.
• Brands you prefer for LED lights?
o Philips India Ltd
o Bajaj Electricals
o Schneider Electricals
o Crompton greaves
o GE lighting
o Bajaj Electricals, Philips India ltd and Schneider Electricals as these are the most
common and widely popular
• How is your decision affected by the allocated budget for the project?
o It is not affected much as the light fixtures are purchased in bulk, which costs way
less than buying in units.
• What are the different lights according to their function?
o Basic types of lighting Is used for varied accordingly to the needs are as follows:
Ambient indoor lighting - General or ambient lighting is intended to light up a room
in its entirety. It provides a uniform level of illumination throughout the space
independently of other lighting sources. Moreover, its purpose is to ensure safe and
easy traffic, as well as to create an overview of the room. The ambient light
‘bounces’ off the walls to illuminate as much space as possible
o Ambient outdoor lighting -Outdoor lighting is usually installed in order to ensure
visibility and increase security around a building. It is also recommended to light
up the exterior of the building, entrances and stairs to reduce and perhaps eliminate
the risk of injury that can occur when entering and leaving the building
o Task lighting - Task lighting illuminates the tasks a person carries out in a given
space such as reading, cooking, computer work. A brighter light is required in a
smaller focal point of the room for these sorts of tasks. For a more pleasant
illumination, it is often best to avoid harsh lights or lighting that casts troublesome
shadows. It is also practical to install a single switch for focal lighting, independent
from the room’s overall lighting switch
o Accent lighting- Accent lighting is used mainly to focus on a specific point of
interest or to achieve a desired effect. This type of lighting gives the impression of
a larger room. It is more frequently used to highlight an architectural feature, a plant
SDM-LIGHTING AND LUMINARY PRODUCTS 57
(in outdoor layout), a sculpture, or a collection of objects. As a general rule,
effective accent lighting requires the installation of three times lighter on the focal
point than ambient lighting generally provides.
• What could be the reasons for choosing non branded lights over branded ones?
o You should always purchase branded lights as they may be a little more costly
than a non-branded one but will me more effective in every possible way than a
non-branded light

 Architect name: Sakshi Jain, Principal Architect at the Innovation House, Dehradun.
• What are the different kinds of products used for indoor, outdoor, commercial and
industrial lighting?
For indoor lighting we choose:
o cove lights (led strip lights ranging from 6W/m to 18W/m)
o Concealed lights for false ceiling – LED 8W to 24W depending upon the size of
the room and the required lumen/sqm which varies as per the usage of room
o 1W to 5W lights for the kitchen, wardrobe cabinets (furniture lighting)
o Wall washers and other fixtures depending upon the design and client specification
Outdoor – waterproof LED lights which are long lasting and IP65 rated, high power LED
luminaires, flood lights, street lights
o Commercial – COB lights, surface lights, track lights which are easily movable and
provide high light intensity, easy to install lights, aesthetically pleasing light
fixtures
o Industrial – energy saving, long life, environment friendly, corrosion resistant,
impact-proof so no chemical impacts the light. In certain cases, infra-red lights are
also used. Color specific lights depending upon activity of the space.
• Types of light bulbs you prefer?
o Incandescent light bulbs
o Compact Fluorescent Lamp (CFL)
o Light Emitting Diodes
o Halogen light bulbs
o Light Emitting Diodes as these are cost efficient, save energy and are available in
a variety of designs.
• What is your take on LED technology?
o Currently the sector is in boom. There are a wide variety of designs available and
installation is easy. LED Lights work for longer hours and are available in a wide
variety of designs as compared to other technologies.
• Do you consider the following factors before making an LED product purchase?
o Installation and maintenance cost
o Are the lights certified or approved?
o Is the LED light fixture cohesive with the latest technology?
o Expected lead time for an order
o Brand name/ Reputation of the manufacturer or supplier

SDM-LIGHTING AND LUMINARY PRODUCTS 58


o Terms of the warranty
o Service and technical support function offered by the supplier
o Yes, among the stated factors, Installation and maintenance cost, cohesiveness with
latest technology, lead time for an order, brand name / reputation of the
manufacturer or supplier and terms of warranty.
• Do you purchase LED lights directly from the manufacturer or via a distributor?
o We mostly purchase it from a distributor.
• What are the services offered to you by the supplier?
o Free site delivery, discounts.
• Do you purchase LED lights from branded or non-branded outlets?
o Both – depends upon the design and budget of the project
• Have you purchased LED lights online? If yes, which site?
o Havells.com, amazon.in, flipkart.com
• Which is the most important factor that influences your buying decision?
o Price
o Quality
o Energy
o Efficiency
o Color type
o Life span
All these factors Price, Quality, Energy, Efficiency, Color Type, Life span etc. are
considered.
• ·Brands you prefer for LED lights?
o Philips India Ltd
o Bajaj Electricals
o Schneider Electricals
o Crompton greaves
o GE lighting
o Svarochi smart LED lights
Philips India Ltd, GE Lighting, Svarochi smart LED lights
• How is your decision affected by the allocated budget for the project?
o Budget affects the selection from non-branded to branded, normal to smart branded
LEDs
• What could be the reasons for choosing non branded lights over branded ones?
o Budget is the most important consideration. And there’s also consideration of
design.
Transcript of the Interview with Customer
 Customer Name: Aniket Sethi
Interview Transcript Date: 14-08-2019
Interviewer Hi Aniket. Are you a student or a working
professional?

SDM-LIGHTING AND LUMINARY PRODUCTS 59


Customer Hi Tanya. I am a student pursuing MBA from
International Management Institute, New Delhi

Interviewer Can you please tell you age group? 18-24


years/25-30 years/30 +?

Customer My age is 18-24 years

Interviewer What is your annual family income?

Customer Above Rs. 10 Lakhs

Interviewer Who is the decision maker of your family?

Customer Generally, my father takes all the monetary


decision and my mother takes all the domestic
decisions.

Interviewer Just got to know from someone that you are


having a construction at your home. Is it true?

Customer Yes, we are having a single room renovation

Interviewer So, are you purchasing light and luminary for the
room?

Customer Yes, we have not yet purchased but will be going


to purchase in some time

Interviewer What type of lights do you prefer? Incandescent


light bulbs? Compact Fluorescent light bulbs
(CFL), Light Emitting diodes (LED)? Halogen
light bulbs?

Customer We have LED lights in my home. Also, we will


be purchasing LED lights for our room

Interviewer Any particular reason for choosing LED lights?


Customer Yes, it is more energy efficient, longer lifespan
and more environmentally friendly
Interviewer How many hours a day do you keep your lights
on? 0-2? 3-4?5-6? 8 or more? Don’t know?

Customer 5-6 hours a day

SDM-LIGHTING AND LUMINARY PRODUCTS 60


Interviewer How well are you informed when it comes to
LED technology?
• Very well informed
• Roughly informed. I would like
more information
• Hardly know anything at all. I
have a great need for information
Customer I am roughly informed about LED technology

Interviewer When did u last purchase LED lights?

Customer Last year, in 2018.

Interviewer Do you purchase from branded or non-branded


outlets for LED lights?

Customer Non branded mostly

Interviewer Any particular reason, to choose non branded


outlets over branded ones?
Customer Not as such. I am not very particular about
branded or non-branded store. What I look for is
the convenience and ease of reach. Non branded
outlet is near to my place and get decent quality
LED at an affordable pricing
Interviewer Do you mostly purchase in bulk or fewer pieces?

Customer Not in bulk, we only buy when replacement is


needed or a new installation.

Interviewer Have you purchased LED lights online? If yes,


which site?

Customer No, we purchase mostly from any near buy the


electric store

Interviewer Any particular reason for not choosing online?


Customer Yes, generally we buy for an immediate use as a
replacement when LED bulbs stop working. So,
purchasing online is a more time taking process.
It’s better and fast to buy from the offline store
Interviewer Where is LED installed?
• Lounge/Dining Area
• Bedroom
• Kitchen
• Toilets
SDM-LIGHTING AND LUMINARY PRODUCTS 61
• Bathroom
Customer All of these places

Interviewer Was it a replacement of exiting lights or new


installations?

Customer Mostly replacement.

Interviewer What did influence your buying decision?


• Price
• Quality
• Energy
• Efficiency
• Color type
• Life span
Customer Generally, energy, efficiency and life span
influence my decision?

Interviewer Brands you prefer for LED lights?


• Philips India Ltd
• Bajaj Electricals
• Schneider Electricals
• Crompton greaves
• GE lighting
Customer Philips and Bajaj Electricals

Interviewer Do you have smart LED installed at your home?

Customer No, I am not much aware of it. I think it’s more


related to the use of IOT with lights

Interviewer Are you aware of smart LED?


• Very well informed
• Roughly informed. I would like
more information
• Hardly know anything at all. I
have a great need for information
Customer No, not very much knowledge

 Customer Name: Shaurya


Interview Transcript Date: 14-08-2019
Interviewer Hi Shaurya. Are you a student or a working
professional?

SDM-LIGHTING AND LUMINARY PRODUCTS 62


Interviewee Hi Shreya. I am a student pursuing CA.

Interviewer Can you please tell you age group? 18-24


years/25-30 years/30 +?

Interviewee My age is between 18-24 years.

Interviewer What is your annual family income?

Interviewee Approximately Rs. 10 Lakhs.

Interviewer Who is the decision maker of your family?

Interviewee Generally, my father takes all the monetary


decision and my mother takes all the domestic
decisions.

Interviewer Just got to know from someone that you are


having a construction at your home. Is it true?

Interviewee Yes, we are having our ground floor


renovated.

Interviewer So, are you purchasing light and luminary for


the room?

Interviewee We are yet to purchase light and luminary


products.

Interviewer What type of lights do you prefer?


Incandescent light bulbs? Compact
Fluorescent light bulbs (CFL), Light Emitting
diodes (LED)? Halogen light bulbs?

SDM-LIGHTING AND LUMINARY PRODUCTS 63


Interviewee We have LED lights in most of the rooms.
Hence, we would be purchasing LED lights
for the ground floor as well.

Interviewer How many hours a day do you keep your


lights on? 0-2? 3-4?5-6? 8 or more? Don’t
know?

Interviewee Generally, 8-10 hours a day.

Interviewer How well are you informed when it comes to


LED technology?
 Very well informed
 Roughly informed. I would like more
information
 Hardly know anything at all. I have a
great need for information
Interviewee I do not know much about the technology.

Interviewer When did u last purchase LED lights?

Interviewee In January 2019


Interviewer Do you purchase from branded or non-
branded outlets for LED lights?

Interviewee Non branded outlets mostly.

Interviewer Do you mostly purchase in bulk or fewer


pieces?

Interviewee Generally, few pieces. We mostly purchase


when there is a need for replacement.

Interviewer Have you purchased LED lights online? If


yes, which site?

Interviewee Yes, we purchased from Paytm mall once.

SDM-LIGHTING AND LUMINARY PRODUCTS 64


Interviewer Where is LED installed?
 Lounge/Dining Area
 Bedroom
 Kitchen
 Toilets
 Bathroom
Interviewee All of these places

Interviewer Was it a replacement of exiting lights or new


installations?

Interviewee Mostly replacement of existing lights.

Interviewer What did influence your buying decision?


 Price
 Quality
 Energy
 Efficiency
 Color type
 Life span
Interviewee Generally, price, efficiency and life span
influence my decision

Interviewer Brands you prefer for LED lights?


 Philips India Ltd
 Bajaj Electricals
 Schneider Electricals
 Crompton greaves
 GE lighting
Interviewee Philips and Bajaj Electricals

Interviewer Do you have smart LED installed at your


home?

Interviewee No, we do not have any smart LED installed

Interviewer Are you aware of smart LED?


 Very well informed

SDM-LIGHTING AND LUMINARY PRODUCTS 65


 Roughly informed. I would like more
information
 Hardly know anything at all. I have a
great need for information
Interviewee No, I hardly have any knowledge

Table: Interviewed and their description

Sr. No. Name Description


1. Mr. Jaspreet Singh ASM-Schneider Electric
2. Mr. Deepak Kumar Goyal 1801/37 Navdurga Market, Bhagirath Palace,
(Proprietor) Chandni Chowk, Delhi, Delhi, 110006, India
(Schneider Electric)
3. Mr. Deepak Kumar Goyal ASM- Schneider Electric
4. Mr. Vishal Anand ASM-Bajaj Electricals
5. Mr. Ajay Bhandari TSI- Bajaj Electricals
6. Mr. Sanjiv (Proprietor) Plot No 429, Industrial Area phase 2,
Chandigarh (Bajaj Electricals)
7. Mr. Sudarshan (Proprietor) 1830, Bhagirath Palace, Delhi-6, Bhagirath
Palace, Delhi – 110006 (Bajaj Electricals)
8. Mr. Rahul Kohli Hansraj Kohli & Co (Instiutional Buyer)
9. Mr. Walia Powerlite Electricals (Institutional Buyer)
10. Miss Priya Israni Architect
11. Miss Sakshi Jain Principal Architect at the Innovation House,
Dehradun
12. Mr. Aniketh Sethi Customer
13. Miss Shaurya Customer
14. Mr.Sandeep Saraogi Builder

SDM-LIGHTING AND LUMINARY PRODUCTS 66

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