1.

The market was fragmented with individual market share of less than 1 %
2. Lack of Consumer Awareness was a barrier
3. The market was disorganised as large corporations did not promote solar lamps as they were
part of a large product portfolio and social enterprises did not having the funding to
promote their solar lamps.
4. The legacy of Kerosene Lamps and its low price was a barrier
5. The solar industry’s business model was a problem where the solar industry wasn’t a
bankable business
6. Saathis Set up DTH models. They work at grassroot level where Quality of interface with
potential customer was high and was easy to influence their purchasing decisions
7. Creating Solar Lamp as a separate Category
8. The distribution partners did not promote the product as it wasn’t their core product and
contribution to their revenue was low.

Competitive Advantage

1. First Mover in Solar Lamp market. First solar enterprise to start business in India, the single
largest concentration of BOP consumers in the world.
2. The product Quality where they added customer insights into their design. Warranty claims
in the last 3 years was less than 1% of the sales.
3. Unique distribution model based on strategic alliances with the distribution channels.

Target Market

- Rural BOP(Base of Pyramid) consumers

Distribution Channels

1. 400 Post offices in semi urban areas

2. 2600 Common Service centres (CSCs) who were a part of National e-governance plan
3. D.Light tied up with 2 national oil companies which had 9500 LPG dealers nationwide and
D.Light partnered with 3000

Value Proposition

1. Affordable Product

Problem 1: Creating Solar Lamp as a separate Category

Factors required-

 Building an Infrastructure for the physical distribution

 Promoting the product- About 3-4% of the revenue and also increased to 6% yet faced issues
as the consumers were not ready to leave their comfort zones and try a new product
 After Sales service – not required due to product durability
 Change in consumer behaviour through social media influence. The BUZZ will not be fruitful
for the rural market.
 The MD thought that financing option for purchase would accelerate demand but demand
had to be created and for that deep distribution network and mass promotion would be
required.
  The distribution partners did not promote the product as it wasn’t their core product and
contribution to their revenue was low.

Problem 2: Making the Brand Synonymous with the Category

 First mover advantage will work only when there is Mass market penetration
 Emotional Branding to be done by communication real life stories
1. Above the line Media (radio, tv, billboard)- Expensive option
2. Below the Line Media (Mail campaign, trade show, brochures)- Will not reach the
consumer

Problem 3: Channel Productivity

 400 Post offices in semi urban areas

 2600 Common Service centres (CSCs) who were a part of National e-governance plan
 D.Light tied up with 2 national oil companies which had 9500 LPG dealers nationwide and
D.Light partnered with 3000
 But selling Solar lamps is not their core activity

Solutions:

 Creating Product Demand- D. Light knew that most of its prospective consumers did not
have any experience with solar lights & would be unwilling to purchase a product they did
not understand. The company could educate their target market on the product and also
give them to use as a product as a proof of concept in order to gain their interest.
 Building Brand Trust- company’s lack of brand recognition and trust in rural India would be a
significant barrier to consumer adoption of its products. To increase the speed of product
adoption, they can link their goods to trusted brands already existent in the marketplace.
 Product Affordability: The purchasing power of rural households in emerging markets such
as India was diminished not only by low incomes but also by the unpredictability of income
streams. This can be solved by introducing flexible payment plans or, the company could
loan its product to consumers and then collect money over time made in small installments.
 Rural Entrepreneurs/ rural sales people : Motivate local entrepreneurs or sales individuals
to sell solar lamps
 Rural Retailers: Village-level distribution provided several advantages for firms. Companies
could benefit from shop owners’ considerable power over villagers’ product purchases. The
shop owner’s personal relationship with the consumer, as well as the shop owner’s
significant knowledge about product quality and popularity, meant that rural consumers
often were more willing to be influenced by the shop owner’s
 Partnering with NGOs: By leveraging their already-existing networks, companies could
bypass the more extensive distribution structures yet still gain access to rural consumers in a
cost-effective manner.