d.

light design

Marketing Channel
Strategies in India
Sales and Distribution
Management Group 2:

Disha Garg (68)

Gayathri Radhakrishnan (70)
Harsheeta Jha (71)
Hemant Jadhav (72)
Ila Gayakwad (73)
Discussion 01

Do you think rural India back in

2009 was a profitable and
lucrative market, or forget that,
even a potential market to tap?
Yes/No

Ila | 73
Discussion 02

Do you know some interesting

ways in which companies have
reached rural India?

Ila | 73
Background (2009)

Products
Company

• 2 year old start-up (founded in 2007)

• Product that was being substituted : Kerosene lamp S250 (Nova)
• Target: Rural India Rs. 1,699
• Focus: Designed for extreme affordability

Economic constraints

• 70% people (830m) in rural areas

• Annual incomes - Rural (Rs. 41,194) & Urban (Rs. 77,612)
• Access to electricity – 68% (Rural) and 94% (Urban) S10
• Limited company resources Rs. 549

Ila | 73
Discussion 03

Which distribution channels

should d. light follow?

•Rural Entrepreneurs (REs)

•Village retailers
•Centralized shops and distributors
•Partnering with non-profit organizations
•Corporate partnerships "piggybacking"

Ila & Gayathri | 73 & 70

Discussion 04

What are the important

factors while setting up a
channel?

Gayathri | 70
Creating the best channel
Channel Design Process
Segmentation
Channel Structure
Splitting the workload
Degree of commitment
Gap analysis
Channel Implementation Process
Primary segments Channel power Channel Conflict
Identify sources for all Identify actual and
channel members potential sources
Primarily three, here
Manage /Defuse
Each structure has a role
Conflict
Use power strategically,
subject to constraints
Organization aligning
itself to the structures
Sources Goal
Types Channel Co-ordination
Gayathri | 70
Discussion 05

According to you, what can be

constraints in reaching the rural
masses for a business?

Hemant | 72
Constraints in reaching rural India
• Education
Environment • Brand recognition and trust
al • Purchasing power
• Limited resources

• Need to implement pricing strategy

Managerial • Financial constraints
• Adapting appropriate business model
and marketing strategies

• JV should be in accordance with govt.

regulation
• Manufacturing plant is in China
Legal
• Govt. oil company wanted to help d.
light but low support from retailers
Hemant | 72
Discussion 06 – Single or multiple
channel? S250 - Rs 1,699 and S10 - Rs 549
Annual average rural
Affordability Yes No household income - Rs. 41,194
Monthly income spent on kerosene - Rs 200

68% rural household had

Accessibility Yes No access to electricity
9.79 hours of daily access

Start-up launched in 2009

Brand trust Yes No Low quality products available
Customers enjoy a trial

Company Limited funding

Yes No Limited managerial bandwidth
resources

Disha | 68
 • NGOs
• Village retailers
Discussion 07 - Channels •
•
Rural entrepreneurs (REs)
Centralized shops & Haats
• Corporate partnerships

Retailers/Corporates

Retailers 3
2
Centralised shops
Personal selling

Cost of Primary: Village retailers

1
Secondary: Haats Urban
channel
Primary: REs
Secondary: SHGs Rural
Rural
Lowest
Rural Lowest 40%
Lowest
Lowest 60%-80%
20%-60%
20%-60%
Lowest 20%

Customer segmentation - Average annual household income Disha | 68

Discussion 08

Examine d. lights current

cost structure and overhead
expenditure in India and
ensure it makes profit. Own
the start up while discussing
issues & solutions.  

Harsheeta | 71
Ayush | 66
Problems
• Payment issue by Re
• Village retailers were not successful in
Push based selling
• Can’t spend much on multi-channel
• Not much funds available

Harsheeta | 71 Ayush | 66
Thank you!