Running head: D.

LIGHT DESIGN 1

d.Light Design

University Canada West

BUSI 641, Entrepreneurship

4th December 2019

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 D.LIGHT DESIGN 2

In 2009 d.light Design founded by Sam Goldman and Ned Tozun in India. According to the

founder, the mission of the company is to destroy using kerosene. The company produces solar-

powered LED which is facing challenges on product distribution in rural parts of India. Here we

will discuss the challenges and recommend solutions for overcoming them.

Creating demand

• Due to the lack of knowledge and education customer are not aware of their need

(Environmental/ Legal/Social).

• They are unwilling to buy solar lights without any experience and understanding

(Environmental).

• Customers are unwilling to find substitution products with the products they already have,

unwilling to try new products (Social).

Brand Trust

• Gaining customer’s trust is a long-term process (Environmental/ Managerial).

• Marketing requires word-of-mouth in rural areas which is a slow process (Social /

Managerial).

• Difficult for the customer to trust a new brand with many faces and low-quality products in

the market (Social / Managerial).

Affordability

• The poor purchasing power of customers in a rural area (Economical/Social).

• Low incomes (Economical).

• Cost of distribution (Managerial).

Product distribution

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 D.LIGHT DESIGN 3

• d.light is a new and small company with limited money to spend on challenging distribution

channels (Economical).

• Lack of transportation and infrastructure in rural areas and villages in India making

distribution very difficult (Legal/ environment)

Q2, Rural Entrepreneurs

• REs are not a professional salesperson so are unable to increase sale significantly

(Managerial)

• Difficult to improve RE performance through economic incentives (Economical)

• REs are not handling a large amount of money (Legal/ Economical)

Village Retailers

• Distribution costs will increase the final price of products in rural outlets (Environmental).

• Village retailers are not prosperous in selling products that need an explanation for customers

(Environmental/managerial).

Centralized Shops and Distributors

• Due to d.lights are new into the market and require demonstration and explanation therefore

retailers are not willing to invest in them (Environmental/Economical).

• Retailers did not have the incentive to sell d.light products because they had a monopoly on

some other products (Legal).

Recommendation

d.light is a new product that needs time to expand into the Indian market due to the difficulties to

exist in the Indian market. The best option for this business is to use a combination of all the

channel distributions at the same time. Rural entrepreneurs is a good option because it utilizes

local people who are well trusted by the local customers but are poor sale people, so a basic sales

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 D.LIGHT DESIGN 4

training could be provided for them to learn money management. At the same time, they can use

a village-level distribution which increases the likelihood of receiving payments in an orderly

manner. They can use promotion as marketing strategies to attract locals. Also, Centralized shops

are helpful to attain certain categories of customers who shop from them, but local customers are

likely to purchase at their local shops rather than a centralized distribution center.

Swot Analysis

Strengths Weaknesses

 Clean and Safe  Limited financial capital

 Affordable price  Lack of knowledge and education in

 High quality and Permanence compare the market segment

with kerosene lamps  Difficulties distribution

Threats Opportunities

 Lake of media for marketing the  Increase the knowledge of people

products about their need to d.light instead of

 Monopoly Kerosene lamps which is dangerous

 Customers may decline to try new and not good for health

products  Entering to the new market

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 D.LIGHT DESIGN 5

References

Coughlan. A & Neuwirth, (2019). d. light Design: Marketing Channel Strategies in India.

Retrieved December 1st, 2019 from https://hbsp.harvard.edu/import/683101

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