Mbop Midterm Exam Panimalar R - 1913069 - PGDM Ii

MBOP MIDTERM EXAM PANIMALAR R |1913069| PGDM II |
1. Is d.light fit for BOP market? Use the 4As and 5Ds approach to explain. (10)
4A FRAMEWORK OF d.light PRODUCTS
Affordability of d.light
products
Acceptability of Awareness of d.light

d.light products 4A products
Availability of d.light
products
 Global BOP Market – Two third of the world population is living below 1500 USD at PPP terms
nut aggregate purchasing power is huge with BOP market of 5 trillion USD .
 Target group – Households dependent on Kerosene lights, Household facing unreliability
electricity availability
Awareness –
There are two main challenges in creating awareness about the product and how it can improve their
daily lives by buying this product.
1. They may get so used to their problem; they will not buy a product. Limited access to mass
media, and lower literacy level- therefore customers need to be educated
2. Lack of past experience with solar light by themselves or anyone known to them
So, they needed to be sensitized how solar powered LED is safe and clean, one-time investment and
no need to fuel/refuel the light.

Acceptability –
1. Fear of getting burnt especially children is reduced, Indoor air pollution is partly avoided by quit
using Kerosene lamps & biomass-based lighting, relieved the uncertainty on dependence of
electricity, burden of spending for kerosene for lamp is reduced, it is a huge cost savings for them.
2. Once the customers understand how much the product can benefit them, it will get a huge positive
response from customers, generating more demand and more revenue for the company.
3. Already market is filled with substandard products and must have felt cheated by other
companies.
4. Therefore, Trust is the central factor to be created on the product, Since the investment in huge
from BOP perspective, Trust building by reliable people is crucial for the d. light to convince its
prospects and through word of mouth, it can make the sale successful.
Availability –
Before purchase, the products should be available for demonstrations, should allow customers to try
the product like allowing them to take home the model and use it for a night.
The customers should be able to buy the product from them,therefore orgazation that posses local
knowledge,understanding local belief and attitude should sell the product.
Affordability –
1. Target household has low disposable income
2. Stream of income may differ for months, primarily involved in agricultural and allied activities, so
income may be meager during off seasons though the price is economical compared to annual
income, may not be still affordable compared to monthly income.

3. % of access to electricity for bottom three fifth quintile household is less than 65% and average
annual income is Rs.15179 and for bottom quintile it is only 5651.The price of the Solar light is
550.One tenth of the annual income is the price they have to pay
4. So the current pricing is still luxury for the BOP household
5D framework
 Development – Social and Economic impact – Positive difference and empowerment of the
customers and cost savings in refueling the light and cost savings from potential health hazard due
to possibility of getting burnt by the kerosene lamp and other major cost savings from health
hazards related to black soot.
 Design- Livelihood enhancing product, designing the product in affordable rate. The product is
simple, easy to use, person of any literacy level and age group can conveniently use the product
without fear
 Distribution -The product should be available at proximate distance to the customers.Product
should be sold at grass root level people form the same locality.
 Demand – Rural market will take time to accept the product and will take time to build trust on the
product. There exists unmet demand for reliable light source
 Dignity -The product should improve the life of the customer, and this product definitely
eliminates the daily life challenges and improves the productive time of the users
2. What channel structure should d.light use to distribute the products. Assess the advantages
and disadvantages of each channel and suggest. (15)
Pros and Cons –
Tie up with well known brand operating in rural market
Pros:
 Linking d. light product to already established product/brand can increase the awareness and
adoption speed
Cons:
 This method could be costly

 It is not guaranteed to be successful as the product is not FMCG kind
Marketing and selling through NGO
Pros:
 Convincing prospects is easy because of trustworthiness of the NGO

 An NGO success and influence could be limited to particular region or cluster of taluks.
Cons:
 BOP is widespread and dispersed in India. Achieving scaling up could be difficult

 Negotiating with different NGOs could take massive effort in terms of money, energy and time
Self Help Groups

Pros:
 Product could be sold easily through deduction from loan or in installments
 Possess high local knowledge and in-depth knowledge about family income, economic status
,family size, ownership of durable goods etc.
Cons
 Customers may not be willing to trade off in favor of d. light as they may have other pressing
need and commitments
Rural Entrepreneurs
Pros
 Local hired and hence possesses knowledge of the community needs, aspirations, culture,
economic status of families and decision makers in the household
 Can easily cover different village in a day and time of convenience of the family members as
they go for work in the morning
 Can easily carry the products in dabba using TVS excel bike and pitch sales to the decision
maker
 Enjoys goodwill of the customers
Cons
 Lacks professionalism in terms of handling cash collection, indifferent to cash incentives to sell
beyond certain quota
Village Retailers
Pros
 96% retail sales is unorganized in India
 They have vast experience in selling products across distance and receiving payment in timely
manner
 Shop owner opinion enjoyed high weightage among BOP because of good relationship with
customers
Cons
 Shop owner sells other competitors products and may not sell d.light product with real
motivation
Centralized Shops and Distributors

Pros
 Easy access to every household, people trust them
Cons
 Highly capital Intensive -Target customers may not reach to the central shop and end selling
price could be inflated, dissolving the very purpose of affordable solution
Corporate Partnerships: “Piggybacking”
Pros
 Cost benefit is high
Cons
 Live demonstration is required for solar light,which cannot be done through this channel
Better Channel Structure d.light should use to distribute the products
1. Partnering with local organizations will create awareness and targeting the right prospects is
easy because local organization like SHGs have local in-depth knowledge, they have about the
family ranging from income level, number of people employed, access to electricity, studying
children,
2. The amount goodwill and trust, local organization enjoy in lower literacy area is unmatchable.
The product could be directly introduced to the customers and they could be allowed to use it
first hand and feedback could be collected to finetune it to their needs
3. Demand could be generated in sustained manner and improves the daily life of the people.

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MBOP MIDTERM EXAM PANIMALAR R |1913069| PGDM II |

4A FRAMEWORK OF d.light PRODUCTS

Acceptability of Awareness of d.light

 Target group – Households dependent on Kerosene lights, Household facing unreliability

daily lives by buying this product.

media, and lower literacy level- therefore customers need to be educated

no need to fuel/refuel the light.

knowledge,understanding local belief and attitude should sell the product.

1. Target household has low disposable income

income, may not be still affordable compared to monthly income.

4. So the current pricing is still luxury for the BOP household

hazards related to black soot.

 Distribution -The product should be available at proximate distance to the customers.Product

product. There exists unmet demand for reliable light source

and disadvantages of each channel and suggest. (15)

Pros and Cons –

Tie up with well known brand operating in rural market

 This method could be costly

Marketing and selling through NGO

 Convincing prospects is easy because of trustworthiness of the NGO

 BOP is widespread and dispersed in India. Achieving scaling up could be difficult

Self Help Groups

Centralized Shops and Distributors

Corporate Partnerships: “Piggybacking”

 Cost benefit is high

Better Channel Structure d.light should use to distribute the products

first hand and feedback could be collected to finetune it to their needs

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