Spreading Light by Frontier Markets: Rural Marketing of Solar Lamps

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  • Topic: Marketing, Microfinance, Solar lamp
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Project Name: Rural Marketing – Solar lamps
Case Study : Spreading Light by Frontier Markets
Team Member :

1) -------------------------------------------------
2) -------------------------------------------------
Yogi Ballani
3) -------------------------------------------------
Suraj Gaikward

Date : 01.02.2012

Abstract of the Project
Given India’s size and the sheer number of its farflung or remote villages, rural marketing is always a challenge. And when the product is relatively new, like solar lighting devices, the challenge gets even bigger. Yet the Jaipur-based Frontier Markets, or FM, founded by Ms. Ajaita Shah, has taken up the task and despite the odds to reach out to villages in state of Rajasthan, and seems to be succeeding with their strategy of marketing the new product. * Frontier Market conducted marketing sessions to build demand for products in BOP (Base of Pyramids) households. * Frontier Markets developed a peer-to-peer marketing strategy that is a creative, below-the-line marketing technique that are most likely to succeed among peri-urban and rural consumers. * Frontier Markets gauged the potential of the products through market assessments, and feedback to determine whether market entry for the new product like Solar lamps is viable to enter in the rural areas. Based on the market survey, FM targeted the mass people of the Base of the Pyramid (BOP) which includes 732 million people living on less than Rs. 150,000/year in villages and urban slums throughout India where majority of the people live in darkness without having any light in their house. In order to reach out to people with clean energy products , FM introduced the product SOLAR LAMPS with a concept called “ Spreading Light” with a slogan “ lets light our home this diwali” Later on FM came up with a brand name “ Saral Jeevan” where in they source the solar product in bulk from different manufacture and selling in the brand name of “Saral Jeevan” . FM also used their trump card for selling the product in villages by Village-level community workers. The Company has sold already 700 solar lighting lamps in 350 odd villages in Chomu district in Rajasthan.

In the detailed case study, it would cover how FM selected the product based on the segments in specific to the BOP population (Base of Pyramid) and target market area and acceptance level of the product in the remote villages and the challenges faced with the following tough nuts : a) Solar lamp are relatively new and explaining their use to Rural Folks is a challenge b) Village dwellers have fickle cash flows dependent as they are on an agri-based economy c) They are extremely price and value conscious

d) They have very low brand affinity
* Market Survey
The Base of the Pyramid (BOP) includes 732 million people living on less than Rs.150,000/year in villages and urban slums throughout India. The great majority of men and women work in agriculture, animal husbandry, factories or own rural shops.* * Rural consumers total 45% of the country’s total GDP. * Approximately 72% of the total India population live in 600,000 villages; and, about 8% of the total population live in 4,738 semi-urban towns * The median age group is is 27.5.

* Average household size is 4.8.
* An average of 2.72 children are born to every adult woman. * At 61%, the overall literacy level in India is well below Unesco’s target threshold of 75%. ...
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