SEGMENTATION ppt 05.02.2012

7/31/2019 SEGMENTATION ppt 05.02.2012

1/14

1


2/14

2

Too many households live in darkness and dimlighting in India today

Kerosene is The Primary Light Sourcefor 1 Billion People

Regular lighting is highly UNRELIABLE andEXPENSIVE for rural households.

ITS TIME TO LIGHT LIVES THROUGH MORE RELIABLE AND

AFFORDABLE LIGHTING


3/14

3


4/14

Improved Education

Decreased Pollution &

Health problems

Cost Savings Increased productivity

Better lifeSafety from Kerosene

Solar lights have many economic and social benefits for households


5/14

Frontier Markets Educates, Demonstrates and Engages Households in Villages to helpthem understand Solar and track the impact of Solar


6/14

This year for DIWALI, Light the Lives of a FAMILY with the BEST ratedSolar Light - THE SUN KING

6

Durable

Best for studying, cooking, field walks,emergency lighting, room lighting

3 Types of lighting

16 Hour lighting ability

Diwali Price650/-

M.R.P 850/-

One Sun King can help each family member, and light a room foreveryone to benefit. One light can help one family.


7/14

The Base of the Pyramid (BOP) includes 732 million people living on lessthan 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 countrys 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 Unescos targetthreshold of 75%. Literacy among women is just over 50%.

There are over 112 mother tongues with more than 10,000 speakers; and,33 languages spoken by one million or more persons.

Indicators of human poverty suggest that 16.8% will not survive past theage of 40; and, 47% of children between the ages of 0-5 are underweight fortheir age.

* Ernst and Young, The Retailer, October 2009

7


8/14

Marketing

Frontier Markets marketing field staff conduct marketing sessions tobuild demand for products in BOP households.

Frontier Markets developed a peer-to-peer marketing strategy that is acreative, below-the-line marketing technique that are most likely tosucceed among peri-urban and rural consumers.

Market Entry and Product Feedback

FM collects data about its consumers to understand their productdemands as well as understand which products to introduce into themarket.

FM collects consumer data to provide feedback on products like Solarlamp and its usages.

Frontier Markets also gauge the potential of their products throughmarket assessments, and feedback to determine whether market entryfor certain product is viable in urban and rural consumers

8


9/14

Product Concept

FM with their market survey and feedback, came up with selling and

distributing the Solar lamps in the segment i.e. BOP (Bottom of thePyramid) segments where there is a need of clean energy in the rural

villages. They targeted the base of Pyramid segments which asgeographically wise spread in the remote village areas where there isneed of the product.

Market Segment FM CEO Ms. Shah, said Reaching out to rural markets requires a

bottom-up approach, she says. theyhad to identify what rural peopleneed, the price points they are comfortable with, demonstrate the useof the product they are selling, and show them why it is relevant to

their lives. Having earlier worked with microfinance institutions,Ujjivan Financial Services and SKS Microfinance, Shah reveals herexpertise that there are many products for which there is latentdemand in rural areas, but they do not sell there simply because ofdistribution problems. With solar lamps, she saw the opportunity to fill

a vital gap. 9


10/14

FM sources solar products in bulk from different manufacturers and

retails them under the brand name Saral Jeevan. FMs trump card isthe profile of its agents, whom it pays a commission. These are village-level community workers, who are already familiar faces in the region,since they also provide some other service. People trust these villagerepresentatives as they are known to them, says Shah.

In order to create the demand and to reach out to people in villages, FMworked on the people which include krishi mitras (farmers friends)who are employed by the Krishi Vigyan Kendras, an Indian Council ofAgricultural Research project, to keep farmers informed about latest

agricultural technologies; workers in government-run anganwadis(creches); as well as employees of a privately-owned dairy, which sellsmilk in rural areas.

10


11/14

While FM was busy in developing the concept for sellingSolar Lamps, following feedback were also gathered:

1) does a customer in a far-off village go if the battery of his solar lampturns out to be faulty or the switch malfunctions ?

2) One such is product servicing. Where does a customer in a far-offvillage go if the battery of his solar lamp turns out to be faulty or the

switch malfunctions.

3) Community workers do not have the specialised knowledge to repair

lamps if they stop working. But at least they can, and do, providecorrective feedback to FM and, through it, to the manufacturers.Duron Energy, for instance, stopped production of one of its solarlamps called Duron Pro following reports from FM that its light,though very bright, was too focused and did not cover an entire room.

11


12/14

In order to overcome the above issues and FM after 6 months of operations in

Rajasthan, Frontier Markets, Saral Jeevan opened up their first retail store as a

part of Frontier Markets channel in Chomu Rajasthan. This retail point will be

a concept store providing sales and service for local consumers in and around

the Chomu area. Frontier Markets is an exclusive partner to Saral Jeevan, or

EasyLife,an Indian branded retail channel created to better relate to

low-income households in rural areas near Chomu. After months of

understanding villages, and areas, Frontier Markets helped Saral Jeevan

build market presence and chose Chomu as a central location for a retail

point to ensure accessibility and accountability in service for

households.

12


13/14

FM came up with selling of Solar Lamp targeting the huge market at bottom ofthe pyramid.

1) Product selection / Concept : Solar Lamp need of the people in theremote villages as A clean energy.

2) Market Segment : Rural areas / Villages

3) Strategy and Market Concept : FM launched the product with a differentbrand name Saral Jeevan or Easy Life as the people in Rural Areaslook for local brand as they are not so Brand Consensus.

4) FM also used the local channels such as krishi mitras (farmers friends),Angan-wadis for distribution of their product.

5) FM also opened up Branch office concept store providing sales andservice for local consumers

13


14/14

14

Documents

SEGMENTATION ppt 05.02.2012