selco solar products marketing

Product & Brand Management

Shradha Jagasia-34

Solar Electric Light Company, India

Agenda

• Why Solar Energy?

• Selco India-Snapshot

• Competition-Snapshot

• Selco- A Differentiator

• Catering to the Urban Poor-Mumbai

• Pilot Launch

• Product

• Price

• Place

• Targeting

• Shortlisting

• Promotion

• Advertising

• PR

• Personal Influence

• Sales Promotion Sustainable Models

• Budget

• Evaluation

Why Solar Energy?

6 % of urban

population lacked

electricity

800 million in India

continue using traditional

biomass energy sources –

namely fuel wood,

agricultural waste and

livestock dung – for

cooking and other

domestic

Traditional fuel combustion

is the primary source of

indoor air pollution in India,

causes between 3,00,000

to 4,00,000 deaths per year

and other chronic health

issues.

35.5% of the Indian

population still live

without access to

electricity.

60 % of rural

households have

connection to

electricity grid

The Electricity Access

Database iea.org 2011

Solar accounts for

6% of total

renewable energy

India receives one of

the highest global

solar radiation - an

energy of about 5,000

trillion kWh per year

Affordable &

reliable energy is

the need for

human &

economic

growth

Selco India- Snapshot

Solar Electric Light Company, India or SELCO India is

a for-profit social enterprise, providing sustainable

energy solutions and services to under-served households

and businesses.

Founded in 1995 by Dr. Harish Hande an alumnus of IIT

Kharagpur with INR 15,000 funding from its co-founder

Mr. Neville Williams founder of SELF (Solar Electric

Light Fund), a U.S.-based non-profit organization

facilitating rural electrification worldwide.


SELCO India Distribution Network:

HQ

RO

RO

ESC

ESC

ESC

ESC

Salesforce

BA/Tech

Sales force

BA/Tech

Salesforce

BA/Tech

Salesforce

BA/Tech

Cus

tom

ers

HQ:

SELCO INDIA headquarters located in Bangalore

Regional Offices:Located strategically throughout service territories, each office directly manages about 5 ESCs

ESCs:SELCO’s Energy Service Centers, base of sales, service, and inventory. Located in central rural towns.

Salesforce & Business Associates/Technicians:SELCO’s direct sales force and

BAs market SELCO’s products

to potential customers.

Technicians look after

technical requirements


SELCO India Products:

Selco offers products mainly in three segments: Solar PV- Photovoltaic,

Solar Thermal, and Cook-Stoves.

Solar Photovoltaic Lighting System

Solar Lighting (CFL and LED)• Indoor Home Lighting System

• Outdoor Home Lighting System

• Solar Headlamp

Solar Inverter

Solar Cook Stove

Solar Thermal Water Heater

DomesticInstitutional

Selco Customized Products

Solar Powered Sewing MachineHeadlamps for Midwives

Portable Lights for Silk Farmers


SELCO India Finance & Services

SELCO has leveraged the potential of the

country’s significant rural banking system to

finance sustainable energy systems for poor

rural households.

Over the years, SELCO has forged

partnerships with nine regional rural banks,

commercial banks, NGOs and rural farmer

cooperatives to develop financial solutions.

Selco is fundamentally organized around

providing the highest quality service possible for

our customers.

Upon the purchase of every system, each

SELCO customer receives the following services:

•Custom system design

•Installation

•Training on proper system use

•After-sales maintenance and support


SELCO India Milestones & Awards*

More than 1,25,000 households and 2000

institutions as clients

1,35,000 + solar lighting systems set up in

India;

224 employees;

38 Energy Service Centers across Karnataka,

Gujarat, Maharashtra & Kerala;;

Largest solar water heating system ~ 4,00,000

litres for a single client in India

9 partnerships with Financial Institutions;

US$ 3.09 million revenue;

Ashden award for sustainable energy 2005

and 2007;

Green Energy Award from Prince Charles

2005;

Ramon Magsaysay Award for efforts to make

electricity affordable and customizable to

poor customers 2011;

* Data- mid 2012

Competition- Snapshot

Set-up- D.light was set up in 2007 by Sam Goldman and Ned Tozun to design and sellaffordable solar lanterns in developing countries.

Place- D.light serves over 62 countries, through over 12,000 retail outlets, 10 field offices,and five regional hubs. The company employs over 300 people directly, and indirectly

employs hundreds more worldwide. Headquartered in USA, offices in India, China and

Africa.

Products- Solar Lighting Systems

Price- Cost of the products vary between Rs. 450-Rs.6000 depending on the model

Strategy- The company has a mass market strategy that is reaching large scale sales

Market Share- Over 50% worldwide. As on 2013, D.light has 15 million, with main markets inIndia and East Africa.

Selco- A Differentiator

The underserved at the bottom of the pyramid require innovations in product and finance for them to afford and access these energy services.

Financial Risk: Absence of financial innovations.

Technology Innovations: Manufacturers are unable to judge the needs of the end-users.

Lack of Commitment: Most organizations do not consider innovations for the BOP market a main priority for the company’s business.

A combination of innovations in products,finance, supply and the service ensures thatreliable and affordable energy can be used toimprove the quality of lives of the poorhouseholds.

Dispelling 3 myths:Poor people cannot afford sustainable technologies.

Poor people cannot maintain technologies.

One cannot build a sustainable business while meeting social objectives.

• Own Service Center-staff rather than dealers

• Marketed as an utility investment rather than consumption/ direct income expenditure

• Customised solutions based on needs.

• Facilitates income generation.

• System Integrator v/s Manufacturer

• Service orientation v/s Product focus

• Third party piggy backing on local financial infrastructure

• Link financing to investment and more importantly HH cash flow

• Flexible Tenure and EMIs

• Risk perception sharing with FIs

Finance Customisation

ServiceMarketing

Selco- A Differentiator

Catering to the Urban Poor- Mumbai

* Census data 2011

Pilot Launch

Place

Product Price

Promotion

Solar Photovoltaic Lighting System

Luminaries- Rs. 399-1499 depending on model

Solar Lighting System- Rs.5,999

Advertising

PR

Personal Influence

Sales Promotion Sustainable Models

Kurla Slum Area

Pilot

Launch

1 2

34

Product

Product Features Application Benefits

Solar

Photovoltaic

Lighting System

• FamilyLights & Fans

Panel

Battery

Charge

Regulator

Standalone

System. No Fuel

Houses

Small Business

Shops

Schools

No Black Out

Reliable Power

Easy Financing

Minimum

operation&

maintenance

cost

Door Service

Localised &

Reliable

Price

RANGE OF SOLAR LUMINAIRES , FANS & SYSTEMSLED- 1.2/2.4/3.6 Watts

CFL- 5 /7/11 Watts

InternationalRs. 799

ChoiceRs. 599

Mirror OpticRs.1499

Top CandleRs. 899

AstraRs. 399

BreezeRs.999 Solar Systems- 1 panel, 1 battery,

1 charge regulator, 4 Astra lightsRs. 5999

Easy finance options

available from Janakalyan

Sahakari Bank.Interest rates are based on

the credit source and

range from 5% to 14%.

Customers typically put

between 10-25% down,

paying the balance over

three to five years.

Place

Area: Slum Areas in Kurla

Unreliable grid connection

Long Power Cuts

Underserved Communities &

Migrant Colonies

Small Scale Business/Institutions

Schools, Religious places

Total Slum Population: Kurla: 6,58,972

% of Households Without Electricity: 98%

Place- Operation Channel

RO

KurlaESC

ESC

ESC

ESC

Salesforce

BA/Tech

Sales force

BA/Tech

Salesforce

BA/Tech

Salesforce

BA/Tech

Cu

sto

me

rs

Kurla E

Kurla W

Regional Offices:Located strategically in Chembur, each office directly manages about 4 ESCs

ESCs:SELCO’s Energy Service Centers, base of sales, service, and inventory. 2 each at Kurla East & West

Salesforce & Business Associates/Technicians:SELCO’s direct sales force and BAs market SELCO’s products to potential customers. Technicians look after technical requirements.

Place- Operation Flow Chart

Identify MarketsCreate

Awareness

Shortlist Customers

Workout Energy Requirement

Find Financial Linkages.

Approve the loan

Do the Installation

Explain the

Working

Provide

After Sales

Service

UsersHouseholds-

hutments/SRA buildings

Roadside Vendors

Shopkeepers

InfluencersReligious Head

Bank Manager

Local Political Parties

Local MLA

NGO

Initiators & DecidersLocal MLA

Realtors/Builders

Self Help Group

President/Secretary

NGO

BuyersMunicipal School

Principals/Teachers

Bank Manager

Realtors/Builders

Hospital Administration

PO Incharge

Targeting

Shortlisting

Need AffordabilityShortlisted Customer

Both need and affordability must be analysed while short listing a customer. If there is

need and the customer cannot afford to pay for the product, then the bank linkages

come into the picture.

Promotion

Advertising PRPersonal

Influence

Interviews on TV, Radio, Newspaper, Testimonials, Product Note, Company Profiling, Spokesperson Profiling, Accolades, Recognition Received

Leaflets, Posters, Pamphlets, Banners, Newsletter, Road Shows, Exhibitions, Street Plays Trials/Samples, Demonstrations,

PROMOTION PLAN

30% 30% 20%

o Create awareness on the use of Solar Lighting System and generate interesto Emphasize on the benefits- Affordable, Reliable and Sustainableo Promote trials and adoption

WOM, Influencer Demonstration

Light Point Project, Light for Education, Head Lamp Scheme

Sales Promotion

20%

* Collaterals to be printed in

English, Hindi & Marathi language

Posters/Leaflets

Solar Energy Benefits

AFFORDABILITY –Solar

energy is cheaper than

non-renewable sources

RELIABILITY – Solar

energy can be used

throughout the year

SUSTAINABLITY-

Sustainable energy

your homes and small

businessesSelco system consists of panel,

battery & charge regulator. It

could power low voltage

appliance such as light, fan,

mobile charges, TV, radio. Panel

to be placed south facing

The battery could be charged

during the day and used for 12 hrs

without being recharged.

Battery charged for 2 hrs can be

used for 4 hrs

Want to know how???

visit municipal grounds

14th Sept 2014 at 5 pm.

..Be there to be the change

Day & NightMake the most of nature’s energy resource

Posters/Leaflets- Media Planning

Why•To create hype and awareness about solar energy.

What

•Communication to focus on affordability, reliability and sustainability of solar energy and Selco’s Promise.

Where

•Posters to be displayed at/outside post offices, banks, SHG president office and bus stands where the user TG visit regularly.

•Leaflets to be circulated during the weekend as newspaper inserts.

When

•During peak hours when user TG visit these places.

•While waiting for their work to be done they will be inclined to read the posters

•During Pre launch to create hype and curiosity among all TG.

Pamphlet

RANGE OF LUMINAIRES & FANSLED- 1.2/2.4/3.6 Watts

CFL- 5 /7/11 Watts

International

Choice

Mirror Optic

Top candle

Astra

COMPONENTS

Panel:

- Size:10-120 Wp

- Warranty: 8 years

- Estimated Life: 15-20 years

- High efficiency monocrystalline/

polycrystalline cells

-All-weather resistant

Battery

- Size: 10-180 Ah

- Warranty: 3 years

- Estimated life: 6-8 years

- Low maintenance,

- deep-discharge, tubular plate

- batteries

- Hard rubber / polypropylene

- container

Charge Regulator

- Protects batteries from

overcharge and deep discharge

The SELCO Promise

AFFORDABILITY -Loans available through trusted banks.

RELIABILITY - Warranty on all components of the system.

SUSTAINABLITY-Sustainable energy equipments for all

SERVICE- Doorstep service within 24 hours

Breeze

Static

Pamphlet

WORKING SERVICE

90 days money back guarantee.

1 year free service.

Rs.200 pa maintenance.

24*7 service assistance.

Technical visits every 3 months.

Contact:

742, 15th Cross, 6th Phase,

J P Nagar, Bangalore – 560078

India.

+91-80-266-545-09 | 10

[email protected]

www.selco-india.com

ABOUT US

SELCO, a social

enterprise, was

established in 1995 to

provide sustainable

energy services to

underserved

households and

businesses. Over the

last 15 years, SELCO

has successfully served

over 100,000

customers, improving

their lives and

livelihoods.

Selco system could power low voltage appliance such as light, fan, mobile charges, TV, radio.

Panel to be placed south facing

The battery could be charged during the day and used for 12 hrs without being recharged.

Battery charged for 2 hrs can be used for 4 hrs

Pamphlets- Media Planning

Why

• To create awareness about the company, its products and services

• To provide information on solar energy working

What

• Communication to focus on affordability, reliability and sustainability of solar energy and Selco’s Promise

Where

• Distributed to the all TG at mass/home demonstrations, exhibitions

• Handed over to influencer TG- bank incharge, religions head, NGOs

• Inserted with regional newspapers through the newspaper vendor

When

• At the end of the demonstration sessions, during exhibitions

• Visiting the influencer TG during their free time- at banks, temples, offices

• Weekend newspaper Inserts

Banners

Solar Energy Benefits

AFFORDABILITY –Solar energy is cheaper than non-renewable sources

RELIABILITY – Solar energy can be used throughout the year

SUSTAINABLITY- Sustainable energy your homes and small businesses

Lets Create a better future, today.

The SELCO Promise…

AFFORDABILITY -Loans available through trusted banks.

RELIABILITY - Warranty on all components of

the system.

SUSTAINABLITY- Sustainable energy equipments for all

SERVICE- Doorstep service within 24 hoursreliable

affordable

Banners- Media Planning

Why• To create visibility & hype about solar energy and the company,

What


Where• To be displayed at the venue of the road shows and street plays.

When• During pre launch street plays and follow up road shows

Newsletter

Selconnect is a quarterly newsletter that contains

information on the following:

Solar Projects in India

Selco New Project Launches

Sustainable Environment Measures by Selco

Interviews of Celebrities

Testimonials

Accolade & Rewards

Milestones

CSR Activities

Quiz Section

Useful Energy Saving Tips

SELCO Solar Light (P) Ltd.

Newsletter- Media Planning

Why

• To create awareness about the company and solar energy industry happenings

• To create brand equity for the company

What


Where

• Distributed to influence, buyer and initiator TG and buyers who are evolved and play an important role in decision making of the user TG

When• To be couriered every quarter to their office/residential address

Road Shows, Exhibitions & Street Play

Road shows can be held along with college

students/NGOs (Centre for Environmental

Research & Education)/professionals.

To create awareness about the products,

display and demonstrate the products

Exhibitions can be held at a common

place where demos can be given along

with the product pamphlets

Street Plays can be conducted with college

students, NGOs (Centre for Environmental

Research & Education)/professionals at the

school/municipal open grounds to display

the benefits of solar energy and create

awareness

Broadcast

Road Shows, Exhibitions & Street Play- Media Planning

Why

• To create awareness and hype about solar energy

• To create visibility for the company and its products

What


Where

• The road show van can move around central locations- outside religions places, markets, schools, post offices and banks.

• Exhibitions & street plays can be held at school or municipal grounds

When

• During peak hours when user TG visit these places.

• During weekends and public holidays

• During Pre launch

Demonstrations

In central locations where the people often

meet and discuss in groups, such as

Temples, Library, Reading room, Post Office,

etc., a mass demonstration can be organised

followed by distribution of pamphlets about the

products.

In places where banking activity is high, a

live demonstration of the product at the bank

premises can be arranged during the peak

banking days. This helps in evoking

interest amongst the potential customers.

A Tea party can be organized in the house of

an influential person wherein the product demo

can be given.

Broadcast

Demonstration- Media Planning

Why

• To create awareness about the company, its products, services

• To inform about product usage and benefits

• To encourage adoption

What


Where

• Demos to be held at common places like markets, banks, schools, SHG president’s house for all TG

When• During weekends and public holidays

Trials/Samples

Solar systems can be installed in the

house of an influential/trustworthy

member for a trial period of 1-2

months.

The product can be left at the

person’s house which is accessible

to others and allow them to see it

there at their convenience. This

makes a big impact as it gives a

touch-and-feel experience to the

customers and induces adoption

Broadcast

Trials/Samples- Media Planning

Why

• To create awareness about the company, its products, services

• To inform about product usage and benefits

• To given a first hand experience and encourage adoption

What


Where

• Trials to be set up at the house of influential person-bank manager, MLA, NGO Head, School Principal/Teacher for all TG

When

• Trials to be set up during the pre launch and launch phase for a period of 1-2 months

Promotion


Influence


Leaflets, Posters, Pamphlets, Banners, Newsletter, Road Shows, Exhibitions, Street Plays Trials/Samples,

Demonstrations,

PROMOTION PLAN

30% 30% 20%




Sales Promotion

20%



PR Plan

Through media influencers spread awareness about the availability of low maintenancesustainable energy solutions

Plug in stories about the evolved green citizens – testimonials of celebs / socialites.

Category building / development: Story angel – Rural energy solutions not restricted torural India only

Hygiene PR:

Product Note – targeting Power, Trade, Construction, Interiors and lifestyle mediaCompany Profiling in Trade Media, Financial and General interest (Business pages) printdailies, Business Magazines and websites(SME focus)Announcements – bagging of huge projectsCertifications, Awards and Recognition receivedParticipating in industry stories, HR stories with Rural Energy sector perspectiveSpokesperson Profiling in Power Trade Media, Financial dailies, Business Magazines andwebsites (Entrepreneurial focus)Opinion pieces in industry stories, budget quotes, policy governance stories, HR storieson rural energy sector

Explore unconventional communication modes to reach out to larger audiences – i.eAssociate with a trade media for a Renewable Energy quiz. Become the gifting partner

Tapping the shows (general story telling / debate shows) on electronic media which focuson alternate energy or rural energy

Key Communication Message- Affordability, Reliability and Sustainability

Suggestive Target Media

Promotion


Influence


Leaflets, Posters, Pamphlets, Banners, Newsletter, Road Shows, Exhibitions, Street Plays Trials/Samples, Demonstrations,

PROMOTION PLAN

30% 30% 20%




Sales Promotion

20%



Personal Influence- WOM & Demonstrations

A bank offering innovative financing for Selco products

can market the product through a demo at the bank

premises. The goodwill the Bank Manager shares with

the people helps in creating trust for the organisation

thus creating a healthy starting point to begin

operations.

Local SHG can organize a demo meet to create

awareness about Solar and advocate its adoption.

Tea parties can be organized by a person who is using

the Selco solar system. He can talk about its benefits to

other.

The installation team can create a hype at the time of

installation to create traction and curiosity.

Getting the help of a local charismatic leader to

promote the products. The relevant person needs to be

targeted first and once he is convinced, he becomes

instrumental in spreading the word in the

area

Promotion


Influence


Leaflets, Posters, Pamphlets, Banners, Newsletter, Road Shows, Exhibitions, Street Plays Trials/Samples,

Demonstrations,

PROMOTION PLAN

30% 30% 20%


WOM, Influencer Demonstration Light Point Project,

Light for Education, Head Lamp Scheme

Sales Promotion

20%




Solar Light Point Project:

The project of renting solar lights involves

following participants –

Roadside vendors, beneficiaries of the Solar

Light Point Project

An Entrepreneur, who owns the solar lights and

rents to road side vendors

The local financial institution – provides loan to

the entrepreneur to purchase the Solar Lighting

System

SELCO, Installs the system and offers a discount

to the entrepreneur

A NGO may be involved to ensure success of

the project – with concern for the roadside

vendors and the entrepreneur

Benefits:

Clean, smokeless, bright and portable

solar lights for street vendors

Bright light attracts customers and could,

therefore, lead to more business

Access to energy financing through

financial institutions for the entrepreneur

The entrepreneur can run Rental, as well

as Hire-Purchase models to suit the

income and cash flow of his customers

Low expenditure and high profit

Bank gives a loan to an

interested, eligible entrepreneur

who procures material from

SELCO.

Solar charging

station for batteries

owned by

entrepreneur at his

house/shop. Power

per charging station

can vary from 100W

to 1.5Kw.

Charged batteries

being transported to

the vendors in the

evening.

Vendors using solar

charged batteries to run

their lights. They pay a

nominal rental fee (Rs.6 to 8

per day) to the entrepreneur

at the time of battery

delivery. The entrepreneur

retrieves the batteries once

discharged and restarts the

cycle.

The alternative: bulbs

and kerosene

lanterns

Typical central

charging of SLA/Deep

cycle 10Ah-15Ah

batteries. Around 10 to

150 batteries can be

charged.


Light For Education Program:

Students are given an LED powered study

light from the school.

The light includes a small detachable

battery, which can be recharged at the

solar recharge centre in school.

Therefore, the child must attend school in

order to have light at home.

Solar systems will be provided to the

schools at a subsidized rate or through a

sponsor

Benefits:

A centralized charging station at the

school

The study light which the student keeps at

home, and A pocket size battery pack

which is charged in the school and

powers the light

Independent solar charging system

Improves studies and attendance in

schools


Head Lamp Scheme:

Tie ups to be done with Realtors/Builders

who undertake building construction

activities in the TG areas-SRA building

High power head lamps to be provided at

discounted rates to them for the

construction workers so that construction

work can be carried out safely at night.

Benefits:

Increases productivity

Ensures safety

Reduces the risk of accidents

Budget

Promotion Particulars Specification Size Rate Qty. Days Amount

H W L

Advertising

Leaflets 180gsm, multicolor 3 3000 9,000

Posters

A3 size multi color, glossy print &

280gsm 40 250 10,000

Pamphlets A4 size, multicolor , 2 sided 10 3000 30,000

Road shows, Exhibitions, Street Plays:

2,85,800

Vehicle for road show 12000 1 6 72,000

Banner boys 1000 10 6 60,000

Promoters/Volunteers 1000 10 6 60,000

Stage 2 8 10 60 1 6 14,400

Sound System 4000 1 6 24,000

Mic 450 2 6 5,400

Trials/Demonstrations 20,000

Collectors NOC, Traffic, Local Police,) 30,000

PR Agency fees 90 1,00,000

Sales Promotion

Launch Discounts @ 10%/Sales Promotion

Models@ 10%

Assuming that 10% hh and est will

buy i.e 10000 15 60,00,000

Free Samples 399 200 79,800

TOTAL 65,14,600

Evaluation- Market Share & Sales

Market Share

• To light 1,00,000 hh and estin the target area

• To capture the entire 6.5 million population slum market in Mumbai phase wise over the next 3 years

• To be the market leader in Mumbai in the segment of sustainable energy

Sales & Revenue

• To sell 1,00,000 solar systems in the target area.

• To increase overall sales from 1,35,000 units currently to 3,00,000 units.

• To rope in at least 1 entrepreneur every 1 km radius for the Solar Light Point Project.

• To increase the company’s revenue from Rs. 266 million to Rs.500 million by 2017.

Mind Share Transformation

Selco = Sustainable Energy

Sustainability = Solar = Selco

Selco = Reliable

Solar

Energy

=

Selco

Non Affordability

Finance Innovations

No Electricity

Reliable &

Sustainable

Energy

Need Gap Need

Gap

49

To light a million smiles…