1. TEAM: FADED FLAME IIM KOZHIKODE
INNOVATORS DAIS
Amrit Tulya: Solar Powered Water Purification System
NATIONAL FINALIST
Ashutosh Vikram Arnab Guha Mallik Abhisek Paul
ashutoshv15@iimk.ac.in arnabgm15@iimk.ac.in abhisekp15@iimk.ac.in
9745212105 Ph: 8943994677 Ph:8943707444
2. Amrit Tulya: Solar Powered Water Purification System
Concept: The Features Water Purifiers: the gaps
Break through green technology system to treat water
Integrates and uses the renewable solar energy A portable water filtering system is the need of the hour in rural
areas
Reverse Osmosis system.
Less energy consumption to run a Reverse Osmosis Cities filter water at the incoming source, but most rural areas do
system thus reducing capital cost of installing expansive not have such systems
solar PV panels.
Allows costs of Solar based RO systems to be affordable
and less of O&M even in remotest regions.
50LPH Reverse Osmosis plant is functional
Lowest Cost, 30p per Litre An older version of portable water filtering systems tend to leave a
taste to the water. Reports of residual iodine left in the drinking
water. bacterium and fungus may stay in the filter portion and
start to grow there.
Differentiation from current scenario
Doesn’t depend on external power like grid power supply
Needs
Much lower capital requirement then other solar based
products Safe and purified water: portable and capable water filtering
Lower operational cost and complexity system
Water filter with no external power
Easily deployable and setup
No continuous water supply
Can work through out
Portable so that they can be carried around
Target Segment
BENEFIT SEGMENTATION WITH DEMOGRAPHICS AS A The major segment of the market being targeted is the rural
SURROGATE: FOCUS ON THE BENEFITS. market
People in villages, tier 2 and 3 cities with problems of external
power supply, running water and highly price conscious
3. Amrit Tulya: Solar Powered Water Purification System
Competitors Market Opportunity
The low-cost offering targeted at households in Total Market Size: Rs 2000 crore
small towns and rural India are the water purifiers Water purifier segment in India is growing at a compounded
from the house of Eureka Forbes (Aqua Sure) and annual growth rate of about 25%, largely driven by rising sales
Hindustan Unilever.(Pureit) of low-cost variants triggered by extreme shortage of drinking-
Other brands available in the offline category are water and dwindling water table
Kent, Zero B, Bajaj, and Tata. Total Water Purifier Penetration in India: 3.6%
Eureka is straddling the retail and also direct selling Urban: 10.8%, Rural: 0.72% (HUGE OPPORTUNITY)
model offline water purifiers contributed for about 18.4 % of the
While HUL is selling its water purifier at Rs 1,800, market.
Eureka has priced one of its models at Rs 1,600. Trend: by 2016, offline water purifier segment is expected to
Both HUL and Eureka had test marketed their grow at a very rapid pace and increase its share to about 38 %
products in southern states before India launch of the total market which is 1900 crore in India
As HUL airs its TV campaigns on how using Pureit
will give freedom from boiling water, Eureka Forbes
has signed on celebrity Smriti Irani for
communicating its benefits.
RECOMMNEDED PACKAGING
upmarket(Stylish)looks: Aspirational Value and
conveys hygiene and purity
easy to clean & simple in construction
easy to use and assemble
incorporates an indicator that shows the life of the
filter
Available in 2-3 colours
4. RURAL MATHS
CHALLENGES
One of the greatest challenges in the rural landscape also
remains the lack of capital Access to formal banking would not
only eliminate unbearable debt for the poor but also bring Key drivers behind this
capital investments into rural. growth include
consistent implementation of education-centric policies and Government initiatives
programmes. There is also the need for rigorous accountability and schemes,
and sharing of best practices to raise the quality of programme infrastructure
execution. There is a scope of e-learning in transforming the development, industry
cost and access to education. projects across the
Skill building is another crucial factor to the growth of the country and the
rural economy. The need of the hour is not to take the lead in emphasis on local-
setting up the programmes, but also provide training and employability
employment assistant.
5. WHY RURAL
Market
Prospects
Implications
India's large rural population India's rural population is
India's large rural population represents a significant forecast to rise to 877 million
reached 829 million people in “BOTTOM OF THE PYRAMID” people by 2020
2010, accounting for 69.9% of market with much potential As rural incomes continue to
the country's and 12.1% of the Annual disposable income and grow, the importance of India's
world's total population. consumer expenditure per rural market will continue rising
India's rural population capita reached Rs53,547 to become a significant driver of
constitutes an important (US$1,171) and Rs38,083 India's economic growth;
consumer market that is vital to (US$833) in Rural development will continue
the domestic economy due to 2010, respectively, representing to be a priority in the agenda of
its sheer number. Rising a period growth of 29.2% and the Indian government. The
consumer expenditure has been 28.0%. government has a wide range of
a driver of India's impressive Increase in incomes and rural development programmes
economic growth over 2005- purchasing power, provides focusing on alleviating poverty
2010 and accounted for 57.3% of opportunities for businesses and improving rural
the country's total GDP in 2010; given their large numbers. infrastructure, education and
healthcare.
Rural Connect Insights
Needs of Rural Consumers Amrit Tulya features
The features that the customers want in Water Purifier The solar water purifier has following features:
• Doesn’t depend on external power like grid power supply • Solar Based Power
• Low Cost • Reverse Osmosis: Ensures good quality water purified
• Highly Efficient • Best Efficiency and Easy to use
• Easily deployable and setup • Lowest Cost: It costs around 30p per litre
6. Psychographic Profiling & Insights
The Psychographic Profiling is done on the basis of their personality, values, attributes, interests & lifestyle
IAO Parameters
Influencers Cultures
There are many reference group in villages. These include Majority of rural consumers are traditional in outlook.
teachers, panchayat members, health workers, bank manger and They associate faster with message that match their
co-operative board member- must be kept in mind while developing cultural behavior such as traditional values.
marketing strategy
Attitude & Value Parameter
Product
Product Usability • Product Durability is still valued and don’t believe in use &
Durability through urban mentality
• Product Usability helps in making decision to buy a product.
Added features always help in Decision Making
• Look for brand in all the products they buys and even ready to
Customer pay little premium
Price Sensitivity • Price Sensitivity is still there but value for money is also a strong
Engagement force
• Believe in word of mouth publicity of product from a neighbor
co-relative
• Engaging Customers in the buying process also helps in
generating the sales of the product
Word Of mouth Brand Loyality
7. Market Penetration Strategy
At Village Level:
At District Level:
Income Level:
At HDI & GDI Level:
• Village coverage in the • The Launch Strategy • HDI & GDI helps in • Per-capita income level
district should be done would focus on initial identifying regions of different states can
on the basis of its size launches in the which are upcoming be utilized to identify
such that bigger villages developed districts in and where people want the buying power of
will be targeted first the selected regions to have better living the majority i.e. rural
and also their (on basis of point 1 &2 standards. people living in that
respective distances ), leaving the • In these regions there region
from these high density undeveloped ones in exists high chance of
locations: initial phases of the product acceptance
• Villages near Urban launch
Centers
• Developed district
Head Quarter
• Taluka/Tehseel
• Mandi
8. Marketing Strategy – 4A approach
The 4A approach deals
with the problems of
Low per capita marketing and distribution
disposable in the rural India by
income that is providing affordable
almost half of the solutions and being widely
urban disposable accepted among the
income Poor roads, lack customers by creating
of continuous awareness about the
power product
supply, lack of
conventional
media
advertising
Availability
Rural marketing
challenges The first challenge is to ensure availability of the product
or service. India's 627,000 villages are spread over 3.2 million
Seasonal sq km.
consumption However, given the poor state of roads, it is an even
linked to harvests greater challenge to regularly reach products to the
and festivals and far-flung villages
special occasions Any serious marketer must strive to reach at least 13,113
Large number of villages with a population of more than 5,000
daily wage Study on buying behaviour of rural consumer indicates
earners, acute that the rural retailers influences 35% of purchase occasions.
dependence on • Therefore sheer product availability can affect
the uncertainties decision of brand choice, volumes and market share
of the monsoon Marketers must trade off the distribution cost with
incremental market saturation
9. Marketing Strategy – 4A approach
Affordability Acceptability Awareness
With low disposable Third challenge is to gain acceptability Different promotional events
incomes, products need to be - therefore, there is a need to offer organised by stockists and other
affordable to the rural consumer, most products that suit the rural market stakeholders of the product
of who are on daily wages – pricing in Product localization – coming up with Creating an optimal mix of mass
the range of Rs 1000 – Rs 3000 regional language product manuals and media, local and personalized media
Product innovation is important Product menus Tie up with non-traditional channels
Promotional Strategies
Convert the ignorants into the informed, the informed into the adopters through proper communication strategy. Make them aware of
the availability of the brand, generate interest, educate about the usage and the benefits through proper demonstrations, trials,
convince them and hence convert to purchasers
Create Product
Reach the Consumer Generate Interest Educate and Persuade
Knowledge
Mass Media Strategies
Advertisements on Mass media be it radio or television or press: The ads should focus on the benefits of the products and how
using them will help the people. We can use models dressed as doctors for promotion
The concept of family can be used as an imagery as Indian customers are more family oriented and consider family’s happiness
to be the most important thing.
Through the expert we will be targeting the cognitive elements and following the central route of perception. By using the
family imagery we will be targeting the affective components which would lead to an emotional connect also
10. Wide network
Non Conventional Media Strategies
Advertising with interactivity:
Advertisements in newspapers and magazines have limited Remove unwanted features
value in rural areas.
Compared to ads on TV, live demonstrations, programs like
story telling or skits will be more powerful media as they
provide scope for direct interaction with the audience.
During such shows, we can show the functioning of the
Tell about value for money
products, explain the usefulness of the products and create
more visibility
try and reach out and connect to the people directly. Print Product localization and low pricing
ads in local dailies, posters within shops and paintings on
the walls should be undertaken. Pictures, dramatizing
voices, attractive expressions and color have more influence
on rural consumers Interactive communication at point of contact: Audio
Visual Vans:
Visit selected villages and towns (high population and more
Opinion Leaders: The message becomes credible if it comes
people with higher propensity to spend) on weekly market
from a credible source. Tie up with primary health care
days to communicate the benefits of the product in a way
centres, get the village heads or panchayats to spread the
that’s relevant to the target audience
use of the product and the associated benefits with it.
School headmasters and teachers can also help in
The vans will be carrying a banner or large cutouts.
promoting the usage of the product. A proper BTL strategy
would be joining hands with NGOs to spread the word and
Where the haat or melas takes place on both sides of the
benefits
road, the van is to be mobile throughout the day.
Posters and handbills are distributed and product
demonstrations and samplings are held
11. STRATEGIES IN BOTH RURAL AND SEMI URBAN MARKETING
Cold Calls (door to door selling): salesmen have to go through the "cold calls" to get a sale.
Outreach (Kiosk) within the villages to sell the products, provide demonstration for usage
Clinics/Primary health Care centers: Product displayed prominently clinic with all necessary brochures and inquiry forms. Using
the influencing power of the medical fraternity to its advantage, more credibility to the products. For the doctor , it just means
that his patient has access to pure water while waiting but for the brand “AMRIT TULYA” this small gesture adds lot of
authenticity
Alternatives
tie up with the Indian Postal department to sell these small products to village homes.
Local men and women in villages can be roped in as sales associates, who will sell these products at a pre-decided commission
Use of syndicates like forming up of cooperates in semi urban and rural areas to sell to the masses
Roadbloacks Execution
Standard of living Low cost advantage of product, providing VALUE Breaking the Price
sensitivity
Low literacy levels Poster, Wall Painting in vernacular language
Target audience traders and service men who have regular a) Active subscription
Low per capita income
cash stream throughout the years immediately
Ineffective distribution Used parallel distribution channel. Vans to provide retailers b) Right time installation of
channels plus serve as point of sale and promotion products
c) Properly repair services
Many languages and diversity The promotion, demonstration, education to be done in in against paid AMC’s.
in culture local languages d) Service during contract
period
Coverage of unconventional channels like Radio (Vivadh
Lack of communication Bharati), Local TV channels (Doordarshan), Locally circulated
system publications, (Newspaper), Point of purchase promotions.
Wall paintings, pamphlets and other rural promotions.
Low Demand/ low Disruptive innovations, leveraging PHILIPS’ brand name and
acceptance distribution strategies to create awareness and adoption
12. Rural Distribution Challenges
• The long distances to be covered from
Multiple tiers, higher the product points and the scattered
costs and locations of the consuming households
administrative cause this situation
problems • Push up costs and make channel
management a major problem
• there are a limited number of suitable
dealers
Non- availability of
dealers • Even if the firm is willing to start from
scratch and try out rank newcomers, the
choice of candidates is really limited
• the business volume is not enough to
sustain the profitability of all the groups
Poor viability of
retail outlets • scattered nature of the market and the
multiplicity of tiers in the chain use up
the additional funds
Alternate Distribution Strategies
Use of a Carrying and Forwarding Agent (C&FA) as the stock point. He receives the consignment and is a stock point. The C&FA
therefore results in improved servicing of Re-distribution Stockist efficiently.
Indirect Coverage: Under the Indirect Coverage method, company vans were replaced by vans belonging to Redistribution
Stockists, which serviced a select group of neighbouring markets.
Use of SHGs or village women as distributors – both a source of good margins as well as self-employment
A hub-and-spoke model can also b developed to reach the villages. To ensure full loads, the, large distributors can be supplied
twice a week or so, who act as hubs. These distributors appoint and supply, once a week, smaller distributors in adjoining areas
Area Offices (AO) and Rural/Remote Area Offices (RAO) to tap unexplored markets
13. Product wind-up strategies
In case it is unable to meet the targets, winding up the product in the pilot phase itself would be very effective on
the part of the company in order to prevent further losses
Price reduction and discounts
Product bundling helps to
Reduce the price in order to sell off the old Special discounts in case gifts are bought for bundle two or more
inventory special occasions e.g. marriage products together and sell
them at a lower price
Effective during festive
season and helps in
Product placement in tier 2 and tier 3 cities generating high sales
In case the product becomes a success, we can
To use up excess inventory
further explore the option of marketing it
Recovery of Cost – products
that are already being
manufactured and those in
Product bundling
the inventory
Company’s brand value is
Combining the water purifier product with other similar innovative products not diluted
Dumping of product
Selling the brands as unbranded products (dump), since the product has already been dumped
by the company
To eliminate this problem, many manufacturers have to add a feature that creates a barrier to these particles. Nanoparticles make of bonded silver are added, and this prevents the growth of these pathogens. Activated charcoal is also a popular choice for purifying water in a portable system. These are capable of removing protozoa, bacteria and other extremely small contaminants, but not viruses. The only systems that can destroy viruses are those that use chemicals or ultraviolet light. About 50 million people in West Bengal are presently affected by arsenic PoisoningIn addition, about 60 million people across India, mainly in Rajasthan, Gujarat, and Andhra Pradesh, consume water with high fluoride contentAs per World Bank, 80 % of communicablediseases in India are water related. 30% rural population have no access to pure water.It is estimated that about 10 million illnesses and 700,000 deaths in India could be attributed to diarrhoea of which 400,000 are children under the age of five.