Solar - Marketing - Revision history

Ranisha at 09:42, 1 August 2018

2018-08-01T09:42:42Z

Johanna: /* Further Information */

2017-01-13T11:02:12Z

‎Further Information

Ranisha: /* Further Information */

2016-08-19T08:03:57Z

‎Further Information

Hellpap at 13:24, 22 September 2015

2015-09-22T13:24:39Z

Hellpap: /* Marketing Through Established Distribution Networks */

2015-09-22T13:10:11Z

‎Marketing Through Established Distribution Networks

Hellpap at 17:56, 21 September 2015

2015-09-21T17:56:26Z

Ranisha at 14:12, 1 August 2014

2014-08-01T14:12:27Z

Show changes

Ranisha: /* Marketing Through Payment in Instalments or "pay-as-you-go" Systems */

2014-03-12T09:13:24Z

‎Marketing Through Payment in Instalments or "pay-as-you-go" Systems

Ranisha: /* Marketing Through Freelance Sales Agents */

2014-03-11T13:11:34Z

‎Marketing Through Freelance Sales Agents

Wiki Gardener: moved Marketing to Solar - Marketing

2012-08-31T13:07:57Z

moved Marketing to Solar - Marketing

← Older revision		Revision as of 09:42, 1 August 2018
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−		+	[[Portal:Solar\|►Back to Solar Portal]]
	= Marketing Campaigns<br/> =		= Marketing Campaigns<br/> =

@@ Line 73: / Line 73: @@
 <br/>
 = Further Information<br/> =
@@ Line 80: / Line 81: @@
 *[[Business Operation Models for Solar Home Systems (SHS)|Business Operation Models for Solar]]<br/>
 *[[After Sales Service for Solar Systems|After Sales Service for Solar Systems]]<br/>
 <br/>

@@ Line 78: / Line 78: @@
 *[[Portal:Solar|Solar portal on energypedia]]
 *[[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems]]<br/>
-*[[Business Operation Models|Business Operation Models for Solar]]<br/>
+*[[Business Operation Models for Solar Home Systems (SHS)|Business Operation Models for Solar]]<br/>
 *[[After Sales Service for Solar Systems|After Sales Service for Solar Systems]]<br/>
 <br/>
 = References<br/> =

@@ Line 22: / Line 22: @@
 A similar marketing approach is based on a community roadshow partiy sponsored by the lighting company, in which it is announced that a competition will take place for community members to see who can get the most endorsement as the ‘community vendor’. The one with the most signatures receives the opportunity to supply the off-grid lighting products to the community members, under the assumption that this ‘competition’ will select a particularly credible, sociable and persuasive community member.<br/>
-== Marketing Through Established Distribution Networks<br/> ==
+== Marketing Through Established Commercial Distribution Networks<br/> ==
-Established distribution channels such as supermarkets, hardware stores, microfinance institutions or other community-based organisations&nbsp; may be interested to stock off-grid lighting products in addition to their other goods and receive the benefit of expanding production by actually using some of the products to illuminate their vending kiosks. Informal distribution channels are also demonstrating the potential to play a significant role in off-grid lighting delivery, with increasing interest on the part of trading networks, kerosene suppliers, company employee living communities, '''Non-Governmental Organisations (NGOs)''', farmers’ associations, microfinance institutions, and other informal distribution aggregators which can make earnings from off-grid lighting retail while improving their bottom line by using the lighting products themselves and improving their businesses by providing access to electricity to their employees, community members, or the disadvantaged groups they support.<br/>
+Established distribution channels such as supermarkets and&nbsp;hardware stores may be interested to stock off-grid lighting products in addition to their other goods and receive the benefit of expanding production by actually using some of the products to illuminate their vending kiosks. <br/>
 <br/>
 == Marketing Through Cooperation with MFIs or Companies<br/> ==
@@ Line 41: / Line 41: @@
 <br/>
-<u>Microfinance provides a means to overcome these limitations. However, Microfinance institution face two key problems:</u>
+Microfinance provides a means to overcome these limitations. They can help to establish informal distribution channels&nbsp;to&nbsp;poor households.&nbsp;However, Microfinance institution face two key problems<u>:</u><br/>
 *high transaction costs for loans of small size
 *risks of non-payment
 <br/>
-Pushing consumers to pay can be done by locking lighting systems until fees are paid. Another option is the cooperation with companies, which sell quality lighting products to their workers with loan repayments deducted from salaries.
+== Marketing through establishing a proprietary sales network<br/> ==
-<br/>
+<font face="verdana">Establishing an on netwerk with hired sales force is&nbsp;time consuming and cost intensive. The main advantage of such a network is high degree of control and oversight of marketing activities and the possiblity to carry out special marketing campaigns including special branding and the provision of customer finance.&nbsp;</font><br/>
-−
 <br/>
 = Marketing Through Payment in Instalments or "[[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|pay-as-you-go]]" Systems<br/> =

@@ Line 21: / Line 21: @@
 A similar marketing approach is based on a community roadshow partiy sponsored by the lighting company, in which it is announced that a competition will take place for community members to see who can get the most endorsement as the ‘community vendor’. The one with the most signatures receives the opportunity to supply the off-grid lighting products to the community members, under the assumption that this ‘competition’ will select a particularly credible, sociable and persuasive community member.<br/>
 == Marketing Through Established Distribution Networks<br/> ==
-Established distribution channels may be interested to stock off-grid lighting products in addition to their other goods and receive the benefit of expanding production by actually using some of the products to illuminate their vending kiosks. Informal distribution channels are also demonstrating the potential to play a significant role in off-grid lighting delivery, with increasing interest on the part of trading networks, kerosene suppliers, company employee living communities, '''Non-Governmental Organisations (NGOs)''', farmers’ associations, microfinance institutions, and other informal distribution aggregators which can make earnings from off-grid lighting retail while improving their bottom line by using the lighting products themselves and improving their businesses by providing access to electricity to their employees, community members, or the disadvantaged groups they support.
+Established distribution channels such as supermarkets, hardware stores, microfinance institutions or other community-based organisations&nbsp; may be interested to stock off-grid lighting products in addition to their other goods and receive the benefit of expanding production by actually using some of the products to illuminate their vending kiosks. Informal distribution channels are also demonstrating the potential to play a significant role in off-grid lighting delivery, with increasing interest on the part of trading networks, kerosene suppliers, company employee living communities, '''Non-Governmental Organisations (NGOs)''', farmers’ associations, microfinance institutions, and other informal distribution aggregators which can make earnings from off-grid lighting retail while improving their bottom line by using the lighting products themselves and improving their businesses by providing access to electricity to their employees, community members, or the disadvantaged groups they support.<br/>
 <br/>
 == Marketing Through Cooperation with MFIs or Companies<br/> ==

@@ Line 4: / Line 4: @@
 Lessons from early experience suggest that marketing campaigns can be extremely costly and time consuming in rural areas, often requiring door-to-door and direct contact. Simple consumer awareness is usually insufficient by itself. Dealers benefit from marketing assistance in early phases of new market development until a “critical mass” of customers develops that makes marketing easier.
 Customers living in close proximity to towns are generally better informed about solar products than people in villages and tend to make highly informed purchasing decisions. They would not buy the lamps on the occasion of a particular promotion event, but rather collect detailed information about the products promoted and later compare them with the full range of offers available with retailers in the town.
 Lifestyle and entertainment are key drivers of market growth. Both are as important for low-income populations as they are for those living in more affluent neighbourhoods – a fact attested by the significant number of TVs, radios and bars in semi-urban and rural Africa. Marketing campaigns should take this into consideration and address these aspects when promoting solar systems.<ref name="E. Martinot et al.: World Bank/GEF solar home systems projects: experiences and lessons learned 1993-2000, Published in Renewable & Sustainable Energy Reviews 5(1): 39-57 (2001).">E. Martinot et al.: World Bank/GEF solar home systems projects: experiences and lessons learned 1993-2000, Published in Renewable & Sustainable Energy Reviews 5(1): 39-57 (2001).</ref>
 <br/>
 <br/>
-= Marketing Through Freelance Sales Agents<br/> =
+== Marketing Through Freelance Sales Agents<br/> ==
-Marketing through freelance sales agents requires a high level of trust especially if products are handed out on commission base without asking for any collateral. There is a high risk that sales agents don't repay the cost of all received products. Consequently, selection of freelance sales agents has to be taken with care. Alternatively, products should be handed over to sales agents only against up-front payment to ensure that they, in turn, will enforce payment by households. However, for such a model capital availability on the side of the sales agents would certainly emerge as a bottleneck. Lack of accountability by the freelance sales agents could also be overcome by identifying at least 2 guarantors for each agent.
+Marketing can be done through '''freelance sales agents''', which are also sometimes called '''last mile entrepreneurs '''or '''village level entrepreneurs'''. The freelance sales agent model has the advantage that a costly new distribution infrastructure with foreign sales forces is not necessary and that the local agents have a good understanding of the local habits and the demand. The goods can be sold either in local shops, on market places or through door-to-door activities. The sales agents can provide advice to their customers. However,&nbsp;this model requires a high level of trust&nbsp;if products are handed out on commission base without asking for any collateral. There is a high risk that sales agents don't repay the cost of all received products. Consequently, selection of freelance sales agents has to be taken with care. Alternatively, products can&nbsp;be handed over to sales agents only against up-front payment to ensure that they, in turn, will enforce payment by households. However, for such a model capital availability on the side of the sales agents would certainly emerge as a bottleneck. Lack of accountability by the freelance sales agents could also be overcome by identifying at least 2 guarantors for each agent.<br/>
-An important factor for marketing of products is the personal relationship between the agents and the customers. If people trust the agent they feel assured that they can contact him in case of technical problems or defaults. One model taking this into account is that of using the community hierarchy to establish consumer confidence in the community by enlisting community leaders as direct sales agents, who sell products directly in the community making a commission on each sale. By targeting marketing at respected members of the community who exhibit authority, the likelihood is high that they can substantially influence the community to purchase off-grid lighting products, while also serving as a return channel for warranties and complaints – thereby reducing the risk perception of buying a new and unproven product for consumers.
+An important factor for marketing of products is the personal relationship between the agents and the customers. If people trust the agent they feel assured that they can contact him in case of technical problems or defaults. One model taking this into account is that of using the community hierarchy to establish consumer confidence in the community by enlisting community leaders as direct sales agents, who sell products directly in the community making a commission on each sale. By targeting marketing at respected members of the community who exhibit authority, the likelihood is high that they can substantially influence the community to purchase off-grid lighting products, while also serving as a return channel for warranties and complaints – thereby reducing the risk perception of buying a new and unproven product for consumers.<br/>
-A similar marketing approach is based on a community roadshow partiy sponsored by the lighting company, in which it is announced that a competition will take place for community members to see who can get the most endorsement as the ‘community vendor’. The one with the most signatures receives the opportunity to supply the off-grid lighting products to the community members, under the assumption that this ‘competition’ will select a particularly credible, sociable and persuasive community member.
+A similar marketing approach is based on a community roadshow partiy sponsored by the lighting company, in which it is announced that a competition will take place for community members to see who can get the most endorsement as the ‘community vendor’. The one with the most signatures receives the opportunity to supply the off-grid lighting products to the community members, under the assumption that this ‘competition’ will select a particularly credible, sociable and persuasive community member.<br/>
-<br/>
+== Marketing Through Established Distribution Networks<br/> ==
-−
 = Marketing Through Established Distribution Networks<br/> =
 Established distribution channels may be interested to stock off-grid lighting products in addition to their other goods and receive the benefit of expanding production by actually using some of the products to illuminate their vending kiosks. Informal distribution channels are also demonstrating the potential to play a significant role in off-grid lighting delivery, with increasing interest on the part of trading networks, kerosene suppliers, company employee living communities, '''Non-Governmental Organisations (NGOs)''', farmers’ associations, microfinance institutions, and other informal distribution aggregators which can make earnings from off-grid lighting retail while improving their bottom line by using the lighting products themselves and improving their businesses by providing access to electricity to their employees, community members, or the disadvantaged groups they support.
@@ Line 28: / Line 28: @@
 <br/>
-= Marketing Through Cooperation with MFIs or Companies<br/> =
+== Marketing Through Cooperation with MFIs or Companies<br/> ==
 Most low-income consumers spend approximately US$ 5-10 per month for kerosene, wick lamps and candles. This money could be saved if solar lighting is used. However, consumers are very often reluctant or unable to make an up front investment of US $ 30 or more dollars, due both to the nature of their available cash flows as well as to the real and perceived risks of investing in a potentially sub-standard product.
 <u>In fact, the primary drivers for the high market penetration of kerosene are:</u>
 #the ability to buy small portions of kerosene over time, as permitted by the availability of cash
 #the relatively low risks involved with buying small portions of a well known commodity
@@ Line 39: / Line 40: @@
 <u>Microfinance provides a means to overcome these limitations. However, Microfinance institution face two key problems:</u>
 *high transaction costs for loans of small size
 *risks of non-payment
@@ Line 50: / Line 52: @@
 <br/>
-= Marketing Through Payment in Instalments or "[[Fee-For-Service_or_Pay-As-You-Go_Concepts_for_Photovoltaic_Systems|pay-as-you-go]]" Systems<br/> =
+= Marketing Through Payment in Instalments or "[[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|pay-as-you-go]]" Systems<br/> =
 Another promising alternative to consumer finance is that companies are starting to allow consumers to purchase single product components over time, until the full system or desired number of products is achieved (as funds become available for the end-user). This model enables consumers a modular approach to pay for each component or product within their budgetary limits, and slowly build and expand their lighting system when they can afford to, following a kind of Lego building approach.
@@ Line 66: / Line 68: @@
 Consumers have higher trust in products if spare parts (notably spare batteries)are easily available and if warranties are provided. Especially in a model of direct marketing of lamps or SHS to households through sales agents, a written warranty may be crucial to ensure that customers have due trust in the product quality. A 1 year warranty or one year customer service is the minimum what customers expect.
--> See also [[After_Sales_Service_for_Solar_Systems|After sales services]]
+-> See also [[After Sales Service for Solar Systems|After sales services]]
 <br/>
@@ Line 73: / Line 75: @@
 *[[Portal:Solar|Solar portal on energypedia]]
-*[[Fee-For-Service_or_Pay-As-You-Go_Concepts_for_Photovoltaic_Systems|Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems]]<br/>
+*[[Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems|Fee-For-Service or Pay-As-You-Go Concepts for Photovoltaic Systems]]<br/>
-*[[Business_Operation_Models|Business Operation Models for Solar]]<br/>
+*[[Business Operation Models|Business Operation Models for Solar]]<br/>
-*[[After_Sales_Service_for_Solar_Systems|After Sales Service for Solar Systems]]<br/>
+*[[After Sales Service for Solar Systems|After Sales Service for Solar Systems]]<br/>
 <br/>

← Older revision		Revision as of 09:13, 12 March 2014
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−	~~= Marketing Through Payment in Instalments or "pay-as-you-go" Systems<br/> =~~

−	~~Another promising alternative to consumer finance is that companies are starting to allow consumers to purchase single product components over time, until the full system~~ or ~~desired number of products is achieved (as funds become available for the end~~-~~user). This model enables consumers a modular approach to~~ pay ~~for each component or product within their budgetary limits, and slowly build and expand their lighting system when they can afford to, following a kind of Lego building approach.~~	+	= Marketing Through Payment in Instalments or "[[Fee-For-Service_or_Pay-As-You-Go_Concepts_for_Photovoltaic_Systems\|pay-as-you-go]]" Systems<br/> =

		+	Another promising alternative to consumer finance is that companies are starting to allow consumers to purchase single product components over time, until the full system or desired number of products is achieved (as funds become available for the end-user). This model enables consumers a modular approach to pay for each component or product within their budgetary limits, and slowly build and expand their lighting system when they can afford to, following a kind of Lego building approach.

@@ Line 9: / Line 9: @@
-Marketing through freelance sales agents requires a&nbsp;high level of trust especially if products are handed out&nbsp;on commission&nbsp;base&nbsp;without asking for any collateral.&nbsp;There is a high risk that sales agents don't repay&nbsp;the&nbsp;cost of all received&nbsp;products.&nbsp;Consequently,&nbsp;selection of freelance sales agents has to be taken with care. Alternatively, products should&nbsp;be handed over to sales agents only against up-front payment to ensure that they, in turn, will enforce payment by households. However, for such a model capital availability on the side of the sales agents would certainly emerge as a bottleneck.&nbsp;Lack of accountability by the freelance sales agents could also be overcome by identifying at least 2 guarantors for each agent.
+= Marketing Through Freelance Sales Agents<br/> =
-An important factor for marketing of products is the personal relationship between the agents and the customers. If people trust the agent&nbsp;they feel&nbsp;assured that they can&nbsp;him&nbsp;in case of technical problems or defaults. One model taking this into account&nbsp;is that of using the community hierarchy to establish consumer confidence in the community by enlisting community leaders as direct sales agents, who sell products directly in the community making a commission on each sale. By targeting marketing at respected members of the community who exhibit authority, the likelihood is high that they can substantially influence the community to purchase off-grid lighting products, while also serving as a return channel for warranties and complaints – thereby reducing the risk perception of buying a new and unproven product for consumers.&nbsp;
+Marketing through freelance sales agents requires a high level of trust especially if products are handed out on commission base without asking for any collateral. There is a high risk that sales agents don't repay the cost of all received products. Consequently, selection of freelance sales agents has to be taken with care. Alternatively, products should be handed over to sales agents only against up-front payment to ensure that they, in turn, will enforce payment by households. However, for such a model capital availability on the side of the sales agents would certainly emerge as a bottleneck. Lack of accountability by the freelance sales agents could also be overcome by identifying at least 2 guarantors for each agent.
-A&nbsp;similar marketing approach is based on&nbsp;a community roadshow partiy sponsored by the lighting company, in which it is announced that a competition will take place for community members to see who can get the most endorsement as the ‘community vendor’. The one with the most signatures receives the opportunity to supply the off-grid lighting products to the community members, under the assumption that this ‘competition’ will select a particularly credible, sociable and persuasive community member.
+An important factor for marketing of products is the personal relationship between the agents and the customers. If people trust the agent they feel assured that they can contact him in case of technical problems or defaults. One model taking this into account is that of using the community hierarchy to establish consumer confidence in the community by enlisting community leaders as direct sales agents, who sell products directly in the community making a commission on each sale. By targeting marketing at respected members of the community who exhibit authority, the likelihood is high that they can substantially influence the community to purchase off-grid lighting products, while also serving as a return channel for warranties and complaints – thereby reducing the risk perception of buying a new and unproven product for consumers.