Advait Adopting Customer Centric Pricing

Make a niche for yourself - Adopting Customer Centric Pricing Jan 2011 advait energy Affordable Clean Solutions. For Everyone.

Agenda ,[object Object],[object Object],[object Object]

Why customer centric pricing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Know thy customer: needs, customer buying behavior and inclination price

Roadmap to Strategic pricing in an organization

Organizations need to think through the strategic as well as tactical implication of changing market dynamics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price setting Price management Pricing strategy & model Strategic pricing framework – to be aligned to overall business strategy

Customizing pricing strategy to meet customer needs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price setting Price management Pricing strategy & model

How customer centric pricing strategy helped a start up become sustainable in a short time frame

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],As per Bloomberg, it is a US$2 billion market for solar lanterns / lights in India

Product Innovation Marketing Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Patent pending

Price Intensity of light / product quality ,[object Object],[object Object],~ Non Profit models Rs 500 Rs 2,000 Rs 30,000 Advait Energy adopted a unique pricing strategy to create a niche for itself – that by researching the comfortable price point via its customers

[object Object],[object Object],[object Object],[object Object],Monthly household income (Rs.) 3K 50K Solarbatti customers Premium product customers Target customer profile Categories within target segment Note: Rural customers in the income band Rs 3K-8K typically run small businesses such as kirana stores, cement shops, manure shops etc. To be addressed in 2 nd year via customized solar solutions Most of our target customers currently use mobile phones Home lighting system and Fan combo system customers Inverter battery charger customers To be addressed in future via foundations, grants and CSR We found out a niche category of customers who could afford to pay for their energy needs – one level above the base of the economic pyramid

Target customers currently paying high costs on a regular basis ,[object Object],[object Object],[object Object],Solar lighting costs less than kerosene lamps in the long run ,[object Object],1. Cost of an LED based solar light that replaces a kerosene lantern while providing brighter illumination. The only running cost is battery replacement every 2-3 yrs (Rs. 75-100 p.a.) Solar 1 Kerosene Initial cost (Rs. approx) 2,000 100 Running cost (Rs. per month) n/a 120-250

The Solarbatti TM used an array of SMDs, producing much high intensity light equal to a 9W CFL 1. On medium mode. Very dim bed light option also available which gives up to 100 hours of backup 2. Basic model at Rs 550 does not include a battery, which must be purchased separately or rented locally 3. Source: Company reports, press releases. (Note: This list is NOT meant to be exhaustive) The Solarbatti stands apart, in terms of light intensity, back up, pricing as well as next generation technology compared to competitors Product Nova Aishwarya Star WonderLite ‘ In-Diya’ Solarbatti TM Company D.Light Solar Nest TataBP Solar Kotak Urja Schneider Electric Advait Energy Description LED light Cfl lantern Cfl lantern Cfl / LED lantern variants LED based lighting systems High Intensity SMD light Specifications ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Approx Price (Rs.) 1,800 1,600 1,945 3,300 Rs 550 2 – 4500 1,940 Sales data (if available) 3 Company established 2007, sold over 220,000 lanterns in 32 countries till date (main markets: India, East Africa) Began operations in 2001; Sold about 50,000 solar lanterns in India until 2007 with a sales of about 5000 lanterns per year in 2007 (Information not available) (Information not available) (Product just launched in Feb 2010)

Vinayak Arora Director – Strategy E: [email_address] M: +91 999 0 529 615 W: www.advaitenergy.com advait energy Affordable Clean Solutions. For Everyone.

Advait Adopting Customer Centric Pricing

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