CHAPTER 8 FINDINGS, RECOMMENDATIONS & CONCLUSION

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1 CHAPTER 8 FINDINGS, RECOMMENDATIONS & CONCLUSION This research aims at finding out the significant factors affecting the use of Solar Energy Products, and after taking into consideration these significant factors one can frame/develop marketing strategies to enhance its use. In the previous chapter, the significant factors were detected with the help of statistical analyses, based on the data collected from six cities of India. 8.1 Proposed Strategies for enhancing the use of Solar Energy Products after taking into consideration Independent Factors: 1. Utility: Findings: Utility of Solar Energy Products has emerged to be a significant factor for all i.e. all the four products chosen for this research viz. Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters, also for Individual Buyers/Prospects and Institutional Buyers/Prospects. There is a severe need to convince people about the utility of Solar Energy Products. Once people are convinced about its utility they will definitely think of using it. Strategies: Following strategies are suggested keeping in mind the above findings. Awareness regarding its utility can be done through the following: Heavy advertisements through Electronic media i.e. T.V, Radio. Hoardings, Banners, Pamphlets, Leaflets. Advertisement through Digital Media through s, Facebook and Online advertisements. Advertisements in Yellow Pages. Advertisement through Celebrity Endorsements. Game Show and Role Play. Anupamaa S Chavan 205

2 Mobile vans carrying the display boards of the products Social Advertisement to change the mind-set of the people towards solar energy Government to set an example by actually using the products in Government Buildings, Parks, Public Places, Public Companies etc. so that these products get visibility. 2. Cost: Findings: Cost has been identified as a significant factor affecting the use of Solar Water Heaters and Solar Inverters. It has been identified as significant factor for Private Residential Owners using Solar Water Heaters and also in case 4. Cost has to be competitive and people should be made aware of the fact that though initial cost is high, there will be no utility bills. When more and more people start using these products, there is a possibility of cost coming down due to increase in demand. Strategies: Following strategies are suggested keeping in mind the above findings: Prospects should be made aware about the payback period; this again can be done through advertisements/promotion campaigns and Personal Selling. The manufacturers / suppliers should encourage Sale on Instalment basis which can help the prospects to buy the products. More emphasis to be given on Research and Development to bring down the cost by developing cost effective technology for using these products. 3. After Sales Service Findings: After Sales Service has not been identified as significant factor for all, i.e. for all the products viz. Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters, also for Individual and Institutional Buyers/Prospects. But in case 5 and 6, After Sale Service did affect the performance of the product. Anupamaa S Chavan 206

3 Strategies: Following strategies are suggested keeping in mind the above findings: Manufacturers/suppliers of solar energy products to provide after sales service which includes : Installations Repairs Maintenance Manufacturers/suppliers to strictly follow the guidelines given by Ministry for New and Renewable Energy regarding the technical specifications and standards required for Solar Energy Products for smooth functioning of these products. Manufacturers/suppliers should provide warranty for the solar energy products sold by them for the minimum period of five years. Manufacturers/suppliers to equip and train the technical staff as well the ground workers for after sale service. Manufacturers/suppliers should study the solar radiation details of the area where the solar energy products are to be installed. 4. Product Availability Findings: Product Availability has been identified as significant factor only for Institutional Buyers/Prospects using Solar Water Heaters. Strategies: Following strategies are suggested keeping in mind the above findings: Manufacturers/suppliers to advertise heavily so that the products are known to the prospects. Direct selling can be done to reach out to Institutional Buyers/Prospects. 5. Credit/Loan Facility Findings: Anupamaa S Chavan 207

4 Credit/Loan Facility provided to buy Solar Energy Products has been identified to be a significant factor for all the four products chosen for this research i.e. Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters. It has also been identified to be a significant factor for both the Individual Buyers/Prospects i.e. Private Residential Owners and Co-operative Housing Societies using Solar Water Heaters. Strategies: Following strategies are suggested keeping in mind the above findings: Prospects are to be made aware of the Credit /Loan facility available to buy Solar Energy Products provided by IREDA and State Nodal Agencies. Heavy promotion about the credit/loan facility has to be made in case of Individual Buyers/Prospect. The manufacturers/suppliers should inform the prospects about credit/loan facility through personal selling. The Finance Ministry and Reserve Bank of India (RBI) can play an important role in this regard; various Qualitative and Quantitative measures can be used by them through Commercial banks to attract more and more people to use Solar Energy Products. 6. Government Subsidy/Incentives Findings: Government Subsidy/Incentives has been identified as significant in case of one product i.e. Solar Water Heaters and also for one of the Individual Buyers/Prospects i.e. Private Residential Owners using Solar Water Heaters Strategies: Following strategies are suggested keeping in mind the above findings: The manufacturers/suppliers should spread awareness regarding the availability of Government subsidy/incentives. Prospects should be informed about Government Subsidy/Incentive given for using Solar Energy Products and Solar Water Heaters in particular through various promotional campaigns. Anupamaa S Chavan 208

5 Private Residential Owners specifically should be made aware about the subsidy/incentives available to buy Solar Water Heaters. These subsidies/incentives should be made easily available to the prospect with minimum time and effort. There should be single window clearance to accelerate the disbursement of subsidies. Manufacturers/suppliers to invoice the solar energy products at net price after deducting subsidy which can be recovered by them from the Government later so in this way the buyers need not wait for the recovery of subsidy. 7. Social and Environmental Concern Findings: Social and Environment Concern have not been identified as significant factor for all, i.e. for all the products viz. Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters, also for Individual and Institutional Buyers/Prospects; but case 3 narrates its influence on buying/use. Strategies: Though Social and Environmental Concern has not been identified as significant factor influencing the use of solar energy products, still it cannot be ignored. Promotional Campaign needs to be carried out through various media mix to promote the environment friendly aspect of solar energy products. Awareness about achieving sustainable development through the use of solar power needs to be done. 8.2 Recommendations to the Manufacturers/Suppliers In the light of the findings of this research following recommendations are made to the manufacturers/suppliers with regards to marketing strategies to enhance the use of Solar Energy Products: Anupamaa S Chavan 209

6 The Manufacturers/Suppliers to use effective media mix to promote the solar energy products available for sale. Heavy advertisements are required to increase the awareness regarding the utility of these products. They need to strictly follow the technical specifications/standards given by Ministry for New and Renewable Energy, required for the installation of solar energy products. Quality products will help in accelerating the future use. As solar radiation differs from place to place, every manufacturer/supplier should thoroughly study the solar radiation details of the respective area, before installing the solar energy products. Solar radiation details will enable to understand the number of panels to be installed for the effective use/efficiency of these products. The Manufacturers/Suppliers should not only have the trained technical staff, but also the ground workers should be trained to handle the solar energy products. After sale service should be effectively provided. Necessary provision to be made to equip and train the staff do to so. The Manufacturers/Suppliers to have tie-ups with banks/financial institutions, who can provide loan facility to the prospects to buy the solar energy products. Sale on Instalment Basis can be another option which can help the prospects to buy the products. The Manufacturers/Suppliers to set up effective channels of distribution to make the products easily available. Direct selling in case of solar energy products can be a good option. Channel of distribution can be fixed after taking into consideration the market segmentation and target markets. The manufacturers/suppliers should spread awareness regarding the availability of Government subsidy/incentives. Prospects should be informed about Government Anupamaa S Chavan 210

7 Subsidy/Incentive given for using Solar Energy Products through various promotional campaigns. The above strategies are discussed with the manufacturers/suppliers to assess their implementability and final marketing strategies are drafted which will effectively enhance and accelerate the use of Solar Energy Products. 8.3 Support from the Government Indian Government is trying hard to propagate the use of solar energy, subsidies and tax incentives are also provided. Along with this if following things are considered by the Government of India it can immensely help and support in accelerating the use of solar energy products. The Government should make it mandatory to use solar energy products. One can find maximum use of solar water heaters in Bangalore as compared to other cities selected in this research, one of the major reasons being that, it has been made mandatory by Karnataka Government to use solar water heaters in all newly constructed buildings since 13 th November, Karnataka Government has also sanctioned rebate of Rs. 0.50/-per unit on the payment of electricity bill per month. The other cities do not follow such laws/provisions. The Government to set an example by using Solar Water Heaters, Solar Street Lights, Solar LED Lights, Solar Inverters in all the Government buildings / premises and public places, this will make these products visible. It will also help in changing the mind set of people, who think that solar products are not feasible to use. Heavy Social Advertisements to spread awareness and propagate the information relating to solar products, their technical specifications, approved manufacturers/suppliers, subsidies/incentives, research and developments, pay-back period, various schemes/programmes of MNRE should be done through various media mix. Anupamaa S Chavan 211

8 Mechanism for easy and quick disbursement of subsidy, with single window clearance to avoid delay. It should be made mandatory for manufacturers / suppliers to follow the technical specifications prescribed for solar energy products by MNRE. Strict action to be taken against those manufacturers / suppliers who do not comply with the same. Creation and Updation of Databases/Databanks and establishment of the Technology Information System in the area of solar energy in the country needs to be done. Human Resource Development by setting up large number of Educational/Vocational institutions which provide curriculum to train people for every stage of solar product industry. Intense Research and Development programme to invent a Nano technology for feasible use of solar energy products. Nano technology can immensely help in case of space constraint. Mandatory provision of After Sale Service to the prospects by manufacturers / suppliers. Thus the necessary support from the Government in an effective manner can definitely bring positive change in the mind set of the prospects and help to accelerate the use of solar energy products. Anupamaa S Chavan 212

9 8.4 Conclusion Marketing strategies are suggested after discussing the proposed marketing strategies with the manufacturers/suppliers of solar energy products Feedback from Manufacturers/Suppliers Sixteen manufacturers/suppliers that were initially approached to find out the buying pattern of solar energy products were approached again. The proposed strategies as mentioned in 8.1 were discussed with them to assess their practicability and implementability. Following were the views of the manufacturers/suppliers in this regard: 93.75% of manufacturers/suppliers pointed out that they are not in a position to carry out huge advertisement campaign for promoting solar energy products, as these products are not fast moving, have high cost with very shallow profit margin. They just cannot further add to the cost by going in for rigorous advertisement. 100% of manufacturers/suppliers opined that Sale on Instalment Basis is simply impossible in case of solar energy products since these products are tailormade and designed according to the requirement and availability of open space for installing the solar panels. If any client fails to pay the instalment they may not be able to resell the dismantled solar energy product taken back from the defaulting client % of manufacturers/suppliers stated that they do not use solar radiation chart as it is not required for solar energy products. 100% of manufacturers/suppliers are providing After Sale service. Anupamaa S Chavan 213

10 93.75% of manufacturers/suppliers did not have tie-ups with any of the commercial banks to provide credit/loan facility to buy solar energy products. 50% of the manufacturers/suppliers were willing to prepare the invoice after deducting Government subsidy from it, for the solar energy products sold by them. The amount of subsidy would be recovered by them from the Government later Suggested Marketing Strategies In the light of the feedback given by of manufacturers/suppliers final marketing strategies are framed. Following marketing strategies would positively accelerate/enhance the use of solar energy products: Promotion of solar energy products to be done through: Personal Selling Local advertisements through leaflets, pamphlets, banners. Advertisements in yellow pages. Digital Advertisements through s, Facebook, Mobile phones and Online advertisements. Mobile vans which carries the display of such products. In these advertisements emphasis to be given on the utility, payback period, no utility bills, availability of Government subsidy and credit/loan facility. Push strategy will have to be taken up by the firms if heavy advertisements cannot be afforded. Direct selling through market segmentation. Depending upon the resources available at their disposal the firms can decide whether they want to be market leaders, challengers, followers or Nichers. A Niche marketing strategy can help small firms. Anupamaa S Chavan 214

11 Designing the product keeping in mind the solar radiation, product specifications and standards specified by MNRE. Providing after sale service which includes installation, repairs and maintenance. Providing five year warranty period for the product. Strictly to have trained staff for installation of solar energy products, even the ground workers should be given adequate training to handle these products. A slightest error committed by these workers in handling and installing the solar energy product may bring down its efficiency. This may prove very fatal for the growth of solar industry. Have tie-ups with commercial banks that can provide loan for buying such products. Deduct the subsidy provided by the Government from the invoice price of the solar energy products sold; this amount of subsidy can be later on recovered by the manufacturers/suppliers from MNRE. This can be adopted as a differentiation strategy. Maintaining customer relations. As the life of solar energy products goes on for 25 to 30 years, the manufacturers/suppliers should regularly call up the buyers and take the feedback regarding the working of the product. They should provide immediate service for any lapse in working of the product. Customer satisfaction is very important, it authenticates and validates the firm s success in providing, delivering and meeting their expectation which is so very important for the firm s financial health. Imbibe a sense of pride in the minds of buyers by nominating them as Green Customers, who have taken an initiative to save Mother Earth. If the above strategies are implemented they will definitely help to boost the use of solar energy products. Government support will also add to a very large extent. Figure Anupamaa S Chavan 215

12 8.1 shows the Generic Framework of the Marketing Strategies for Solar Energy Products. Figure 8.1: Generic Framework of the Marketing Strategies for Solar Energy Products PRODUCT DESIGN, PRICING (PAY BACK PERIOD) PRODUCT STANDARD & SPECIFICATIONS SOLAR RADIATION CREDIT/LOAN FACILITIES LOAN FROM IREDA LOAN FROM STATE NODAL AGENCY TIE-UPS WITH COMMERCIAL BANKS AFTER SALE SERVICE: INSTALLATION, MARKET SEGMENTATION TARGET MARKETS DIRECT SELLING MARKETING STRATEGY FOR SOLAR ENERGY PRODUCTS GOVERNMENT SUBSIDY TAX INCENTIVES PROMOTION CUSTOMER RELATIONSHIP PERSONAL SELLING MANAGEMENT Anupamaa S Chavan 216 BANNERS, PAMPHLETS, LEAFLETS CUSTOMER FEEDBACK DIGITAL ADVERTISING CUSTOMER SATISFACTION YELLOW PAGES

13 8.5 Limitations of the Study This research covers only two zones viz. West zone and the South zone of India. Six cities from West zone and South zone are considered for studying the responses of buyers/prospective buyers towards the use of Solar Energy Products. This research studies responses of buyers/prospective buyers of four Solar Energy Products only, namely Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters. 8.6 Scope for Future Research One can conclude that solar energy industry is still in its infancy stage where the use of solar energy products is limited. Solar energy being a non-conventional source of energy will be one of the renewable energy sources which can help in reducing global warming and green house gas emissions. One can say that solar energy definitely has the potential to be one of the most important renewable energy resources in future. This research studies the responses of the buyers/prospects towards the use of Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters in the city of Mumbai, Bangalore, Hyderabad, Chennai, Ahmedabad and Jaipur; but there is tremendous scope for research in the areas recommended below: Anupamaa S Chavan 217

14 Similar research can be done in other zones of India which are not considered in this study. Research can be conducted in cities other than Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad and Jaipur. Research can be done in the area of other off-grid solar applications/solar energy products. One can study the responses of the prospects towards the use of Solar Energy Products in rural areas of India. Grid connected Solar Power can also be another area for research which is recommended. Figure 8.1 which gives the generic framework of Marketing Strategies for Solar Energy Products can be taken up for further studies to develop a model. Extensive travelling was done through the six cities of India to understand the mindset of the buyers/prospects towards these products. This research gave an insight into the pros and cons of solar energy products. After the extensive travel and interaction with people it is felt that the people at large are quite excited about these products. But lack of information and knowledge about the efficiency of these products make them indifferent towards using them. Anupamaa S Chavan 218