A Project Report on

Product launch and promotion Of Oorja domestic stoves in Muzaffarpur, Bihar

AtFirst Energy Pvt. Ltd.

ByChetan Kale(2012140)

Under the Guidance ofMr Arkajit MandalProf Vinay GoyalGeneral Manager(Faculty Guide)Domestic Market, First Energy Pvt. Ltd.Acknowledgement

I express my sincere thanks and regards First Energy Pvt. Ltd. for providing me a great learning opportunity and valuable practical exposure to the domestic cooking market. I am immensely grateful to the Organizational Guide Mr Arkajit Manadal (General Manager, Head Domestic Market, India), of First Energy Pvt. Ltd. for his valuable guidance and continuous encouragement. He took time away from his busy schedule to help me achieve my objectives. He also shared his various experiences in the Marketing domain which will most certainly help me in my future. He not only helped me with my queries at every step of the project but also arranged the critical resources required for the successful completion of the project.I am highly thankful to Mr Jatesh Vatsa and Mr Dhananjay Abhang for providing me the information, resources and other facilities necessary for my project.

Regards,Chetan Kale

Certificate of Approval

The following Summer Internship Report titled Product launch and promotion Of Oorja domestic stoves in Muzaffarpur, Bihar " is hereby approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-Graduate Diploma in Business Management for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Internship Report only for the purpose it is submitted.Summer Internship Report Examination Committee for evaluation of Summer Internship Report

Organizational Guide:

Mr. Arkajit MandalGeneral ManagerHead, Domestic Oorja Stove.First Energy Pvt. Ltd.

Table of Content

1. Executive summary______________________________________________________________62. Introduction____________________________________________________________________72.1. Background__________________________________________________________________72.1.1. About First Energy Pvt. Ltd._______________________________________________72.1.2 Concept Innovation_____________________________________________________82.1.3 Product Innovation: Oorja Pallet Stoves_____________________________________82.2. Demography________________________________________________________________102.2.1 Domestic Cooking Fuel Market in India__________________________________________102.2.2 Bihar_____________________________________________________________________122.2.2.1. Population of Bihar____________________________________________________122.2.2.2. Domestic Fuel Needs___________________________________________________132.2.3 Muzaffarpur_______________________________________________________________152.2.4. Why Muzaffarpur?_________________________________________________________153. Statement of purpose___________________________________________________________164. About Project__________________________________________________________________174.1. Objectives Of the Project_____________________________________________________184.2. Scope of the Study__________________________________________________________184.3. Methodology_______________________________________________________________184.3.1. Timeline____________________________________________________________184.3.1.1. Objective Wise Timeline____________________________________________184.3.1.2. Activity List and Week by week timeline_______________________________194.3.2. Environmental Analysis________________________________________________204.3.2.1. PESTEL__________________________________________________________204.3.2.2. SWOT Analysis____________________________________________________224.3.2.3. Dealer choice and Appointments_____________________________________234.3.3. Identifying Communication channels _____________________________________234.3.4. Demonstration and Door to Door Campaign________________________________284.3.4.1. Highlights of the Demo campaign_____________________________________304.3.4.2. Action Plan_______________________________________________________314.3.4.3. Locations covered in Demo activities__________________________________324.3.4.4. Demo cart (Oorja Rath) ____________________________________________334.3.4.5. Hoardings_______________________________________________________334.3.4.6. Print Media______________________________________________________334.3.4.7. Handbills________________________________________________________344.3.5. Channel Partners_____________________________________________________355. Conclusion____________________________________________________________________366. Recommendations_____________________________________________________________377. References ___________________________________________________________________388. List of FiguresFigure 1: Oorja Pallet Stove and Fuel Bag_____________________________________________8Figure 2: Comparison of Calorific Value amongst LPG, Oorja Pallets and Firewood____________9Figure 3: Clay stove, Muzaffarpur Bihar_____________________________________________10Figure 4: Census of India, Density of population (Source: Census of India 2011)_____________12Figure 5: Census of India 2011, Decadal Change in Population in Percentages______________13Figure 6: Coal Shop selling coal at 12 Rs/Kg in Muzaffarpur_____________________________14Figure 7: Timeline (Objective wise) divided in 3 Phases of Project________________________18Figure 8: Demo activity in Mitthanpura, Muzzafarpur, Bihar. ___________________________29Figure 9: Demo activity Action Plan mapped on Map of Muzaffarpur_____________________31Figure 10: Demo Cart/ Oorja Rath_________________________________________________32Figure 11 : Handbill Design, Oorja Pallet Stove_______________________________________34

9. List of tablesTable 1: Fuel usage for cooking, in house listing operations of Census 2011, India__________11Table 2: Census Data 2011, Muzaffarpur, Bihar._____________________________________15Table 3: The schedule for demo activity___________________________________________19

Table 4: Cost Implications of Hoardings in Muzaffarpur_______________________________23Table 5: Cost Implications of Print Media in Muzaffarpur______________________________26Table 6: Dealers with whom we have confirmed as per area___________________________27Table 7: Cost Implications of Distributing handbills in Muzaffarpur______________________28

1. Executive Summary

Firstenergy has developed a pallet stove sold with the brand name Oorja. It is one of its kind product. It has been sold in Maharashtra, Karnataka, Andhrapradesh and Tamilnadu so far. Firstenergy has decided to expand geographically and reach out to newer markets. It wants to start enter Bihar from Muzaffarpur. The project had many fold objectives. Promotional activities were to be carried out through the tenure of product to generate awareness amongst the masses for this novel product.It also required me to select the media channel through which the communication will reach the intended audience. The project also entitled me the responsibility of choosing the channel partners and in this case dealers for the retail OTC sales of Oorja stove. The project also demands me to design and execute a door to door product demo campaign all over Muzaffarpur town. This demo campaingn was spanned across 18 days and was a successful promotional campaign. It involved me designing a demo cart which attracted the most attention on the streets of Muzaffarpur. My task was also to train the promoters and make them proficient in their jobs.This product is new/different for the customer in terms of use, stoves operations, fuel and overall cooking experience. The final objective of this project was to train the early adopters to use this product for cooking purpose. It has been found that followers closely adopt the methods used by early adopters to operate stove. The project also required me to hire appropriate lady volunteers for the door to door campaign and to hire a promoter (male) to work for Muzaffarpur town area..Keywords: Product Launch, Promotional Activities, Channel Partners, Demonstrations, Awareness, Training/Education of Early Adopters, Hiring.

2. Introduction

2.1. Background2.1.1 About First Energy Pvt. Ltd.Environmental conservation and sustainable business hardly go hand in hand. But with Firstenergys Biomass Stove, Oorja, this is a reality. Firstenergy Pvt. Ltd., is an alternative energy company based in Pune. Firstenergy was launched in 2006 through BP energy, a 100% subsidiary of British Petroleum. In 2009, it was re-launched as a separate entity. It was taken to the next level by merging with The Alchemists Ark(TAA), a privately held Business Consulting Group and Mahesh YagnaramanandMukund Deogaonkar,who have been associated with the initiative from the start. This transition has helped facilitate the growth of Oorja, an effective cooking solution that runs on biomass pellets.

Over the last five years, the business had incubated a clean and affordable cooking solution aimed at serving a large number of customers in rural India, working closely with a range of local partners and entrepreneurs, to develop a robust product and a sustainable distribution set-up. TAA aims to grow this initiative into a sustainable business.

Firstenergy strives to create a cost effective, clean and convenient cooking solution to those who have no access to clean energy, or cant afford it. Oorja is the only sustainable business model of its kind in the market that offers green and clean energy solutions to consumers at the bottom of the pyramid.

First Energies biomass stove and its fuel are currently available in Maharashta, Andhra Pradesh, Karnataka and Tamilnadu. With the help of 35 Distributors and 2500 Dealers spanned across India. Firstenergy makes the offer available to the market. They are backed by a network of service centres and service engineers in small towns as well as remote areas.

Mr. Raymond Moses, Director, TAA says, The emerging markets present a huge business opportunity in a country like India where an estimated 3.6 billion consumers do not currently have access to clean and safe energy solutions. The fact that this has been successfully conceptualised and created a business which serves more than 4,80,000 households in Karnataka, Maharashtra, Madhya Pradesh and Tamil Nadu today, gives us tremendous confidence to bring in our skills, market knowledge and entrepreneurial flair to enable the business to succeed.

2.1.2 Concept Innovation: First Energy strives on its innovation streak and is committed to innovate and provide better cooking solutions to its customers. The result is the breakthrough product and offer to the consumers- energy efficientOorja biomass stove. Saves substantially with convenient, cost-efficient solution for household consumers Saves over 50% of the fuel bills for restaurants, caterers and canteens Saves time. No need to gather firewood. Gives children the opportunity to go to school and takes the drudgery away for women. Reduces pollution. The result is lowered respiratory illnesses in mothers and children

2.1.3 Product Innovation: Oorja Pallet Stoves Oorja is an energy-efficient,Biomass Pellet Stovewidely used in rural households in India, also these stoves are an effective alternative to LPG and Household Chulhas. Oorja Pellet fuel: First ever agricultural biomass residue-based solid fuel developed for households Oorja Stove:Using gasification technology. Developed in partnership with IISc, Bangalore. Efficient and low emission stove that raises the bar for emission and efficiency. New Stove Oorja K3 (Shown in Figure 1) LPG-like flame control, that revolutionizes the biomass stove. Its fuel is easily available compared to wood and LPG. Figure 1: Oorja Pallet Stove and Fuel Bag

First Energy provides biomass based cooking solutions, in the form its Oorja-branded stoves fired by fuel pellets made from peanut shells, bagasse and other agricultural waste. At the core of the stoves, designed in collaboration with engineers at IISc, Bangalore, is gasification, a process of controlled combustion resulting in a gas that can be used as a fuel that is cleaner than firewood, kerosene, cowdung cakes. It has a perforated chamber with a fan, powered by a rechargeable battery, and burns at high temperatures with relatively low smoke emission.Oorja today represents a new way of cooking and has the potential to grow into a large, successful business in India and globally. The initiative aims at creating a commercially sustainable business, offering clean, safe and affordable energy solutions to identified customers in both urban and rural households in developing countries.Advantages of Using Oorja Pallet Stove:

Oorja Pellet Stoveis smokeless. Respiratory troubles caused by chulha-smoke can be avoided.

As compared to Chulhas,Oorja Pellet Stoveis easy-to use and thus saves time.

Oorja Pellet Stoveconsumes less fuel/wood and hence customers save money.

In rural areas and homes,Oorja Pellet Stovecan save wood and forests by a ratio of 1:4. For every 1Kg of pellets used, 4Kg of wood can be saved from being burned.

Figure 2: Comparison of Calorific Value amongst LPG, Oorja Pallets and Firewood (L to R)(Source: http://www.firstenergy.in/?page_id=200 )

2.2 Demography

2.2.1 Domestic Cooking Fuel Market in IndiaEnergy requirements for cooking account for 36% of total primary energy consumption in India. The rural and urban populaces, depend mainly, on non-commercial fuels to meet their energy needs. Diverse urban growth patterns have led to structural changes in economy, and have important ramifications on energy consumption in household sector. It is observed that India follows income-based ladder starting with firewood and ending with sophisticated fuels like liquefied petroleum gas (LPG) and electricity. This paper discusses cooking energy dissemination in the country with an objective of understanding the underlying socioeconomic factors governing the utilization of various fuels/energy carriers in cooking. The diffusion of renewable energy devices is observed to be far below their estimated potential.Figure 3: Clay stove, Muzaffarpur Bihar. (Photo Credit- Chetan Kale)

Information with regard to fuel used for cooking in house listing operations of Census 2011 : The type of fuel mostly used for cooking by the household was recorded. In case of use of more than one fuel for cooking the predominant fuel was recorded. The different types of fuel were classified as Firewood, Crop residue, Cowdung cake, Coal/lignite/charcoal, Kerosene, LPG/PNG, Electricity Bio-gas, any other and No cooking.

Table 1: Fuel usage for cooking, in house listing operations of Census 2011, India

Type of fuel used for cookingINDIA

20012011

HouseholdsPercentage shareHouseholdsPercentage share

Total number of households 53,692,376 100.0 78,865,937 100.0

Firewood 12,207,619 22.7 15,870,416 20.1

Crop residue 1,139,441 2.1 1,139,977 1.4

Cowdung cake 1,064,568 2.0 1,356,862 1.7

Coal, Lignite, Charcoal 2,457,232 4.6 2,278,067 2.9

Kerosene 10,288,689 19.2 5,935,113 7.5

LPG/ PNG 25,751,637 48.0 51,285,532 65.0

Electricity 165,012 0.3 117,497 0.1

Bio-gas 201,171 0.4 324,594 0.4

Any other 96,644 0.2 155,521 0.2

No cooking 320,363 0.6 402,358 0.5

2.2.2 Bihar2.2.2.1. Population of BiharAccording to census data 2011 Bihar is the most densely populated region in the world.Figure 4: Census of India, Density of population (Source: Census of India 2011)

Bihar is a state in northern India. It is the 12th largest state in terms of geographical size at 38,202 sq mi and 3rd largest by population. Since the late 1970s, Bihar lagged behind other Indian states in social and economic development ter. Economists and social scientists claimed that this is a direct result of the policies of the central government, such as the freight equalization policy, its apathy towards Bihar, lack of Bihari sub-nationalism (resulting in no spokesperson for the state), The state government has however made significant strides in developing the state. The improved governance has led to an economic revival in the state through increased investment in infrastructure, better health care facilities, greater emphasis on education, and a diminution in crime and corruption.Figure 5: Census of India 2011, Decadal Change in Population in PercentagesDECADAL CHANGE IN POPULATION (IN %)

Indian Global business and economic leaders feel that Bihar now has good opportunity to sustain its growth and thus they have shown interest in investing in the state. Additionally, for the period 20112012, Bihar was also India's fastest growing state, with a growth rate of 13.1% for the year 201112, which had followed a growth rate of 14.8% for the previous year. Bihar has managed to record 11.95% annual growth rate, the highest among all the states, during the 11th Plan period

2.2.2.2. Domestic Fuel NeedsRecent surveys show that of the total domestic fuel needs 59.2 per cent in the rural areas and 35.5 per cent in urban areas was being met from wood. Together with dung and agricultural residues, these three non-commercial sources of energy still meet 95 per cent of fuel needs of rural areas. Of these, the use of dung and agricultural waste as fuel is widespread in agriculturally prosperous regions with fertile soils and controlled irrigation, such as the Punjab, Haryana, UP and north Bihar, but wood continues to be the main domestic fuel in less endowed and poorer regions. In Bihar, the energy use patterns in urban areas are changing with greater use of LPG and kerosene. It is however unlikely that fuelwood will be completely replaced, as poorer sections of the community may lack the cash resources to purchase the minimum amount of kerosene or LPG, or the appliances for these fuels. The share of purchased to total consumption of firewood and dung cakes presently does not change much as incomes increase. Rather, buying firewood signifies extreme deterioration of natural environment, and is not linked with household prosperity. The poor in these areas, instead of switching up the energy ladder to modern fuels, are switching down the energy ladder to straw, leaves and twigs. The use of inferior fuels for cooking by some rural people have implications for their quality of life. Second, only rich farmers produce sufficient crop residues. Being a private resource, the poor have little access to it, especially in the context of monetisation of rural economy.And lastly, the supply of LPG is not sufficient to meet even the urban demand. It is not therefore easily available to the villagers. Kerosene is used in villages, but mainly for lighting. Its use as a cooking fuel is rare, and it is also not preferred in villages for heating. Since firewood is obtained almost practically free of cost, there is no inducement for them to shift. Thus their dependence on fuelwood is likely to continue during the 9th Plan and beyond.Figure 6: Coal Shop selling coal at 12 Rs/Kg in Muzaffarpur (Photo Credit- Chetan Kale)

2.2.3 MuzaffarpurMuzaffarpur (Hindi: ) is a city in Muzaffarpur district in Bajjikanchal region of Bihar. It also serves as the headquarters of Muzaffarpur district and Tirhut Division.Muzaffarpur is 2nd largest city after Patna in Bihar. Muzaffarpur, famous for Shahi lychees, is the largest city of northern Bihar. It is situated on the banks of the perennial Burhi Gandak River. As of the 2011 India census, Muzaffarpur had a population of 4,778,610. Males constituted 52.68% (2,517,500) of the population and females 47.31% (2,261,110). Muzaffarpur had a literacy rate of 65.68%, close to the national average of 74%. Male literacy was 73.61%, and female literacy was 56.82%. Seventeen percent of the population was under 6 years of age.

Table 2: Census Data 2011, Muzaffarpur, Bihar.Population (2011)

Total498,585

Density929/km2 (2,410/sq mi)

LanguagesHindi, Vajjika, Maithili, English, Bhojpuri

2.2.4. Why Muzaffarpur?

Muzzafarpur is 3rd most populated district in Bihar after Patna and East Champaran districts. Muzaffarpur town has close to 4 lakh population and around 80,000 households. There are over 352 villages in the district with 500 plus household. LPG penetration in rural areas is extremely low. Even in Muzzafarpur town, household without LPG connection are large, as is evident from the roaring sales of smaller 3kg/5kg LPG cylinders sold by private companies (observation).First energy or the Brand Oorja has no presence in Bihar to date. First Energy has recently started village operations in Muzaffarpur district.

Sometimes it is necessary to find a landing space first. In order to test and then enter a completely new market. Muzaffarpur for First Energy came out to be the perfect landing space. It is very important in business to test market at one or multiple points before getting into it. Muzaffarpur presented itself as one of such test market.

Firstenergy is being working with a NGO named SURE with its Sakhi Model. Their partner in Muzaffarpur showed interest in Oorja Stoves. Firstenergy has been working with SURE for a long time. Since the inception of its Sakhi programme. Thus as Firstenergy had good experience with SURE. They decided to leverage upon their Bihar subsidiary and confidently start operations in Bihar.

3. Statement of purpose

Renewable sources of energy and its commercial application is a subject many people have dwelled upon. But only few could find a sustainable solution. Oorja Stoves is one such product. It is an alternative to LPG and wood/coal chulhas(stoves) which are the prominent modes used for household cooking.

Oorja stoves are sold in two segments. Commercial and consumer segments. First energy off late has shifted its focus on commercial segment from the consumer segment. The consumer segment exists primarily in rural areas of Maharastra, Andhrapradesh, Tamil Nadu and Karnataka.

First energy or the Brand Oorja has no presence in Bihar to date. First Energy has recently started village operations in Muzaffarpur district. Thus Firstenergy has decided to expand in Bihar starting with Muzaffarpur District. For its future growth First energy has decided to explore new markets and expand their reach. Bihar is unexplored for both the segments of Oorja stoves.

As the census data of 2011 shows, there is huge potential in Bihar as far as domestic stoves are concerned. The population density is extremely high. LPG network is poor (Field observation). There are a lot of illegal connections. Bihar particularly comprises of large families so the subsidy given to 9 cylinders is not enough for a larger family in Bihar.

Thus this product is needed in Bihar for following reasons- Low penetration of LPG more than 35% of urban households use sources fuels other than LPG to cook food. Population density is extremely high No competition Due to rivers and geographical conditions the land is fertile and green for 12 months. Unlike Maharashtra it is difficult to find good quality firewood (Quality in terms of- Good burn time, calorific value and emissions). Best for flood affected areas, where LPG and Other cooking instruments prove to be dangerous and are rendered useless at the cusp of time. As the inflation rises people have shifted from firewood to even lower (In terms of quality) fuel options like dry leaves. This option is hazardous to health and a very irksome for the person cooking it with. It was observed besides being able to pay firewood is not available even in villages. Even in the month of April and May.

Other socio cultural aspects of the environment will be covered in the next section.

4. About Project

4.1 Objectives Of the ProjectAim of this project is threefold-1. To Understand the Needs and Trends analysis and Socio-Cultural Environment2. To Develop an demonstrating effective town launch plan Channel partner choice To Generate Awareness Faster Penetration3. To Develop and demonstrate replicable ways to ensure early adapters are properly trained on the usage of Oorja cooking purpose.

4.2 Scope of the Study

Scope of the study is limited to the urban area and sub urban areas of Muzaffarpur district.

4.3 MethodologyTo fulfill the objectives of the study following methods were used: Establish a timeline with 3 phases Study of environment. Gather the data about the different communication media available for promotion and marketing. Identify the channel partners. Send the data about cost implications for town launch plan. Plan and implement town launch plan. Other than objectives.

4.3.1 TimelineFollowing timeline was followed while working on this project. They are further divided into Timeline Based on Objectives and based on Week by Week Activities.4.3.1.1 A:

Figure 7: Timeline (Objective wise) divided in 3 Phases of Project4.3.1.2. Activity List and Week by week timeline

WeekACTIVITY/STAGE OF PROJECT WORKPhases

1Commencement of the Project at Firstenergy. Understand product. Be able to operate and use product to cook.Phase I

2Understand the Micro Environment of the project site and submit a comprehensive town launch plan, identification of the channel partners. Find the Cost implications of Mass communication.

3Start working on the Town Launch Plan, close and confirm the channel partners. Send Town Launch plan for approval.Phase II

4Keep working on the Town Launch Plan, close and confirm the channel partners. Start post approval preparation.

5Keep working on the Town Launch Plan, close and confirm the channel partners.

6Demonstrations, motivation of channel partners, Promotional Activities.Phase III

7Demonstrations, motivation of channel partners, Promotional Activities.

8Product orientation/training of early adopters, Demonstrations, motivation of channel partners, Promotional Activities. Tackle service related issues if any.

9Handover

Table 3: Week by Week activities, Town launch plan.4.3.2. Environment AnalysisAnalysis of microenvironment will include Socio-Cultural Environment with the help of PESTEL and SWOT analysis of environment

4.3.2.1 PESTELPolitical: Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. In this particular case it includes the inefficiency of government agencies as well as the distributor to start with the project as scheduled. Due to lack of sound paperwork from the distributors side for the permission from sales tax department the delivery of the product was delayed by almost a week. This time delay also impacted the timeline which was pre decided. The product launch date thus got pushed even further Regarding the Market, there is clear issues with law and order as illegal cylinders of 2, 3 and 5 kg capacity are refilled with subsidised LPG cylinder. There are issues with infrastructure and availability of LPG gas. As the law and order in the state is questionable the consumer protection is not something to be hailed of. Thus the normal customer feels vulnerable and is very careful while buying goods. Esp durable goods like Stove. Heavy subsidy on LPG makes it difficult for any other fuel to compete with LPG. Sometimes it is not even sustainable. Thus at a price point of 12 Rs/Kg of Oorja Fuel it barely comes close to being efficient than LPG. Economic: In my understanding of the environment in Muzaffarpur, cooking fuel is a commodity which has to be taken care of. A household hence might reduce on the quality of the fuel i.e. use dry leaves instead of firewood but they cannot stop using fuel. Their consumption does not decrease vased on their economy. Most of the people from Muzaffarpur are economically backward. There is a huge pool of unskilled labours. The other class is of service dependent families as mentioned in the census data earlier.

Social: Muzaffarpur is a male dominant society. Most of the purchase decisions are taken by the men of the house. People have a very lethargic attitude towards health and hygiene and men most certainly give least importance to the comforts of women. Thus they were much likely to overlook smokeless feature of this stove and were trying to focus more on efficiency and economic sense. Bihar being a poor state. People have grown up with little means and hence value money. These people are brand conscious. They live in constant fear of being cheated and hence demand you to provide acceptable credentials. Many ask for the ISI mark on Oorja stove, Many require the name, address of the distributor. This all is to establish trust with the company. Even if told a price they do not trust the promoters. They call on the provided numbers and double check the information. They want to wait and watch people buy this product. After a demo it was always seen that even those who understand that it is a value proposition for them. Ask their neighbor or friend to buy it. Casual Attitude about work. Though this is out of the scope of the project but I would like to note an observation that the authorities were very casual about work and would apply their own mind to things beyond their understanding. E.g. the micro- palletizer plant was to be started in Muzaffarpur. It got delayed by months for reasons that the distributor completely ignored the specifications and decided himself the requirements of space and electricity. He thought they can adjust

Technological Factors include technological aspects rate of technological change. They can determine barriers to entry. This was a very novel and new product for the consumers so every where we would go we never needed to do something radical to attract attention. This product lies between LPG stove and clay stoves for firewood in terms of ease to use. Also presence of many saw mills make it easy for Firstenergy to produce the Oorja fuel as the saw dust is cheap and is readily available.

Environmental Weather and environmental condition of this region ensures that there is plenty of greenery around all year long. The area lies in very fertile belt and is close to the rivers. Thus in a way it is beneficial to us as there is more agro waste to make Oorja Fuel. Also it means there is less of firewood abailable which pushes prize of firewood to 12 Rs/kg in the Muzaffarpur town.Legal There is definite presence of red tapism and it creates obstructions while working.4.3.2.2 SWOT AnalysisStrengths: characteristics of the business or project that give it an advantage over others Unique and innovative product. Alternative for LPG which is getting expensive Quality of product Service assurance Value proposition for those who use illegal gas cylinders or who use firewood. Flame control like LPG stoves. Smokeless and burns with blue flame Higher than average calorific value Primary and Secondary fans solve most of the issues with the earlier stoves. Thus considerably better and stronger than the previous stoves. Can carry even while cooking Tray to remove ash (Which was absent in the first editions) Mini cook for cooking meals for two.

Weaknesses: are characteristics that place the team at a disadvantage relative to others At the price of Rs.3000/ Stove it becomes a major investment decision of a household. Can not stop once started Not wise to use for light cooking like a cup of tea Looks like a kerosene stove and looks not as good as the previous version Does not offer any financial aid to people who wish to buy in installments. Usage depends upon the early adopters

Opportunities: elements that the project could exploit to its advantage Low LPG penetration, but rise in LPG connections and shortage of supply. Sub urban and urban area still largely depends upon the firewood

Threats: elements in the environment that could cause trouble for the business or project People do not accept the product as they consider it too expensive People who are brand conscious as established earlier think of their If people did not get the fuel when needed they might distrust the product and may cause bad publicity.

Phase II

4.3.3 Identifying Communication ChannelsFollowing different communication avenues were suggested so as to promote Oorja domestic stove with cost implications as mentioned in the Table 3.

Demonstrations and Door to Door Campaign Demo cart (Oorja Rath) Hoardings Kiosks Newspaper media Local Radio channel Newspaper insertions PR activities as CSR

Table 3: The schedule for demo activity

DateDay Area

09-MayThursdayRamdayalu

10-MayFridayRamdayalu + Amgola

11-MaySaturdayAmgola

12-MaySundayMithanpura

13-MayMonday---

14-MayTuesdayGaushala Chowk

15-MayWednesdayZero Mile

16-MayThursdayZero Mile

17-MayFridayPakki Sarai

18-MaySaturday

19-MaySundayPakki Sarai

20-MayMondayMaripur

21-MayTuesdayBramhapura

22-MayWednesdayBhagawanpur

23-MayThursdayBhagawanpur

24-MayFridayLakshmi chowk

25-MaySaturday---

26-MaySundayLakshmi chowk

27-MayMondayCompany Baug

28-MayTuesdaySaraiiya Ganj

29-MayWednesdayMotizeel

Table 4: Cost Implications of Hoardings in MuzaffarpurVendorPlaceSizeMonthly Rent(Rs/sqft)Monthly Rent in RsMounting Expense in Rs/sqftMounting expedituresFlex Printing costs @8Rs/sqftTotal Expenditure for 3 monthsTotal Expenditure for 6 months

Hoarding

AdNetworkChhata Chowk20*2010400041600320016,80028800

AdNetworkChhata Chowk20*1510300041200240012,60021600

AdNetworkBramhpura Chowk20*10102000480016008,40014400

AdNetworkLakshmi Chowk30*1510450041800360018,90032400

AdNetworkRaamdayalu30*1510450041800360018,90032400

0

Magadh AdvertisingJuran Chhapara20*2015600031200320022,40040400

Magadh AdvertisingZero Mile20*101530003600160011,20020200

Magadh AdvertisingRailway Station20*101530003600160011,20020200

Magadh AdvertisingDevi Mandir20*101530003600160011,20020200

Magadh AdvertisingKacchi Pakki20*101530003600160011,20020200

Magadh AdvertisingCompany Baugh20*101530003600160011,20020200

OverheadOne sideOne SideBoth SidesTotal Expenditure for 3 months, excluding printingTotal Expenditure for 6 months,excluding printing

Magadh AdvertisingABC Tower Bramhapura20*8355600NA128016,80033,600

Magadh AdvertisingMedndison Chowk20*6354200750096012,600/22,50025,200/45,000

Magadh AdvertisingBairia Stand20*6354200750096012,600/22,50025,200/45,000

Magadh AdvertisingMax Mart Akhara Ghat, Krishna Talkies20*6354200750096012,600/22,50025,200/45,000

Table 5: Cost Implications of Print Media in MuzaffarpurItemQtyRateUnit Rate

Dainik Jaagaran (Negotiated Rates)Full Page(About 1600 sqcm)1,35,00081.81 Rs/sqcm

Dainik Jaagaran (Negotiated Rates)Half Page(About 425 sqcm)90,000109.5 Rs/sqcm

Dainik Jaagaran (Negotiated Rates)Qtr Page(About 400 sqcm)60,000150 Rs/sqcm

Dainik Jaagaran (Negotiated Rates)12*12 size (240 sqcm)48,000200 Rs/sqcm

Dainik Jaagaran(Standard Rate)10*10(100 sqcm)25,000250 Rs/sqcm

* Cost implications for Hindustan is exactly 25% more than that of Daink Jaagran.

Table 6: Cost Implications of Distributing handbills in MuzaffarpurVendorSizeQtyColorsPricePrice/Handbill in RsMinimum Cost of distributing 1 handbills in newspapersMaximum Cost of distributing 1 handbills in newspapersMinimum Cost of distributing 12,000 Handbills inclusive of PrintingMaximum Cost of distributing 12,000 Handbills inclusive of Printing

Kumar Computers1/6th12000480000.6670.150.2980010400

Kumar Computers1/8(i.e.A5)12000470000.5830.150.288009400

Kumar Computers1/6th12000127500.2290.150.245505150

Kumar Computers1/8(i.e.A5)12000120000.1670.150.238004400

Renuka Press1/6th120004115000.9580.150.21330013900

Renuka Press1/8(i.e.A5)12000490000.7500.150.21080011400

Renuka Press1/6th12000135000.2920.150.253005900

Renuka Press1/8(i.e.A5)12000129000.2420.150.247005300

4.3.2.3. Dealer choice and Appointments: Pertaining to the skeptical nature of the environment many shopkeepers refused to keep this product. Some wanted to not rush into keeping it but to stay back and check its progress. For those who had illegal gas business this was threatening their business where they earn substantial margins.Following were the chosen dealers-Table 6: Dealers with whom we have confirmed as per areaSr NoDealerAreaProprietor

1Bikas Light housePakki SaraiBikas Kumar

2Mahalakshmi SteelsZeromilePranav Mandal

3Utkarsh Grih SevaAmgolaUtkarsh Sinha

4Shubham ElectricalsMithanpuraShiv Kumar

5Om KiranaRamdayaluVinay Kumar

Phase III

4.3.4 Demonstration and Door to Door Campaign Oorja Pallet stove is different from its competitors in physical attributes, use, fuel and overall cooking experience. Thus we understand that the best way to make customer aware of its use is through demonstration. I have planned a demonstration program spanned across 20 days. Canvassing all the major areas of Muzaffarpur. The schedule for demo (table 3) as mentioned.

Figure 8: Demo activity in Mitthanpura, Muzzafarpur, Bihar.(Photo credit- Chetan Kale)Firstenergy has already started operations in the village areas of Muzaffarpur with the help of its Village Level Entrepreneurs (VLE). But Village as a marketplace is very unique in the sense that everyone knows almost everyone. Words spread quickly, there is more social connection and gathering a crowd is easier.

For their product Oorja VLEs call the interested users at one place and give product demonstrations. In town this is difficult to achieve. Thus need to figure out a way to gather interested users and give them complete demo of the product.

6 Women and 2 men will be selected for this campaign on daily wages. This team was recruited by me using various local contacts. Also I was responsible for their product training and helped them give demos confidently. These men and women did- Promote Oorja stove door to door Arrange for demos for Oorja Rath Convince members of family for a product demo Note down the contact details of the interested customers for cold calling

Figure 8: Demo activity Team (Photo credit- Dhananjay Abhang)

4.3.2.1. Highlights of the Demo campaign Spanned for 18 days Average 6 Demos a day Door to door campaign (Reaching about 30-100 families a day) Road Shows (Reaching 500-1ooo families a day) Demo Cart (Oorja Rath) Different strategy for different localities Training the promoters

4.3.4.2. Action PlanThe action plan will show the location of the 18 day demo activities mapped on the map of Muzaffarpur. The number indicated the number of day in the demo campaign.

Figure 9: Demo activity Action Plan mapped on Map of Muzaffarpur.

4.3.4.3. Locations covered in Demo activities1. Shiv Charcha2. Communal Gatherings3. Wedding houses4. Slums5. Flood affected areas6. Government colonies7. Police stations8. Tea Stalls and likes9. Chowk, Road side corners10. Temples11. Government Hospital12. Aanganwadi Kendra13. Professional Coarse coaching classes14. Houses15. Milk Centres16. Painting classes

4.3.4.4. Demo cart (Oorja Rath):Oorja stove is just being introduced in Muzaffarpur. People have not seen this product before. Thus I have designed a frame structure for a goods cycle rickshaw (locally called as tempo). This detachable structure will be used to mount the stove on it and it will be on full display. The cart or Oorja Rath will follow the lady volunteers in door to door campaign.

Figure 10: Demo Cart/ Oorja Rath (Design- Chetan Kale, Photo Credit- Chetan Kale) Before and after the campaign this carts can be converted into tents for promotional activity. This cart was designed by me and it was one of the highlights of our campaign. It was an instant crowd puller. It helped us a lot getting eyeballs and generating awareness. People were attaracted towards product because of the cart. It was also instrumental in transporting the Stoves which proved to be a boon while travelling from one place to other.

4.3.4.5 Hoardings Cost Implications of Hoardings in Muzaffarpur(Table 4)There were two hoardings put up across the city. Lakshmi Chowk : gateway to suburban area, Entry point of muzaffarpur Company baugh : Near Court and Nagar Nikam, Rural as well as urban official streetCost Implications of Distributing handbills in Muzaffarpur(Table 7)

4.3.4.6. Print Media Due to cost constraints we did not opt for this despite it having the largest reach.Cost Implications of Print Media in Muzaffarpur(Table 5)

4.3.4.7 HandbillsHandbills were instrumental in demo activities and they carried contact details of the dealers and distributors. They were also used for newspaper insertions. Out of 24000 Handbills printed-

4000 Were paper insertions

17,000 Were distributed by hand

Cost Implications of Print Media in Muzaffarpur (Table 4)Figure 11 : Handbill Design, Oorja Pallet Stove

4.3.5. Channel PartnersDealers are retailers who would sell the stove and fuel to customers. Another primary need for this project was to identify and then choose channel partners in the form of dealers in this area. Thus this project will help Firstenergy plant a firm foot in Bihar, starting with Muzaffarpur.

In village areas the VLEs are Firstenergys channel partners but for the town areas like Muzaffarpur, sellers are usually vessel shops, electrical shops, cooking equipment sellers. These are stationary and often its not possible to light the stove and show the demonstration of the stove there. Dealers with whom we tied started our demo activity, as per area (Table 5).

5. Conclusion

We were able to cover almost all the Muzaffarpurs areas with our demo campaign and I am sure the awareness generated at its expense will be instrumental in Firstenergys success in Muzaffarpur and thus in Bihar.

The Demo cart was a hit and it can be utilised as an effective and cheaper medium to generate awareness.

To reach out to people even in different areas of the same town we have to use different techniques.

Channel Partners need to be chosen well as they are the first point of contacts. Durable goods like Oorja stove which is an innovative product and has no other competitor in its category cannot be promoted just through advertising. They require demonstration and door to door campaign.

Training of Early Adopters is of utmost importance. In past Firstenergy has experienced that its stove is only used as a water heating device (for bathing purpose) and consumers do not use it extensively for cooking. The business model will be successful only if the early adopters use the Oorja stove for cooking meals and hence consuming the fuel daily and thus consume fuel daily.

Oorja is a new category of products. People have so far used LPG stoves, coal / Wood/ cowdung cakes / woody biomass based stoves but never an Open flame micro-gassifier like Oorja stove. Thus it becomes all the more important to demonstrate the product usage and effectiveness to consumers. As observed in the past, the early adopters set a pattern for the followers.

When a product is as novel and innovative as Oorja Stove is. We dont require any discounts or schemes to attract customers to the product.

6. Recommendations Tie up with financial institution/government institution to make stove available on Instalments

Burn Time Cooking Habits die hard: People have habit of cooking rice and daal in open vessels in Muzaffarpur, which needs more heat and cooking time to prepare daal and rice. Which is challenging as sometimes for large families our Oorja Fuel cannot suffice their cooking need. In general Joint families and/or large families: As discussed with Mr Dhananjay Abhang the burn time for Oorja Fuel can be increased by increasing the density and material input to it.

Grading pallets: If the burn time cannot be provided at a certain cost then we can make available the Fuel in two Grades- Oorja and Oorja Super. This will reduce the chance of our

Target State run Aanganwadi Schools as daily khichadi is cooked there and quite a lot of women gather there.

Do not reduce prices: Bihari people think in a very sceptical way. Spot offers and sudden discounts raise suspicion.

Oorja Store: These are Brand conscious people. Having an Oorja Specialised Store can generate confidence in the masses.

Monitor Early adopters : As they shape the future of the usage of our stove Cold Calling: to check if the customers are using it correctly House visits and Service calls: To attend customer grievances and issues. Education of Early adopters: Visit early adopters and give them post purchase demo too if they require.

Proposed PR management and CSR activityMedia presence and media coverage is very important for any new product. Positive news publicity will accentuate the trust people put in the product.

Adopt a street (CSR activity) Mr Vijay our Distributor runs an NGO, Knanchan Seva Ashram which has recently completed training of women from slum for health and hygiene. He has a lot of contacts with the health and hygiene officials from Nagar Nikam. Along with them I suggest we can adopt a street where there are a lot of street food stalls. I have seen none of them use any dustbins and the waste is put in the gutters. This can be helped if Firstenergy along with the help from NGO make waste bins from waste products like Broken cement pipes etc. We can Paint them in White, Orange and Green and put Oorja on it. Maintenance of these garbage cans can be done by Nagar Nikam. We are just donating them to Nagar Nikam. It will give us PR and will put Oorjas brand on the streets in the form of bins visible to many. The better we make these bins the better it will be for Oorja brand. Firstenergys Oorja will come out as a socially responsible brand, will gain respect. Garibnaath Mandir Prasad: We will start our campaign by putting a chadhava of pedha/laddu to this temple made on Oorja Stove and distributing it to poor.

7. ReferencesAs of now, the references that have been used to understand the field of study and to gain an insight are provided below:

WEBSITES: www.wikipedia.com/census2011India www.firstenergy.in

BOOKS: Marketing Management : Kotler, Keller Koshi, Jha Fuelwood Issues for the Ninth Plan - Dr. N.C. Saxena (Former Secretary, Planning Commision ) PRIMARY CENSUS ABSTRACTPNB Annual Report 2010-11. Fuel's Gold Pune-based First Energy has developed cooking technology that turns agricultural waste into money. AUTHOR(S)- KUMAR SHARMA, E. PUB. DATE : October 2011, SOURCE: Business Today;10/16/2011, Vol. 20 Issue 21, p100 Dissemination of cooking energy alternatives in Indiaa reviewS.D. Pohekar, Dinesh Kumar, M. Ramachandran Center for Renewable Energy and Environment Development (CREED), Mechanical Engineering Group, Birla Institute of Technology and Science (BITS), Pilani 333 031, India; BRCM College of Engineering and Technology, Bahal, Bhiwani, India; BITS, Pilani-Dubai Campus, P.O. Box 500022, Knowledge Village, Dubai, UAE Renewable and Sustainable Energy Reviews DOI:10.1016/j.rser.2004.05.001

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