D light Design Marketing Channel Strategies in India Case Solution

1. What channel alignment constraints face d.light as it thinks about how to establish a channel structure in India? List and describe any legal, environmental, and managerial constraints.

There are a number of constraints faced by d.light when entering the Indian Subcontinent, some of which should be carefully analyzed by the company, before full-fledged operations are initiated; some of which constraints are the following:

• Legal: The d.light corporation will not be subject to any significant legal restrictions for beginning a commercial activity in India or by entering into an agreement with the “channel and market” associates to gain admission to the retail outlets. For example, the company need not capitalize a set amount of money before beginning operations in this side of the world.

• Environmental: This restriction essentially depends on any requirement of the industry, structure, and customers over whom the corporation has no direct influence or interaction. It should be noted that the company's “short to medium” term operating periods are the only ones subject to this restriction. Furthermore, between the urban and the countryside residents in the country, there is a significant income disparity. For those who live in rural areas, farming is their primary source of revenue. Farming would experience poor harvests at various points during the year due to the weather conditions. Hence, it's possible that rural residents lack the resources to purchase the company’s products. A sudden revenue crisis will result for the business as a result.

• Managerial: The general principles and guidelines that each participant of the channel has taken into consideration are also included in this restriction, or it would be a result of another participant's skills imposing these restrictions on the “distribution channel”.

Apart from that, the subpar transportation set up in the country is a critical issue. The argument makes the point that India's transportation system is subpar. Building an effective transportation system is challenging, particularly in village-side locations. For the company, it may be challenging to proficiently distribute its products and market them to customers in rural areas due to inadequate substructure. Consequently, it will increase delivery charges whilst affecting the revenue of the company.

The other vital element is the absence of coverage on national television. It is well known that brand recognition and product elevation are crucial factors when a business arrives at a novel place. These two items must be the company's main priorities if it wishes to sustain and thrive in the local market. The country’s broadcasting viewership, sadly, are limited, which results in a limitation. In reference to the data provided, just 63% of countryside Indian houses make use of radio, 48% use TVs, and 39% read magazines and papers. The circumstance can result in subpar promotion in the village side. As a result, this may have an unswerving impact on the business's reputation and product perceptibility and distinguishability.

2. For rural consumers in India, discuss how these channel alignment constraints lead to demand-side misalignments if the company sells through the:

a. Rural entrepreneur channel, and link these misalignments to constraints (legal and/or environmental and/or managerial).