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Lighting Kenya: Solar Lights for a Brighter Future

Lighting Kenya is a small organization founded by college students with the goal of improving the quality of life in Kenya through the use of solar lighting. This market assessment and marketing plan outlines the benefits of solar lighting, the target market, competition, government participation, marketing objectives, product adaptation, promotions, distribution, and transportation.

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Lighting Kenya: Solar Lights for a Brighter Future

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  1. Market Assessment and Marketing Plan

  2. Introduction • Lighting Kenya is a small organization founded in 2014 by six college students that attend SUNY Broome, Binghamton, NY. The organization was created because those students recognized the growing need for lighting in homes across Kenya. The goal of this organization is to improve the quality of life across Kenya. Benefits of Solar Lighting • Cost savings • Income generation • Better study environment • Reduction in carbon emissions • Healthy and safe homes

  3. The Product • Solar Lights can provide Kenyans a cheaper energy alternative. • Kenya receives a lot of sunlight throughout the year. Mombasa averages between 125-300 hours per month, giving more than enough hours to provide energy for the solar cells. • Solar panels are a complex piece of machinery, but innovations are reducing their costsand allowing us to reach market we never thought we could. • Our Solar Lights are designed for household use.

  4. The Market • Desert makes up 20% of country. Many hours of sunlight. • Retailers are mostly available to urban populations, which range from supermarkets to electronics retailers. It is common to see street venders, and selling door to door. • Customary markup- Small street venders will typically markup 100%, but consumers will barter to lower the price. • Retail- additional 20-25% markup from their price.

  5. Market Size • There are >13,100,000 people in Kenya over the age of 25 that live in a rural setting. • Rural areas would be our focus. • Citizens in urban areas would also be encouraged to buy our product, which would bring the market size up to ~17,200,000.

  6. Competition • Local Companies: M-KOPA solar, Glenergy Kenya • Prices: $80-600 USD • International Companies: SolarHome, Rakuten, TrinaSolar, Coleman, Solar Illumination • Prices: $30-450 USD

  7. Government Participation in the Marketplace • Import licenses are issued by the Ministry of Commerce. • Examples of items that are Prohibited for import: • Illegal drugs• Guns, explosives and ammunition – unless permission has been obtained• Knives and dangerous hunting weapons• Hazardous materials• Meat and meat products• Plant and plant products – unless permission has been obtained• Soil• Counterfeit money and goods• Pornographic material

  8. Marketing Objectives • 1. Specific Target Market- The rural areas of Kenya where kerosene is used to light homes. • 2. Expected Sales- 100,000 units per year • 3. Expected Profit- Currently testing the product in the market to see if it sells well. If expected sales goal is met we could see 6,500,000 in sales and realize a 1,500,000 in profit our first year.

  9. Product Adaptation • 1. Core Component- Product consists of a small solar panel that it placed outside the home, in direct sunlight. The solar panel is connected to a hand held controller and charges the battery to the controller. The controller connects to the light source. The controller also allows the user to turn the light on/off and also adjust brightness. A USB port is installed in the control panel for charging cell phones. • 2. Packaging Component- Product will be packaged using recycled paper materials. Packaging can also be reused for other household purposes. • 3. Support Services Component- Installation is consumer friendly and service technicians will be available to help.

  10. Promotions • Advertising- Use of outdoor sales, radio, and newspapers would be the best way to reach people in our target market. Also, using ads from mobile phones strongly influence buyers. • Going “door-to-door” educating as many tribes as possible on the benefits of solar power. • Media Mix- Personal sales, outdoor sales, radio, magazines, newspapers, word of mouth, websites, and social media • Message- Improving the quality of life in Kenya by eliminating the use of kerosene lighting. Inhaling the fumes of kerosene has toxic effects on the respiratory system and can lead to diseases like COPD. Also, money that will be saved can be invested into improving education. • Cost- Cost of newspapers ads is ≅ 43,000Ksh. A 30-second radio advertisement in Kenya will cost ≅ 15,000Ksh. Total cost ≅ 60,000Ksh (~$700)

  11. Distribution and Transport of Product • Ocean Carriers is the best way to transport our product. Maersk Line would take care of shipping our product. Shipping cost from United Sates to Kenya ≅$1,880 for container. Price of Insurance of the shipments would depend of size of each shipment. Maersk Line will also arrange transport on mainland for us, and the cost will be added on later.

  12. Destination Point • The Port of Mombasa offers many warehouses to store products at a fee until the product picked up by the retailer and sold. • Mombasa is a major port in Africa and has the infrastructure we require. Using this port also gives us easy access to Ethiopia, Rwanda, Tanzania, Burundi, and Uganda if we choose to expand. • Large Airport also near by incase we ever decide we need to fly product in.

  13. Documentation Required • All the required documents must be received by the Ministry of Trade and Industry 7 days prior to goods arriving in the country to avoid losing valuable time. • Bill of Lading • Commercial Invoice • Pro Forma Invoice • Shippers Import Declaration • Packing List • Letter Of Claim With List Of Items and Prices • Name and address of Insurers

  14. Retail Distribution • Sold straight to retailers in Kenya. Both in rural and urban areas. • Retail market is very large and capable to sell and promote the product. • Retailers that want to sell our product : JUMIA, Massmart, Walmart’s South-African subsidiary. • Great roads and trucking system.

  15. Price • Solar Panel alone: $30USD/2607KSH • Complete Lighting System, which includes: solar panel, control panel with USB port for charging cell phones, and lamp will cost $65USD/5648.50KSH • Products, however, will be sold to retailers in Kenya. Orders will be taken and shipped, as needed. • No duty tax for solar lights, however, there is a 16% Value-Added-Tax.

  16. Methods of Payment • As per the contract with retailers, they must have an easy payment plan available. • Customer payments will be based on how much an individual spends on kerosene, weekly. • Average amount spent on Kerosene per week is $4 • The average consumer will pay off the full price in 17 weeks or just over 4 months time. • If payments are not made, than product must be returned.

  17. Questions & Answers

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