Chapter 5: Market Analysis – Tier-2 and

Rural Markets
5.1 Market Characteristics
Tier-2 and rural markets in India exhibit distinct characteristics that differentiate them from
their metropolitan counterparts. These areas are characterized by:

 Price Sensitivity: Consumers in these regions prioritize affordability over premium

features. Price plays a crucial role in influencing purchasing decisions, often
outweighing brand loyalty or perceived product quality.
 Trust-Based Relationships: Buying decisions are heavily influenced by local
retailers and electricians. Long-standing relationships, word-of-mouth reputation, and
personal trust often override formal brand promotion efforts.
 Low Brand Awareness: Due to limited exposure to mainstream advertising and
media, many customers are not familiar with established electrical brands. Instead,
they rely on retailer recommendations and prior experiences.
 Informal Distribution Networks: Distribution in these markets is less structured,
with a strong reliance on local stockists, hardware stores, and traveling sales agents.
 Limited Technical Knowledge: End-users often have minimal understanding of
electrical products and depend on electricians for product selection and installation.
 Growing Electrification Demand: Government schemes such as the Deendayal
Upadhyaya Gram Jyoti Yojana and Saubhagya Yojana have significantly increased
rural electricity access, thereby fueling demand for basic electrical components like
MCBs, isolators, and distribution boards.

5.2 Consumer Behavior

Understanding the behavior of consumers and influencers is key to crafting effective market
penetration strategies.

5.2.1 Electricians

Electricians play a pivotal role in influencing product choices, particularly in rural and semi-
urban areas. They act as advisors, installers, and informal brand ambassadors.

 Product Familiarity: Electricians tend to recommend brands they are comfortable

working with, often based on personal experience or training.
 Incentive-Driven Recommendations: Many electricians promote specific brands
that offer them direct or indirect incentives—either in the form of cashback, free
tools, or loyalty programs.
 Ease of Availability: Products that are readily available in local stores are more
likely to be recommended, as electricians value time efficiency and convenience.

5.2.2 Retailers and Dealers

Retailers are the frontline agents of sales in Tier-2 and rural areas. Their stock decisions
directly impact what is recommended and purchased.

 Margin-Oriented Selling: Retailers prefer to promote products that offer them higher
margins while maintaining customer satisfaction.
 Stocking Behavior: Due to space constraints, retailers limit their stock to fast-moving
SKUs and trusted brands.
 Lack of Promotional Support: Most small retailers do not receive in-store branding
or promotional materials from manufacturers, impacting brand recall and visibility.

5.2.3 End-Users

End-users are typically homeowners, small business owners, or contractors with limited
product knowledge.

 Dependence on Intermediaries: End-users generally defer to electricians or retailers

for product selection.
 Perception of Quality: The perception of quality is often formed post-installation,
based on performance and durability.
 Brand Neutrality: Many consumers are not brand-conscious; affordability and
recommendation are stronger drivers.

5.3 Challenges for MCB Manufacturers

Small-scale MCB manufacturers face several unique challenges while attempting to penetrate
Tier-2 and rural markets:

 Brand Invisibility: Without extensive advertising or in-store branding, new or small-

scale brands struggle to achieve awareness.
 Distribution Gaps: Reaching deep rural areas requires a decentralized distribution
network, which may not be feasible for smaller players without scale.
 Price Competition: The presence of low-cost, unbranded or counterfeit products
creates pricing pressure on legitimate manufacturers.
 Lack of After-Sales Support: Consumers often avoid lesser-known brands due to
perceived risks in case of malfunction, especially where warranties or replacements
are not accessible.
 Skepticism Towards Quality: Despite adherence to standards, small manufacturers
may be viewed as offering inferior products unless they can demonstrate otherwise.

5.4 Opportunities for Growth

Despite the challenges, Tier-2 and rural markets present significant opportunities for growth:

 Untapped Demand: Rapid rural electrification and housing growth have increased
the need for affordable electrical safety products.
 Low Brand Loyalty: Since brand attachment is relatively weak, it is easier for new
players to make inroads with effective on-ground strategies.
 Trust in Local Intermediaries: Building strong relationships with electricians and
retailers can rapidly accelerate brand adoption.
  Government Support: Schemes supporting MSMEs and local manufacturing offer
subsidies, marketing assistance, and capacity-building opportunities.
 Customized Product Bundling: Offering product kits (e.g., MCBs with enclosures
or distribution boards) can enhance value perception and increase average order value.

5.5 Regional Insights from Field Visits

The primary research conducted in 10 towns across North India revealed region-specific
preferences and behavioral patterns:

 Uttar Pradesh (Eastern Region): Strong preference for local brands, heavy reliance
on electrician recommendations, and openness to try new products with good
margins.
 Punjab (Semi-Rural Belts): Retailers are quality conscious and prefer ISI-marked
products, though price remains a significant determinant.
 Haryana (Tier-2 Cities): Consumers show growing awareness and demand for
branded products, especially in new housing developments.
 Rajasthan (Rural Zones): Seasonal sales spikes coincide with government
electrification drives and festival-linked construction activities.
Chapter 6: Competitor Analysis
6.1 Overview of the Competitive Landscape
The low-voltage switchgear market in India, particularly for products such as MCBs,
changeover switches, and main switches, is highly competitive. While multinational brands
dominate urban areas, Tier-2 and rural markets witness a mix of organized regional players
and unorganized manufacturers. Arora Switchgears Pvt. Ltd. faces stiff competition from
both well-known and emerging brands operating in these regions.

In the context of the target markets—Tier-2 and rural India—the following competitors have
been identified as direct or indirect rivals:

 Bizlite
 Wipro (Switchgear Division)
 PM Conr
 Kellner

These brands vary in their market positioning, pricing, distribution strategies, and product
portfolio. A comparative study of these competitors offers valuable insights for Arora
Switchgears Pvt. Ltd. to reposition its Excell Gold products effectively.

6.2 Competitor Profiles

6.2.1 Bizlite

 Positioning: A value-for-money brand that targets budget-conscious consumers in

semi-urban and rural areas.
 Strengths: Competitive pricing, good reach in North Indian rural markets, and
diverse product offerings.
 Weaknesses: Limited technical support and after-sales service; low perceived quality
among some segments.

6.2.2 Wipro (Switchgear Division)

 Positioning: A trusted national brand known for quality and innovation.

 Strengths: Strong brand equity, BIS-certified products, excellent distribution
network.
 Weaknesses: Higher price points may deter cost-sensitive buyers in rural markets.

6.2.3 PM Conr

 Positioning: Mid-tier player with moderate visibility.

 Strengths: Regionally strong in select districts, offers wide amperage ranges.
 Weaknesses: Inconsistent supply and relatively weak after-sales service.

6.2.4 Kellner
  Positioning: Focused on Tier-2 and emerging towns.
 Strengths: Well-known among electricians, good presence in hardware stores, often
bundled with other complementary electrical products.
 Weaknesses: Product design and packaging lack modern appeal, limited innovation.

6.3 Comparative Matrix

Feature / Brand Arora Switchgears Bizlite Wipro PM Cona Kellner
(Excell Gold)
Brand Medium (Local) Medium High Low- Medium
Recognition Medium
Pricing Affordable Very Premium Moderate Affordable
Low
Product Range Wide Moderate Wide Wide Moderate
Distribution Limited Strong Extensive Regional Strong
Reach
After-Sales Limited Weak Strong Weak Average
Service
BIS Partial Yes Yes Yes Yes
Certification
Electrician Growing Popular Trusted Mixed Trusted
Preference
Promotional Minimal Low High Minimal Low
Activity

6.4 Insights from Field Research

Electricians' Feedback: Electricians across the surveyed towns reported a preference for
brands that offer easy installation, reliability, and occasional incentives (e.g., cashback,
merchandise). Brands like Kellner and Bizlite score well in this regard.

 Retailers' Perspective: Retailers prefer to stock brands with fast-moving SKUs, low
return rates, and better margins. Bizlite and Kellner perform well due to price
competitiveness.
 End-User Observations: End-users in rural areas are largely unaware of specific
brands. They depend on the electrician’s recommendation and prioritize price and
availability.

6.5 Strategic Implications

Based on the above analysis, the following strategic implications are relevant for Arora
Switchgears Pvt. Ltd.:

 Strengthen Distribution: To match competitors like Bizlite and Kellner, Arora needs
to expand its dealer network and ensure product availability in remote towns.
 Enhance Brand Recall: Investing in basic in-store visibility tools (e.g., signage,
posters, demo kits) can improve brand presence at the point of sale.
 Leverage Price Positioning: With competitive pricing already in place, Arora can
bundle products (e.g., MCBs with enclosures or switchboards) to offer better
perceived value.
 Focus on Electrician Engagement: Training sessions, loyalty programs, and
branding kits for electricians can help Arora tap into the most influential group in the
buying process.
Chapter 7: SWOT Analysis
A SWOT analysis offers a comprehensive view of the internal strengths and weaknesses of
Arora Switchgears Pvt. Ltd., as well as external opportunities and threats it faces in the
competitive environment of Tier-2 and rural markets.

7.1 Strengths
1. Diverse Product Portfolio
The Excell Gold range includes a wide array of low-voltage switchgear products such
as MCBs, main switches, changeovers, fuse units, isolators, busbar chambers, and
more—offered in various ampere/voltage ratings. This breadth allows the company to
serve multiple application segments under one roof.
2. Affordable Pricing
Arora Switchgears offers competitively priced products that are well-suited for the
budget-conscious rural and Tier-2 consumer base.
3. Flexible Manufacturing
As a small-scale manufacturer, the company enjoys operational agility. It can produce
custom SKUs and quickly adapt to regional specifications and market feedback.
4. Local Market Understanding
The company has a deep-rooted presence and strong relationships in specific
geographic pockets, providing a foundation for deeper market penetration.
5. Growing Brand Recognition
The Excell Gold brand, though limited in reach, is increasingly recognized among
electricians and local retailers for its durability and reliability.

7.2 Weaknesses
1. Limited Distribution Network
The company's reach is restricted to a few wholesalers and does not have an
expansive retail footprint in rural markets.
2. Low Brand Visibility
Minimal promotional activities and absence from mass retail points restrict customer
recall, especially in markets dominated by better-known competitors.
3. Lack of BIS Certification Across Product Range
While some products are certified, others lack standard approvals, making them less
attractive to institutional buyers or government procurement programs.
4. Absence of After-Sales Support
There is no dedicated mechanism to handle customer feedback, complaints, or
servicing, which can hinder long-term customer loyalty.
5. Limited Digital and Technological Integration
No presence on e-commerce platforms or digital marketing channels, which could
hinder expansion in tech-savvy Tier-2 markets.
7.3 Opportunities
1. Untapped Rural Electrification Potential
With ongoing rural electrification drives and infrastructure development schemes
(e.g., Saubhagya Yojana, PMAY), the demand for basic electrical components is
projected to rise steadily.
2. Influencer Engagement
Electricians play a crucial role in product recommendations. Building loyalty
programs or training workshops could lead to stronger on-ground brand preference.
3. Strategic Partnerships
Collaborating with local hardware chains, government contractors, and NGOs
involved in rural electrification could boost sales.
4. Product Bundling and Packaging Innovations
Offering ready-to-install kits or bundled switchgear solutions tailored to local needs
can improve value perception and shelf appeal.
5. BIS and ISO Certification Expansion
Getting full product line certification will enhance trust and open doors to larger
tenders and institutional buyers.

7.4 Threats
1. Intense Price Competition
Local unorganized manufacturers flood the market with cheaper, lower-quality
alternatives, creating pricing pressure.
2. Brand Dominance by Larger Players
Brands like Wipro and Schneider are increasing their footprint in Tier-2 cities with
aggressive pricing and promotions.
3. Rising Raw Material Costs
Volatility in the prices of copper, PVC, and steel directly affects production costs and
profit margins.
4. Technological Obsolescence
Failure to keep up with modular, compact, and smart switchgear innovations could
render the product line outdated.
5. Counterfeit Products
Duplicate products masquerading as original Excell Gold components could damage
the brand's reputation.
Chapter 8: Findings and Observations
This chapter compiles the key insights derived from primary and secondary research. It
reflects customer behavior, influencer opinions, distribution patterns, product acceptance, and
brand perception in the targeted Tier-2 and rural markets.

8.1 Market Behavior and Purchase Influencers

 Electricians as Key Decision Influencers: Across all surveyed towns, electricians
were the primary influencers for product selection. Their familiarity with brands like
Excell Gold greatly influenced end-user preferences.
 Price Sensitivity: A majority of end-users and retailers rated affordability as the most
important factor when choosing switchgear. Excell Gold scored high on this attribute.
 Trust in Local Brands: Respondents often showed greater trust in regionally known
brands compared to national or imported alternatives, especially where after-sales
support is limited.

8.2 Product Performance and Acceptance

 High Recall for MCBs and Main Switches: MCBs, changeover switches, and main
switches were recognized by most electricians and retailers under the Excell Gold
name.
 Less Awareness of Full Product Range: While the core offerings were well-known,
products like busbar chambers, reversing switches, and porcelain fuse units had lower
awareness in some regions.
 Compatibility and Ease of Installation: Installers appreciated the user-friendly
design and multiple amp/volt range options for diverse application needs.

8.3 Distribution Insights

 Limited Penetration Beyond Local Regions: The company's presence was strong
within its home state but almost non-existent in out-of-state rural belts.
 Dependency on Personal Sales Relationships: Sales relied heavily on individual
dealer relationships, with minimal formal distribution structure in place.
 Stocking Issues: Dealers often reported delays in restocking due to inconsistent
supply chains and lack of centralized warehouses.

8.4 Brand Positioning

 Moderate Brand Visibility: While known locally, Excell Gold lacked visibility in
larger towns and Tier-2 cities due to absence of in-shop branding or outdoor
promotions.
 Perceived as Value-for-Money: Electricians and end-users appreciated the price-
performance balance, rating the brand above other small-scale manufacturers but
behind major players like Bizlite and Wipro in recognition.
8.5 Competitor Comparison
 Wipro and Bizlite were often cited for better packaging, retail display, and
marketing.
 PM Conr and Kellner had limited recall but were present in certain pockets.
 Unorganized sector products dominated due to extremely low pricing, though
concerns about safety and reliability were frequently expressed.

8.6 Customer Feedback Themes

 Need for Warranty or Quality Certification: Retailers showed interest in brands
that offer warranties or ISI certifications.
 Demand for Product Bundling: Electricians preferred kits that included MCBs,
switches, and enclosures bundled together.
 Training & Technical Guidance: Several electricians expressed a desire for brand-
led training or demo sessions on new product lines.

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