SimGas provides households in developing countries with clean and affordable energy and sanitation solutions that improve their lives and income positions. Their solution is domestic biogas plants. In March 2012, SimGas launched their first affordable, domestic biogas plant in Tanzania, by Joint Venture SimGas East Africa Ltd. Next on the agenda is to develop new applications of biogas plants and to expand to other regions. This study looks into the possibilities of expansion to Gujarat, India, ultimately paving the way for pilots of SimGas biogas plants in Gujarat, India. The main research question is: How to develop an introduction strategy in the biogas market in Gujarat, India, for the current products offered by SimGas, such that it that meets the local context and such that it allows for a financially sustainable business? There are three partial solutions to the research question: 1) The identified potential customers: The identified potential customer groups are: Customer group 1: Lower-middle class households holding cattle Customer group 2: Mid-middle class households holding cattle Customer group 3: Upper-middle class households holding cattle Customer group 4: Lower-middle class households living in peri-urban areas Customer group 5: Mid-middle class households living in urban areas Customer group 6: SMEs situated in urban areas 2) SimGas’ best response to the needs of the identified customer groups: The propositions for rural, small-holder households in lower-middle class and possibly mid-middle class (i.e., customer groups 1 and 2) are: ? Lower-income class customers purchase a SimGas biogas plant that has been granted an additional subsidy as part of a rural development program of a local NGO. The customer pays a ‘symbolic’ amount that guarantees ownership. ? Customers rent SimGas biogas plants from their local dairy cooperative, according to their needs and available physical and financial resources (which differ per season). The local dairy cooperative gains ownership. ? Joint families and neighboring households purchase a SimGas biogas plant (at their local dairy cooperative) to share. They can thereby split the costs, split the loan, split demand by cooking together, and together provide for sufficient plant feed (which is limited for rural lower-middle class). The propositions for rural, small-holder households in mid-middle class and upper-middle class (i.e., customer groups 2 and 3) are: ? Customers purchase SimGas biogas plants at their local dairy cooperative and thereby gain ownership of the biogas plant. ? Chiefs (who belong to customer group 3) are given a fee in exchange for demonstrations to their villagers. The propositions for urban SMEs (i.e., customer group 6) are: ? SMEs purchase the SimGas biogas plants directly from SimGas’ Joint Venture (see Introduction Strategy). The SMEs are given a fee in exchange for organized demonstrations for employees and guests. ? Larger SMEs are offered sets of multiple biogas plants (up to a certain, workable extent) to meet the higher demand of cooking fuel. ? SMEs without garden are offered to sell their slurry to SimGas. 3) An introduction strategy for SimGas: The proposed introduction strategy involves propositions for a partnerships and the necessary tactics to allow for an introduction of SimGas biogas plants in Gujarat: In the first one and a half years, ? In cooperation with Finish Society – a local NGO (Non-Governmental Organization) that is active in the provision of sanitation solutions with financial inclusion, SimGas set up pilots that are stationed at several dairy cooperatives throughout Gujarat. In the meantime, SimGas acquires subsidy approval which allows SimGas to set competitive prices to make their products affordable for the potential customer groups. ? SimGas establishes a Joint Venture (JV) together with Finish Society. The JV partners with local dairy cooperatives and NGOs to provide access to the identified customer groups. The JV is responsible for distribution, installation, training and after-sales service to ensure product and service quality. ? The JV targets the rural customer groups first, within which the upper-middle class is prioritized, followed by the mid-middle class and the lower-middle class. This sequence accords with the socio-cultural phenomenon where lower classes generally feel strong aspiration towards the class above them. ? The first sales are made to the chiefs of rural villages, who belong to the upper-middle class. Their biogas plants act in demonstrations targeted at the lower- and mid-middle class, who are likely follow the chief’s example. In the following three years, ? From the identified urban customer groups, the SMEs are targeted first as SMEs conveniently provide for exposure. This facilitates the transition to the (peri-)urban customer groups . ? The JV establishes a partnership with SEWA MHT – a well-known local women’s association that facilitates access to services regarding housing, energy and finance – to gain access to the (peri-)urban customers. The implementation of the proposed solutions and corresponding introduction strategy will: ? Provide SimGas with a strong competitive position in the Gujarat biogas market as they offer products that have the best price-quality ratio available, while partnering with local dairy cooperatives that are part of a widespread and prestigious network. The partnership provides access to the rural customer groups, strengthens the SimGas brand and forms a protective shield against IP theft and undesirable political interference. On the long run, it will open doors to new business opportunities within and beyond Gujarat. ? Provide the customer groups with propositions that are tailored to their needs, their local context and to their physical and financial resources. This contributes to building and restoring customer trust and customer loyalty, which allows SimGas to offer newly developed biogas applications to the same customers. ? Create a market for biogas plants in urban areas where SimGas gains the position of the trailblazer. Although seemingly risky, this will create new opportunities worth exploring. ? Enrich potential partners with SimGas’ reliable, international network that works strictly by high quality standards in product development as well as in business development. ? Will attract investors that can boost product introduction and further product development as a result of SimGas’ efforts in Gujarat.