TRANSFORMING THE COMMERCIAL LIGHTING MARKET€¦ · Majority of T8 lamp sales Maintenance Market....
Transcript of TRANSFORMING THE COMMERCIAL LIGHTING MARKET€¦ · Majority of T8 lamp sales Maintenance Market....
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Andre Javier-BarryD+R International
Presented at the 2015 ACEEE National Conference on Energy Efficiency as a Resource
TRANSFORMING THE COMMERCIAL LIGHTING MARKET
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■ What was the market test?
■ What did NEEA and BPA learn?
■ What are the efforts at expansion now?
Overview
Reduced Wattage Lamp Replacement Initiative
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A Key Partnership
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Upstream incentives
Relationship building with distributors and manufacturers
Maintenance market opportunity
80 aMW energy-savings potential
A Regional Strategy
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Huge market
Low-cost replacement, not substantial lighting system retrofit
Majority of T8 lamp sales
Maintenance Market
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Building Life Cycle
NEW BUILDING
10 yearsmaintenance
RETROFIT
10 yearsmaintenance
RETROFIT
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NEEA’s Market Transformation Goal
2014
28/25W
32W
Total Annual T8 Sales: ~10 million lamps
Transform the Maintenance Market
2020
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Program Vision
Low-wattage T8 lamps become default product choice over 32W lamps in T8 lamp maintenance market.
32
25W28W
W
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10 MILLION LAMPS SOLD EACH YEAR
$2 FLUORESCENT OR$20 TLED
40 MILLIONSOCKETS
$80%32W MARKET PENETRATION
T8 Lamp Market
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Program Market Test Background
Five distributors participated.
NEEA collected sales data from all participating distributor locations.
The market test lasted more than one year.
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Incentive Models Used
Incentives on all lamps sold above baseline
Small incentive on all lamps sold plus bonus for reaching goals
NEGOTIATEDFIXEDBASELINE
INCENTIVIZEDSALES
PromotionalPeriod Sales
PromotionalPeriod Sales
SHIFT
INCENTIVIZEDSALES
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Training
Stocking
Pricing agreements
Price parity
Ordering system
Staff spiffs
Marketing
Distributor Tactics
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Manufacturer Engagement
Manufacturers provided distributors with
■ Technical training about the products
■ Marketing support
■ Improved pricing
■ End-user outreach
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Program design appeals to distributors and manufacturers
■ Simple data submission and reporting requirements
■ Regional footprint
■ Important product category
■ Opportunity to influence maintenance market
Lessons Learned
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Volatility in low-wattage sales volumes
Ingrained purchase patterns
Sales staff motivation
Inertia
Challenges to Overcome
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Obtained approval to expand from the market test
Number of participants has increased and is still increasing
Distributors and manufacturers are changing how they stock and sell T8s
Recent Successes
■ Price parity ■ Increasing stock of low-wattage lamps
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Increase number of participants to capture at least 25% more of the T8 market
Continue incentives
Provide market penetration bonuses
Increase use of manufacturer resources
Offer branch-level support
Engage end-customers
What are NEEA’s efforts now?
25%
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Obtained a valuable sales data set
Strengthened relationship with distributors and manufacturers
Learned valuable lessons for future market transformation initiatives
Set stage for large-scale energy savings
CONCLUSIONS
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Andre Javier-BarryD+R [email protected]