Selling

CFLs
at Wal-Mart
S. No Name Roll Number
1 Mayank Jain 190103209

2 Nitika Puri 190103195

3 Shubham Sharma 190103228

4 Suvid Sharma 190103157

5 Tanay Menghani 190103158

6 Tresa John 190103160

CFL

INVENTED IN 1970 INTRODUCED FOR CONSUMER CFL USED 75% LESS INCREASING CONCERNS ON AVERAGE PRICE VARIED FROM
USE IN 1980 ELECTRICITY & LASTED 10 GLOBAL WARMING 1990, $15 IN 1990 TO $3 IN 2009
TIMES LONGER COMPANIES SUCH AS GE,
PHILIPS & OSRAM RAMPED UP
PRODUCTION
 ADVANTAGES
Wider Assortments
In different shapes, sizes, forms and watt
capacity offering many colours and even dimmer
effect, improved efficiency, better recycling.

Less Energy Consumption Longer Product Life

75% less energy consumption • Up to 10times, 9.1 years life
than incandescent bulb • 10,000 hours of product life
against 750 hours for
incandescent bulb( 1 CFL= 13
Incandescent Bulbs

Fewer Greenhouse Effect

Cost Saving • Reduced carbon footprint, over 450
pounds fewer greenhouse gases over
• Average $5/ per CFL saved its lifetime.
• Retail Price (subject to rebate, bulk discount and • 77% less watts consumed
sales promotion) $3/ unit in 2008
• Opposed to $40-$110 for LED
• Tax Benefit in form of tax credit of 30% up to $1500
 DISADVANTAGES
Status Quo
Existing incandescent bulbs Prolonged period of 10 years to reap benefits
costed only $0.5/ unit -
against $3/unit of CFL
Mercury Poisoning
Despite reduced level of mercury and
better recycling methods, risk of -
damage in extreme circumstances.
Commitment Cost and Effort
- Futuristic benefits equated with present cost saving
Lifestyle pattern did not support( Hence business image)
Usage Constraints
- Difference in usage patterns for the lighting
Difficult to assess payback period
Rapid Switch on and off may make it more
expensive
RESISTANCE IN CONSUMER PERSPECTIVE

Usage Problems Product Design and Functional Issues

•
•
Long time for warming up
Buzz and Flicker at end of product life
01 02
Complaints regarding unflattering
white light, strange bulky figures
etc instilled fear regarding the
• Point of parity- Dimmer Switch
mystery of the product
Missing

•
Difficult to measure Benefits
Cost Saving benefit deferred 04 03 Mercury Poisoning
Substantial amount of Mercury
content and fear of poisoning
due to stringent usage
(strict recycling guidelines)
requirements for saving cost.
• Difficult to understand and
follow
• Perceived to be used in
business places or schools Product Image & High Price Sensitivity
05 Perceived as harsh ceiling fixtures,
distant, generic, low involvement
product
 Ways to Improve Sales

Educating the Benefits Adoption and Endorsement

Consumer Education using in store • By using CFLs inside the store and as a part of
promotional banners and kiosks informing associate industries like lampshade, table lamp,
benefits, cost saved, tax benefits and even 01 02 garden light stand etc
visible contribution to carbon footprint • Subscription Model for shorter durations and
reduction Exchange value for every brand

Category Visibility Experiential Marketing

Promotional Discounts and Exchange Offers
• Celebrating Environment related events like the Earth
Day, World Environment Day etc by offering
discounted price on specific occasions
• Longevity of Product life can be comparatively
emphasised like Duracel example
04 03 • Demonstrating the color spectrum,
dimmer effect and association with
moods and emotional relatable
situations like relaxation after a hectic
day at work , romantic charger and other
self esteem and affiliation needs.
• Recycling Spot or point for convenience
at end of product life
ENERGY Star Program
Consumer education project launched in 1991 by US Department of Energy & US Environmental Protection Agency

Promoted energy conservation across all types of household appliances and technologies, bestowing to Energy star logo on appliances
which consume 20-30% less energy

CFL’s met this goal, US government made significant effort to increase consumer usage of energy efficient bulbs

On the website, consumers could see direct benefits of using CFL’s

Tax policies used to incentivize energy efficient households

American Recovery and Reinvestment Act: Provided homeowners with a federal tax credit of 30% upto $1500 for undertaking home
improvemrnts to reduce energy consumption

Escalating the energy efficiency standards: appliances to become 70% more efficient by 2020

Ban on the incandescent bulbs in different countries

Thank You