2.

1 Review of Literature

National and international journals pertaining to the lighting industry and green lighting have
been reviewed. The literature review also has its origin from the newspapers, magazines and
other such journals. It is borne in mind that a large amount of information has been lucratively
gathered to drive out necessary and correct conclusions. Light industry is a vast industry which
caters to the operations of any industry in the world. No industry can carry out its operations
without the help of the lights or lighting industry. The lighting industry is more of a consumer
focused industry which produces its products for the end users. It can also be said to be a
manufacturing activity which uses a smaller amount of area and power and also raw materials.
The number of players in light industry is large as well. So it becomes necessary to have an
insight of the marketing concepts related to this industry. The industry causes a less harm to the
environment as compared to other heavy industries. But in the long run, it can also damage the
environment or cause a risk of contaminating the environment. Market Analysis is something we
all do. Planning and preparation for the future is not important for an individual, but also for a
business. Leading firms all over the world are always on the effort to estimate and improve their
capacity of quality in the future. This can help them to modify their plans and organization
whenever needed for success and higher profits. This will help them to tackle the ever
increasing competition. The study focuses on the lighting industry, the marketing concepts
applied for the development and enhancement of the industry, right from the supply chain to
distribution. Lighting is a very important factor in industries, offices and buildings, display
signage, retail, sports and stadiums. Thus the industry has a wide scope and is very luring for an
in depth research. High brightness led’s and organic LED are two technologies that will grab
attention in the next 2 to 5 years. LED’s are expected to increase further in efficacy, light output
and color availability while reduce in costs. If production can be smoothed out and made less
costly, they will work wonders for the environment LED’S have entered the lighting market to
stay. Hence it is very important to know the consumer acceptance levels of LED’s. The study
provides details of the LED ACCEPTANCE LEVELS IN THE MARKET. The costs incurred in
production vary in nature based on various factors. Some costs are fixed while others are
variable. Some costs depend on operational factors or volume factors while some depend on both
factors. Scaling down on all the costs factors is not possible due to regulatory factors linked to it.
Hence, the research would also focus on the positives and negatives in accepting an LED light.
Companies aim to offer a large variety of International quality lighting solutions. This helps to
improve the efficiency and effectiveness of the lightings in the environment and society. A large
variety of high quality products, lightings, bulbs, ballasts, lamps, fixtures etc should be provided
by firms and industries in different fields of stadiums, Display signage, sports, retail, office,
glamour world, streets etc. A total service starting from the idea, its design, layout and execution
is expected by any consumer and it should be noted by the provider that proper standards and
rules should be adhered in the process. Reduction in the energy and costs related to lighting is the
need of the Indian Industry. This will help any company to save the hidden costs while providing
a better quality lighting solution. It should also be noted that rules and standards related to
lighting should be properly maintained. The Indian industry really looks for providing a better
quality while maintaining appropriate profit levels. A fashionable aesthetic and ambience in the
working environment helps maximize efficiency of workers. This is properly understood by the
corporate and industries in India. This enhances the image of the company during a visitor or an
employee visit. This should be accomplished only while providing a better quality solution and
also reduce the costs involved in energy consumption. There is an importance of lighting in retail
stores and brand displays for the creation of a beautiful ambience and aesthetic to attain a high
profit by increasing the probability of sales. The Indian society has now become well educated
towards the environment and ecological towards the nature. With this in mind, it is the
responsibility of a company to create better lighting designs which save energy and provide
higher quality.

2.2 LED Lightings: The Future

Charlie Szoradi (2013), CEO of Independence LED states that it depends only on finding the
right time to select an led light over a fluorescent tube. Three criterions define the adoption of
led’s- trust, technology and cost. Manufacturers have improved the temperature performance and
led’s have found a way into fortune 100 companies, health and education related institutions as
well. It is important to clear the ambiguities consumers have about the lumen output, driver
performance, ballast efficiency and color consistency. Initial investment costs are high, but
payback is provided in the next three to five years. Regarding the warranty, longer warranties
are being made available now.
According to James D Blume(2012), whatever inventors prepare for stores, one thing is
assured, light bulbs and fixtures always have a place in. Lighting occupies a place in homes,
malls, retails, industries, office, and living room to bedroom in almost all colors ranging from
white to red as well. Thus, the lighting market has entered to stay in a wide range.

David Zhang (2013) believes that dimming LED systems can enable color tunable circuits.
Pulse width modulation and Analog modulations are some of the techniques to be applied for
dimming. Proper dimming can bring about perfect color and brightness combination along with
normal and better temperature operations.

According to LRC PROJECT reviews, firms can incur losses by directly rushing to the
technology development stage without knowing the requirements of the consumers. Some of the
barriers to marketing of lighting are: - High costs, Poor technology, Poor knowledge about
dimming, Poor quality products (Amit Malviya, GE, area manager, lighting section)

LED’s are quite advantageous types of lightings as compared to normal lights. The
main advantages can be stated as follows:
 High brightness led’s and organic LED‘s are two technologies that will
grab attention in the next 2 to 5 years.
 LED’s are expected to increase further in efficacy, light output and color availability
while reduce in costs. If production can be smoothed out and made less costly, they will
work wonders for the environment.

LRC INDIA (2010) states that traffic signals are not the only markets for LED. The computer
and communications also provide huge scope for the same. Companies should cope with the
demand and supply of the lightings. The customer may feel frustrated due to lack of supply. The
introduction of new products should also be perfectly timed.
Deepa Doraiswamy (Industry Manager, Electronics & Security, Frost &
Sullivan):
The challenges in front of lighting market are higher costs, entrance of low quality products and
lack of a green manufacturing environment. According to the research, the Led market will grow
at a CAGR of 43.9 % from 2011to 2018 and provide revenues of US$ 1.2 billion.

According to NTL LEMNIS (19th June, 2013): The LED Lightings will have a demand
increasing at a rate of 40 % per annum over the next five years. The size of the lighting market in
India in 2013 is around Rs.96 billion and the share of the LED industry is Rs.10 billion.

According to R K Gupta (2013), the demand for LED is increasing at a high level in spite of
many households still preferring CFL. The mining industry is also expected to contribute to the
demand of LED lightings. According to the study, the Indian Lighting Industry will grow from
Rs 8000 crore to 12000 crore in the next five years.

A study by global consulting firm McKinsey states that 70 per cent of lighting in the societies
would depend on LED lights by 2023. As of now, the number of consumers of LED is low in the
lighting industry because of the higher costs, but this condition is now witnessing a change
rapidly. If the consumers are convinced that LED systems provide a quick pay back value, it may
prove beneficial for both, the consumers as well as the industry.

According to Smitha Khare (2011) Indian firms do not even pay a heed to the ecological
debates and doubts and work towards being green. Everyone is entering the race to make the
country environmentally conscious. Such united efforts will be beneficial for both, the
competition as well as the country.

Martin Wright (2011), states that sustainability is not just a fashionable word. In today’s times
where the natural resources are getting scarce, it does make a business sense as well.. Leading
companies are adhering quickly to this concept now. Unilever plans to halve its environmental
impact by 2020 with a hope of doubling the sales. Wal-Mart plans to obtain all of its energy
needs from renewable resources.
According to Light India International (2013), lighting industry now provides both domestic
and international products in India. The import duty has also reduced. Growth in Indian living
standards provides great opportunities to the lighting industry. It also emphasizes on the
developments taking place in the lighting industry.

Manoj Joshi (2012), believes that the modification in acceptance from conventional CFL to
LED will take place in different and varying steps. Government initiatives and increased
customer awareness will help the advent of LEDs. As the incandescent bulbs were phased out by
CFLs in the last ten years, similarly LEDs are expected to phase out the current CFL technology.

Samanvay Sharma (2013) said that the market of CFL faces a harsh competition LED industry
India. If the price of LEDs decreases, CFLs will get a backward push. The CFL industry can
enjoy its own space for the coming three years or so, but they require a redefined strategy if they
need to cope with the arising problem.

B.S. Praveen (2012) explains that high specification CFLS will have to bear the brunt of growth
in LED sales as the cost difference is not much. It is presumed that LED’s will constitute around
14% of the total share of the lighting market in India the overall industry as the time reaches the
year 2015 and the overall share of CFL would decline to 20% from the present 22%. It is true
that CFLs would keep on attaining a high share in the lighting market as the ICL’s have seen a
decline. It is also a true fact that a competition of a rat race will be posed by the LED’s in the
coming years.
 2.3 Consumers’ Attitude & Perception

Ranjith & Ela Goyal (2012) suggested the parameters responsible for a positive customer
response as brand memory, brand recall, brand that connects with the people, pricing, overall
satisfaction in long life of the product and communication programs designed by the company.

Nilesh Neelmani (2011) affirmed that Consumers attitude towards Private sector has been a hot
topic of research. Consumers would start to consume private brands more if the gap between
consumer perception and national brand becomes wider.

The study by Mamatha (2010) explored that brand, price, store, design/features and
advertisements are the main five factors in revealing the quality of the products. Proper
promotional strategies must be followed for a better brand image and improved profits. The
manufacturers and marketing teams must bear in mind that customers conviction should be their
primary objective.

According to Sridhar (2007), perceived risk is an important factor which involves customers. It
has to be studied in various contexts. There are six types of perceived risk but financial
performance, social and time risks are mainly responsible for consumer involvement.

Timira Shukla (2011) explained that the gap between consumer expectations and performance
becomes large, a loss is materialized. Both, technical and functional quality should be checked
for the proper consumer satisfaction and in turn, the success of the firm.

Milind T. Phadtare (2008) observed that first time buyers are different from repeated buyers as
they seek variety. Utility, long term perspective and cost are more important to first-time buyers
than to repeat-buyers. The factors like technology & design ways of use, performance and
comfort appeal to repeat-buyers than to first-time buyers.

Shobha G. Iyer et al (2011) stated that a form of introduction of a fresh product is extension of
a brand where the established and already branded product is introduced in a separate category.
This supports brand purchase since there is a transfer of perception of the consumers with ideas
related to the parent brand to the extended brand.

Rajini & Poornima(2011) explored that wants and needs of potential customers are responsible
for any firm’s market orientation. All the strategic and marketing decisions can be properly
applied with the focus on the potential customer. Affordability is a major factor responsible for
building customer preference.

Anil Mishra and Akshita Mishra (2010) derive that playfulness affects the purchase decision.
It is a type of marketing research which suggests that the emotional or hedonic values gained by
customers towards the firm are very important for a firm’s profits. Consumers would have more
intentions towards purchase and usage of products.

The study by Vani et al (2011) explained that a decision is defined as a selection of an action
from two or more alternatives. Selection of a particular goods or a product from the options
provided is basically perception and the choice of the consumer. The various options of the
consumer may be classified into five main types of decisions what to buy, how much to buy,
where to buy, when to buy and how to buy.

Rajesh Sharma (2011) declared planned purchase as a planned search and assessment of the
selected product that normally leads to rational, accurate and better decisions. As against this,
Impulse buying is a spontaneous and immediate purchase where the consumer has no prior plans
of purchasing nay given product. The main types of impulse buying are Pure Impulse Buying,
Reminder Impulse Buying and Suggestion Impulse Buying.

Ramachandran Azhagaiah et al. (2012) explained that researchers need to conduct field
studies to understand the behavior of any creature. It is more challenging to do field studies
compared with lab experiments since researchers have to conduct experiments in wider areas
with limited resources and time.
Hari Sundar G. Ram et al. (2011) put forth the decision-making styles as Perfection/high
quality-conscious consumer, Brand Consciousness, Novelty, Shopping Consciousness, Price
Consciousness, Impulsiveness, Choice and Brand loyalty.

Ramanuj Majumdar (2010) says that consumers develop attitudes depending on the feeling
provided to them by the brand. These attitudes depend on the mood at the time of formation of
these attitudes. The marketers provide advertising experience, shopping experience, consumption
experience The feelings experienced during the consumption of a product influence the
consumer‘s post-consumption evaluations.

Beri(2008) says that attitude is settled behavior, as indicating opinion. Expressing the perception
and attitude verbally is termed as opinion. Thurstone defined that an addition of human feelings
and affinity, partial nature, facts, behaviors, competition, dislikes on a given option is called as
an attitude. Attitude depends on the personality and choices of an individual and has no
connection with the social behavior.

Raju and Dominique Xardel(2009) classified three types of reference groups used by the
marketer :
 Informed Opinion Group – Investment consultants, doctors, engineers etc.

 Expert Opinion Group – an individual who is an expert in his own field can dish out
opinions on goods and services related to field
 Celebrity Opinion Group – when a person becomes a celebrity; the public perceives
that the celebrity status is reached after a series of successes.

The study by Srivastava & Sujata Khandai(2006) has explained that consumer purchase is
affected by two factors namely, his involvement and his perception. Involvement depends on
consumer’s risk perception and how he handles the failures. His perception is defined by the
extent of his differentiation from a range of products.

Mark Godson (2010), explained that the consumer attitude change can be classified into
Yesterday‘s consumers and Today‘s consumers. The attitudes of Yesterday‘s consumers are
classified as Time – rich, cash – poor, Family-centered, Slowly changing fashions, Content with
current offer, Few consumer rights and Trusting. The attitudes of Today‘s consumers are
classified as Cash – rich, time – poor, Individually centered, Fast – changing fashions, Search for
greater value, Many consumer rights and Cynical.

Del I Hawkins et al (2010) believes that proper marketing strategies give a special focus on
information search methods. The marketing strategies like maintenance, disrupt, capture,
intercept, preference and acceptance are based on information search patterns. The study by

Kazmi (2010) indicated that there are several factors that influence satisfaction dissatisfaction
like demographic variables, personality variables and consumer expectations. Performance
expectations and Actual performance determine the evaluation of customer satisfaction and
dissatisfaction. Consumers buy products not only for what they can do but also for what they
mean. There are two dimensions of performance:

 Instrumental performance which relates to the physical functioning or proper operation of

the product
 Symbolic performance which relates to aesthetic or image enhancement

Ingram et al (2007) stated that competitor offerings are included as alternatives in problem
solving approach. It typically requires informing the customer about the full impact of the
existing problem and clearly explaining how the product and service can deliver proper customer
values.

Ganpaty Ramaswamy (2011) explained that consumer satisfaction is affected by consumer

preference. Customers may modify their behavior with time if their expectations are not met
with. Hence it is very crucial for firms to maintain a better service quality and proper
performance.