check out the changing lighting market: characterization and lift

1

Market Shift/Lift – Two Illustrations

2

Commercial Lighting Market Shift Project

Upstream program designed to test Market Shift principles as part of Pacific NW’s desire to re-focus efforts in commercial lighting

Program sponsors

5 area lighting distributors

• BIG to small

• Multiple locations; across Pac NW Will engage manufacturers

3

Project Focus

Direct sales of low-wattage T8’s to maintenance market• Under-served market• New savings opportunities

Low-wattage T8’s• New product offerings• External rating (CEE-listing) available

New data-sets• Longitudinal, location-specific sales-data• Direct, timely sales-data• Covering variety of products

4

What Does Success Look Like?

Build relationships with distributors• Demonstrate value of BPA/NEEA

programs• Develop trust around data

Demonstrate upstream incentives increase product sales• By volume primarily• Ideally changes market share

Get good data• Accurate• Expands BPA/NEEA understanding

5

Residential Market Lift: What’s Going On?

6

FLASHBACK!

Multiple retail partners.

7

Planned Key Pilot Outcomes

Proof of concept for lift• How can utilities incentivize retailers to drive sales?• How do different program models affect outcome?• Do Lift Programs provide cost-effective savings?

Key data regarding lighting programs• Baseline sales – volume, wattage• Savings derived from lift• Post-EISA sales tracking (separate report)

8

Where are we?

2 Retailers 3 states

9

So, What Do We Know?

Program Perspective LIFT!!!! or (lift)

Program execution moves smoothly; planning is long

Low-service retail poses challenges

Manufacturer’s want retailers to succeed

Lessons So Far Plan around planogram

changes!

Forgiveness, not permission

Retailers addicted to buy-downs

Retailers want to sell LED’s, consumers want to buy efficient incandescents and halogens

9

10

So, what about sales?

Spotty so far

Both OR and VT have seen mixed results on sales• Volumes remain low• Can see significant change from month-to-month, and even

within a month• Corporate commitment hasn’t trickled down to store-level;

corporate pushing to drive great store-level engagement• Lighting is not a priority category at Kmart – but driving changes

to category to increase selection• Engaging the manufacturer now to drive sales

11

What’s Next?

Extend Kmart pilot in OR and VT

Monitor and track Costco pilot in MA

Develop Post-EISA market-share report

Final Reports due early ‘14

12

Chris CloutierMarket Lift Program Managerccloutier@drintl.com651.644.4017

The Energy Efficiency Market Experts

www.drintl.com