Prof. Remigio De Ungria Lecture Sample Spade Approach Used For Conversion To CFLs
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Template for using SPADE approach in case analysis
![Outline: SPADE model shows the way! ,[object Object],[object Object],[object Object],[object Object],[object Object],Old vs. New Bulbs How to Convert? Which P to Use? Sell on Benefits Setting Milestones](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Prof. Remigio De Ungria Lecture Sample Spade Approach Used For Conversion To CFLs
- 1. CASE ANALYSIS using SPADE Approach CONVERTING to ENERGY EFFICIENT LIGHTING Bong De Ungria
- 6. DECISION is to sell benefits Pros Cons Price Gain from higher revenue per piece Lower income market wont switch quick Product Higher quality Cant stop selling old type of bulbs; Longer replacement periods Place Everyone has access Greater Distribution Challenge Promo Prepare market for better technology products Expensive. Needs Consumer Education Positioning Consumer gets better value
- 7. DECISION: Sell energy saving benefits at a higher price to Class ABC Incandescent Energy Savers Initial Cost (Selling Price) 30 120 Monthly Electricity Cost 10 2 No. of Lamps needed in 6 yrs 12 1 Total Cost of Ownership in 6 yrs 960 240 % Savings ---- 75%
- 8. DECISION is to sell benefits Incandescent CFL Initial Cost 30 120 Monthly Elec.Cost 10 2 No. of Lamps needed in 6 yrs 12 1 Total Cost in 6 yrs 960 240 % Savings 75%
- 9. The decision was implemented -2006
- 12. EVALUATION: Adoption was too slow Give away 13 million CFLs to poor!