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CASE ANALYSIS using SPADE Approach CONVERTING to ENERGY EFFICIENT  LIGHTING Bong De Ungria
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
SITUATION A new, efficient product! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PROBLEM: How to convert incandescent users to CFLs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ALTERNATIVES give choices! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
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%
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%
The decision was implemented -2006
EVALUATION means putting checkpoints for choice! ,[object Object],[object Object],[object Object],[object Object]
EVALUATION for Philips:  Adjust price competitiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EVALUATION:  Adoption was too slow Give away 13 million CFLs to poor!
Summary: Conversion is happening!  Plan adjustments made… ,[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 Doing Plan B

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Applied Case Analysis: Use of SPADER Approach for a Lighting Case

  • 1. CASE ANALYSIS using SPADE Approach CONVERTING to ENERGY EFFICIENT LIGHTING Bong De Ungria
  • 2.
  • 3.
  • 4.
  • 5.
  • 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
  • 10.
  • 11.
  • 12. EVALUATION: Adoption was too slow Give away 13 million CFLs to poor!
  • 13.