“Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and...
Transcript of “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and...
![Page 1: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/1.jpg)
“Lighting the Path to the Future”
Ben Wilson Andrew Olmstead
Ariel Cheung
Emma Lee Kino Chu Iris Bian
Bryan Gregory
![Page 2: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/2.jpg)
Average Retail Store Ligh0ng in Use Marco LED Ligh0ng Annual Reduc0on of Climate Control Costs None $3,946 Total Annual Reduc0on in CO2 Emissions: None 440 tons
Annual Mercury Reduc0on: None 92 grams Total Expenses Over 3 Years $431,456.96 $388,577 Total Cost Savings Over Life Of Product None $200,554 Bulb Cost $3.00 $43.60
*2,200 units in a store *$.06 kWh electricity costs
CUSTOMER SAVINGS PER STORE*:
OPPORTUNITY: VALUE
$54,719
![Page 3: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/3.jpg)
TECHNOLOGY BENEFITS
High Efficiency
Environmentally Friendly
Smaller Light
Spectrum
Safer Materials
Longer Lifetime
Reliability
![Page 4: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/4.jpg)
COMPETITOR ANALYSIS
0 1 2 3 4 5 6 7 8 9 10
0 2 4 6 8 10
GE
Marco
Osram
Honeywell
Phillips
OEM
Product Price Ra0ng (1‐Low
10‐High)
Retail Rela0onship/Experience Ra0ng
![Page 5: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/5.jpg)
FIXTU
RE
TOTAL SOLUTION
![Page 6: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/6.jpg)
BRANDING
Business To Business Brand GVLS‐Green Value Lighting Solutions
Future Higher End Brand GILS‐Green Innovations
Lighting Solutions
![Page 7: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/7.jpg)
EXISTING RELATIONSHIPS
WM USA
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Yr 1 Yr 2
RETAIL MARKET
CONSTRUCTION MARKET
OTHER MARKETS
CUSTOMER ROADMAP Now
GREEN FRIENDLY
ALL STORES
GREEN FRIENDLY ALL
RETAIL FOCUSED
OTHER MARKETS
NON US RETAIL
![Page 8: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/8.jpg)
Development
Growth
Shakeout
Maturity
Satura0on
Compe00ve Posi0on Strong Average Weak
LED Lighting Market
(Unlimited)�
Market M
aturity Stages
MARKET MATURITY
Retail Fixture Market
(34,000+)
![Page 9: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/9.jpg)
Fixture Factory Xiamen
LED Factory Shenzhen
MPW Warehouse Shanghai
OPERATIONS & MANUFACTURING Total Shipping to FW:
27 days
Installation Customer
Quality Testing Fort Worth
![Page 10: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/10.jpg)
Marco LED Supplier
Why JingJiang?
• Pricing
• Quality LEDs
• Willingness to Brand
• CE and RoHS certified
• Currently in the process of
UL certification
◆ Consistent customer ◆ Access to American market ◆ Aid in maintaining quality and certification status
◆ R&D Costs ◆ Risk reduction
STRATEGIC ALLIANCE: LED SUPPLIER
![Page 11: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/11.jpg)
PROJECTED INCOME Gross Profit WM USA & Other Stores
(Current Exchange Rate)
$460,076 $1,656,273
$7,701,669 $7,927,460
$17,836,786
$460,076
$9,583,733
$25,538,455
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Year 1 Year 2 Year 3
Gross Profit WM USA
Gross Profit Other Stores
Combined Gross Profit
![Page 12: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/12.jpg)
PROJECTED INCOME
$460,076
$1,656,273
$7,701,669
$355,882
$1,281,176
$5,957,468
$‐
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Year 1 Year 2 Year 3
Three Year Gross Profit Projection (6:1 Rate)
![Page 13: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/13.jpg)
High Customer Value Bargaining
Power of Customer
Product Easy to Imitate
Recommended Total Price for WM USA: $123.01*
Recommended Total Price for Other Retailers: $132.48*
*Based on orders of 10,000 units
30% Margin
40% Margin
PRICING RECOMMENDATION
![Page 14: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/14.jpg)
STRATEGIC ISSUES
Larger Competitors with More Resources
Very High Up Front Customer Costs
Ease of Imitation No Experience in This Industry
Challenges to Success
![Page 15: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/15.jpg)
RECOMMENDED STRATEGIES
Customer Focused Become Low Cost Provider & Convey Value to Customer
Establishment of Brand to Capture and Add
Value
Strong Supplier Alliances
Solutions
![Page 16: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/16.jpg)
Varied Fixture Designs (aesthetics and sizes)
Different Tube Sizes (T8, lengths)
Installation Team (smaller retailers)
Coloration (Grocery Aesthetics)
WM Acceptable Fixture
LED T12 Tube
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Yr 1 Yr 2
LIGHT TUBE
FIXTURE
MAINTENANCE & INSTALLATION
PRODUCT ROADMAP Now
![Page 17: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/17.jpg)
SUMMARY
Huge Opportunity
Many Challenges
Key strategies for success: supplier
alliances, developing uniqueness, and
focusing on customers
![Page 18: “Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)](https://reader034.fdocuments.us/reader034/viewer/2022042119/5e9904e541321c5b68087495/html5/thumbnails/18.jpg)
Q&A