Product led outside Lighting

1. 
   PRODUCT
   

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  Recent technological advances have made LED’s marketable.
  
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    “Wattage brightness and comparison”
    
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    “Comparison Chart, LED lights vs Incandescent Light Bulbs vs CFLs”
    
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    “Solid State Lighting” http://www1.eere.energy.gov/buildings/ssl/ssl_basics.html
    

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  “DOE lighting facts: “Snapshot: Outdoor Area Lighting” (Outdoor Area and Roadway; Garage; and Canopy luminaries” http://www1.eere.energy.gov/buildings/ssl/market.html
  
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  “Other Benefits of Solid State Lighting” http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/seitinger_benefits_longbeach2013.pdf
  

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  DOE underwriting incentive programs for all market entities, including vendors.
  

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  “DOE Municipal Solid State Lighting National Consortium”
  

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  Assessment: Product is not an issue in terms of technology. But customer knowledge of anything “new” requires education about the product in terms of features and benefits. There are numerous manufacturers.
  

2. 
   SALES DYNAMIC
   

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  ROI payback is still long-term, but cost-benefits are demonstrable.
  

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  Lots of market energy pushing LEDs including government (DOE, DOT, et al.) and trade associations at national and local levels.
  
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  “National Lighting Bureau” http://www.nlb.org/ and DOE have numerous research articles and case histories about the use and cost benefits of LEDs. Good sales materials, such as:
  
  • 
    “The National Lighting Bureau Guide to Retail Lighting Management”—sales info
    
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    “Case Histories: Retail Lighting Better Lighting to Boost Your Bottom Line”—article
    
  • 
    “Managing Light: There’s more to lighting management than switching lamps”
    

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  National Association of Automotive Dealers (NADA) has a “Green Campaign” (see, “Marketing”)
  
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    High level of awareness in the industry about benefits.
    
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    EPA/NADA use a survey which could serve as a key E3 sales tool.
    
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    Key selling point if this finding is believed true by dealer, "Retail shoppers respond to lighting with superior color rendering." and
    
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    "Green Building and Office Worker Productivity."
    

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  SORAA (manufacturer http://www.soraa.com) key sales piece, “Impact of Quality of Light on Retail Sales”
  
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  “LED Magazine”—“Retail shoppers respond to lighting with superior color rendering.”
  

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  Assessment: A relatively easy sales story to tell. Features and benefits are attractive. Hurdle is, as always, short-term outlay vs long-term ROI cost savings. Many market forces preaching the Green message. There are many case histories. Challenge will be to determine potential size of a sale and E3’s gross and net profit margins. Need field research.
  

3. 
   MARKETING
   

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  Market size
  

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  “Directory of Wisconsin Dealers” lists 7,342 automotive dealers
  

The “Directory of Wisconsin Dealers” is updated six times each year. http://www.dot.wisconsin.gov/business/dealers/directory.htm

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  (Nationwide: America's 10,000 international nameplate
  automobile franchises.)
  

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  “Wisconsin Auto Dealers List 2013”—PDF and Excel files
  

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  Quick scan—@60 dealers listed in “La Crosse”
  
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  Notably: in the “Top 100 Nationwide Dealers” listing four (4) are from Wisconsin (#49, 56, 76 and 89) range of $500 million to $800 million
  

$775,154,661 (920) 725-4444 Neenah, WI 54956

56. Wilde Automotive Group 1710 A Hwy. 164 Mark Wilde

$576,762,058 (262) 513-2770 Waukesha, WI 53186

76. Boucher Group Inc. 4141 S. 108 Gordon Boucher $442,983,406

(414) 427-4141 Greenfield, WI 53228

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  Dealer lot and facilities size
  
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    NADA puts out monthly national statistics about “Dealership Financial Profile” but not on facilities statistics.
    
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    Lot size and lighting purchase information is unknown. No data on “average size” of an operation.
    
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    Info, however, can be gathered using the survey form of NADA’s “Green Campaign” (see below). This is the “NADA...Energy Use Data Survey.”
    
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    Possible that E3 can obtain relevant data by requesting list of dealerships already enrolled in the NADA/EPA Green Campaign
    

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  Trade Associations
  
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    State and National Associations
    

1. 
   Have educational arms = sustainability and savings
   
2. 
   Co-marketing opportunities
   
3. 
   Green ally programs that E3 qualifies for.
   

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  State Associations: (partial list)
  
  1. 
     “Automobile Dealer Assoc of Mega Milwaukee” (ADAMM)
     

1. 
   “Wisconsin Automobile and Truck Dealers Association”
   

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  National Associations: (partial list)
  

1. 
   “National Automobile Dealers Assoc.” (NADA)
   

2. 
   “Automotive Trade Association Executives” (ATAE)
   
3. 
   “National Association of Automobile Dealer Advisors” (NAADA),
   

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  NADA
  

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  Has a “Green Campaign”—focuses on cars but the benefit statements also can be applied to the dealership
  

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  Since 2007 NADA with EPA a focus on “energy reduction and cost savings opportunities and strategies”
  
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  Their Data Survey form = useful for E3 initial analysis
  
  1. 
     Provides a reasonable answer to all detailed questions about costs.
     
  2. 
     NADA Energy Star benchmarking
     

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  The “NADA Energy Ally Program
  
  1. 
     Qualify by getting 5 dealers to enroll and E3 earns the Ally status
     
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  http://www.nada.org/regulatory_affairs/energy/default.htm
  
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  EPA’s campaign: EPA's SmartWay Program EPA’s SmartWay program is to cars and trucks what Energy Star is to buildings and appliances. All vehicles manufactured from MY 2000 on are listed in EPA’s Green Vehicle Guide (www.epa.gov/greenvehicles), and receive two environmental performance scores: one on air pollution and the other on greenhouse gases.
  
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  NADA has an “Academy”...E3 could qualify to teach Green issues
  
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  Works closely with Automotive Trade Association Executives (ATAE)
  

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  CO-MARKETING
  

1) Dealerships,

2) Dealership Consultants (mainly accounting and sales development,
with some legal services),

3) product manufacturer reps,

4) trade associations (that often have “stores” for various items), and

5) Other (TBD).

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  WIPFLI consulting—CPAs http://www.wipfli.com/
  

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  Automotive focus http://www.wipfli.com/Industry_Auto_Dealerships.aspx
  
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  Midwest location—started in WI
  
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  Has a sustainability creed
  

“Sustainability; It's about more than just going green. In addition to assisting our clients with their sustainability strategies and objectives, Wipfli has adopted a sustainability mindset and culture within our own organization. This commitment is driven from the top of the organization across all levels of associates and is demonstrated in various ways throughout the firm’s operations. The firm and its associates are committed and engaged in environmentally responsible operations and practices, and also committed to meeting all federal, state and local regulations. The firm’s efforts towards sustainable business practices can be categorized by the Sustainability “triple bottom line” of people, profit, and planet. Evidence of Wipfli’s efforts towards meeting the triple bottom line include:

They have the knowledge E3 needs, but E3 needs to beef up its corporate image in order to open a conversation with a major player like this. Although the opportunity is still that E3 serves the “underserved market” and these “locals” know the value of that marketplace....and its market penetration hurdles.

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  SORAA—http://www.soraa.com as noted above is a lighting product innovator and manufacturer. They are also international but a relatively new company. Question is whether there is any advantage to E3 to use their products. If so, then they might be willing to co-market. Again, E3’s special rural/small town focus might be appealing to them.
  

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  DOE SBIR awardees
  
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    In time, E3 could position as the best beta testing site for marketing new products developed by this program.
    
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    E3 could engage in market rollout planning
    
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    http://www1.eere.energy.gov/buildings/ssl/sbir_sttr_grants.html
    

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  Other marketing programs that influence funding:
  
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    Look at REAP and Tax incentives
    

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  Alliances with other energy management firms. Not explored here but assumed that larger companies do not want underserved market and would be open to enabling E3 to do so.
  

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  “NATL Parking Association” http://www.npapark.org/
  
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    2011 report, “Parking in Perspective: the size and scope of parking in America”
    

1. 
   Join the “DOE Municipal Solid State Lighting National Consortium”
   

2. 
   Attend “Municipal Solid State Street Lighting Consortium Annual Meeting”
   

3. Design pilot field sales/market research program

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  90 days pilot project
  
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  Define field research zone: Greater La Crosse area (Onalaska, Reedsburg, Hillsboro)
  
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  Become a NADA/EPA Green Campaign ally program—sign-up 5 dealerships
  
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    Check out status of NADA membership for corporate allies
    
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    Obtain names of pilot research area Green Campaign NADA members, if any.
    
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  Visit 25 automotive sites to gather data about facilities sizes, attitudes towards lighting, responsiveness to NADA Green Campaign....ideally data enables some “average” sizing and predictions, but at least will provide ranges that E3 can base forecasting upon.
  
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  Provide basis for refining sales pitch...both as to the Buying Emotions and in terms of the sales presentation format, e.g., seminar or web based or telemarketing or using survey, etc.
  
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  Other:
  

2. 
   Create a “Decision making” pathway on website, including
   
   1. 
      PowerPoint
      
   2. 
      3-6 minute video
      
   3. 
      “Library” links access to supporting documents
      
   4. 
      Dealership Enrollment form for NADA Green Campaign
      
   5. 
      Testimonials about E3
      
   6. 
      ROI scenarios (also part of PowerPoint)
      
   7. 
      Other:
      

5. 
   Financial data
   
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     Collect data as basis for pricing plan and revenue forecast
     
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     Other:
     

5. 
   Sales rollout
   
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     If a Go, design sales plan to include 1) initial rollout of business-to-business sales team, 2) develop “pull” mechanisms with co-markets, that is, trade associations and/or consulting firms
     
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     Other:
     

5. 
   Funding
   
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     Option 1: Self-funded through rollout sales program.
     
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     Option 2: Consider offering a market segment to an investor(s). E.G., after initial market research with some handle on potential revenues, approach Mike Corr and say, e.g., for $60,000.00 for one year pay “x” interest and “x” percent of company.
     
     • 
       This assumes that Corporate Image, see below, is formed and stabilized.
       
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     Option 3: Wait upon a “pull” co-marketing agreement before launching a sales program.
     
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     Other:
     

5. 
   Education
   

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  Various education outlets, e.g., academies, tradeshows, etc.
  
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  Develop a curriculum
  
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  Other:
  

5. 
   Corporate image
   

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  Develop strategic plan
  
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  Board of Advisors (cross disciplinary)
  
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  CPA
  
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  Legal link
  
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  Website to tell corporate story
  
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  Other:
  

5. 
   Venture Capital relationships
   
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     Open discussions with VCs, re: Laufenberg and Wisconsin Entrepreneurship Network http://www.wenportal.org/About.htm