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Market Shift/Lift – Two Illustrations

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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

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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

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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

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Residential Market Lift: What’s Going On?

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FLASHBACK!

Multiple retail partners.

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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)

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Where are we?

2 Retailers 3 states

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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

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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

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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

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Chris CloutierMarket Lift Program Managerccloutier@drintl.com651.644.4017

The Energy Efficiency Market Experts

www.drintl.com