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“Lighting the Path to the Future” Ben Wilson Andrew Olmstead Ariel Cheung Emma Lee Kino Chu Iris Bian Bryan Gregory

“Lighting the Path to the Future” - Baylor University · Varied Fixture Designs (aesthetics and sizes) Different Tube Sizes (T8, lengths) Installation Team (smaller retailers)

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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)

“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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

Q&A