1. Business Plan - Photosensor and Motion Sensor
LED Lighting for Residential Homes
Background
Brightgreen are an environmentally friendly lighting design company who are have
requested the development of a lighting product to reduce the impact of energy
consumption in Australian residential homes. The business plan submitted will be put
forward for tender to the National Energy Efficiency Building Program and if
accepted will be adopted in new building construction across Sydney with the view to
expand Australia wide. Brightgreen currently deal exclusively in LED lighting and are
dedicated to reducing energy consumption in existing and new homes with the aim
to lower energy consumption to meet Australia’s 5 star energy efficiency rating.
Brightgreen are also committed to supplying light around the world and donate LED
kits for every $2000 of product sold to support Light Up Kenya. An initiative to bring
light to the people of Kenya in order to develop resources for education, business,
and safety. Lighting in Kenya is mainly supplied by paraffin lamps which are costly,
toxic, and unsustainable. LED kits provide a family with solar power to light their
homes, and include a portable battery to store energy during periods of low light.
https://brightgreen.com/about-us
Executive Summary
Our product offers customers:
Lower energy consumption, resulting in lower annual electricity costs
Safety, protecting against home invasion and the ability to avoid accidents in
the homes of the elderly
Longer lifespan of lighting increasing convenience and reducing costs
High quality natural looking light, without mercury, UV radiation or infrared
rays.
What is the RoI??? (Return on investment?? Not sure if we need to include this. If
so, this will need to come from Ben’s section).
Our customer will be reached in two phases: (Moneer will need to align with
marketing plan)
Phase one to tender as a partner with the National Energy Efficiency Building
Program to be the top supplier for LED photosensor and motion sensor
lighting in new residential home across NSW with the intention of expanding
nationally.
Phase two is to engage consumers in an energy efficiency marketing
campaign in order to raise awareness about the product and the need to
reduce energy consumption in residential housing.
2. Which methods are to be used? (This should outline the methods used for marketing in the
above Phases).
Business Description
The proposed product works in partnership with Brightgreen’s existing product range
of LED lighting solutions, fitting residential homes with sensors in high traffic areas,
such as hallways, kitchens, bathrooms, and living areas. The differentiation between
our product and other sensor light product on the market, is their timing ability to
switch off completely during daylight hours. Usual sensor lights remain on standby
mode for up to 23 hours per day using 1.0 watt per hour resulting in 32,000 tonnes of
CO2-e per annum (http://www.energyrating.gov.au/document/product-profile-motion-
sensors-sensor-lights download document button on the right). We aim to cut this
with Photosensors technology that detects daylight and timing capabilities that
reduce standby mode by up to 8 hours per day and reduce the standby wattage
down to .25 watts per hour. This could potentially see CO2-e emissions reduced to
15,000 tonnes per annum by 2015, a reduction of 17,000 tonnes of CO2-e per
annum. This product is also designed to work with solar power as well as being
mechanism in avoiding the over consumption of energy through lighting that is left on
for extended periods of time, as well as to increase home safety.
https://www.youtube.com/watch?v=TvEkG7bF1MQ
Our product range is estimated to cost in between $600 – $10,000 for installation in
Australian residential households. As such it falls into the category of personal and
household usage and will be it required to provide consumer protection under the
Australian Consumer law, consumer waranties.
https://www.accc.gov.au/consumers/consumer-rights-guarantees
The Ecopreneurship Approach:
As an existing sustainability conscious company, this will be Brightgreen’s first ‘Green
Green’ product, sourcing materials in an environmentally and socially conscious way and
ensuring that all aspects of the product life cycle match the aim to reduce energy
consumption and promote sustainability.
Slide: the Ecopreneur Approach
It is estimated that Australian households are set to increase to an estimated 10 million by the year
2020 (http://www.industry.gov.au/Energy/Energy-
information/Documents/energyuseaustralianresidentialsector19862020part1.pdf). The expanding
population will require energy consumption to run their appliances, heat, cool, and light their homes.
There is a direct correlation with the increasing population and trends in energy consumption that
indicates that we are experiencing an escalation in energy usage. By 2020 it is expected that 53% of
total household energy consumption will be through the use of electricity in residential homes.
3. Slide: Sources of Energy Consumption
Research by the Department of the Environment, Water, Heritage and the Arts, suggests that energy
consumption due to lighting, while steady prior to 2010, and showing a slight decline during 2010 to
2015, is expected to show a steady increase during 2015 to 2020. This increase is proposed to be
caused by the increased use of quartz halogen (QH) low voltage lighting and compact fluorescent
lamps (CFLs). The publication indicated that further research was needed in the area of household
lighting, and when approached by Brightgreen, we had this report in mind when developing our
product. Our main concern was the impact of energy consumption on the increasing issue of climate
change and reducing as much as possible the CO2 emissions produced by our product. By equipping
our product with photosensor technology (the ability to detect daylight) and motion sensors, our
LED lighting option will assist in decreasing the environmental impact of not only new households
built under the National Energy Efficiency Building Program, but also will also provide an option to
existing households to equip their homes with a more sustainable lighting option in the following ways:
Slide: Environmental and Social Impact
Energy efficiency: Research indicates that LED lighting requires 1 fifth the amount of energy
as other conventional lighting options (yourhome). This enables a 50% – 70% saving in CO2
emission and other potentially hazardous greenhouse gases
(http://www.theclimategroup.org/_assets/files/LED_report_web1.pdf :
http://www.sslalighting.com.au/advantages -disadvantages-induction-led-lights/). With the
added design of motion and photosensor technology, our product will further decrease CO2
emissions by cutting the number of hours used to light residential homes. Our product will
also ensure that lighting is never indirectly or accidentally left on for extended periods of time.
Slide: Environmental and Social Impact cont.
e-Waste: The life span for a well-designed LED light, such as our product, is estimated
between 50,000 to 100,000 hours of lighting as a standard light, with the potential to be
increased with smart controls, such as the motion and Photosensors technology that we have
developed into our product
(http://www.theclimategroup.org/_assets/files/LED_report_web1.pdf). Whereas a more
conventional lighting option would last between 750 – 1000 hours, and potentially up to 2500
hours with long life design bulbs (http://www.consumerenergycenter.org/lighting/bulbs.html).
This means that conventional lights need to be replace on average 52 times more than LED
lights, accounting for 52 times more e-waste in landfill.
4. While LED lighting contains no mercury and produces no harmful UV radiation or Infrared
Rays, we are aware that the process of making LED lighting in some instances may contain a
number of metals that could potentially harm the environment if they were to end up in landfill.
However, LED lighting is a fully recyclable and has the potential to decrease the impact on
finite resources as well as landfill. To increase the instance of recycled LED lights sold, we
have implemented a ‘cradle to grave’ initiative which allow us to monitor the process from
start to finish as well as encourage our customers to return LED lights to Brightgreen for
recycled use in their light up Kenya social impact project.
(image) http://greenervolts.com/led-lighting/led-health/
Social Impact: As LED is able to run on lower energy consumption than conventional lighting
options, making them ideal to be powered by portable power sources, there is unlimited
potential to bring light to remote regions that require lighting for education, business, safety
and other day to day needs. As we have mentioned LED lights are fully recyclable and we
aim to allocate a percentage of recycled LED lighting to the light up Kenya project along with
an allocated 1% of our product price.
Saving to consumers: Whilst LED lighting is a sustainable option for consumers, it is also a
cost saving option. The reduction in energy usage will show a greater saving household's
electricity bills annually than using conventional lighting methods. Households will also
experience savings while enjoying the longer lifespan of LED lighting that is further increased
by our product control design.
Resources used above
http://eartheasy.com/live_energyeff_lighting.htm
http://www.theclimategroup.org/_assets/files/LED_report_web1.pdf
http://www.industry.gov.au/Energy/Energy-
information/Documents/energyuseaustralianresidentialsector19862020part1.pdf
http://www.yourhome.gov.au/sites/prod.yourhome.gov.au/files/pdf/YOURHOME-4-
Energy-3-Lighting-(4Dec13).pdf
http://www.yourhome.gov.au/energy/lighting
http://www.sslalighting.com.au/advantages-disadvantages-induction-led-lights/
http://www.c2es.org/technology/factsheet/LightingEfficiency
http://www.sslalighting.com.au/advantages-disadvantages-induction-led-lights/
5. http://www.industry.gov.au/Office-of-the-Chief-
Economist/Publications/Documents/aes/2015-australian-energy-statistics.pdf
http://www.ledinside.com/knowledge/2012/7/what_is_led
http://businessrecycling.com.au/recycle/led-lights
Marketing Strategy
Moneer
Safety – children, elderly, burglary
Energy savings, cost reduction
Marketing strategies and segmentation
In terms of marketing strategies, it is essential to have clear understating about the
consumers needs and demands to maximise profits margins as well as to minimise
cost that may occur in any given circumstances. In particular, An energy efficiency
marketing campaign seeks to identify the consumers needs throughout the contact of
the initial customer and then to the main service requested, to the implementation of
measures, finally and most importantly to the feedback and reward which is essential
part of marketing segmentation.
In addition, customer messaging is critical aspect that we have to consider in order to
make contact with our consumers. With this being said, we are able to target our
consumers via emails and phones text, letting them know before we launch our
product, which is the LED
lighting solution. Another marketing strategy is the neighbourhood canvassing which
is a great method to increase the awareness of energy consumption in the community
and therefore our products will be known, sold, and easily distributed within the
marketplace. Important to note that social networking is considered as a powerful tool
that my may help us to get most of the people targeted. For such an example,
Facebook and YouTube can simply be used to advertise about the benefits of our
products, and to let all customers know why our product is differentiated.
http://www.civilrights.org/census/outreach/canvassing.html.
http://www.cleanenergysol.com/news/news_confrences.html.
http://www.brandyoubrilliant.com/the-four-basic-principles-of-marketing-and-their-role-in-
an-effective-marketing-strategy/.
http://eex.gov.au/technologies/lighting/.
Operations and implementation
Operations & Supply Chain
Feldman, D N 2012, The entrepreneur's growth startup handbook: 7 secrets to
venture funding and successful growth, John Wiley & Sons, Inc., Hoboken, NJ, USA.
doi: 10.1002/9781118643273
Sarin S 2010, Strategic brand management for B2B markets: a road map for
organizational transformation, SAGE publications India Pty Ltd, New Delhi, India.
Taulli T 2012, How to create the next facebook: seeing your startup through, from
idea to IPO,Apress media LLC, NYC, USA.
6. Operations
For corporations introducing a new product, or indeed for many startup
organizations, the process of developing an efficient supply chain is crucial not only
to the success of the venture but also to the ability to capture revenue (Feldman
2012).
For Bright Green, the portability of its existing procurement network and
manufacturing facilities put the corporation at a distinct advantage.
Where a corporation can facilitate line extension or the introduction of new product
from materials already sourced for the production of existing product lines or
manufactured using the same production channels, substantial economies of scale
may be established arising from increased resource efficiency (Sarin 2010). For
bright green, this is the case. The Introduction of the new product uses materials
already sourced for alternative products, further to this the procurement relationships
that have been negotiated are scalable to cope with the increased capacity.
Brightgreen has existing in-house manufacturing capabilities allowing for further cost
reductions in the development of the product. However, the nature of the markets
served by this new product are likely to engage large bulk orders meaning that in the
near future the manufacturing facility will have to be expanded at significant cost.
For Bright Green this new product will realign the corporation with a new customer
base. A shift from dealing with trade vendors and retail distributors towards dealing
with the end customer at a business to business level will see Bright Green not only
experience a significant and rapid change in the way orders are taken but also
experience and need to make significant relationship investments to bolster large
yield relationships (Sarin 2010). As large accounts are negotiated, Bright green will
need to expand its manufacturing capacity, as large orders will be placed with rigid
timelines. This change in business function towards a business-to-business market
often is accompanied by an increased resilience to market trending owing to the
longer delivery scale of orders Sarin (2010). Further, the large value of specific
contract will extend the negotiation period of the average sale and the value of
individual clients (Sarin 2010). This means that Bright green must make significant
investment in prospering and maintaining working relationships through functions
such as being malleable with trade terms and being price negotiable.
Timeline & Funding
Phase 1. – Quarter 3. 2016 – Quarter 4: Product Development and tender to
NEEB
During this phase the product will be developed and a formal tender will be
submitted to the NEEB. Existing capital within Brightgreen as well as economies of
scale arising from an existing supply chain will mean that no extrinsic funding
support is required during this phase (Taulli 2012). Pending project approval, the
marketing program will be initiated and the product will go into manufacture, ready
for a January 2017 market launch. Further to this, a Small Business grant may be
attained from NSW state government to support the marketing of the product in its
upcoming introduction phase.
Phase 2. – Quarter 1. 2017 – Quarter 3. 2017: Market Launch
During this phase the product will enter the market, accompanied by an intensive
marketing strategy looking to generate support for an environmentally aligned
products and attract major accounts to the product. Key to success in this phase is
7. the closing of large contracts with targeted customers in the construction industry
such as Mirvac and Lendlease, to consolidate significant growth and maintain
potency in the market. Crucially, extensions to existing manufacturing facilities will
need to be made to accommodate these larger bulk-ordering clients. Funding will be
attained from bank services and require the product to be generating substantial
revenues to offset the bank loan.
Phase 3. – Q4. 2017 – Quarter 4. 2018: Maturity
By the end of 2017, with expanded capacity and key customer support, Brightgreen
will move into Maturity. During this phase it is important that continued marketing
efforts are made to support customer relationships not only through after care but
through continual interaction with the client through the development of further
products and innovations (Taulli 2012).
Financial Forecasts
Brightgreen expects that through the joint venture with the NEEB will see the
products growth accelerated and the time to maturity significantly decreased. It is
estimated that maturity and maximum profit potential will be realised as early as Q.4
2017 with equilibrium demand 30% greater than would be seen without the joint
venture. Further to this, a decision to orient the product towards large clients will see
increased profitability where economies of scale are achieved. As well as decreased
volatility where market depressions are offset by the scale length of orders placed.
Management Team (119 words)
The management team encompasses an array of expertise:
Project Leader - responsible for directing and envisioning LED sensor lighting.
8. Director of Marketing - responsible for creative advertising and budgetary
compliance.
Operations Manager - responsible for ensuring production of goods are
efficiently meeting stakeholder expectations.
Financial Planner - analysing investments and ensuring long-term financial
objectives are achieved.
Leader Analyst of Critical Risks - analysing the possible risks to individuals,
businesses, communities and government agencies.
Each member posses skills and experience to support the production and
implementation of LED sensor lighting, ensuring core objectives are met through
high efficiency, long durability, compact sizing, eliminating mercury, no filaments or
arc tubes to break, and no heat or ultraviolet energy dispersion (Dilouie 2013).
Critical risks (319 words)
An analysis of critical risks is to ensure that an organisation is able to manage
foreseen and unforeseen risks. This is accomplished through evaluating the
strengths, weaknesses, opportunities and threats (SWOT) to a project. It is evident
that strengths of the project include; long-term cost efficiency, environmentally
friendly technology, uses less energy (lower wattage at 1.0 watt - lowest in the
industry) and higher durability than any other source of lighting (Dilouie 2013). A
weakness that was identified was that the initial costs of installation are more
expensive (Dilouie 2013). The opportunity that arose was that LED Lighting has the
ability to be used in remote areas and threats included the lack of government
subsidies and policies and people lack the knowledge of the new technology of LED
Lighting (Dilouie 2013).
Through the evaluation of the SWOT analysis the following external and internal
critical risks were identified; non-compliant businesses, businesses that are not
complying with the Greenhouse energy minimum standards (GEMS) (Lighting
Council Australia 2015). As stated by Lighting Council Australia (2015) `there is an
increasing amount of non-compliant businesses, who are producing unsafe products,
however, claiming that the products are energy efficient, cost effective and long
lasting’. Another external risk identified is the increased costs for inspections on
quality products increase in the costs of quality equipment and inspections for quality
and safety reassurance, due to improving legislation for LED Lighting (Lighting
Council Australia 2015). The lack of awareness of long-term benefits from
consumers is also deemed as a critical risk, as consumers are unaware of the
benefits of LED lighting for long-term energy bill savings (Dilouie 2013). An internal
risk that was identified was that highly valued employees who leave that are crucial
to the project (Mellor 2009). With this it is crucial to ensure that the knowledge is
recorded, documented and shared as much as possible as well as to up-keep the
skills and capabilities of critical employees.
Milestone Shcedule
9. APPENDIX
Additional information and group discussion:
Just found out that light sensing (detecting daylight) is called Photosensors.
Check this website out: http://energy.gov/eere/ssl/publications it has information that
would be potentially useful to us all including cost info.
Moneer - I’ve emailed you through some slides, what I end up including on this doc
will be what I will say that will accompany those slides.
If everyone could put their full presentation (what you will be saying) into this doc
please. That will really help in getting the Summary together.
Thanks Guys!! You’re doing great! Stick with it and we’ll have this out of the way in
not time :)
Helpful
link.http://socialventures.com.au/assets/Business_Planning_Guide_for_Social_Enter
prise.pdf
Business Plan
Energy Efficiency Program
References
Chick, A 2009, 'Green entrepreneurship: a sustainable development challenge', in
RB Mellor (ed.), Entrepreneurship for everyone: a student textbook, SAGE, Los
Angeles, pp. 139-51.
Dilouie, C 2013, `LED lighting's risks and rewards: LED lighting technology provides
unique advantages, but it’s also important to understand its limitations for optimized
application’, Building Design and Construction, viewed 15th April 2016,
http://www.bdcnetwork.com/led-lightings-risks-and-rewards.
Isaak, R 2010, 'The making of the ecopreneur', in M Schaper, Making ecopreneurs:
developing sustainable entrepreneurship, 2nd edn, Gower, Farnham, pp. 43-58.
10. Lighting Council Australia 2015, `Lighting Council Australia Submission’, Senate
inquiry into non-conforming building products, viewed 15th April 2016,
http://www.aph.gov.au/DocumentStore.
Mellor, RB 2009, 'The business plan', in Entrepreneurship for everyone: a student
textbook, SAGE, Los Angeles, pp. 63-77.