CHANGE FOR THE BETTER WITH I ENERGY STAR Products that earn the ENERGY STAR® prevent greenhouse gas emissions by meeting strict energy efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy, www.e n ergystar.gov Targeted Marketing Yields High Returns for Seattle Lighting - An ENERGY STAR0Lighting Showroom Project Lighting showrooms are always looking for new ways to increase sales and profits by expanding their market share, improving customer satisfaction, and enhancing their public image. Seattle Lighting in Puget Sound, Washington did this and more when they teamed up with ENERGY STAR. According to David McKee, Seattle Lighting COO, "ENERGY STAR has allowed us to introduce a new profitable, decorative, and energy- efficient product line that has improved how we can meet the needs of our customers." In early 2003, Seattle Lighting company leaders determined that an innovative ENERGY STAR residential lighting promotion should serve as the basis for future lighting sales and profit, growth. David McKee, and Walt Gallagher, Purchasing Manager, approached the US Environmental Protection Agency (EPA) about integrating ENERGY STAR qualified fixtures into their showrooms. "ENERGY STAR residential lighting fixtures provide the necessary aesthetic value along with the energy savings." —Sarah Isham, Tacoma store Sales Associate Working with the national ENERGY STAR Program, local utilities, Northwest Energy Efficiency Alliance (NEEA), and Sea Gull Lighting, David and Walt devised a market-sawy business strategy that set up Sea Gull Lighting ENERGY STAR qualified lighting kiosks in six Seattle Lighting stores. Each kiosk displayed over 25 SKUs of ENERGY STAR qualified lighting fixtures. In tandem with these kiosks, Seattle Lighting ran advertisements in local newspapers that reached over 535,000 subscribers. The Bottom Line By the end of February 2004, Seattle Lighting sold over 1,200 ENERGY STAR qualified fixtures, reaching their sales goal ahead of schedule. David McKee reports that &EPA United States Environmental Protection Agency the unit and dollar sales per square foot are well above average and that the advertisements have drawn in hundreds of new customers. According to John Fallon, manager of the Bellevue Seattle Lighting store, "It has been a great addition for us to have the [ENERGY STAR qualified] products on display. The fixtures are stylish and that's what people are looking for." Seattle Lighting's ENERGY STAR promotions targeted and attracted retail customers, and also generated interest among builders and contractors. While consumers purchased the majority of decorative fixtures, contractors and builders bought the majority of the bathroom, hallway, and outdoor fixtures. Seattle Lighting's ENERGY STAR marketing strategy was able to reach an untapped customer base. Sales have continued even though the advertisements have stopped running, proving to David that interest in E! residential lighting fixtures is sustainable. In addition, the ENERGY STAR promotion has enhanced Seattle Lighting's public image as a cutting- edge lighting company. Customers walk into Seattle Lighting expecting to buy standard lighting fixtures, but walk out with the latest energy-saving and cost-saving iighting technology. NERGY STAR Qualified ------- Lighting standard tabloid. By featuring a wide variety of products in these tabloids, Seattle Lighting reached a broader market segment and brought in hundreds of customers. Once the customers were in the store, the sales team successfully sold ENERGY STAR qualified fixtures to many who had not originally intended to purchase them. The success of the program has opened up a new profit area for Seattle Lighting. As the demand for energy efficient products grows, Seattle Lighting is well equipped to meet this demand. Helpful Hints and Sales Tips > Work closely with ENERGY STAR program representatives, local utilities and ENERGY STAR suppliers to devise a successful ENERGY STAR business strategy. P Leverage ENERGY STAR support and provide sales training to showroom staff. > Use local media to advertise your ENERGY STAR qualified products and promotions. §" Earn sales staff buy-in through SPIF's and other performance-based rewards. P Stock ENERGY STAR qualified residential lighting fixtures at each location. For More Information... on the business opportunities to work with ENERGY STAR, contact Jeffrey Schwartz, ICF Consulting, at 518- 452-5986, or by e-mail atjschwartz@icfconsulting.com. The net result of Seattle Lighting's ENERGY STAR promotion has been an increase in customers and an increase in overall sales and profit dollars. David plans on keeping the ENERGY STAR kiosks in the six iocations and is considering introducing the kiosks to other stores. In the future, Seattle Lighting would like to integrate the ENERGY STAR qualified residential lighting fixtures into their regular displays. Elements of Success The ENERGY STAR promotion was set to kickoff during the fall "lighting season" and centered around a tabloid advertising piece placed in local newspapers. The promotion also ran during the annual national Change a Light, Change the World Campaign that promotes ENERGY STAR qualified lighting. J&u A, Six stores in the jJgj Bk* p.m .i. Sound area were selected because they represented ' a discreet media market where the advertisements were likely to be the most effective. A custom ENERGY STAR four-page colored tabloid featuring Sea Gull Lighting residential lighting fixtures ran in five Seattle-area papers in tandem with a Seattle SEPA United States Environmental Protection Agency In addition to targeted marketing efforts, ENERGY STAR and utility representatives trained Seattle Lighting sales staff on educating consumers about the energy savings, convenience, and environmental benefits of ENERGY STAR qualified products. To further motivate staff, sales representatives were eligible to participate in a Special Promotion Incentive Fund (SPIF) based on dollar volume of sales and an additional prize for the highest sales. ------- |