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


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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.


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