Our Part in the Lighting Revolution
Disrupting the Electronics Market
In 2013 little had changed in the lighting market since Edison patented his first electric lamp in 1879. Of course, there had been developments in technology; fluorescent became the main contender in the commercial lighting scene, for instance, HPS and HiD all had their moment but nothing was prepared for the seismic shift delivered by LED.
The real impact of the dramatically changing work practices was felt by retailers, distributors and wholesalers. The move to solid state light sources literally turned the lighting industry on its head. This case study aims to tell the story of that journey and the challenges that arose for a LED manufacturer (client) looking to win significant market share for the new technology in both trade and consumer sectors. It is a narrative about promoting trust in new technology within a sceptical market.
Edison’s market
The incandescent lamp and its thermal process had held sway since the ‘mantel’ was held by gas lighting in the 19th Century. There was a lighting season too – Autumn traditionally sees the introduction of new lighting from dedicated organizations that included such illustrious names as Philips, Osram and GE. In fact, most new entry products offered very little in terms of extra features. Variations of products aligned to form factors to fit differing shaped luminaires and a rudimentary power or Wattage range which indicated brightness. Further attributes were offered by fluorescent lamps in terms of color temperature to match the desires of sophisticated interiors, however, the lighting market was a backwater of innovation compared to what happened next.
LED takes the stage
The breakthroughs in semi-conductor chip-based lighting technology began in the early 1960’s with infra-red versions but it took until the 80’s onward to produce light emitting diodes in the visible spectrum. It was only in the mid-90’s when scientists discovered that by coating the blue light-emitting chip with fluorescent phosphors, the diode could be made to emit bright white light. Hence a completely new technology variant to everyday lighting was invented. As with many new introductory products, LED was relatively expensive compared to conventional lighting – mostly because of lack of scale and low demand. However, the advantages of the innovation were clear:
Energy Efficiency – the key driver to increased market share was the instant cost savings that LED lighting delivered to homes, factories and infrastructure. Typically, a 60W bulb was substituted with a 4W bulb and emitted the same amount of light. Commercial customers reduced electricity costs by 65%, a major contribution to the bottom-line. Households enjoy similar savings too.
Longevity – LED lamps last a lot longer than fluorescent or incandescent traditional alternatives. Some are guaranteed for 25000 hours. Huge savings are to be gained in industry from a reduction in replacement of tubes and lamps within a maintenance programme. This doesn’t include the cost of disposal too. A switch to LED luminaires cuts this cost at a stroke.
Color Tuning – LED has allowed Architects and Interior Designers to ‘Paint with Light’. Fluorescent tube was effectively the first light source to offer warm white and cool white amongst other shades. LED has taken this to a whole new level where you can match any color temperature you choose to meet the needs of a room. Color changing across the entire RGB spectrum is now widely used.
Miniaturization – gradually as drivers, heat-sinks and on-board controllers became smaller – LED has become a miniaturized technology – able to throw high intensity illumination from keyhole apertures. There is a realization of embedding lighting within the fabric of a building and within furnishings.
Toughness – lastly, LED is suited to hardwearing sealed designs that can withstand hostile environments. The robustness of a chip over a filament of tube has taken LED into new application areas that are re-enforced by the technology’s relative long life.
LED: a winning marketing strategy
So, with all these advantages – LED’s advance as a technological innovation was unstoppable – right? In fact – no! There was a palpable inertia – if not outright opposition to LED lighting right from the start. As a PR representing a new entry brand into the market – I can testify to some of the barriers that existed. Opposition came from some surprising directions too. Fellow manufacturers who aspired to sell their existing inventory of traditional light sources held back on the supply side or were slow to maximise the speed of the transformation. Traditional distribution networks and ultimately retailers found it hard to explain the new products – switching from wattage to lumens posed an educational challenge at POS. The following is a brief overview of the communication strategy that worked over a five-year period. You may find it useful to reflect on the similarities within your own disruptive sector.
Test and Quality – both product marketing and communications were shaped around quality. From the outset, all lighting products were stringently tested within an in-house laboratory. Importantly, on the PR side we invited all key press to visit the lab – ostensibly to explain the technology but additionally to re-enforce the brand’s pedigree as a premium product range. Alongside a no quibble returns policy and warranties, clients were able to take their place as an ‘unknown’ amongst the household names – some of whom had taken a hundred years to establish pre-eminence. The ultimate indication of success was the awarding of Which? Best Buy.
The consumer organization was keen to learn more of the new technology and we had made our testing facility open to their inspection. Our inclusion within the online table of results was a turning point in our ‘introductory’ stage development.
Third Party - verification and testimonials. We targeted key influencers to advance uptake of the new lamps. Interior Designers ‘lead’ consumers in their early adoption – so recruiting an ambassador provided excellent testimonial and educative content for all formats of media. Similarly, installers were targeted too. Hands on demonstrations and case studies effectively reinforced the early market.
Partnerships – we found that most support came from fellow disruptors in the market. Online retailers and new entrants into the conventional retail space were the most susceptible to the new products. All wanted to share the education assets that were required to explain the new technology. Offering free of charge marketing assets to help new partner sales, cemented new commercial links.
Tuning to Message – across the distinct sectors the message was adapted and refined. The main benefits of LED numbered five main attributes. Cost saving appealed to all sectors naturally, but the other benefits were broadly divided into aesthetic and functional. Hence, we spoke a tailored language to the varied markets.
Authentic Voice – at every step we strove to avoid pure advertising messaging based on self-interest. We used the ‘they would say that wouldn’t they!” test for every editorial opportunity to ensure a balanced view and backed-up our claims with real-world examples. For instance – if we were just one of the packs for certain products, we would admit it!
Results - only 8% of the market had adopted LED lighting in 2013 and the lamps were an expensive curiosity. Today over 70% of the lighting stock is solid state and the figure accelerates with every new market survey. The adoption rates are truly rapid now we have entered to mature stage of the cycle.
