Kugo Led Lighting - New Business Model Proposition

KUGO LED LIGHTING

NEW BUSINESS MODEL PROPOSITION

Benjamin DAVIER

Alexandre OTTO

Sandra OVADIA

Nicolas VACCARI

KUGO LIGHTING SYSTEM SOLUTION

Kugo is a high – tech French led producer. In this presentation, the team would like to propose a new and sustainable business model to this existing company in order to improve its market and make them profitable and viable on a long run.

Notwithstanding its good results and high quality products, we believe that there are alternative solutions and these solutions, despite the fact that they demand a change, might solve maturity and competition problems the company can face in the future.

http://www.kugo.fr

ACTUAL VALUE PROPOSITION

Sells light bulbs Volume based industry in B2B Manufacturing industrial (+ products; - Price) Quality and quantity Diversified range of product Have their own plant Made in France products Competitive advantage: High viable product Quality, reputation of the company Know how in their market Mastering the entire production channel

ACTUAL VALUE PROPOSITION

Kugo makes the LEDs

Contact with Partners, acting as

retailers of KUGO’s Products

Partners sell and install

the products for their clients

End User

No contacts with the end user.

NEW VALUE PROPOSITION Sells lighting service based on the volume of light in a room

(sell Lumens) Service based in B2B with after service Manufacturing industrial related to quality Diversified range of product for different needs Have their own plant, made in France Products Competitive advantage: High viable product Lighting service provider Quality, reputation of the company Know how in the market Mastering the entire production channel in the service

provided Mastering the entire perimeter including trajectories of

evolution (diversification of the service – integrated solutions with partners)

NEW VALUE PROPOSITION

Kugo makes the LEDs

Subcontractors just install the product for Kugo’s

clients

End User

Relationship with the end user. (Audit, maintenance & management software)

Consultant

Client

AUDIT

NICHE MARKET – CUSTOMER SEGMENTS

System of

actorsParticulars

Electricians

Sub contractor

s

Public sector

Companies

- Yachts makers

- Swimming pools...

Re-sellers

Electricity suppliers

Partnerships with Electric material suppliers

Construction

companies

Companies in

general

Actual Customer segment in blue, new customer segment in blue and green except the one that is crossed.

ACTOR RELATIONSHIP MANAGEMENT Self-service relationship allowing the customer /

partner to organize his experience Co-creation of value with the customers or partners Online technical support / subcontractors

Implementation of an integrated lighting system directly in the client’s site

Co-creation of value with the customers or the partner

Direct technical support / subcontractors Monitored management of the system Online access to the monitoring system to check

the consumption of energy In Real Time Lighting and energy management service to

companies

ACTUAL MODEL

NEW MODEL

ACCESSIBILITY / ABILITY TO GRASP MENTALLY (ACTUAL IN WHITE, NEW IN GREEN & WHITE)

Awareness: Website & direct contact Sells through partners (not

anymore viable in the new model) Partnerships with architects &

construction Marketing to explain and promote

their innovative solution Digital marketing Participation to International

Contests & Shows Technical support Active communication /

sensibilization / Word of Mouth

Purchase: Website

Evaluation: Consultants Website Testimonials Technical

support

After Sales: Contract clients

ACCESSIBILITY - CHANNELS

Electricians Re-sellers Wholesalers Installers Collectivities

Industries / collectivities

Architects Experts /

Consultants / salespersons for an integrated service.

Subcontracted company to set up the installation.

ACTUAL MODEL

NEW MODEL

MENTAL REPRESENTATION

New Model

From negotiation to the acquisition stage: Expert Consultant to assure the

benefits Installers Service through software Complete service for companies

and administration Savings

Actual model: Large range of products Made in France Quality of the products Diversity in the usage of

the products

KEY RESOURCESMaterial: Raw material Plant Facility Storage

Immaterial: R&D Intellectual Property Partnerships &

collaborations Testimonials

Immaterial: Integrated lighting

service Human Resources -

Employees and talents R&D Intellectual Property Partnerships &

collaborations

Material: Raw material Machines Plant Software Distribution networks

NEW MODEL

ACTUAL MODEL

KEY ACTIVITIES

Led production R&D

Expert Consulting in lighting Led renting Lighting management

provider Software - Global lighting solution Management of the resources

leading to savings

Digital Marketing

Led Making R&D Consulting with

partners

ACTUAL MODEL

NEW MODEL

NEGATIVE EXTERNALITIES

Production of the products Energy consumption, pollution

Garbage / Waste recycling Social destruction regarding basic lighting system

Production of the products (less production because of the better quality of products that can be re-used) Energy consumption, pollution

Garbage / waste recycling (lower proportion) Possible negative effect on employment

Intermediaries might be less used by consumers

ACTUAL MODEL

NEW MODEL

POSITIVE EXTERNALITIES Competitively durable lighting technology Less wastes due to an bigger longevity than classical

light bulbs Local employment R&D to make better quality products.

Maximized durable lighting technology Maximized waste reduction due to improvement of

the life cycle Possible positive employment

Rise of employment because of the new services the company is offering

Expert consultants

R&D

R&D to make better / sustainable products to fit the new service the company is proposing

ACTUAL MODEL

NEW MODEL

PRODUCTIVITY DRIVERSTo improve its productivity, the company has to

focus on:

Labor productivity Economies of scale Mechanization

Automation & Technology More durable products Integrated software

Development of the integrated service Complementary competencies Cooperation of producers, R&D, expert consultants, architects, &

end consumers Advantage in efficiency and energy savings for companies and

administrations

ACTUAL MODEL

NEW MODEL

THE COST STRUCTUREThe company has to pass from a value driven

cost structure to a service driven cost structure:

Service offered instead of products Earning money through contracts (Free Audit at the beginning, charges

for the installation of the system) Cost efficiency will be integrated into the service (software) More durable and effective energy efficiency Better managed products through software integration Partnerships with architects to manage energy saving from the

beginning by using more sources of natural light in new buildings

Reduction of the fix costs: material, labor, charges... Decrease of variable costs Change of specialization in the key activity of the company