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