Product Strategy Recommendations for an Efficient Light Manufacturer

Product Strategy Recommendations for an Efficient Light Manufacturer

Romijn, P.A.

Buijs, J.A. (mentor)
Van der Meer, J.D. (mentor)
Fockema Andreae, H. (mentor)

Industrial Design Engineering

Product Innovation Management

Master of Science Strategic Product Design

2011-08-25

This report is a summary of all the phases of the Graduation Project fulfilled by Pieter Romijn. The project was performed at the company Lemnis Lighting B.V., which is a sustainable lighting manufacturer based on LED technology. This Graduation Project is the final and individual project of the Msc Strategic Product Design at the faculty of Industrial Design Engineering, TU Delft. The assignment for the project was to develop product strategy recommendations for the company’s brand Pharox. The methods that are used in the project to come to a product strategy, are scenario building and roadmapping. As Lemnis stands on a cross way of product directions in an highly uncertain market, scenarios will provide more insights into the different directions. The use of roadmapping is appropriate to communicate strategic and product recommendations for the coming future in attempt to create a mutual understanding about the future possibilities of the company and its products. The foundation for these methods was the performed analysis of external, internal and product aspects of Lemnis. The outcomes of the analysis were transformed into scenario drivers that function as the adjustable parameters to create different development of the future. The first driver is the industry dominating by the global players Philips, Osram and GE. Secondly is the technological development that occurs for LED lighting; this could mean a transition from retrofit bulbs towards integrated luminaires. It also entails the development of efficacy rates of LED technogy, which is forecasted to increase rapidly. The third drives is material scarcity, which imposes an imminent threat to the raw materials of LED chips. The three scenarios are: - Retrofit Renaissance: a continuing structure of separate light source and fixture. - Luminaire Luminescence: integration of light source and fixture and interactive lighting systems. - Scarcity Scandal: China bans the export of scarce materials that are needed for LED production. In a consequences analysis of the above mentioned scenarios appeared that the establishment of strategic partnerships is the key implication of all three scenarios. The main partnerships are divided over three stages, of which first is the retrofit LED bulb route. This route suggests a continuation of the retrofit bulbs that Lemnis manufacturers. Partnering up with Ikea in this route, will give access to a global distribution channel (with the potential sales volume) by the collaborative development of a fixture and retrofit LED bulb combination. In addition to the partnership strategy, stands the phasing of customer segments for Lemnis’ current retrofit portfolio development. A segment focus strategy will give the relative small technical department of Lemnis the time and space to develop lighting product for a particular business segment and consumer light product. The second route entails the development of luminaires. The first step within this route is to find a partner for the added functionalities that light requires in the future. Interactive lighting systems will be possible in the a partnership with Dutch semiconductor company NXP. The second step within the luminaire route is to find a host for this light engine. Vitra’s architectural and design assets will be combined with the lighting expertise of Lemnis in the development of a lighting product that stands in line with the progressive furniture and should define a new position of interactive lighting within people’s interior. The third product route is based on the potential of material scarcity of LED. OLED is the answer to decrease the dependence of Lemnis on the mentioned material aspects, while maintaining the company’s lighting expertise. Novaled is the best potential partner that can provide OLED technology so that Lemnis can continue its lighting expertise and integrate this new technology into its products. The roadmap on the next pages summarizes the above mentioned strategic recommendations. In the conclusion of this report, one can find an overall recapitulation of the main results of the project and the additional recommendations for Lemnis.

sustainable
lighting
roadmap
product strategy

http://resolver.tudelft.nl/uuid:8ddf8741-45f0-46a6-a47d-61a81b955f7d

2011-08-25

Campus only

Student theses

master thesis

(c) 2011 Romijn, P.A.