Potential market

PART B: valorisation plan

SECTION I: The product

 

1a

The innovation potential of this product is related to:

 

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
The proposed Light Management System (LMS) can be characterized as a combination of: – a market-driven innovation: nowadays the policy willing and economy need is to decrease more and more the energy consumptions. LED is the most promising technology for the future development of lighting. The new discoveries made by the leading producers of LEDs show even unexpected results in terms of light that can be generated. The market expects the new lighting systems, based on LEDs. It is also needed the infrastructure to be utilized in the most efficient way – because of the costs it is more effective to install highly integrated solutions;

- product, related to cost reduction – the LMS will reduce significantly the costs for energy and the costs for construction of communication infrastructure. The LED technology is enviromnent friendly and substitutes all the old luminaries (Directive of EC 28/2005) It will bring potential benefits to the citizens and will decrease the running business costs as well by helping establishing integrated systems for city infrastructure management, able to control: the traffic, security, weather monitoring, information provision etc.

 

1b

What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
The LMS has better technical characteristics then the existing light management systems as it allows very easy control of the lighting, both automatically or manually and on a level of a single luminary. Will decrease the spending of the citizens and businesses for lighting. The system also allows integration of numerous additional features and functionalities for the traffic, security, weather monitoring, Internet provision, ear quality monitoring, emergency assistance etc.

 

1c

What is the Unique Sales Proposition of the potential product?
The key work for the described system is “versatility”.

It is unique in terms of achievement of very high energy efficiency, thanks to the application of solid state lighting and its ability to be easy adapted to different environments, thanks to the range of additional features that can be applied. The system is suitable for small towns, villages and big cities.

 

SECTION 2: The Market

 

2a

What is the target market for the product?

National X

European X

Global ¨

Please describe the characteristics of your target market.

The product can be offered both nationally and on the EU market.

  • Due to it stage of development, the first two-year it is more feasible to target the national market where the test and maintenance would be easier. The markets of the developed countries will be targeted as well as the expected production costs in Bulgaria will ensure competitive prices. In the next 2-3 years it is expected significant decrease of the LED prices due to the high luminous output to reach over 200 lm/W.

The product would be very useful for less developed countries as it offers integral solution for city infrastructure management. In such markets it is often to happen introduction of leading technologies that require less investment in support infrastructure.

 

 

2b

How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

The product is leading. It is based on the best and newest lighting components (LEDs) that are demonstrating very high efficiency and great potential for further development.

The idea for integrating various options for additional functions of the system is unique and is not offered by any other company in the world.

 

2c

What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

The product targets hidden demand on the market. Although SSL is already in place in some of the leading cities, in most of the countries Lighting is still based on the well-known and already old technologies, or technologies that are in the end of their product life cycle.

Non of the LMS suppliers offers integrated solutions as well, that can be managed by a complex software.

 

2d

What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

Product’s life cycle as a system for lighting is in its stage of Growth and shows great potential for further development as it is based on the leading and most promising technology – SSL.

The product as an integral system is in its implementation stage and will bring new characteristics for the light management systems in general.

 

2e

Strategic partnerships (existing or potential).
It is recommended that the owners of the know-how gets in strategic partnership with company, already established on the market with its lighting systems. It could be a company that is based on traditional technologies or on SSL.

For its initial stage of development and presently the company has well established connections and partnership with company, producers of electronics – that gives opportunity for production of the product’s electronics in middle to large scale of production; and producers of luminaries that guarantees supply of the mechanical parts of the lighting system.

The components for the additional features that are going to be integrated in the system can be obtained from well known suppliers.

 

SECTION 3: The Competition

 

3a

What is the competition within your target market?
There are a lot of Bulgarian companies, producers of LED street lights some of the leading are: Denima 2001 Ltd, Samel 91, Ltd, Romtech Ltd. Some of them offer complete street lighting installations. However non of the Bulgarian companies offer a full set of lighting system, including software for centralized management for instance.

Hence in terms of providers of com[lete street lighting systems there is no existing producer in Bulgaria – the same applies for systems, that integrate additional features to the standard lighting systems.

On the European market the situation is more or less the same – there are a lot of producers and distributors of LED street light systems and/or luminaries. Should a complete system has to be developed, usually it is assembled using specialized producers of the controllers, poles, luminaries etc. Systems as the one, described here are not offered as a standard solution.

 

3b

What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

The offered product is not characterized by a low price as LED lights are still quite expensive and they prove their effectiveness only by the longer term of operation that is still an object of study everywhere in the world. However the calcuations show that the pay back period is of abot 2 to 5 years only due to energy ecomon and for street lighting of up to 3 years duse to significant maintenance costs redustion.

The product can be described as unique in terms of complexity of the functions it would incorporate and able to manage under a single control centre.

 

3c

Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

As a combination of wide range of functions the product may be characterized as “all-in-one” solution for the city infrastructure.

Should the production is organized in Bulgaria the product may be offered in the range of the average, when it comes to its lighting functions. All the other features can vary in their prices as they depend on the situation and requirements of the clients and it can lead to capability for offering complete systems in the range of the low to high prices.

 

3d

Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

The product is designed and addressed for market niche that is regulated by all the countries. It has to comply to local and global standards for lighting, communication equipment, when video is applied – confidentiality and security rules etc.

It is expected that the product will have to be carefully introduced in each country, complying to the local regulations.

 

SECTION 4: Indicators

 

Estimated cost of the new products Depends on the size of the system
Expected market volume (potential / maximum number of users) 10/per year
Expected sales volume over 1 mln/annually
Expected market share of the company (proportion between sales and total company sales in the relevant market) 5-10%

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