Exploring the Distribution Channel: Lamp Industry (energy Saver)

Essay on

Title: Exploring the Distribution Channel: Lamp Industry

(Energy saver)

Prepared for:

Dr. Mohammad Baktiar Rana Director & Associate Professor

Course: Marketing Channel Management

Course Code: MKT 403

Prepared by:

Shama Sarwat, ID: 776

Biplab Das, ID: 801

Waliza Farhana, ID: 1268

Sayma Sadia Tania, ID: 1629

Institute of Business Administration

Jahangirnagar University

Savar, Dhaka

Date of Submission: 3 December, 2010

SECTION 1

Portray of a general picture of CFL Lamp industry distribution system

SAVE ENERGY, SAVE THE WORLD

GREEN CARBON: CARBON FRIENDLY CERTIFIED ORGANIZATION

Their research reveals that Green House Gas (GHG) Emission Sources are as below:

The pie depicts, Company vehicles stand for 15%, Electricity for 47%, Transmission & distribution losses for purchased electricity 4%, for Air travel 5% (domestic), for office paper usage 5%, for office waste 0%. Figure: Sources responsible for GHG

So much unbelievably and most alarmingly, (Scope 2) Electricity a single source from which 47% of the total Green House Gas emission takes place.

Replacing a 75-watt incandescent bulb with a 20-watt CFL will reduce your consumption of electricity by roughly 550 kilowatt-hours -- over the life of that bulb. In relation to a coal-fired power plant, this amounts to nearly 500 pounds of coal (about the size of a couple garbage cans) that didn't need to be burned to power your bulb.

That reduction translates to 1,300 pounds LESS carbon dioxide and 20 pounds LESS sulfur dioxide released into our atmosphere. This is one bulb. Multiply this by all the bulbs in your home, and then by all the homes in your neighborhood -- think of the savings. You'll see how small, easy changes, can make a huge difference in the future of our planet.

Given the high energy efficiency benefits of CFLs compared to incandescent lamps, their application for mitigating electricity crisis have been pursued in many countries. As a result of the popularity and affordability of this technology, the worldwide demand for CFLs has grown rapidly. Over 3 billion CFLs were produced globally in 2009 compared to only 500 million in 2000. European Union, Australia, Canada, USA and some developing countries have actually started banning incandescent lamps altogether in favor of CFLs, through phase-out policies and mandatory regulations.

Bangladesh is no exception. Power division sources said more than 500 megawatts of electricity could be saved everyday provided all consumers use the CFL bulbs, which gives five times more light than the conventional bulbs but costs only one fifth. The government has been implementing the free CFL distribution program under Efficient Lighting Initiative for Bangladesh Program at a cost of 279.28 crore.

The distribution is scheduled to be completed in two phases by June next year. Before this initiative, CFL bulb was introduced by Energypac. Besides a market of non branded Chinese cheap bulbs has grown as well. As the awareness among people increased, the number of the manufacturers and the market coverage increased too.

WHAT IS CFL?

Energy saving light bulbs has always been a bright idea - for your pocket and the environment. They use up to 80 per cent less electricity than a standard bulb, but produce the same amount of light.

In other words, they can help you to save money and energy, all in one wise purchase. And by saving energy, you'll be helping to fight climate change too. That's the good news.

Now, here's some more. Technologies moved on a lot since energy saving light bulbs was first invented, and so has the way they look. In fact, whatever types of bulbs you use to light your home, there are sure to be stylish energy saving equivalents.

A compact fluorescent lamp (CFL), also known as a compact fluorescent light bulb is a type of fluorescent lamp. Many CFLs are designed to replace an incandescent lamp and can fit in the existing light fixtures formerly used for incandescent.

Compared to general service incandescent lamps giving the same amount of visible light, CFLs use less power and have a longer rated life, but generally have a higher purchase price.

Like all fluorescent lamps, CFLs contain mercury; this complicates the disposal of fluorescent lamps. CFLs radiate a different light spectrum from that of incandescent lamps.

The average rated life of a CFL is between 8 and 15 times that of incandescent. CFLs typically have a rated lifespan of between 6,000 and 15,000 hours, whereas incandescent lamps are usually manufactured to have a lifespan of 750 hours or 1,000 hours. Some incandescent bulbs with long rated life spans of 20,000 hours have reduced light output.

The lifetime of any lamp depends on many factors including operating voltage, manufacturing defects, exposure to voltage spikes, mechanical shock, frequency of cycling on and off, lamp orientation and ambient operating temperature, among other factors.

CFL INDUSTRY IN BANGLADESH

There are a handful of companies making business in Bangladesh who are also offering CFL. Navana Group has joined in the manufacturing industry of CFL Navana Groups market survey reveals that the Chinese companies have already taken over 50% of the CFL market share.

It also reveals that approximately 35% market share is on the hand of the other CFL companies: Energypac Electronic Limited, Transtec, Superstar etc. Unofficially claiming the third position in the CFL market due to their outstanding success, Navana group survey reveals the rest 15% of the market share to be their giant and strongly-established companies:

NAVANA GROUP`S ENTERANCE INTO CFL MARKET

As per the report submitted by the Division manager to the senior GM of Navana in the month of December of 2009, the CFL market in entire Bangladesh is of approximately Tk. 150 crore to Tk. 157 crore, which is a repulsive factor for the traditional light lamp manufacturers