preview

Cbs At Walmart

Decent Essays

Selling CFLs at Wal-Mart Executive Summary: Compact Fluorescent Light (CFL) were introduced in 1980 with the purpose of saving energy. They initially were very expensive and consumers were aware of many flaws that made them hesitant to purchase the bulbs and bring them into their homes. The positive effects of switching from alternative bulbs to CFLs were overshadowed by media attention highlighting the issues that remained unresolved. Wal-Mart pushed promotional programs in 2007 that were very successful. They introduced a private label at a lower price, offered online ordering, posititioned the products well, installed interactive displays and engaged with new partners to promote energy efficiency. In 2009 the CFLs were redesigned and …show more content…

Analysis: CFL lightbulbs entered the market at an expensive price, yet the consumers continued to purchase them. Knowing the bulbs “paid for themselves,” the tradeoff was worth it. They used 75% less electricity than incandescent bulbs, lasted 10 times longer and emitted 450 pounds fewer greenhouse gasses. In previous years consumers relied on incandescent lights that were reliable and much less expensive than CFLs. CFLs were backed by utility companies that also wanted the product to be a success, which was obvious through their coupons, trade-ins and price promotions. Aside from the many benefits CFLs offered to consumers, market research showed there were misconceptions that caused hesitancy in consumer adoption. The original product had problems such as light flickering and buzzing, needed continual usage to result in energy savings, could not be used with a dimmer, and recycling the bulbs was not convenient as special measures were needed to dispose of the bulb. By 2009, manufactures had redesigned the bulbs and made significant changes to address the concerns of customers. Disposal was made easier as mercury levels reduced, the lights could be dimmed, more sizes and colors were available. The price of the bulb decreased from $25 each to around $3 each. Eventually CFL’s became more popular with consumers and household penetration grew to around 50%. Though household penetration was high, only 26% of households accounted for 76% of all CFL

Get Access