New Zealand Ecobulb Market Research

1
New Zealand Ecobulb Market Research

• November 2007

2
Background and method

• Energy Mad commissioned Colmar Brunton to conduct
  a survey of New Zealand households. The purpose
  of the survey was to establish
• Current levels of use of energy saving lightbulbs
  versus incandescent lightbulbs.
• Interest in a 5 Ecobulbs for 10 offer.
• Preference for an enclosed Ecobulb versus a
  spiral Ecobulb.
• Interest in an Ecobulb downlight.
• These objectives were achieved by surveying 500
  New Zealand household shoppers via the internet.
  The shoppers were members of Colmar Bruntons
  internet panel CBClique. Interviews were
  conducted from 1 to 7 November, 2007.

3
Summary

• The chart below shows the proportion of New
  Zealand households currently using energy saving
  versus incandescent lightbulbs. Based on
  responses to the survey we estimate that there
  are currently 9.4 million energy saving
  lightbulbs in use in New Zealand compared to 16.5
  million incandescents.

Have neither or dont know
Only have energy saving lightbulbs in the home
Only have incandescents in the home
Have energy saving lightbulbs and incandescents
in the home

• Of the 78 of New Zealand homes with energy
  saving lightbulbs, 21 are using Ecobulbs and
  other brands, 28 are using only using Ecobulbs,
  and 29 are only using a brand other than
  Ecobulbs.

4
Summary

• On average these homes have 11.83 energy saving
  lightbulbs in the home this equates to
  1,794,700 bulbs.

Have neither or dont know
Only have energy saving lightbulbs in the home

• On average these homes have 7.16 energy saving
  bulbs and 10.67 incandescents this equates to
  7,581,200 energy saving bulbs and 11,297,700
  incandescents.
• 34 of this group say that they extremely likely
  to replace their remaining incandescents with
  energy saving lightbulbs.
• A 5 Ecobulbs for 10 offer is likely to speed up
  the replacement of the incandescent lightbulbs in
  these homes 59 say that they would be
  extremely likely to take up a 5 for 10 offer.
  Preference for spiral versus enclosed Ecobulbs is
  evenly split in this group (37 prefer the
  enclosed Ecobulbs and 31 prefer the spirals) so,
  ideally, the offer would give the choice of
  spiral versus enclosed Ecobulbs.

Have energy saving lightbulbs and incandescents
in the home
5
Summary

• On average these homes have 18.31 incandescents
  this equates to 5,158,600 lightbulbs.
• Their reasons for not having bought energy saving
  lightbulbs tend to fall into the following
  categories
• Apathy (25) e.g., keep forgetting to buy them,
  not got around to it yet, dont know anything
  about them.
• Dont work in household fittings (23) e.g.,
  have halogens.
• Dont understand the relationship between price
  and saving on electricity bill (19) e.g., too
  expensive, no or little cost benefit.
• Hold incorrect belief about product (14) e.g.,
  light is not bright enough, take too long to warm
  up.
• Dont like the look of energy saving bulbs (14).
• Waiting for old incandescent bulbs to burn out
  (11).
• Relatively few of this group will change to
  energy saving lightbulbs on their own only 3
  of this group said that they were extremely
  likely to replace their incandescents with energy
  saving bulbs.
• However, a 5 Ecobulbs for 10 offer is likely to
  motivate some of this group. 35 said that they
  are extremely likely to take up a 5 for 10
  offer. We suggest that the 5 for 10 offer
  mention the number of New Zealand households
  currently using Ecobulbs as those slower to adopt
  a new idea tend to need reassurance that an idea
  is mainstream before adopting it. We would also
  suggest that the offer
• Give a choice of spiral or enclosed Ecobulbs as
  53 of this group prefer the enclosed Ecobulbs.
• Continue to try to correct some of the lingering
  misperceptions about Ecobulbs e.g., brightness
  of the light and time it takes to get to full
  brightness.

Have neither or dont know
Only have incandescents in the home
6
Summary

• There was a general preference for enclosed
  Ecobulbs versus spiral Ecobulbs 40 of people
  preferred the enclosed Ecobulbs, 29 preferred
  the spirals, 28 didnt have a preference and 3
  didnt know.
• 38 of New Zealand households have an average of
  10.70 halogen lights recessed into their ceilings
  a total of approximately 6.5 million bulbs.
• 4 in 10 people with halogens didnt know what an
  Ecobulb downlight (i.e., bulb and fitting) might
  cost. Amongst those that could estimate, 50
  thought it would cost 10 or less.
• There was more interest in replacing halogens
  with Ecobulb downlight bulbs rather than
  replacing the whole fitting. For example, at 20
  an Ecobulb downlight (i.e., bulb and fitting)
  only 6 of people with halogens said that they
  were extremely likely to replace their halogens
  with Ecobulb downlights, whereas at 8 an Ecobulb
  downlight bulb, 25 said they were extremely
  likely to buy.
• The main reasons for the greater interest in
  replacing halogens with Ecobulb downlight bulbs
  was the cost of replacing the whole fitting and
  having to get an electrician to check the
  installation.

7
Current use of energy saving lightbulbs in the
home
8
Purchase of energy saving lightbulbs
Have bought Ecobulbs and other brands of energy
saving lightbulbs
Havent bought any energy saving lightbulbs
Havent bought Ecobulbs but have bought other
brands of energy saving lightbulbs
Have bought Ecobulbs but not other brands of
energy saving lightbulbs
Source Q1a. Have you purchased energy saving
lightbulbs, such as an Ecobulb or other brands of
energy saving lightbulbs, in the past? Base All
respondents n500.
9
Reasons for never having bought an energy saving
lightbulb
Source Q3. For what reason or reasons have you
never bought an energy efficient lightbulb? Base
People whove not bought an energy saving
lightbulb n103.
10
Energy saving lightbulbs in the home
Dont know
Have Ecobulbs and other brands of energy saving
lightbulbs in the home
Dont have any energy saving lightbulbs in the
home
Dont have Ecobulbs but have other brands of
energy saving lightbulbs in the home
Have Ecobulbs but not other brands of energy
saving lightbulbs in the home
Source Q1b. Does your home have any energy
saving lightbulbs? Base All respondents n500.
11
Profile of those who dont have energy saving
lightbulbs in the home
Dont have any energy saving lightbulbs in the
home

• People that dont currently use energy saving
  lightbulbs in the home were likely to be
• Less than 30 years old 30 dont have any
  energy saving lightbulbs in the home.
• Renting 24 dont have any energy saving
  lightbulbs in the home.

Dont have Ecobulbs but have other brands of
energy saving lightbulbs in the home
Source Q1b. Does your home have any energy
saving lightbulbs? Base All respondents n500.
12
Reasons for not having energy saving lightbulbs
in the home
Source Q4. For what reason or reasons does your
current house not have energy saving bulbs? Base
People who dont have energy saving lightbulbs in
their home n99.
13
Number of energy saving lightbulbs in the home
Average is 7.76 bulbs per home.
Number of energy saving lightbulbs in the home
Source Q1c. How many energy saving lightbulbs
does your home have? Base Those energy saving
lightbulbs in the home n391.
14
Current use of incandescent lightbulbs in the
home
15
Incandescents in the home
Dont have incandescents in the home
Have incandescents in the home
Source Q2a. Does your home have any ordinary,
incandescent, lightbulbs i.e., lightbulbs of
the type shown below? Base All respondents n500.
16
Number of incandescents in the home
Average is 12.32 bulbs per home.
Number of energy saving lightbulbs in the home
Source Q2b. How many ordinary lightbulbs does
your home have? Base Those with ordinary
lightbulbs in the home n433.
17
Energy saving and incandescent lightbulbs in the
home
18
Energy saving and incandescents in the home
Have neither or dont know
On average these homes have 11.83 energy saving
bulbs in the home this equates to approximately
1,794,700 energy savings bulbs.
Only have energy saving lightbulbs in the home
Only have incandescents in the home
On average these homes have 18.31 incandescents
this equates to 5,158,600.
On average these homes have 7.16 energy saving
bulbs and 10.67 incandescents this equates to
7,581,200 energy saving bulbs and 11,297,700
incandescents.
Have energy saving lightbulbs and incandescents
in the home
Source Q1b. Does your home have any energy
saving lightbulbs? Q2a. Does your home have any
ordinary, incandescent, lightbulbs i.e.,
lightbulbs of the type shown below? Base All
respondents n500.
19
Likelihood of replacing remaining incandescents
with energy saving lightbulbs
The total number of households in NZ likely to
replace some of their remaining incandescents
with energy saving lightbulbs is 380,500 out of
1,548,000. This estimate is calculated by
multiplying the percentage who said extremely
likely and very likely to buy by a factor
which has been calibrated in other product
development research. The resulting percentage
is then multiplied by the number of households in
New Zealand (1,548,000 according to the 2006
census).
Those extremely or very likely to replace
incandescent bulbs said that they were likely to
replace 88 of their incandescents or, on
average, 8.24 of the 9.39 incandescents in their
household.
Source Q2c. How likely are you to replace any of
your remaining ordinary incandescent lightbulbs
with energy saving lightbulbs? Base Those with
ordinary lightbulbs in the home n433.
20
Interest in new 5 for 10 Ecobulb offer
21
Interest in a 5 Ecobulbs for 10 offer
The total number of households in NZ likely to
take up the offer is 848,100. This estimate is
calculated by multiplying the percentage who said
extremely likely and very likely to buy by a
factor which has been calibrated in other product
development research. The resulting percentage
is then multiplied by the number of households in
New Zealand (1,548,000 according to the 2006
census). Please note that the estimate is based
on 100 awareness which is never achieved in
actuality.
Source Q5a. Below is a picture of a modern
energy efficient lightbulb (called an Ecobulb).
Shown next to it is a standard, incandescent,
lightbulb so you can see the relative size of
each . . . Imagine you received a flyer in the
mail that gave you the opportunity to buy 5 of
these Ecobulbs for 10. This flyer could only be
redeemed once and would have to be done within
one month of receiving it. . . . Based on this
information, how likely would you be to take up
this offer and buy 5 Ecobulbs for 10? Base All
respondents n500.
22
Profile of those extremely likely to take up the
5 Ecobulbs for 10 offer

• The offer was more likely to be taken up by
• Households which only use energy efficient
  lightbulbs 76 extremely likely. 35 of those
  households who dont currently use energy saving
  lightbulbs were extremely likely to take up the
  offer.
• People aged 50 and over 62 extremely likely
• People who live in a small town or rural area
  60 extremely likely.

Source Q5a. Below is a picture of a modern
energy efficient lightbulb (called an Ecobulb).
Shown next to it is a standard, incandescent,
lightbulb so you can see the relative size of
each . . . Imagine you received a flyer in the
mail that gave you the opportunity to buy 5 of
these Ecobulbs for 10. This flyer could only be
redeemed once and would have to be done within
one month of receiving it. . . . Based on this
information, how likely would you be to take up
this offer and buy 5 Ecobulbs for 10? Base All
respondents n500.
23
Preferred places to buy Ecobulbs
65
58
56
42
38
24
24
The most frequently mentioned others were Mitre
10 and Countdown.
12
12
15
Source Q5b. The 5 Ecobulbs for 10 offer could
be available from a number of different outlets.
Which one of the following outlets would you
prefer to purchase from? Q5c If the 5 Ecobulbs
for 10 offer wasnt available from your
preferred outlet, which of the following outlets
would you prefer to purchase from? Base People
likely to take up the 5 for 10 offer n425.
24
Enclosed Ecobulbs
25
Preference for enclosed versus spiral Ecobulbs
Dont know
Prefer spiral Ecobulbs
Prefer enclosed Ecobulb
No preference
Source Q6. Below is a picture of a modern energy
efficient lightbulb (called an Ecobulb) . . .
Ecobulbs also come in an enclosed form, shown
below. This version of Ecobulbs are just as
bright, last as long, and are as energy efficient
as the spiral Ecobulbs. As with the spiral
Ecobulb, the enclosed Ecobulbs are also available
in a bayonet fitting. Shown next to the two
Ecobulbs is a standard lightbulb so you can see
the relative size of each. Which type of Ecobulb
would you prefer to have in your home? Base All
respondents n500.
26
Profile of those who prefer the enclosed Ecobulb
Dont know

• Enclosed Ecobulbs were likely to be preferred by
• Households which dont currently use energy
  saving lightbulbs 53 of these households
  prefer the enclosed bulb.
• Households in the South Island 46 of
  households in the South Island prefer the
  enclosed bulb. Preference is slightly higher in
  Christchurch (51).
• Households with an income of 60,000 to 79,999
  51 prefer the enclosed bulb.

Prefer enclosed Ecobulb
Source Q6. Below is a picture of a modern energy
efficient lightbulb (called an Ecobulb) . . .
Ecobulbs also come in an enclosed form, shown
below. This version of Ecobulbs are just as
bright, last as long, and are as energy efficient
as the spiral Ecobulbs. As with the spiral
Ecobulb, the enclosed Ecobulbs are also available
in a bayonet fitting. Shown next to the two
Ecobulbs is a standard lightbulb so you can see
the relative size of each. Which type of Ecobulb
would you prefer to have in your home? Base All
respondents n500.
27
Likelihood of buying enclosed Ecobulbs at each
price point
Source Q7a to Q7e. How likely would you be to
buy enclosed Ecobulbs at . . . A bulb? How many
would you buy at . . .? Base People who prefer
enclosed Ecobulbs n202.
28
Total number of NZ households likely to buy
enclosed Ecobulbs at each price point
These estimates are calculated by multiplying the
percentage who said extremely likely and very
likely to buy by a factor which has been
calibrated in other product development research.
The resulting percentage is then multiplied by
the number of households in New Zealand
(1,548,000 according to the 2006 census). Please
note that the estimates are based on 100
awareness which is never achieved in actuality.
Projected number of NZ households who will buy at
each price point
Price
Source Q7a to Q7e. How likely would you be to
buy enclosed Ecobulbs at . . . A bulb? Base All
respondents n500.
29
Total number of enclosed Ecobulbs likely to be
sold at each price point
The estimates are calculated by multiplying the
number of households likely to buy at each price
point (on the previous slide) by the average
number of bulbs those extremely or very likely to
buy intend to buy. Again please note that the
estimates are based on 100 awareness which is
never achieved in actuality.
Projected number of bulbs bought at each price
point
Price
Source Q7a to Q7e. How many would you buy at . .
.? Base All respondents n500.
30
Halogens and Ecobulb downlights
31
Recessed halogen lightbulbs in the home
Dont know
Have halogens recessed in the ceiling
The 38 equates to 603,700 households across New
Zealand.
Dont have halogens recessed into the ceiling
Source Q8a. Does your home have any halogen
lightbulbs recessed into your ceiling? Base All
respondents n500.
32
Number of recessed halogen lightbulbs in the home
The average is 10.70 bulbs per home which equates
to 6,459,600 recessed halogen lightbulbs in New
Zealand.
Number of recessed halogens in the home
Source Q8b. How many halogen lightbulbs recessed
into your ceiling does your home have? Base
People with halogen lightbulbs recessed into
their ceiling n190. Percentages exclude dont
know.
33
Perceived cost of an Ecobulb downlight (i.e.,
bulb and fitting)
75 of people with recessed halogens think that
Ecobulb downlights will cost less than 25.
50 of people with recessed halogens think that
Ecobulb downlights will cost 10 or less.
Cumulative percentage
There was a high level of uncertainty about what
an Ecobulb downlight might cost 41 of people
with recessed halogens said that they didnt know.
Estimated price
Source Q9 Below is a picture of a modern energy
saving downlight bulb and its fitting (called an
Ecobulb downlight). The Ecobulb downlight
directly replaces 50W halogen downlight bulbs and
fittings, while only using 15W of electricity.
Shown next to it is a standard 50W halogen
downlight bulb and fitting so you can see the
relative size of each. The Ecobulb downlight is
. . . About how much do you think it will cost to
buy one Ecobulb downlight (i.e., bulb and
fitting)? People with halogen lightbulbs
recessed into their ceiling n190. Percentages
exclude dont know.
34
Preferred places to buy Ecobulb downlights
The most frequently mentioned other was Mitre 10.
Source Q10. From which of the following places
would you prefer to purchase Ecobulb
downlights? Base People with halogen lightbulbs
recessed into their ceiling n190. Percentages
exclude dont know.
35
Likelihood of buying Ecobulb downlights (i.e.,
bulb and fitting) at each price point
Source Q11a to e. How likely would you be to buy
an Ecobulb downlight at . . . a downlight? How
many would you buy at . . . Base People with
halogen lightbulbs recessed into their ceiling
n190. Percentages exclude dont know.
36
Total number of NZ households likely to buy
Ecobulb downlights (i.e., bulbs and fittings) at
each price point
These estimates are calculated by multiplying the
percentage who said extremely likely and very
likely to buy by a factor which has been
calibrated in other product development research.
The resulting percentage is then multiplied by
the number of households in New Zealand
(1,548,000 according to the 2006 census). Please
note that the estimates are based on 100
awareness which is never achieved in actuality.
Projected number of NZ households who will buy at
each price point
Price
Source Q11a to e. How likely would you be to buy
an Ecobulb downlight at . . . a downlight? Base
All respondents n500.
37
Total number of Ecobulb downlights (i.e., bulbs
and fittings) likely to be sold at each price
point
The estimates are calculated by multiplying the
number of households likely to buy at each price
point (on the previous slide) by the average
number of bulbs those extremely or very likely to
buy intend to buy. Again please note that the
estimates are based on 100 awareness which is
never achieved in actuality.
Projected number of bought at each price point
Price
Source Q11a to e. How many would you buy at . .
.? Base All respondents n500.
38
Unprompted reasons people unlikely to purchase
Ecobulb downlights those people not interested
in Ecobulb downlights
The price range you have suggested would mean I
would have to outlay a lot of money to replace
all my downlights. With 7 downlights they are
too expensive.
Because it requires a electrician to inspect the
installation and what about the transformers for
them etc. There are a lot of extra costs unlike
the standard bulbs discussed in the first part of
your survey. Because of the cost of an
electrician to first test out the
fittings/directions etc.
Because they are unattractive. Because I think
the shape is so ugly that I wont buy anymore for
my house.
Source Q12a. Why would you be unlikely to
purchase Ecobulb downlights? Base People
unlikely to purchase Ecobulb downlights at any
price n122.
39
Prompted reasons people unlikely to purchase
Ecobulb downlights those people not interested
in Ecobulb downlights
Source Q12b. How much of an influence did each
of the following have on you being unlikely to
purchase Ecobulb downlights? Base People
unlikely to purchase Ecobulb downlights at any
price n122.
40
Things that would reduce likelihood of buying
Ecobulb downlights those likely to buy
The cost is a huge factor. At 10 a bulb I would
buy only when old ones need replacing as opposed
to going out and replacing all at once. The
cost of changing the fittings and bulbs being
more than the apparent cost savings.
Having to get an electrician in to check the
fittings. . . . Electrician would cost a lot to
get in to check as well.
. . . and how they look in the fitting ie do
they stick out. The appearance of them.
Source Q12c. What, if anything, would reduce
your likelihood of purchasing Ecobulb
downlights? Base People likely to purchase
Ecobulb downlights at, at least one price n68.
41
Likelihood of buying Ecobulb downlight bulbs
(i.e., the bulb only) at each price point
On av. would buy 11.04
On av. would buy 8.79
On av. would buy 7.63
On av. would buy 6.81
On av. would buy 5.06
Source Q13a to e. If instead of needing to buy
the entire Ecobulb downlight, you could just buy
the Ecobulb bulb to replace the halogen downlight
bulb, where each Ecobulb downlight will save you
up to 60 electricity over its life. No
electrician will be required. How likely would
you be to buy an Ecobulb downlight at . . . a
bulb? How many would you buy at . . . Base
People with halogen lightbulbs recessed into
their ceiling n190. Percentages exclude dont
know.
42
Total number of NZ households likely to buy
Ecobulb downlight bulbs (i.e., the bulb only) at
each price point
These estimates are calculated by multiplying the
percentage who said extremely likely and very
likely to buy by a factor which has been
calibrated in other product development research.
The resulting percentage is then multiplied by
the number of households in New Zealand
(1,548,000 according to the 2006 census). Please
note that the estimates are based on 100
awareness which is never achieved in actuality.
Projected number of NZ households who will buy at
each price point
Price
Source Q13a to e. If instead of needing to buy
the entire Ecobulb downlight, you could just buy
the Ecobulb bulb to replace the halogen downlight
bulb, where each Ecobulb downlight will save you
up to 60 electricity over its life. No
electrician will be required. How likely would
you be to buy an Ecobulb downlight at . . . a
bulb? Base All respondents n500.
43
Total number of Ecobulb downlight bulbs (i.e.,
the bulb only) likely to be sold at each price
point
The estimates are calculated by multiplying the
number of households likely to buy at each price
point (on the previous slide) by the average
number of bulbs those extremely or very likely to
buy intend to buy. Again please note that the
estimates are based on 100 awareness which is
never achieved in actuality.
Projected number of bought at each price point
Price
Source Q13a to e. How many would you buy at . .
.? Base All respondents n500.