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A LIGHTING SOLUTION
Electricity is one of the primary needs for modern human being. In big cities around the world,
we cannot imagine how we could live without them. Right from the simple things such as light
up our houses in the darkness of the night, to the more complex things such as national
security, these things need electricity. However, not all of the population in this planet can enjoy
the privilege of having electricity. In fact, there are still 1.3 Billion of people still lack access to
electricity1.
Now imagine that your house is having a blackout. It is pretty interrupting our daily activities
even though it only last for a couple of hours, and in big cities like Jakarta, it is regulated that the
electricity cut-off can not be more than 3 hours2. This condition happens every time in the rural
remote areas that have no access to electricity. Their daily activities like studying, working, and
harvesting seems normal within the daylight. But within nighttime, they are struggling to get
enough light to do their activities.
To overcome their lighting problem, they use the technology that is ancient and inefficient, which
is kerosene lamp. The usage of kerosene lamp isn’t as simple as imagine. The energy sources
is inefficient, polluting and unhealthy. Per unit of emitted light or heat, the user of Kerosene lamp
pay higher prices than the privileged, including the time they spend obtaining or collecting fuel.
Kerosene lamps convert only 65 percent of their energy to light.
Kerosene is far more expensive than electric lighting. Cost of useful lighting energy services
($/lumen hour of light) for kerosene lighting is 325-times higher than 'inefficient' incandescent
bulb, and 1625-times higher than compact-fluorescent lighting3. One lamp consumes 0.04 to
0.06 litres per hour, and the daily usage at three to four hours. 1 litre of kerosene per week x
$1.00 USD= $52.00USD/year. 96 billion litres of kerosene/year at a cost of $96 billion USD/year
– is the estimated cost of kerosene in developing world. (assuming kerosene $1.00 USD/litre).
In comparison, the total energy use (all sectors and fuels) in Austria, Sweden and in the UK is
estimated at 38 billion litres4.
Kerosene lamps cause local and indoor air pollution - a nasty mix of particulates, carbon
monoxide and carcinogenic gases. Smoke from kerosene lamps is responsible for respiratory
infections, lung and throat cancers, serious eye infections, cataracts as well as low birth
weights. Acute respiratory infections like influenza and pneumonia kill nearly 2 million children in
developing nations each year, more than the annual number of all deaths at all ages from all
causes in the European Union5.
Using another method of energy production seems like not in favor of those who are living in the
rural remote area. There are some of the methods which are solar panel and simple generator.
But those methods still have some constraints. For example, solar panel only efficient enough to
power their need of electricity in the daylight, and as we know, with the average of rainy days in
Indonesia, for example, is 3000 mm per year7. It will cause them hard time to obtain electricity in
that condition. And for simple generator, it will be expensive to own and to run.
Having the fact there are 1.3 billion people that have no access to electricity, the challenge is
how we can provide a cheap, efficient, environmentally friendly and economical lighting product
to support their daily activities?
III. Analysis
1. Product Introduction
Knowing the danger and inefficiency of kerosene lamp, we want to offer a solution that is
simple but effective. We think of giving the good side of the alternative energy method
and take away the bad side of those.
That is where Lumir came in. Lumir is an initiative that is only has one purpose, which is
to bring the beauty of the light to everybody by resolving the light shortages and
delivering the beauty of light. Lumir has been started since it realize that 1.3 billion
people in the world still lack access to electricity.
We will launch a product that is suitable for most people, which is Lumir K. Lumir K is a
LED Light that is powered by a regular cooking oil that is cheap, efficient, and can be
found anywhere.
2. Technical Analysis
6 Op Cit.
7 https://www.bps.go.id/statictable/2017/02/08/1959/jumlah-curah-hujan-dan-jumlah-hari-hujan-di-stasiun-
pengamatan-bmkg-2011-2015.html
Lumir K is a LED light that use cooking oil as its fuel. It uses seebeck effect which is the
conversion of heat directly into electricity at the junction of different type of
semiconductor. When there is a temperature difference between the joints, the electron
energy levels in each metal shifted differently and a voltage difference between the
junctions created an electrical current. So that's how we can turn on the LED only with
the heat of the cooking oil. Also since the cooking oil is not a stable heat source, we had
to stabilize the thermoelectricity. By our patented technology, we could stabilize the
electrical power and makes it possible to operate by small flame without flickering. The
heat from the flame rises into the heatsink, where the temperature difference occurs.
Then it generates thermoelectricity which is the power for the LEDs at the top. Right
above the heatsink, there is a main tube like chimney which makes proper airs to flow to
support combustion.
For the cost of operating itself is very cheap, Lumir K only uses 1L of cooking oil to light
up the LEDs for 200 Hours, that is equivalent to one month of usage. With provided fuel
tank of 100 ml, one refuel can light up to 20 hours. It means that using it for a month will
only cost the user 1 US$ for the price of the average cooking oil or 12 US$ per year. In
comparison, One kerosene lamp consumes 0.04 to 0.06 litres per hour, and the daily
usage at three to four hours. 1 litre of kerosene per week x $1.00 USD=
$52.00USD/year. Means that using our product will save the user up to 40 US$ per year.
For the module construction, we are very optimistic to say that it can last up to 10 year of
continuous usage. We use ABS plastic as the exterior shell of the module as it is cheap,
but strong enough to handle the heat generated from the fuel and the LED light itself.
For the LED housing, we place it high enough to make sure the LED light’s performance
will not get interrupted by the heat and the smoke of the cooking oil. And lastly, for the
LEDs, we use LG innotek’s 1 watt LED lamps that is equivalent to 8 watts of standard
bulb. It means that it will be cheap and easy to run at the same time also bring brighter
light with up to 98 lumens.
In comparison to other lighting method, In the case of kerosene lamps, only 10 % of the
energy from the fuel is used for illuminating because the flame itself is a direct material
that emits light, the rest of the 90% of the energy is just wasted, scattered in the air.
If we can imagine to only take the good side of the other energy production method,
which is solar system and generator, and take away the bad side of it so it can be used
anywhere and anytime
While we provide harness 90% of the heat energy to bu utilised, by simple logic, it
should be very economical.
Our product can be used anytime and anywhere while solar lamps has a big weather
constraints in many areas where the average rain days are more than 160 days. We can
see for the table and figure below to understand the details.
PESTEL Analysis
Politic
Lumir K is a Start-up company. It’s produce a new product to the market. Replace the
Karose Lamp to new product. Because of it’s a new product it begin will small company.
Economic
Maintenance Cost for this product is still low. Because the product can last long. It’s
around 20 years. Lumir K only uses 1 liter of cooking oil for 200 hours, which costs
about $1 for a month. 80% Savings of fuel costs. The lamp is powered by affordable
cooking oil and palm oil that local people can easily purchase anywhere.
Social
Net working with KOICA(Korean International Cooperation Agency), Industrial Bank of
Korea, and SK
Technology
Compared to kerosene lamps, it provides 2.6 times brighter light while reducing the fuel
consumption by 80%. Moreover, it can be used for a long period as its main part,
Thermoelectric modules, can work for more than 10 years. You don’t charge it. No
noise. It’s always usable.
Environment
It reduces the emissions of CO2 and CO that threaten the user’s health and the
environment up to 92.8% and 85% respectively.
Legal
This product still production in Korean so it will conduct the Asean-Republic of Korea
Free Trade Area as their legal activity.
This product also will involve with Custom Regulation in Indonesia. Export and Import
Policy between Korea-Indonesia also.
3. Market Analysis
Market Analysis is the qualitative and quantitative assessment of a market. In analyzing
the market, we use TAM(Your Total Available or Addressable Market) SAM(Your
Segmented addressable Market or Served Available Market) SOM(Your Share of the
Market, Your Target Market) market analysis.
Our product belongs to the energy market and our Total Available Market is those
1.3billion people in the world with no access to electricity. The approximate value of the
total available market reaches to 27 billion US dollar.
Our product is a type of an alternative energy source and according to the World bank,
the percentage of alternative energy source out of the total electricity consumption is
about 17.5percent. Thus our Serviceable Available Market can be calculated as 17.5%
of our TAM, that is 4,700million US dollar.
Finally, our target market is the alternative energy market in developing countries in Asia.
Aroung 53% of the people with no access to electricity lives in developing countries in
Asia, and so our SOM can be calculated as 53% of SAM, that is 2,500million US dollar.
We chose this industry because it is very big in size and our product with its innovative
technology and efficiency, can be the best alternative of our chosen market.
Our final users are definitely people who do not have access to electricity, specifically
light. However, they may not be able to afford to buy our product because of money
problems and accessibility reason. Under these circumstances, we have chosen our
target customers as follows:
1. CSR. CSR stands for Corporate social responsibility, also known as corporate
sustainability. It is an international private business self regulation. Nowadays
most of listed companies follow CSR. CSR strategies encourage the company to
make a positive impact on the environment and benefit the society and
underprivileged sections. Considering our product as environmentally friendly,
economical and efficient, companies with CSR could provide our products to our
final users. Thus, companies with CSR could be our primary target customer.
4. Value Analysis
This section explains the value that our product offers with Value Proposition Canvas as
the tool to analyze it. This tool is useful because it breaks two most considered
perspectives, customer perspective and the product perspective. It helps us to think a
more structured way so that developers can easily explain the product to the customer
and the customer can also easily understand.
Although the product perspective is depicted on the left side, analyzing the canvas is
started from the right side which talks deeply about what the customers do and what
they feel in doing it.
However, they may sometimes find pains to do so. For example, a company wants to
build infrastructure like irrigation system. It is very nice and much needed by the locals
but it requires more time, cost and any complicated process involved such as approval
from the local government. As for the locals or the end users side - especially children -
they cannot compete well with those who live in more developed city because they can
only do activities like reading, doing homework in the daylight. On the other hand,
children in cities can do that up until midnight since electricity has been more developed
there.
On the other hand, the gain side from the customers is what they expect from what they
do can make them happy. Basically, they are satisfied if the product helps them save
time and money. They want an effective product without complicated procedures which
can provide primary needs - in this case lighting - and improve locals’ productivity.
Companies which do CSR would also consider its impact to the environment and locals
feel enthusiastic to meet the company’s representatives giving this product.
Finally, this part explains the values our product could offer which can be seen from the
left side of the Value Proposition Canvas. To relieve those pains mentioned before, we
offer you a portable LED lamp. So before, the government completely develop electricity
in those rural areas, companies do not need to build something but give an alternative
source of light. We believe it does not require complicated procedures and time
consuming. Unlike candles or kerosene powered lamp, it has more than 10 years of
lifespan and ability to illuminate approximately 25m 2 room. Moreover, it helps children
read better without any annoying disruption like accidental fire at night.
Lastly, companies, governments, must be very happy if locals’ needs are fulfilled. With a
very simple and easy to use product, locals can boost their productivity. Instead of
kerosene, it only needs cooking oil and lighter to light their house. Moreover, the LED
lamp is interchangeable and companies have not to worry about the environment
anymore because this product is less of CO2 and CO.
And other stage there is early majority it’s around 34% it’s usually longer stage than the
other. Late majority which this product will decline it’s around 34%, and last stage
laggard consist of 16 %.
REFERENCES
Andy Rachleff. 2014. Startups Always Have a Chasm to Cross. Retieved from
https://medium.com/@arachleff/startups-always-have-a-chasm-to-cross-61b79215ac05
Mills, E. (1999). Developing a next generation community college curriculum for energy
efficiency high performance building operators.
https://finance.detik.com/energi/d-2245667/pln-pemadaman-listrik-tak-boleh-lebih-dari-3-jam
https://www.bps.go.id/statictable/2017/02/08/1959/jumlah-curah-hujan-dan-jumlah-hari-hujan-di-stasiun-
pengamatan-bmkg-2011-2015.html
https://data.worldbank.org/indicator/eg.elc.accs.zs
Osterwalder, Alexander. (August 29, 2012). Achieve Product-Market Fit with our Brand-New
Value Proposition Designer Canvas. Retrieved from
http://xxxxxxxxxhttp://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-
with-our-brand-new-value-proposition-designer.html