Philips, the Dutch multinational conglomerate, is assessing whether to enter the business-to-consumer (B2C) LED lightbulb market in the United States. Philips has already been serving the business-to-business (B2B) market with moderate success, but it has completely ignored the B2C market. Now, a change in energy taxes and possibly additional regulatory changes have the company reevaluating that decision.

This case is designed as an exam case. It arose out of a joint effort between Darden and Boston Consulting Group to develop digital content that could be used both at universities and in certain industry applications. Please note that it assumes some familiarity with conjoint analysis. At Darden, this case has been used as an exam in a required “Marketing Management” course; it would also be suitable in courses focused on pricing or marketing strategy.