marketing plan
mahesh123
Marketingplan.docx
Green Power
(power your home green)
Executive summary
Green Power is an electricity generation organization based on renewable source of energy wind, it is kind of micro vertical axis wind turbine which can easily mounted in the house roof top to produce electricity using the wind energy. Moreover, Green power produces the unique product that has the quality of environmental protection along with the supreme quality. Furthermore, Green Power supports the consumer starting from installation, demo and maintenances for the product throughout the product life.
Major emerging trend in the New Zealand government is low carbon economy and also strategy to convert energy generation in New Zealand to renewable based one by 2030. Furthermore, consumers are more focused on the environmental concern and they make their choice based on that along with other attributes like price, quality and so on. Eventually, Green power also has its product most suitable for the energy strategy by New Zealand government and customer choice on environmental sustainable products will make a better growth for Green power if the planned strategies are used effectively.
New Zealand government removes the barriers on production of renewable electricity in small scale also effectively helps the Green Power to grow in the New Zealand energy market, however it will also promote other renewable source energy generation organizations to grow but the Green Power with its unique quality and service it can be the leader in the renewable energy market.
This small initiative by Green Power can full fill the larger scope of the New Zealand government target towards the environmental protection and low carbon emission. Moreover, people in New Zealand also help the government to achieve its goal towards environmental by changing towards ecofriendly products like renewable source of energy from Green power which save the mother Earth for the future generation.
Situation analysis
Environmental Analysis
Political
(National Policy Statement for Renewable Electricity Generation 2019 ) In the view of Green Power issues in New Zealand with respect to politically is seen from the National Policy statement for small renewable electricity generation projects challenges in obtaining resource has to be elevated and promotes all kind of small scale renewable energy electricity generation project in New Zealand. Moreover, (Policy Series: Tackling Climate Change 2017) New Zealand government targets the 100% electricity generation from renewable source by 2030 and existing policy of 90% renewable energy by 2025. Hence, it is every clear from the above details that Green Power will face multiple competitors from other source of renewable energy such as solar, photovoltaic cells etc., in the New Zealand market in future due to the government favorable policy on renewable energy generation .
Economic:
There few economic factors to be analyzed in market to know the growth of the product in this New Zealand market such as demand for electricity and cost spent by consumer on electricity in average. (Electricity in New Zealand 2018) According to electricity authority in New Zealand total household electricity used in the year of 2017 is 1,720,000 KWh and (New Zealand’s energy outlook electricity insight n.d)electricity demand to be growing on an average of 1.1% per annum to reach 50 TWh by 2040. Moreover, (Electricity cost and price monitoring 2019) average household annual electricity cost is $2033 in 2018 and $2077 in 2019 and households are spending greater portion of income in energy for the home. Furthermore, New Zealand government states that their energy sector has to be focused on helping in achieving the low emission economy. Therefore, it is clear that there will be a demand huge demand for electricity from renewable source in near future. So, the Green Power growth in New Zealand market is feasible
Social
When launching a new product its essential to consider the emerging trends across the country for the sustainability of the product in the market. Customer in the New Zealand market undergoing an emerging trend of taking control over their electricity usage and they are more mobile, socially and digitally interconnected. Moreover, (The Rise of the Conscious Consumer 2015) there is a growing demand for environmental friendly and socially conscious products in New Zealand market. Therefore, the customers are more concerned about the environment and electricity usage in their household, so this will provide a competitive advantage for the Green Power in New Zealand.
Technological
The technological advancement in and around countries need to be assed for the growth of the Green Power in New Zealand Market. (Emerging technologies and research for New Zealand’s economic development and associated risk management 2011) Emerging technology change in energy sector towards clean energy in New Zealand has the greater advantage in the market because of the increased demand of electricity generation in sustainable way such as tidal, solar, geothermal and wind. Advancement in material sciences providing a way for better conversion and storage of electricity such as photovoltaic panels, sensors, batteries, phase change material and so on. Furthermore, biologically modified organisms can produce the fuel materials and also used for cleaning up of fossil fuels. As a result of all the advancement in above mentioned technology possess a potential threat to Green Power growth, however, Green Power will also contribute towards the clean energy so it will be the competitive products to all other clean energy products in market.
Legal
There are legal regulations which in favor for Green Power such as (Palmer, K., & Grinlinton, D. 2014) the New Zealand energy strategy 2011 -2021 suggest that government retains the 90% of electricity generation should be from a renewable source by 2025. Furthermore, the energy efficiency and conservation authority (EECA) which is one of the three major agencies to implement and formulate government energy polices has the mandatory requirement to promote renewable energy policies and use. All this above mentioned polices by government are promoting the use of renewable energy in New Zealand as a source of electricity.
Environmental
The environmental consideration by the New Zealand government suggests that reducing greenhouse gas from emission. (New Zealand Energy Strategy 2007) to 2050 Moreover, government has target of 50% reduction in greenhouse gases in New Zealand from 1990 levels by 2050 and also polices that which promotes the renewable source of energy for electricity generation with lower level of carbon emission. Since, Green Power is an ecofriendly way of generating electricity to our household. Hence, that is capable of helping the New Zealand government environmental target of reducing carbon emission and greenhouse gas.
SWOT Analysis
Strength
· Green Power has the sound environmental friendly property which makes easy to marketers to reach our products with customers easily.
· Green Power takes responsibility for customer from the installation to the maintenances which makes the customer more loyal to the brand.
· Green Power targets only the household consumers where the people are more likely to save their energy cost for using conventional electricity.
· Green Power works on the principle of vertical axis wind turbine so it has the better advantage in New Zealand with its low operating wind speed.
· Green Power has the battery back-up to overtake the electricity demand in house in the absence of wind.
· Green Power contribution to the protection of environment and helping towards the low emission economy will make the product to stand out in the market.
· Green Power is very easy to install and remove from the house top without any changes or damage to the house.
· By using Green Power makes customer free from paying bills for electricity and saves the cost on fixed tariff for conventional electricity
Weakness:
· High initial cost for the installation of green power compared with conventional electricity grids.
· Green power has the moving parts so it’s subjected to breakdown whereas solar power dose not has any moving parts.
· New Zealand people are more used with the regular convention grid line source of electricity so converting them to an electricity producer by own is challenging.
· Green Power stores energy on battery for backup which need regular checkup to ensure the proper order whereas, conventional sources doesn’t require any of those checkups
· Customers with in the region of low wind speed need to have alternative source of electricity to manage the demand when the wind speed is not sufficient.
Threats
· Due to the government police towards the clean energy there are already well established solar energy market players like Solarcity NZ, ZEN Energy Systems NZ and so on, will take this as an advantage and create heavy competition in the New Zealand market.
· High cost on material purchase due to the non -favorable foreign exchange and relying more on overseas suppliers.
· New Zealand has already well-established electricity supply throughout the house hold so penetrating into the conventional market will be challenging.
Opportunity
(Palmer, K., & Grinlinton, D. 2014) New Zealand government has the strong energy policy of converting its countries 90% of electricity from a renewable source which in turns helps the Green Power to establish in the New Zealand market as a renewable source of electricity supply.
Marketing Strategy
Segmentation and Targeting
Behavioral
(Electricity in New Zealand 2018) New Zealand has total electricity consumption of 38,800GWh market is segmented based on consumption as commercial, industrial and residential. Moreover, has 44% industrial, 32% residential and 24% commercial consumption has been done in the year of 2017. Furthermore, based on this above figures it’s clear that electricity has been consumed by three segments such as commercial, industrial and residential.
Targeting
Based on our segmentation we planned to target the residential segment since it has the second largest consumption and also sustainability of the green power in that segment is very high compared with other industrial and commercial consumers. (Differences In Selling B2b Vs. B2c 2015) Due to the residential segment are directly involved with business to consumers so has the brand appeal and growth.
Positioning
According to Aaker, D. A., & Shansby, J. G. (1982) position by attribute is useful strategy for positioning a new product in customer mind using an attribute that competitors are ignoring. Furthermore, green power produces the electricity with the backup of battery powered and has the ability to produce the electricity even in the night times using the wind whereas other competitors using solar power are failed to fulfill the electricity demand in night. Hence, using this special attributes the green power can be positioned well over other competitors in the consumers mind.
Other strategy mentioned by Aaker, D. A., & Shansby, J. G. (1982) position by quality based on the environmental friendly quality of the green power it can be used to influence in the consumer mind over other products in the market since New Zealand consumers are more concern about the climate and environmental change. Hence, combination of above to position strategy can be used to place the green power in household customer mind.
Green Power Competitors
There are many potential competitors with retail level with both the conventional electric energy and renewable energy using solar.( Power Companies: Which Is the Best? n.d) The competitors using conventional energy are Flick Electric, Powershop, Energy direct and competitors using renewable energy Ecotricity, Genesis Energy. Even though those competitors in conventional are purely based on generation and distribution they are holding a greater market share and the other using solar to generate electricity in home are having lower market share compared with conventional source of electricity. However, based on the government policy towards the renewable energy and consumer choice on environmental friendly products the present situation has potential to change and green power can competitive advantage of producing electricity at home in absence of solar power. Therefore, green power has the potential to become choice of people based on its attributes and quality.
Marketing Mix
Product
Green Power offers the unique product that brings renewable energy generation by wind in home and also it can be customized based on the customer requirement. Moreover, this product can be marketed using the special attributes which was lagging in the other competitors in the renewable energy electricity generation at home. Furthermore, product has come up with free installation, demo, yearly service, replacement warranty and maintenances support throughout the product life. Hence, all those above mentioned attributes are used to create a brand association among consumer marketing to keep the product on top among other competitors.
Pricing
Monroe (2003) states that pricing is one of the important factors of management decision since it directly affect the profitability and market competitiveness. Moreover, pricing strategy that which green power plan to use is customer value based pricing because we are launching the product with supreme quality along with free service for the product through the product life. Furthermore, other renewable energy electricity supplier also having the similar range of pricing strategies due to their higher manufacturing cost. Therefore, the marketers need to make the consumer understanding on idea behind the pricing with the quality posed by the product to attract more consumers towards the green power.
Place
Green power is launching a unique product so it we planned to distribute our product directly to the consumers. Moreover, when selling a product directly to the consumer we can eliminate the double marginalization problem since we already having high pricing strategy this type distribution channel make sure the customer is not charged more. Furthermore, when sold directly to the customer without retailer we can get the feedback directly from the consumer end so it will improve our product further. Hence, green power will deliver the product directly to the consumer based on the order collected from the marketing team.
Promotion:
Green power is mainly focused on environmental protection and quality of the product that which offered to the customers due to this every camping conducted by green power in new Zealand will address the issues in environmental due to the use of conventional source of fossil fuel and awareness campaign for the product free service, installation and maintenance offered by the green power. Moreover, conducting the demos in the supermarkets on weekends where the household segment can be easily targeted. Providing advertisement on the printed Medias like newspaper, magazine such as Nexus, NZ Logger will cover most of the household consumers and environmental concern consumers to switch towards green power.
Reference
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Aaker, D. A., & Shansby, J. G. (1982). Positioning your product. Business horizons, 25(3), 56-62.
About the National Policy Statement For Renewable Electricity Generation https://www.mfe.govt.nz/more/energy/national-policy-statement-renewable-electricity-generation/about-nps
Differences In Selling B2b Vs. B2cChuck Cohn - https://www.forbes.com/sites/chuckcohn/2015/06/16/differences-in-selling-b2b-vs-b2c/#44b8f1534fb2
Electricity Cost and Price Monitoring (2019) https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-statistics/energy-prices/electricity-cost-and-price-monitoring/
Electricity in New Zealand 2018-retrived from https://www.ea.govt.nz › dmsdocument › 20410-electricity-in-new-zealand
Emerging technologies and research for New Zealand’s economic development and associated risk management –retrieved from https://www.mfe.govt.nz/sites/default/files/emerging-technologies-and-research-literature-review_0.pdf
Energy Strategy and Policy https://www.eeca.govt.nz/energy-use-in-new-zealand/energy-strategy-and-policy/
Monroe, K. B. (2003). Pricing : making profitable decisions. McGraw-Hill/Irwin. Retrieved from http://search.ebscohost.com.ezproxy.aut.ac.nz/login.aspx?direct=true&db=cat05020a&AN=aut.b10451444&site=eds-live
New Zealand Energy Strategy 2007 retrieved from http://www.mcguinnessinstitute.org/wp-content/uploads/2016/08/nzenergystrategyto2050.pdf
New Zealand’s energy outlook electricity insight ( n.d) Retrieved from-
Palmer, K., & Grinlinton, D. (2014). Developments in renewable energy law and policy in New Zealand. Journal of Energy & Natural Resources Law, 32(3), 245-272.
Policy Series: Tackling Climate Change Jamie Morton - https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11907790
Power Companies: Which Is the Best?Person - https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11477170
The Rise Of the Conscious ConsumerGary Farrow - https://www.nzherald.co.nz/element-magazine/news/article.cfm?c_id=1503340&objectid=11382530
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