Market Analysis on Segmentation and Selection

I. Executive Summary

Introduction

Demand for solar panel installation continues to rise. Solar energy was up 17% in 2015 from 2014 and surpassed natural gas installations for the first time in the history of the market. This is due to competitive pricing with gas as the installation costs of solar panels continues to drop (Martin, 2016). This promising rise will lead to increased demand for consulting services, as converting a business or organization to renewable energy can be a long and confusing process. We plan to address this trend and fill a gap in the marketplace in the Boston, MA area for a small and dedicated consulting firm that will act as an effective middle man for the process of switching to renewable energy through the use of solar panels.

Company Description

Daylight Energy Consulting, located in Boston Massachusetts, is a solar power energy consulting firm that provides onsite energy improvement strategies, and solar power system installation, for local businesses looking to save money and meet sustainability goals. We will conduct onsite energy audits to evaluate a business’s renewable energy potential, and then work with our clients to design a solar installation project that fits best their needs. Our service provides resources to reduce long-term energy overhead costs, improves public image, and allow greater energy independence for businesses. Daylight Energy Consulting works to ensure our clients receive the best return on their investment, and the best service from introduction to project completion.

We realize the process to transitioning to solar energy can be perplexing, and somewhat overwhelming. Keeping this in mind, our firm plans to provide friendly, professional, and detail oriented service to our clients all at times.

Industry Analysis

Daylight Savings Consulting will complete in the Renewable Energy industry. In 2007 the solar power industry generated 42.8 million dollars and in 2016 it jumped to 195.9 million dollars (Mei-Pochtler, 2016). The popularity of alternative energy sources has caused many larger consulting firms to open and operate across the United States. The competition in our target area is low, which is a major advantage for our firm. We plan to keep our business small, which will provide our firm with an industry advantage as we will be able to run a leaner business.

Market Analysis

Marketing Plan

Management Team and Company Structure

Daylight Energy Consulting’s management team is comprised of people with many years of experience in the renewal energy sector. Our objective is to create plans that will best suit our customer’s needs. We have a Chief Financial Officer and three directors reporting to the President and CEO. The C.E.O of the organization must have prior knowledge of the industry and excellent management skills. Katherine Barreto’s family has been in renewal energy industry for decades giving her first-hand experience. The three directors of the company are highly experienced and are able to make decisions quickly which is extremely important due to the small size of the management team.

Operations and Development Plan

Financial Projections

Funding Sought

Daylight Energy Consultants currently has no debt, and has been financed equally by each partner. We are seeking a $122,000 line of credit for the first four months expenses while initial customers are being acquired. The following is the breakdown of start up monthly expenses.

· Professional monthly payroll: $12,500

· Management monthly Salary: $14,500

· Warehouse Rent: $2,300

· Monthly Advertising: $1,200

II. Company Description

General Description

Daylight Energy Consulting, located in Boston Massachusetts, is a solar power energy consulting firm that provides onsite energy improvement strategies, and solar power system installation, for local businesses looking to save money and meet sustainability goals. We will conduct onsite energy audits to evaluate a business’s renewable energy potential, and then work with our clients to design a solar installation project that fits best their needs. Our service provides resources to reduce long-term energy overhead costs, improves public image, and allow greater energy independence for businesses. Daylight Energy Consulting works to ensure our clients receive the best return on their investment, and the best service from introduction to project completion.

Mission and Goals

The mission of Daylight Energy Consulting is to gain our clients trust by providing the most energy efficient, and cost-effective solar solutions in the Boston area.

Our goal is to help clients in the Boston area better understand the benefits of incorporating solar powered energy to improve their businesses as well as preserve the environment.

Products and Services

Daylight Energy Consulting will offer one-on-one solar energy optimization consulting services to small businesses in the Boston area. Services will be provided by our field experts both in our home office and on site with business owners and professionals. We will offer various different solutions to meet the needs of our clients based on each individual’s need for solar energy optimization. We will set clients up with installation firms and follow along through every step of the process of the rooftop solar panel installations to ensure both success and complete satisfaction with the product. Additionally, we will stay with clients through the life of their investment in said solar panels and work closely with them should any questions or problems arise.

target market (customers, geographic scope)

In order to avoid head-to-head competition within the industry we have decided to specialize in one specific area. Our target market will be businesses, located within the Boston area, which could benefits from the cost saving provided by solar energy. In May 2015, Boston was voted the top city in the country for saving energy (Harvey, 2015). The city requires that all businesses report their energy use, along with an energy assessment, every five years. This requirement is called the “Building Energy Reporting Disclosure Ordinance.” The report states that all buildings are required to improve their efficiency if they’re not ENERGY STAR certified or showing improvements (Harvey, 2015). I also came across a program within Boston called “Renew Boston Solar.” This program encourages the widespread adoption of solar technology throughout the city. With this information I believe more business, within the Boston area, will be attracted to the consulting services our business will have to offer.

Basis for Differentiation and Competitive Advantage

We at Daylight Energy Consulting plan to differentiate ourselves from the competition and use it to a competitive advantage by keeping our business small and personable. We plan to work directly, face-to-face with clients in an environment which is comfortable for them – be it in our office, in their office, at a designated meeting place, or even in the comfort of their own home. Our experts are professional and kind – we will never act as “pushy” salespeople. We aim to be considered a neutral and knowledgeable 3rd party in the situation, a mediator of sorts. We will very closely with clients, taking the time to ensure each understands what solar panel installation will mean for their business, addressing all possible details to help find the best long-term money saving solution.

Current status

Daylight Energy Consulting is a new partnership, and will begin serving the Boston area in June 2016. To date, the following milestones have been completed.

Milestones Completed:

· Feasibility analysis completed

· Management team in place

· Company name registered.

· Potential warehouse locations selected

· Installation team candidates interviewed

The following milestones are either in progress, or have yet to be completed.

Milestones Remaining to Be Completed:

· Purchase inventory.

· Business plan completion

· Collect data on potential clients

· Hire installation team members

· Sign lease on warehouse

Funding Sought

Daylight Energy Consultants currently has no debt, and has been financed equally by each partner. We are seeking a $122,000 line of credit for the first four months expenses while initial customers are being acquired. The following is the breakdown of start up monthly expenses.

· Professional monthly payroll: $12,500

· Management monthly Salary: $14,500

· Warehouse Rent: $2,300

· Monthly Advertising: $1,200

Legal Status and Ownership

Daylight Energy Consultants is a general partnership owned by its management team, and each of the four partners owns 25% equity in the company.

III. Industry Analysis

Daylight Savings Consulting will complete in the Renewable Energy industry. In 2007 the solar power industry generated 42.8 million dollars and in 2016 it jumped to 195.9 million dollars (Mei-Pochtler, 2016). The popularity of alternative energy sources has caused many larger consulting firms to open and operate across the United States. The competition in our target area is low, which is a major advantage for our firm. We plan to keep our business small, which will provide our firm with an industry advantage as we will be able to run a leaner business.

IV. Product (or Service) Design and Development Plan

V. Financial Projections

References

Martin, C. (2016, February 22). U.S. Solar Surged 17% in 2015 Led by Demand for Rooftop Power. Retrieved from http://www.bloomberg.com/news/articles/2016-02-22/u-s-solar-surged-17-in-2015-led-by-demand-for-rooftop-power

Mei-Pochtler, A. (2016). Revenue of the solar power industry in the United States. Retrieved May 1, 2016, from http://www.statista.com/statistics/289149/revenue-solar-power-industry-united-states/

Harvey, C. (2015, May 20). Boston was just named the top city in the country for saving energy. Here’s why. Washington Post. Retrieved from https://www.washingtonpost.com/news/energy-environment/wp/2015/05/20/why-boston-is-leading-u-s-cities-when-it-comes-to-saving-energy/