ridge energy consultants
DESCRIPTION
Theoretical International Marketing Plan for Ridge Energy ConsultantsTRANSCRIPT
REGIONAL MARKETING STRATEGY
Katie Mah, Candy Tsang, Filip Vukadinovic, Nick Phillips, Reshma Lalany
BUS 447 – Ridge Energy
AGENDA
1. Company Overview2. Regional Market Analysis3. Regional Industry Analysis4. Regional Marketing Strategy5. Target Market6. Entry Strategy7. Marketing Plan (4 P’s)8. Budget9. Implementation10. Q & A
RIDGE ENERGY: COMPANY OVERVIEW
Ridge Energy Consultants is a Canadian company that performs energy efficiency audits for residential homes
RIDGE ENERGY: SWOT ANALYSIS
MARKET ANALYSISNEW ZEALAND & AUSTRALIA
•Lower Power Distance•High IndividualismSocial•Mature & Stable GovernmentPolitical•Strict laws around consumersLegal•75% Home Access to Computer•67% Home Access to InternetTechnological•Diverse range of climates with population along coastlinesGeographic
Regulation•Regulated by Australian Building Codes Board•10 Point energy efficiency rating scale•Training provided by Association of Building Sustainability Assessors (ABSA)
Pricing•Average price: AUS $125 - $150
Promotion
•Consumer communications performed by government
Competition
•Many small companies; no large players•Often provide home renovation services as well
INDUSTRY ANALYSISNEW ZEALAND & AUSTRALIA
Same Diff
Position Ridge Energy as specialists X
Develop Mission statement X
Focus marketing efforts on increasing comfort of homes
X
Use a variety of promotional tools (i.e. radio, newspaper, online, trade shows, etc.)
X
Offer 2 types of audits: standard & premium X
Pricing competitive with industry standards X
REGIONAL MARKETING STRATEGYNEW ZEALAND & AUSTRALIA
TARGET MARKETREQUIRED CHARACTERISTICS
High income earners
Home has poor energy consumption
Owner-occupiers of target dwellings
Our targetmarket
40 to 60 years old
Average disposable income per week: $700
Home owners 59% with a mortgage 41% without a mortgage
Geo-Market: Melbourne, VictoriaEstimated Target Households: 182,000
Eldest child aged 15 and up
Average number of rooms in home: 3.6
Average number of people in home: 4
Average number of employed persons: 2.5
TARGET MARKETCOUPLES WITH OLDER CHILDREN
35 to 55 years oldHome owners 66% with a mortgage 34% without a mortgage
Geo-Market: Melbourne, VictoriaEstimated Target Households: 67,000
Average number of rooms in home: 3.2
Average number of people in home: 2
Average disposable income per week: $880
Average number of employed persons: 1.7
TARGET MARKETOLDER COUPLES WITH NO CHILDREN
TARGET MARKETSATTITUDES AND MOTIVATIONS
•High Level of Concern among Australians•No evidence that their concern has influenced their big purchase decisions
Environmental Concern
•Consumer are spending lessRecession•Australians – and Victorians in particular – have first-hand experienceClimate Change
•Installation of home insulation is on the rise•61% of homes in 2008 compared to 52% in 1994
Home Renovations
TARGET MARKETSATTITUDES AND MOTIVATIONS
Use less energy3.7%
Rebate offered
0.0%Cost savings10.8%
Achieve comfort82.6%
SURVEY: Australians’ Main Reason for Installing Insulation
Source: Australian Bureau of Statistics. “4602.0.55.001 - Environmental Issues: Energy Use and Conservation.” March 2008.
Main Motivators
TARGET MARKETATTITUDES & MOTIVATIONS
Achieving Comfort
Cost Savings
Government Rebates
Using Less Energy
ENTRY STRATEGYINTO AUSTRALIA
FOREIGN DIRECT INVESTMENTS
COLLABORATIVE ARRANGEMENTS
JOINT VENTURE STRATEGY
PLANNED PARTNER
PARTNERSHIP
RATIONALE FOR ALLIANCE
RIDGEENERGY
•Access to new market•Complementary resources•Industry Insights•Capital (labour and equipment)•Easier entry into Australia•Acquire Australian brand identity
•Entry into Melbourne (largest city in Victoria)•Company / store presence•Sales leads -> audits, products•Gain audit specialists•Enhance brand image and positioning•Increase marketing and exposure
• Two price/service levels: Standard and Premium• Report language: English (but modified to suit the
colloquial English of Australians)
• Report delivered in the form of a CD• Contractors trained according to the Australian
Board of Sustainability Assessors (ABSA)• Uniforms and hybrid company vehicles• Customer service• Technology: FirstRate
MELBOURNE MARKETING PLANPRODUCT
• Online– Revamp Ridge website, banner ads
• Newspaper advertisement in the Herald Sun• Radio ad on Vega 91.5• Trade shows & information booths• Public relations
– Partner with local govt and community• Supporting materials
– Brochures, pamphlets
MELBOURNE MARKETING PLANADVERTISING & PROMOTIONS
MELBOURNE MARKETING PLANADVERTISING & PROMOTIONS
Image Source: www.everblueenergy.com/homeownerinspections.html
• Two price/service levels:– Standard audit ($150)– Premium audit ($400)
• Current prices between $150 to $175 in Canada
• Average Australian industry pricing: AU$125 to AU$150
• Referral discount: refer neighbors 10% off
MELBOURNE MARKETING PLANPRICE
• Company office and retail store in urban areas of Melbourne
• Transportation: company-owned hybrid vehicles• Ridge’s catchment areas: urban and suburban
Melbourne• Retail store: “The Energy Store” - Located outside the downtown core
MELBOURNE MARKETING PLANPLACE
Lowest Cost Highest Cost
Office Space $36,000 $55,000
Renovations $15,000 $30,000
Mini Van $25,000 $35,000
Door Blower Fan (x2) $4,000 $16,000
Contract with ecoMaster (1-time cost) $75,000 $200,000
Uniforms $100 $250
Salary fees (1 rep, 2 auditors) $100,000 $150,000
Newspaper Ads at Herald Sun (twice only) $30,000 $70,000
Radio Advertisements $30,000 $75,000
General office expenses (electricity, gas, computers, internet, etc.)
$12,000 $20,000
Other (website) $500 $1000
TOTAL EXPENSES (1st year) $327,600 $652,250
FIRST YEAR BUDGET
Lowest Cost Highest Cost
Office Space $36,000 $55,000
Mini Van $25,000 $35,000
Uniforms $100 $250
Salary fees (1 rep, 2 auditors) $100,000 $150,000
General office expenses $12,000 $20,000
Other (website) $500 $1,000
TOTAL EXPENSES (after 1st year) $173,600 $261,250
BUDGET AFTER FIRST YEAR
IMPLEMENTATION
ADMINISTRATION Aug Sept Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Develop mission statement
Business license
ecoMaster contract details
Register with ABSA
STAFFING
Recruit staff
Train staff (new & existing)
OFFICE & STORE SET-UPResearch retail and office locationsFinalize retail and office locationsStore renovationsSet up Ridge Energy officeSet up retail storePrepare equipment
ADVERTISING/PROMOTIONSRevamp websiteBanner adsCreate newspaper adCreate radio adSubmit newspaper adSubmit radio adCreate pamphlets & brochuresRegister for trade shows
CAMPAIGN LAUNCHRadio ad air timeNewspaper ad air timeBanner ad air timeTrade show attendancePublic relations effort
2009 2010
CONCLUSION
Thank you!
QUESTIONS & ANSWERS