HHI Plansbook

8/6/2019 HHI Plansbook

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Hyundai Heavy IndustriesElectro Electric Systems Renewable Energy Marketing Analysis

30 January 2009

Daniel Keeyeon Warren email: [email protected] 1
mailto:[email protected]:[email protected]


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Table of ContentsExecutive Summary 3

SWOT Analysis 4

Brand Analysis 5

What is the brand DNA of HHIs Renewable Energy products? 5Marketing Communications Model 6

Solar Market Customers 6Wind Market Customers 6

Brand Building Strategies 8

Trade Associations 8Internet-Based Renewable Energy Media Companies 8Conferences and Forums 9Traditional Mass Media 9RE Specific Magazines and Newspapers 9Festivals and Fairs 10



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Blogs & Social Networking Sites 10Vertical & Horizontal Integration 12

Opportunities 12Information Management System 13

Renewable Energy Knowledge Library Project 13Business Opportunities 15

U.S. Broadband Internet Infrastructure 15Mobile Networking Industry 15Architectural PV Cells 15Native American Lands 16Brownfield Land Reclamation 16Solar Financing 16Smaller Scale Wind Turbines 17

References 18



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Executive Summary

The economic slowdown still has the potential to cast a shadow on the industry as a whole. Clean energy projects around

the world fell by almost 25% during third quarter of 2008 due to fears of recession1. Big American utilities like Florida Power

& Light and Duke Energy have cut down on planned Renewable Energy projects. Despite the possible slow down, Renewable

Energy industry in the U.S. will gain critical momentum in 20092. President Obamas goal of pledging $150 billion dollars for

the next ten years to clean technology has contributed greatly to this build up of momentum3.

Based on a SWOT analysis, this report considers current lack of market share to be the number one weakness to HHI

Electro Electric Systems and offers some suggestions on how to strengthen market shares.

Goals & Objectives of this Report

To increase market shares through increasing Hyundai Heavys brand awareness

To increase market share through Vertical & Horizontal integration

To increase market share by implementing a market management system

To increase market share by exploring market opportunities

Daniel Keeyeon Warren 3


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SWOT Analysis


Multiple industries interested in RE

Government support of Renewable Energy

RE Market has not yet reached maturity

Offshore Floating Wind farms

Strengths Weaknesses

Opportunities Threats

Trusted Global Leader in the Power Industry

Mass Solar Cell (PV) Production Capabilities.

Mass Wind Turbine Production Capabilities

Vertical & Horizontal Integration Potential

Weak brand presence in Clean Technology

Limited involvement with trade organizations

Limited communication with the publicInterna

lto

HHI

Extern

alto

HHI

Global Recession

Raw Goods Shortages (e.g. Silicon)

Government support of RE smaller than ex-

pected


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Brand Analysis

What is the brand DNA of HHIs Renewable Energy products?

Hyundai Heavy builds ships, electric transformers, and various other products and services. To effectively increase HHIs

U.S. market share in the RE industry, the company should have a strong green image. Green Strategies Consulting states,

The best and most successful companies recognize that a clean and healthy environment and strong, sustainable eco-

nomic growth go hand in hand.4The bestexample for this approach is GEs Ecomagination Brand, which states, A busi-

ness initiative to help meet customers demand for more energy efficient products and to drive reliable growth for GE

growth that delivers for investors long term5.

Current external Hyundai Heavy communication states trying to diversify our portfolio by investing in renewable

energy sectors.6 This statement is economic and strategic business centric and doesnt include the sustainability and

green aspect. Therefore it is important that HHI communicate the right brand image to accompany its Renewable Energy

product portfolio. So, what will be Hyundai Heavys Renewable Energy brand promise?



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Marketing Communications Model

Hyundai Heavy should start by developing one central RE mission statement that balances economy with green. How-

ever, Hyundai Heavy will attract different customers based on varying advantages and disadvantages of solar and wind

energy products. Therefore it is recommend that Hyundai Heavys brand communication efforts use different marketing

channels for wind and solar customers. (Figure 1)

Solar Market Customers

Financing is fundamental. Solar panel installation in homes and small businesses are becoming increasing easy and popu-

lar due to recent trends in solar financing7. Financing options such as Berkley First, SunEdison, and MMA Renewable Ven-

tures are driving this trend8. Therefore HHIs solar panels could be marketed to large solar farm installation projects, indi-

vidual homes, and everywhere between.

Wind Market Customers

The end users of wind energy products in the U.S. fall into two basic categories: businesses (maturing) and consumers

(budding). There are two categories of businesses. Large installers of wind farms (energy companies or governments) and

businesses that are looking to reduce their carbon footprint and greenhouse gas emissions, a move which can improve their

green image among competitors and customers.



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Large Scale Projects

Energy companies & Government

HHI Renewable Energy

Growth Strategy

Solar Energy

Marketing Communications

Figure 1

HHI Renewable Energy Growth Strategy Model

Wind Energy

Marketing Communications

HHI Renewable Energy

Mission Statement

Business Consumers

Improve Green Image

Large Scale Projects

Energy companies & Government

Distributers, Retailers, & End Users

Business Consumers

Improve Green Image

Consumer Categories

Distributers, Retailers, & End Users

Define Advantages

&

Disadvantages

Be Genuine in wanting to be green.

**There is consumer mistrust regarding

company motives for going green.**


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Brand Building Strategies

Trade Associations

Get more involved with trade organizations and be an active participant. Trade associations can help Hyundai Heavy

brand by: spreading technical information, statistically monitoring the market, lobbying for favorable policy, and publicizing

RE benefits through media and demonstration projects9. Top five trade organizations:

Internet-Based Renewable Energy Media Companies

These Renewable Energy media companies monitor news regarding technical developments, investment deals, and com-

pany moves. Top six sites:

RenewableEnergyAccess.com

Cleantech.com

GreentechMedia.com

Clean Edge

New Energy Finance

The American Council on Renewable Energy (ACORE)


Solar Energy Industries Association(SEIA)

The Solar Electric Power Association(SEPA)

The American Wind Energy Association(AWEA)

Native American Wind Interest Group(NAWI)

Native Wind
http://www.greentechmedia.com/http://www.renewableenergyaccess.com/http://www.solarelectricpower.org/http://www.solarelectricpower.org/http://www.seia.org/http://www.seia.org/http://www.nativewind.org/http://www.nativewind.org/http://www.windpoweringamerica.gov/na_nawig.asphttp://www.windpoweringamerica.gov/na_nawig.asphttp://www.awea.org/http://www.awea.org/http://www.nativewind.org/http://www.acore.org/fronthttp://www.acore.org/fronthttp://www.newenergymatters.com/http://www.newenergymatters.com/http://www.cleanedge.com/http://www.cleanedge.com/http://www.greentechmedia.com/http://www.greentechmedia.com/http://www.cleantech.com/http://www.cleantech.com/http://www.renewableenergyaccess.com/http://www.renewableenergyaccess.com/


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Conferences and Forums

Attend conferences and forums. Provides Hyundai Heavy with networking opportunities with trade associations, profes-

sional organizations, media groups, and even governments. Better yetwhy not host a regional (Asian) or sponsor an inter-

national conference?

Traditional Mass Media

RE is beginning to be advertised through the mass media. Advertising could promote more investment, encourage major

companies to commit to RE, and create new opportunities for loans and financing. Greater demand would also positively

influence government policies. The cost General RE advertising could be shared through trade organizations. GE took out a

rare Super Bowl (10) TV ad this year (something that the company has not done since 1981) on Renewable Energy11.

RE Specific Magazines and Newspapers

The advertising of Hyundai Heavy branded RE products and services could benefit from advertising in specialty and niche

magazines & newspaper section dedicated to RE industry.

Home Power Magazine

Solar Today Magazine

Mother Earth News

Dwell Magazine

New York Times series: The Energy Challenge

http://www.motherearthnews.com/http://livepage.apple.com/http://www.ases.org/index.php?option=com_content&view=article&id=14&Itemid=22http://www.dwell.com/http://www.homepower.com/home/http://livepage.apple.com/http://livepage.apple.com/http://www.dwell.com/http://www.dwell.com/http://www.motherearthnews.com/http://www.motherearthnews.com/http://www.ases.org/index.php?option=com_content&view=article&id=14&Itemid=22http://www.ases.org/index.php?option=com_content&view=article&id=14&Itemid=22http://www.homepower.com/home/http://www.homepower.com/home/


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Festivals and Fairs

Festivals and fairs create opportunity to engaged public in a personal way and therefore have high word of mouth value.

Hyundai Heavy could deliver experiential marketing to win hearts and minds of festival goers. Examples of festivals include:

SolFest (Hopland CA)

SolWest

RE Fest

The Energy Fair

Blogs & Social Networking Sites

Learn from Obama and get involved in the dialogue. Be transparent and start communicating. This is one of the most cost

effective, yetpowerful ways of spreading the Hyundai Heavy brand. The most concentrated Renewable Energy information

is distributed over the Internet as web logs or blogs12. GE for example, have blogs (GE Reports13), micro blogs (Twitter14) and

dedicated Renewable Energy brand site (Ecomagination15) to communicate with potential investors and consumers alike.

The transparency created by GE through their blogs create a trust of the GE brand and gives the company authority over its

leadership role. (Figure 2)

http://www.re-fest.org/http://www.solwest.org/http://www.the-mrea.org/energy_fair.phphttp://www.the-mrea.org/energy_fair.phphttp://www.solarliving.org/display.asp?catid=17http://www.solarliving.org/display.asp?catid=17http://ge.ecomagination.com/site/http://ge.ecomagination.com/site/http://twitter.com/ge_reportshttp://twitter.com/ge_reportshttp://www.gereports.com/delivering-a-smarter-more-efficient-grid/http://www.gereports.com/delivering-a-smarter-more-efficient-grid/http://www.the-mrea.org/energy_fair.phphttp://www.the-mrea.org/energy_fair.phphttp://www.re-fest.org/http://www.re-fest.org/http://www.solwest.org/http://www.solwest.org/http://www.solarliving.org/display.asp?catid=17http://www.solarliving.org/display.asp?catid=17


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Figure 1

Twitter Strategy Model



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Vertical & Horizontal Integration

An emerging trend in solar and wind competition is to integrate vertically and horizontally. Hyundai Heavy should take full

advantage of both vertical and horizontal integration. Vertical and horizontal integrations could create bundled or value

added systems that could be successful in the market place.

Opportunities

In particular Hyundai Heavys expertise in the field of offshore p latforms could potentially be a powerful industry ad-

vantage. The current trend in mega wind farms is to go offshore16. According to the National Renewable Energy labo-

ratory, the development of floating platforms for wind turbines will be necessary to deploy wind turbines in deeper

waters17.Current capital costs are approximately 30-50% higher than onshore, but these expenses are partially offset

by higher energy yields -- as much as 30%18.

Leverage Hyundai Heavys already existing strengths in the electro electric systems to market bundled complete solu-

tion systems.



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Information Management System

Recent LexisNexis () 19 search returned 638 articles during the past month with the word renewable

energy in the title and over 3,000 articles that contains renewable energy somewhere in the article. The sheer number of

information surrounding Renewable Energy is daunting. Therefore one of the major challenges for Hyundai Heavy is infor-

mation managing. It is the recommendation of this report to install information management system based on employee

involvement. (Example 1)

Renewable Energy Knowledge Library Project

All employees are encouraged to contributing to the RE Knowledge Library

Employees are encouraged to follow and monitor RE news and fill out a one page Summary Report Form

Every week the employee participating employees are placed into a lottery and could win a $100 Hyundai Department

Store Gift Certificate.

Employees would categorize the report by industry trends, competition news, or new business opportunities.

Senior managers could act as librarians and monitor and edit the reports.

http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4


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Renewable Energy Knowledge Library

Type of Report

Solar Energy R&D

Two Sentence Summary

To make Thin Film solar cells more efficient, sprinkle them

with silver.

Why is this important?

This new technology could potentially be a threat to PV

based technology.

Who is Involved?Kylie Catchpole of the Australian National University

Albert Polman of the Institute for Atomic and Molecular

Physics in Amsterdam

Source of the Article

The Economist, January 10th-16th 2009

Is there a web link?

http://www.economist.com/science/displaystory.cfm?story_i

d=12887225

Submitted by

Kim Min Gi: MG.Kim hhi.com

Renewable Energy Knowledge Library

Type of Report

Wind Energy R&D

Two Sentence Summary

Possibly solving the problems of wind turbines interfering

with the radar used in air-traffic control.

Why is this important?

If true, this new technology can help strengthen land

based wind turbine market. Nullify objections from the U.S.

military.

Who is Involved?

Cambridge Consultants (cambridgeconsultants.com)

Source of the Article

The Economist, November 8th-14th 2008

Is there a web link?

http://www.economist.com/science/displaystory.cfm?story_i

d=12551574

Submitted by

Kim Min Gi: MG.Kim hhi.com

Example 1

Sample RE Knowledge library
http://www.economist.com/science/displaystory.cfm?story_id=12887225http://www.economist.com/science/displaystory.cfm?story_id=12551574http://www.economist.com/science/displaystory.cfm?story_id=12551574http://www.economist.com/science/displaystory.cfm?story_id=12551574http://www.economist.com/science/displaystory.cfm?story_id=12551574http://www.economist.com/science/displaystory.cfm?story_id=12887225http://www.economist.com/science/displaystory.cfm?story_id=12887225http://www.economist.com/science/displaystory.cfm?story_id=12887225http://www.economist.com/science/displaystory.cfm?story_id=12887225


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Business Opportunities

U.S. Broadband Internet Infrastructure

Obama administration has stated that the, deployment of a modern communications infrastructure is a priorityand

America should lead the world in broadband penetration and Internet access.20 The biggest challenge to this plans is the

lack of accessibility for millions of Americans living in rural or off-the-grid communities.

Mobile Networking Industry

The GSMA, the global trade association representing the interests of over 750 GSM mobile phone operators worldwide,

launched the Green Power for Mobile program. The program aims to use renewable energy in the developing world for the

powering of off-grid base stations21. In the U.S. 3G networks using wind or solar energies could be installed in rural areas to

bring telecommunication and internet connections.

Architectural PV Cells

Arcelor Mittal is currently marketing, Arsolar Plus Photovoltaic System, steels structures that are built with solar panel inte-

gration in mind22. This could be a great opportunity for Hyundai Heavy to work with steel manufacturers to provide solar

panels as a possible brand leveraging strategy.

http://gsmworld.com/our-work/development-fund/energy/overview.htmhttp://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdfhttp://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdfhttp://gsmworld.com/our-work/development-fund/energy/overview.htmhttp://gsmworld.com/our-work/development-fund/energy/overview.htm


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Native American Lands

Twenty Northern Plains Indian Reservations hold several hundred gigawatts of wind power potential, earning the Dakotas

the title "Saudi Arabia of Wind." Wind power potential on these Indian Reservations alone is more than enough to meet

North American Kyoto targets23.

Brownfield Land Reclamation

Brownfields are abandoned or underused industrial and commercial facilities available for re-use24. The U.S. Conference of

Mayors called for a national commitment to recycle the thousands of brownfields in Americas cities25. Recycling these sites

into energy farms also offer a unique publicity potential for Hyundai Heavy. Actively reach out to local governments with

Brownfields. Explore the possibility of creating a small Marketing (PR) & Sales department that promotes solar energy (and

wind) in cities and towns. Offer to visit local governments to hold town meetings and Q&As to have open discussions

about the role of renewable energy.

Solar Financing

For many potential residential customers and small organizations, the initial start up costs are often deal breakers. SolarCity

signed a deal with Morgan Stanley that will cut homeowners' upfront solar-installation costs to about $2,000 and charge

them a fixed monthly fee -- not a rate -- for solar power. It's the latest in a series of new programs trying to use a commer-

cial financial model to grow the residential solar market26.



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Smaller Scale Wind Turbines

The U.S. consumer market is rapidly changing. Some large-scale manufacturers of wind turbines and other wind energy

products have catered to the U.S. consumer market opportunity by developing smaller scale products to use for homes and

other noncommercial properties 27.



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REFERENCES


1

The Economist. (2008, November 6). Clean Technology in the Downturn [Gathering Clouds]. Retrieved February 1, 2009, fromwww.economist.com/business/displaystory.cfm?story_id=12562281

2 Bosik, D. (2009, January). Wind Power in the U.S. and the World(D. Sprinkle, Ed.). SBI. (Page 90)

3 The White House. (n.d.). Energy & Environment. Retrieved February 1, 2009, from

www.whitehouse.gov/agenda/energy_and_environment/

4 Green Strategies Inc. (n.d.). Retrieved February 4, 2009, from http://www.greenstrategies.com/services/services.html

5 GE Ecomagination. (n.d.). Welcome to Our Vision of a Healthier World. Retrieved February 5, 2009, from General Electric Web site:

http://ge.ecomagination.com/site/6 Kim, K. (n.d.). American Wind Energy Association "View Profile." Retrieved February 1, 2009, from www.awea.org

7 Capello, D. (2008, March). The U.S. Solar Energy Market in a World Perspective (C. Minkler, Ed.). SBI. (Page 65)

8 Kho, J. (n.d.). Battle for Home Solar Financing Begins. Retrieved April 2, 2008, from http://www.greentechmedia.com/articles/

battle-for-home-solar-financing-begins-757.html

9 Sprinkle, D. (2007, November). Renewable Energy Investments in the U.S. (C. Minkler, Ed.). Packaged Facts. (Page 111)

10http://ko.wikipedia.org/wiki/

11 GE Takes Out Rare Super Bowl Ad to Tout Smart-Grid Technology. (2009, January 22). Retrieved February 5, 2009, from

http://online.wsj.com/article/SB123266809474208063.html

12 Sprinkle, D. (2007, November). Renewable Energy Investments in the U.S. (C. Minkler, Ed.). Packaged Facts. (Page 115)
http://ko.wikipedia.org/wiki/%EC%8A%88%ED%8D%BC%EB%B3%BChttp://www.awea.org/http://ge.ecomagination.com/site/http://www.greenstrategies.com/services/services.htmlhttp://www.greenstrategies.com/services/services.htmlhttp://www.whitehouse.gov/agenda/energy_and_environment/http://www.whitehouse.gov/agenda/energy_and_environment/http://www.whitehouse.gov/agenda/energy_and_environment/http://www.economist.com/business/displaystory.cfm?story_id=12562281http://www.economist.com/business/displaystory.cfm?story_id=12562281http://www.economist.com/business/displaystory.cfm?story_id=12562281http://online.wsj.com/article/SB123266809474208063.htmlhttp://online.wsj.com/article/SB123266809474208063.htmlhttp://ko.wikipedia.org/wiki/%EC%8A%88%ED%8D%BC%EB%B3%BChttp://ko.wikipedia.org/wiki/%EC%8A%88%ED%8D%BC%EB%B3%BChttp://www.greentechmedia.com/articles/http://www.greentechmedia.com/articles/http://www.awea.org/http://www.awea.org/http://ge.ecomagination.com/site/http://ge.ecomagination.com/site/http://www.greenstrategies.com/services/services.htmlhttp://www.greenstrategies.com/services/services.htmlhttp://www.whitehouse.gov/agenda/energy_and_environment/http://www.whitehouse.gov/agenda/energy_and_environment/http://www.economist.com/business/displaystory.cfm?story_id=12562281http://www.economist.com/business/displaystory.cfm?story_id=12562281


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13http://www.gereports.com/delivering-a-smarter-more-efficient-grid/

14http://twitter.com/ge_reports

15http://ge.ecomagination.com/site/

16

Bosik, D. (2009, January). Wind Power in the U.S. and the World(D. Sprinkle, Ed.). SBI. (Page 9)17 Musial, W., & Butterfield, S. (2004, June 26). Future for Offshore Wind Energy in the United States. Retrieved February 5, 2009, from

National Renewable Energy Laboratory Web site: http://www.nrel.gov/docs/fy04osti/36313.pdf

18 IBID

19http://ko.wikipedia.org/wiki/

20 The White House. (n.d.). Technology. Retrieved February 4, 2009, from http://www.whitehouse.gov/agenda/technology/

21http://gsmworld.com/our-work/development-fund/energy/overview.htm

22http://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdf

23 Native Wind. (n.d.). The Richest Wind Regime. Retrieved February 6, 2009, from http://www.nativewind.org/html/wind_potential.html

24http://en.wikipedia.org/wiki/Brownfield_land

25 Organization of United States Mayors. (n.d.). City Report Shows Effects of Brownfields in America. Retrieved February 6, 2009, from

http://www.usmayors.org/pressreleases/documents/brownfields022400_final.asp

26 Kho, J. (n.d.). Battle for Home Solar Financing Begins. Retrieved April 2, 2008, from http://www.greentechmedia.com/articles/

battle-for-home-solar-financing-begins-757.html

27 Bosik, D. (2009, January). Wind Power in the U.S. and the World(D. Sprinkle, Ed.). SBI. (Page 90)
http://www.greentechmedia.com/articles/http://www.usmayors.org/pressreleases/documents/brownfields022400_final.asphttp://www.usmayors.org/pressreleases/documents/brownfields022400_final.asphttp://en.wikipedia.org/wiki/Brownfield_landhttp://en.wikipedia.org/wiki/Brownfield_landhttp://www.nativewind.org/html/wind_potential.htmlhttp://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdfhttp://gsmworld.com/our-work/development-fund/energy/overview.htmhttp://www.whitehouse.gov/agenda/technology/http://www.whitehouse.gov/agenda/technology/http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4http://www.nrel.gov/docs/fy04osti/36313.pdfhttp://ge.ecomagination.com/site/http://ge.ecomagination.com/site/http://www.greentechmedia.com/articles/http://www.greentechmedia.com/articles/http://www.usmayors.org/pressreleases/documents/brownfields022400_final.asphttp://www.usmayors.org/pressreleases/documents/brownfields022400_final.asphttp://en.wikipedia.org/wiki/Brownfield_landhttp://en.wikipedia.org/wiki/Brownfield_landhttp://www.nativewind.org/html/wind_potential.htmlhttp://www.nativewind.org/html/wind_potential.htmlhttp://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdfhttp://international.arcelormittal-construction.ch/downloads/arval_arsolar.pdfhttp://gsmworld.com/our-work/development-fund/energy/overview.htmhttp://gsmworld.com/our-work/development-fund/energy/overview.htmhttp://www.whitehouse.gov/agenda/technology/http://www.whitehouse.gov/agenda/technology/http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4http://ko.wikipedia.org/wiki/%EB%A0%89%EC%8B%9C%EC%8A%A4http://www.nrel.gov/docs/fy04osti/36313.pdfhttp://www.nrel.gov/docs/fy04osti/36313.pdfhttp://ge.ecomagination.com/site/http://ge.ecomagination.com/site/http://twitter.com/ge_reportshttp://twitter.com/ge_reportshttp://www.gereports.com/delivering-a-smarter-more-efficient-grid/http://www.gereports.com/delivering-a-smarter-more-efficient-grid/

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