Marketing plan for Off The Grid Solar Energy

Elizabeth WolfeMinnesota School of Business

OFF THE GRID

Photovoltaic installation onMolokai General Hospital, Hawaii,

Off The Grid Solar Energy Off The Grid Solar Energy is pushing forward in a tough economy to provide clients with affordable solar modules by renting the units on an individual basis.

Now single family homes and small businesses alike will be able to take part

in reducing carbon emissions at an affordable cost.

Our Company

Our Mission It is our goal at Off The Grid Solar Energy to provide our customers with

the cleanest form of energy by offering units at a low fixed rate. By renting photovoltaic units customers are able to get off the grid, save money, and better their environment by reducing their CO2 emissions.

We see our customers and the sites they are located as individual and unique; all units are custom fitted to best work with whatever situation you are in. We strive for providing the best service in the industry; when renting one of our units you can be assured that all maintenance and grievances will be handled quickly and efficiently at no additional cost.

Our photovoltaic panels are manufactured by one of the leading manufacturers in the industry. We have the panels shipped all the way in from China to our company so that our customers have the very top of the line in technologies. In contributing to China’s economy as well as our own we feel we are pushing into an age of innovations that unites the world’s technologies so our planet can strive to be and have the very best.

Cutting our CO2 emissions will greatly contribute to the health of our planet so we can share the earth that we know and love with generations to come. It is so important right now to protect the integrity of our land, air, and water reserves that our company furthers our impact in reducing waste by choosing eco-friendly waste removal and packaging all of our products in recyclable materials.

Our Mission

Plan Overview Our present situation is that the present market

wants to be eco-friendly Off The Grid is on the right track with our strengths

and opportunities and we are taking steps to address threats and weaknesses

Major objectives are penetrating the market, providing fast and reliable customer service, reducing waste, and offering the lowest prices in rental

The product is in the growth stage of the products life cycle, early majority has yet to be addressed

Segments holding early majorities are single family homeowners and small businesses

Marketing mix strategy focuses on benefitting a win-win between our company and target markets

Plan Overview

The environment the product will be marketed in is showing signs of an eco-trend, the economy is in a bad state and people cannot afford to

purchase solar units

StrengthsWe care about our customers and

respond accordinglyApproach to marketing and distribution

is creative and innovative

WeaknessesLack of intelligence in technology

Lack of capital

OpportunitiesHave no direct competition

Friendly pricing and distribution methods according to the economic state

Green trends motivate customers to rent

ThreatsIndirect competition is very well

establishedCopycats with more capital may enter

the market

SWOT

Situation and SWOT Analysis

Competitive Advantage The firm’s competitive advantage is that our method

of distribution is different; offering solar modules to families and businesses that cannot afford them by renting them to our customers

as opposed to selling them for ownership

Situation and SWOT Analysis

Darling, Solar Module

Objectives Gain 10% market share in the overall market for photovoltaic

module units in Minnesota within the first year

Recycle 95% of waste produced within the company by the first years end; first quarter end recycle at least 75% of our waste

Handle 100% of customer inquiries in 24 hours or less by first years end; first quarter end customer’s calls will be handled in 24 hours or less 85% of the time or better

Install systems more efficiently by pushing the installation time

down to 2 days by first years end; first quarter end have an installation time frame of 3 days or less

All field managers trained and accredited by the IREC by first years end

Marketing Objectives

Market Segments

Segment AMiddle class income families

in single family homes

Price shoppers Can’t afford ownership in units Most have children Are between the ages of 27-45 Dual-career households if

married Would most likely be early

majority High school educated with

some college Mid-level white collar and top

level blue collar

Segment BUpper-middle class income

families in single family homes

Prefer designer goods Typically have one

breadwinner and a stay at home homemaker

May be early adopters and may already own a system

College educated Upper level management,

professionals and mid-level business owners

Market Segmentation

Segment CWorking class income families

in single family homes

Make less than the national average

Typically have smaller homes Most have children Between the ages of 24-40 Speculative as to where

money goes May be late adopters Usually high school educated Mid-level blue collar and lower

level white collar workers

Segment DSmall business owners

Generally do not have a lot of capital to spend

Find it desirable to go green Stay up on business trends May be part of the early

majority

Market Segmentation

Will appreciate our cost advantage

Have the purchasing power to rent our units

Will appreciate a low fixed utility price

One to one marketing will allow for custom units to fit needs and sight locations

Target Market AMiddle class income families who own single family homes make the most sense for our target market at the given time.

Target Market Strategy

Residential photovoltaic installationin Plymouth, Wisconsin

Businesses that go green get media attention

Going green is considered trendy among the commercial community

Have the purchasing power to rent our units

Have special needs and must be treated on an individual bases

Target Market BBusiness trends confirm getting involved with small businesses is of great importance at this time.

Target Market Strategy

Solar thermal installation atthe Allison Inn, Oregon

Marketing Mix Strategy : ProductTangibles State of the art solar

energy system

Access to information on mobile devices that offers customers their reduction of CO2, battery levels, input/output functions, and rental payment

Shipped in recyclable protective packaging

Intangibles Installation

Customer Orientation

Service representative available 24 hours a day

Free maintenance services

Marketing Mix Strategy : Product

Product Life Cycle

Photovoltaic panels were introduced in the 1950’s

Because photovoltaic were not cost effective they fell into decline for a 50 year slump

The turn of the millennium sparked extensive research projects that turned out to lower the cost of manufacturing photovoltaic

2001-2005 reintroduced photovoltaic 2006-to date has shown a significant

growth stage as figure 1 illustrates (Interstate Renewable Energy Council, 2011).

Maturity will be extensive and long lasting

Modules should not fall into decline again for a very long time

Marketing Mix Strategy:Product

Figure 1: Cumulative U.S. Grid-tied Photovoltaic Installations (2001-2010)

Distribution Units will be manufactured by

Suntech Power Holdings Units will be shipped via ground

travel through an outsourced trucking company

Units will be shipped to an outsourced warehousing specialist company

After order units are then shipped to the customer site

Sales associates quote and consult at prospects homes

After installation trained representatives orientate customers to the new system

During normal business hours all customers calls are handled by our in house customer service reps.

24 hour customer service representatives are a service outsourced to our company for all other inquiries

Marketing Mix Strategy: Distribution

HighResolutionDrivers, Industry, Men…

Mailers

Door to door brochures in specified locations

Star Tribune Business section advertisement

Company website

Social media including Facebook and Twitter

PromotionAdvertising and Media

Marketing Mix Strategy:Promotion

Become accredited by and join the IREC (Interstate Renewable Energy Council)

Release financial reports to the Star Tribune

Supply energy to the Taste of Minnesota with free standing systems

PromotionPublic Relations

Marketing Mix Strategy:Promotion

Federal energy tax credit will save customers 30% when applied to their federal returns

Free consultation and monthly quote

First month free for the rental of a unit

PromotionSales Promotions

Marketing Mix Strategy:Promotion

Individual face to face selling

In home consultations by appointment

Units are sold based on the needs and requirements of each customer, each unit is customized

PromotionPersonal Selling

Marketing Mix Strategy:Promotion

PriceWe would like to be able to offer our customers a

price that would reflect a payment of $0.75/Kwh at full capacity use. However the determinants of the

overall pricing will be varied by the style of the system chosen and the quantity of modules needed.

Market Mix Strategy: Price

$ $ $

Implementation and Timeline Month One

Get involved with outsourcing and fill out proper contracts for outsourcing with Suntech Power Holdings, Transportation Company, customer service agency, and warehousing specialists

Send new field managers to training with the IREC to start the accreditation process

Build our company website and design mailers, brochures, and advertisements. Hire a competent sales force, customer service representatives, and field staff

who will double as our electricians. Find a recycling company to haul waste products.

Month Two Order all components and have them shipped to our warehousing specialists. Take out advertising in the Star Tribune, contract a mailer group, and pick

specified locations to go door to door delivering brochures. Talk to Taste of Minnesota Representatives and fill out the application to take part

in the sponsorship of solar energy to the event. Set up social networking accounts.

Month Three We will need to measure objectives and make adjustments as needed. Continuing to deliver brochures and advertising through the mail and in the

newspaper.

Implementation and Timeline

Implementation and Timeline Month Six

Measure our objectives and monitor social media to see how we are fending in the market

Collect as much data as possible about our customers and our market figures.

Month Nine Measure objectives against the past nine months to make any last

needed adjustments before the years end. Look to see how our Target market is responding to advertisements and

check our share in the market Monitor social media comments and take action accordingly. Write an article of primary marketing information collected thus far of our

businesses marketing activities for the first year. Month Twelve

Measure all data and compare to objectives. Follow-up on data by surveying employees on plans failing (if applicable). Compile final market share figures and finish writing article and report to

submit to the Star Tribune.

Implementation and Timeline

ReferencesChart and Pictures

Darling, D. (n.d.) Solar Module[Photograph]. Retrieved from http://www.daviddarling.info/images/solar_module_2.jpg

Drivers, Industry, Men… (n.d.). Microsoft Clip Art [Clip Art].

Figure 1: Cumulative U.S. Grid-tied Photovoltaic Installations (2001-2010) .(2010). Interstate Renewable Energy Council [Chart]. In 2011 Updates and Trends(p. 18). Retrieved from http://irecusa.org

HighResolution(n.d.). Microsoft Clip Art [Clip Art].

Photovoltaic installation on Molokai General Hospital, Hawaii. (n.d.). Solar Power Partners [Photograph]. Retrieved from http://irecusa.org/wp-content/uploads/2011/06/IREC-Solar-Market-Trends-Report-June-2011-web.pdf

Residential photovoltaic installation in Plymouth, Wisconsin. (n.d.). H&H Solar [Photograph]. Retrieved from http://irecusa.org/wp-content/uploads/2011/06/IREC-Solar-Market-Trends-Report-June-2011-web.pdf

Solar thermal installation at the Allison Inn, Oregon. (n.d.). Energy Trust of Oregon [Photograph]. Retrieved from http://irecusa.org/wp-content/uploads/2011/06/IREC-Solar-Market-Trends-Report-June-2011-web.pdf