SAGE ADVANCETHE COPPER CRICKET SOLAR

ENERGY SYSTEM

Case Fact

Introduction

Bob Block ,president of sage advance , which manufactures the copper cricket (a patented geyser pumping solar water heat for home use).

In 1983 they built the first working prototype, end of the 1984 they are searching for licensees for the technology

But during the previous ten years of solar tax credits a hurricane on mediocre technology had to swept the solar industry.

Countd….

In 1985 government are canceled tax credit.

Next year 85% solar manufacturers disappeared because of tax credit.

They able to sale 30 system to individuals by gaining popularity a new shelter magazine.

The firm was not at the breakeven sales level as of January 1, 1991.

The ProductThe copper cricket have widely recognized, Popular

science named it one of 1989’s “Greatest Achievement in science and technology”. The geyser pump is protected by a strong patent.

A recent survey of copper cricket owners founds that 98 % would recommend the product to a friend.

Feature of the product

No outside power required.No moving parts to fall.No maintenance.Freeze proof.Nationally certified.10 year warranty.Kit form for easy installation.No exposed plumbing.Less expensive than electricity, gas or coal.

The Environment

The energy crisis of 1970 & introduction of tax credit created a huge market of solar energy system, Particularly solar water heating system.

Because of the energy crisis & the removal of the tax credit program in 1985 devastated the industry.

In a year approximately 90% of the solar water heater producers dropped out of the business.

In 1990’s market picture was uncertain, the environment was main concern.

The Persian Gulf crisis had increased fuel prices, but an increasing recession had consumers nervous about capital outlays.

Marketing EffortsThe firm’s marketing efforts have extremely limited

due to its severe cash flow problems.A significant percent of firm’s sales occur in Oregon.Sage’s attempts to attract dealers have not been

very successful.Two large manufacturing who survived the 1985

shakeout have substantial distribution and sales despite having a less advanced product.

To encourage word-of –mouth communications.Sage is also working with a number of large

electrical utilities.

Discussion Question

How could marketing research have helped Sage Advance before the cooper cricket was introduced to the marketplace?

Ans.-Attract Distributors, manufacturers,

customers

Able to identify target segment and be able to sale at lower price

How can marketing research help Sage Advance now?

It can test market and make market strategy accordingly.

Assume Sage Advance survives its current cash flow crisis , what role marketing research play in the firm?

It will grab it business easily

How should Bob set a budget for marketing research?

Definitely little bit of exploratory research is needed and as company faces fund crisis. It could go with literature review and case analysis(Benchmarking and ethnography).

Campus Overview

907/A Uvarshad, GandhinagarHighway, Ahmedabad – 382422.

Ahmedabad

Kolkata

Infinity Benchmark, 10th Floor, Plot G1,Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091.

Mumbai

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.

Thank You