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