Executive Summary The Energy Tree was created to help REMC’s give customers ways to reduce energy. We believe by targeting each market segment differently this will be most effective, because each will reduce energy for separate reasons. The main goal is to reduce the energy consumption by the different REMC customers. Small changes can produce large results. We would like everyone to make the changes they are able to do.
For more information on energy saving tips, please visit this web site: http://www1.eere.energy.gov/consumer/tips/index.html http://www1.eere.energy.gov/consumer/tips/index.html
Minimal Switch to compact fluorescent light bulbs Turn off your computer and monitor when not in use Use power strips and shut them off when that equipment is not in use Take short showers instead of baths Wash full loads of laundry and full loads of dishes Lower the thermostat on your water heater to 120 degrees
Moderate Purchase a programable thermostat Purchase a water heater wrap for insulation Clean or replace filters on furnaces once a month or as needed
High Purchase a solar water heater (During a 20-year period, one solar water heater can avoid over 50 tons of carbon dioxide emissions.) Purchase new windows (In temperate climates with both heating and cooling seasons, select windows with both low U-values and low solar heat gain coefficiency (SHGC) to maximize energy benefits.) Purchase new energy star appliances
Completely Green Install solar panels or windmills to provide energy to the entire house Reinsulate your entire house Geothermal heating
Boomers The 78 million people born during the baby boom following World War II and lasting until 1964. In order to market to this group, Service Concepts needs to focus more towards the financial aspect as opposed to going green. This group of people has been doing things the same for so long, they are not going to want to change. However, if you market it to make them think about saving for retirement by changing just a few household items, it will make a larger impact on their decision.
X Generation. This generation is made up of the 49 million people born between 1965 and 1976. In order to market to this group, Service Concepts needs to focus more on the environmental reasons for using less electricity. It will also be necessary to get the word out so they will here it from word of mouth, instead of just telling them what to do.
Millennials. This generations contains the 83 million people born between 1977 and 2000. Service Concepts will need to focus on the cheaper solutions because the millennials are just beginning to wield buying power. The millennials are also comfortable with technology and look for new and exciting projects.
Products Above are some examples of energy saving products. Select on a picture to be directed to Service Concepts web site for ordering and a more detailed explaination. For other products, please visit: Service Concepts' web site. Service Concepts'
How We Use Energy in Our Homes Heating accounts for the biggest chunk of a typical utility bill. Source: 2005 Building Energy Data Book, Table 4.2.1
Action Plan: Part 1 Marketing Program
Survey Guidelines 1.The design of the questions and questionnaire must be county/region, age, and income appropriate. Based on our specified market segments. 2.Survey must be conducted when most convenient for specified market segment. 3.Allow individuals to include personal comments and concerns. 4.Should provide an incentive (appropriate for market segment) for completing survey. 5.Prior to completing survey, send announcements and reminders. 6.Send follow-ups as to how the information received will be useful and implemented into future products and services. What we hope to learn from the survey: 1.Specific differences in both energy and appliance usage between rural and urban households. 2.Energy differences between residents with small part-time farms or shop operations and urban, corporate-workers. 3.Consumer awareness of the energy reducing products and services available to them. 4.Consumer trends, behaviors, and their likeliness of using energy alternatives for home heating/cooling, household appliances, or other energy reducing products. 5.Discover the change in energy usage from past to present. 6.Discover the information consumers prefer to know, already know, and don’t know about energy. Based off of these responses we can better set prices and rebates, implement products and services, and make useful information available to our customers.
Action Plan: Part 2 Rebate Program
Rebates 1. Research has shown that the greatest way to increase customer motivation to become more energy efficient is to apply appropriate incentives. The Energy Tree believes the best way to incorporate this is to reward the REMC customers who reduce their energy usage by offering rebates to their energy bills or discounts toward the purchase of more energy efficient products. 2. As the customers become more energy efficient their electric bills will become cheaper, this then is how we will calculate the amount of the rebate or discount each customer will receive (i.e. the more energy efficient you become the greater your return, both on your monthly bill and the amount of rebate or discount you will receive). The REMC could set goals for example: every 10% they save on energy consumption; they get 1% as a bonus off their bill or receive a check. 3. To be accurate and fair the rebate/discount will be comparative to the percentage the customer has reduced their energy consumption compared to previous months/years. 4. The energy bill should include a flyer or website announcement that announces the rebate plan. The customers get their bills every month, so this would be an easy way to reach them. Participation To increase customer participation, we will allow them to choose when they will receive their rebates or discounts (annually, semiannually, or quarterly). By increasing customer satisfaction, we will increase their participation as well.
No electric company has taken advantage of the rebate program as of yet. This gives our action plan an advantage over other companies. If we are able to help consumers save money during this time of ressession, they are going to think more about how they can help reduce energy. The rebate program is more customer oriented which betters the customer service level.
Strengths
With the economy in a ressession, consumers are going to be looking for ways to save their money. With the rebate program in place, it gives them this opportunity. If the rebate is given in time for holiday shopping, we feel this will impact them more.
Also, being in a ressession, consumers are not going to have the extra money to spend on making their home more energy efficient. This may limit the amount of energy reduction possible during this time of concern.
Initial cost of printing out flyers and developing a web site will be substantial. It will also take time to calculate each customers energy reduction. If we perform the survey, this will also be time consuming and there is no guarantee that the customers will fill them out and return them.
Weaknesses
Opportunities
Threats
Greg Stone Emily McDaniel Heather Goldsmith
Team 18
Sources Armstrong, G. & Kotler, P. (2007) Marketing, an Introduction, Ninth Edition. New Jersey: Pearson Prentice Hall. Home Energy Saver. (n.d.). The Profitability of Energy Efficiency Upgrades. Retrieved December 1, 2008. from: http://hes.lbl.gov/hes/profitable.html Jaffee, Bruce L. (1980, October). Surveying Residential Energy Use in Rural Areas. Public Utilities Fortnightly, 106(8), 29. Retrieved December 6, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1284534). Survey Shows Cost Factors As Most Significant Issue. (2008, May). Energy Analects, 37(10), 7. Retrieved December 6, 2008, from ABI/INFORM Trade & Industry database. (Document ID: 1481986461). U.S. Department of Energy. (2006). Energy Savers, Tips on Saving Energy & Money at Home. Retrieved December 1, 2008, from: http://www1.eere.energy.gov/consumer/tips/save_energy.html
A Senior in Computer Graphics Technology. She is concentrating on finding a position in promotions at an advertising firm.
Heather Goldsmith
A Junior in Selling and Sales, with hopes to bring her talent to Indiana Sports Corporation following her graduation from Purdue University.
Emily McDaniel
A Senior in Financial Counseling and Planning at Purdue. Once he graduates, he would like to get his CFP and work for a financial corporation.
Gregory Stone
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