Michelle Kennedy Rensselaer, IN Senior Retail Management Green: Obsessively recycles
Luke Boly Shepherdsville, KY Senior Computer Graphics Technology Green: Keeps devices unplugged when not in use
Zach Kanta Cincinnati, OH Senior Economics Green: Uses flourescent lightbulbs
Ashley Harris Irvine, CA Senior Aviation Management Green: Carpools to campus everyday
Breathe Green Marketing is preparing to launch a new marketing campaign for Service Concepts, LLC to convince REMC members to use less energy. We are targeting mostly middle class families in rural areas of Indiana. We will communicate to consumers through the use of an advertising campaign including internet videos, that could possibly be aired on television. To compete with other electric companies, REMC will fund a team that will provide customers with home energy audits to help reduce energy consumption. The primary objective of our marketing campaign will be to convince families to consume less energy through strategies of awareness and motivation.
Extra Credit Video
Credits: Zach Kanta - Acting Homeowner Michelle Kennedy - Acting Homeowner Luke Boly - Camera Operator Ashley Harris - Film Editor
There are currently various advertisements, mainly on television, that encourage people to reduce their energy usage. One such commercial advertises the website www.nick.com/biggreenhelp and encourages kids across the country to take steps to save resources. Some marketing programs are more regional, such as Southern California’s www.flexyourpower.org. However, there doesn’t seem to be any widespread marketing that targets the Indiana region or, more specifically, Indiana REMC customers.
Target market: REMC members living in rural areas that only have one option for their energy supplier.
>> Physical setup - Families may choose to forgo these expenses because of the economic downturn. >> Pricing - REMC's must fund the team. >> Lack of awareness - Members of REMC must be informed that this program exists.
>> Green businesses are expected to grow in the next five years >> Environmentally important >> Save money and increase profit margins
Strengths
Weaknesses
Opportunities
Threats
>> Eco friendly - Reduce the amount of pollution in the environment. >> Save money - Less energy requires less money. >> Innovative - Go above and beyond just changing light bulbs.
>> Increased competition - Professional services that provide energy audits exist. >> Legitamacy - Team representatives in their homes. >> Additional customer service costs - Some energy saving strategies can be expensive for consumers.
Marketing Goal: Convert REMC members to a more energy efficient lifestyle. Objectives to attain goal:
1
2
3
Implement a Green Team that will evaluate individual structures for energy efficiency. Also, have a program of suggestions and changes for Green Team to institute in homes.
Run ad campaign of print and internet methods that explains the short- and long-term financial and environmental effects of conserving.
Implement rewards program for customers who use less energy and have the savings notated on statements.
Positioning
Product Strategy
Service Concepts will provide services of the energy conservation team free of charge to consumers of the local REMC's. There will also be no change in the current electricity prices. The only cost will be how much consumers are willing to spend to change their home.
Pricing Stategy
Distribution Strategy
Using concentrated marketing, we are positioning Service Concepts, LLC as the market leader in environmentally forward thinking. Our marketing will focus on the most user-friendly ways of conserving energy in order to motivate consumers to participate.
The REMC's will need to provide vans or vehicles to transport the Green Team from door to door. These vehicles would have the REMC logo as well as the "Green Team" logo on them to help with advertising the team. Painting and labeling the vehicles will also help to promote the legitimacy of the Green Team, as well as providing a way for consumers to contact the Green Team directly. We will also provide a website where customers can sign up for audits, this ensures the Green Team will be conveniently available to consumers.
Communications Strategy
Service Concepts will introduce this idea through internet and television commercials along with at the member meetings.We will offer print materials such as brochures, pamphlets and flyers that will create awareness about new energy saving tips. We will offer incentives and rebates for consumers who transform their home into a LEED certified home.
Our product is a team that will consist of 4 to 5 environmental experts that will assist Indiana REMC customers with a home evaluation. The goal of these home audits is to reduce final energy consumption through individual home energy evaluations.
To assist with spreading the word about the Green Team, we will produce a commercial to be posted on the internet. This video will go on several popular channels, such as YouTube and Facebook, as well as on the REMC's main website. Through the use of the "Green Team Approved" yard signs and team vehicles more people will see the team logo and become familiar with the concept. Finally awareness will be spread by word of mouth as neighbors tell each other about the money they saved with the Green Team.
Promotions Strategy
Question 1
Question 2
Would you be interested in a home energy audit at no expense? Results: YES: 38; NO: 12
Would you take advantage of rebate programs that would require home improvements? Results: YES: 27; NO: 23
Question 3
How much would you be willing to spend on home energy improvements? Results: $0-$50: 32; $51-$100: 11; $100+: 7
76%
24%
54%
46%
14%
22%
64%
Data gathered from fifty Purdue students via Facebook and face-to-face communication.
We will create buzz at the annual dinner held each year for cooperative members. At the meeting we will create interest about a green campaign which features simple exercises and a free review that will help home owners make a difference within the envirionment. The REMCs will focus on hiring individuals for the Green Team and training them for the upcoming months of implementing change within the communities. We will research and create a database of the latest cost effective ways to reduce energy in the home and create print materials that will be available for consumers from the Green Team.
March
April
We will start an integrated print/Internet campaign targeted to the members of REMC. The campaign will show consumers what the Green Team will specifically do in the consumers home. Afterwards, the Green Team will provide members with appropriate print information with specific ways that they can personally do to make a difference.
We will announce incentive programs focusing on rewarding consumers that have made the decisions to make a difference in their homes. This includes, rebates on certain energy consuming appliances, incentives for LEED certification or specific steps or goals that homeowners meet. We will use the homeowners energy bills to let them know how much they are saving.
As the Green Team continues, we will be gathering information on active participants. What we would like to do is take this information and statistically analyze it for future improvements. This will allow us to focus more on those who have decided to activiely participants and those who have choose differently. This information will help guide us and implement energy reduction in the future.
May
June
>> Armstrong, Gary, & Kotler, Philip (2009). Marketing: An Introduction. Upper Saddle River, NJ: Pearson Prentice Hall. >> Holloway, L. (2008). Opportunities Green Scene. Entrepreneur Magazine, Issue 12, p90-91. >> Indiana Association of RECs, Inc (2005). Indiana Statewide Association of Rural Electric Cooperatives, Inc. Retrieved December 2, 2008, from Indiana Statewide Association of Rural Electric Cooperatives, Inc. Website: http://www.indremcs.org/. >> Indiana Energy Association (2008). Your Energy Plan. Retrieved December 1, 2008, from Indiana Energy Association Website: http://www.indianaenergy.org/forms/electricterritories.pdf.
>> Tipmont Rural Electric Membership Corporation (2008). Products and Services. Retrieved December 2, 2008, from Tipmont REMC Website: http://www.tipmont.org/home.htm . >> U.S. Green Building Council (2008). LEED for Homes Rating System. Retrieved December 1, 2008, from U.S. Green Buildling Council Website: http://www.usgbc.org/ShowFile.aspx?DocumentID=3638. >> WM Green Squad, LLC (2008). Green Squad Eco Leadership. Retrieved December 2, 2008, from WM Green Squad Website: http://www.wmgreensquad.com/.
Copyright © 2008. Luke Boly, Michelle Kennedy, Zach Kanta, Ashley Harris