Marketing of Solar Energy Systems in UAE - Assignment Example

Marketing Plan Executive Summary This report is about marketing schemes, planning and management. In contemporary perspective, strategic marketing holds great importance. It is because the subject brings effective solutions for marketing managers, solutions for marketing and promoting brands in the sufficient way. The report applies marketing models and frameworks for adjusting a new brand into a new prospective market. Marketing of Solar Energy Systems in UAE Introduction Strategic marketing has been a significant subject to managers. It is a subject that has provided decisive support to many contemporary organizations, for driving their business and competitive state in the market. This paper is bringing a report on how marketing solutions assist a brand for its productive and sustainable growth in the market. The report will imply marketing models of analysis and the frameworks that could help launch a selected product in a feasibly selected market. The product selected is “solar energy systems” which are proposed to be launched in the demanding UAE. The aim here is to apply marketing concepts in order to enable the successful launch of the selected product. The first section of the report will bring the constructive UAE market analysis and the second will imply marketing strategies for enabling successful establishment of the product. The objective is to build the prospect for the brand and its product, by applying all possible successful marketing schemes. The Brand and the Market With the 2020 scenario, UAE is looking out to revive its business industry. There is a multiple level of governmental plans to make the place a hub for business establishers. The trend of industrial and business growth is massive and at the great numbers as quoted by modern day researchers in UAE. This is showing a rise of demand in the power sector where there are thoughts circulating to bring alternate energy solutions, which are efficient, economic and to the most environmental safety. The need of the market is extensive as the bulk number of offices, production facilities, and factory warehouses are currently operational in UAE. They are requiring efficient power generating systems, systems that could cut the cost, meet the demand and ensure environmental safety. Initiatives are already there to find the most workable alternate energy systems. This to cut dependency on natural gas power generation, that is expensive and much effort taking. Apart from all, it has been assessed that electricity consumption in UAE is far much at the greater rates than in Europe, North America or Asia. In this alarming state, the most workable solution is solar energy that is natural, cost efficient and both quantitative and qualitatively productive. Solar energy could suit most of the country, which has no less than 365 sunny days “UAE”. It is a country, which has massive potential for acquiring and storing solar energy as a major energy resource. The Duke Solar Energy system is the brand that is about to launch in UAE. It is a brand that holds tremendous potential to meet both the commercial and non-commercial need of the country. After getting successful in Europe and North America, the brand is looking forward to Middle Eastern region that is waiting to see a workable and efficient power generation solution. There are great hopes for the brand, which is offering difference, quality, and performance for consumers. Pestle Analysis Political With full hand support to private investors and stakeholders UAE government is looking forward a way through renewable energy projects. The government realizing the challenge of demand and is therefore investing majorly in alternate energy plans. The recent 1 million project of Shams 1 and the CSP project, which has capacity to produce 100 Megawatt, are signifying government’s positive intention. These are projects that are already been commissioned and are about to be operational in next few years. For new comers there is a great opportunity in the power sector of UAE. The political situation is ideal, as the government is keen and ready to invest in the alternate energy systems (PIPSO, 2014). Economical Preserving significant amount of oil and natural gas reserves, UAE is a tremendous economy. According to a recent survey report by (IMF), UAE exporting economy hits to $100 billion each year and because of the hydrocarbon reserves the country keeps in its true potential. Including all private and public sectors, energy and non-energy sectors the country’s GDP raised to 4.2% in 2012, which is a magnificent sign for foreign direct investors. With this effective trend, UAE is inviting new establishers to come forward specifically in the power sector which is demanding renewable energy solutions. It is the right time to launch a solar energy brand in the country (EIA, 2013). Social Whether it is commercial use or non-commercial consumption people in UAE are looking forward for options in alternate energy. Solar energy systems being highly efficient are currently renowned in the UAE consumers (Wood, 2012). They are looking for option, which is green, safer and cost efficient like solar panels. Professional workers such as engineers have across to join UAE’s alternate energy mission. New workers have joined new opportunities excelling in UAE’s solar energy sector. Overall, due to environmental efficiency, solar energy systems are popular to the UAE consumers. Consumers have shown both cultural and social acceptance of the solar power generation systems (McElvaney, 2010). Technological UAE government foreseeing the heighted problem of CO2 emissions due to large industrial operation in the country has focused on research planning and development. Plans have been secured to bring innovations such as solar energy systems that could if not diminish reduce the level of carbon emissions. Technologies such as the Photovoltaic, the Thin Film Photovoltaic and the Concentrated Photovoltaic are being thought and worked out in the country. Actually, in this way UAE is stepping forward to the technological advances, which could bring productive power generation with lean and environmental management (McElvaney, 2010). SWOT Analysis Strengths The Duke Solar Energy System is a renowned brand as far as renewable energy sector is concerned. The strength of the brand is its worldwide recognition, which it has earned by establishing a name in Europe and Northern America. The brand offers true difference in aspect of power generation as it not only cares for the customer but also strengthens the society by environmental protection. The brand works in green standards, in methods that effectively work for society and its people (Wood, 2012). Weaknesses For UAE consumer the Duke Solar Energy System is a new name. It is a new brand that has to build its place in the market. It is a weakness at the start as if the brand establishes its name could overcome this silent prevailing weakness. New market is always a challenge no matter how much strong and competitive the brand is. The same applies to Duke, which is looking forward to the new competitive UAE market (EIA, 2013). Opportunities As discussed earlier, UAE is a potential seeking market as far as renewable energy sector is concerned. The market holds great space for new entrants especially the ones, which are working in solar energy segment. UAE with its oil reserves and soothing economy is providing opportunities of investment. It is providing opportunities of business with prospective business appearance (McElvaney, 2010). Threats Threats are there from the oligopolist. Threats are there in forms of rivalries already dominating in the UAE alternate energy industry. The industry has a great potential but also constitutes multiple market players that increase the market competition. New entrants are to face legal and institutional frameworks, which are although flexible, but require greater understanding (McElvaney, 2010). Analyzing Need and Performance In both Europe and Northern America the Duke Solar Energy brand has shown remarkable market performance. An annual increase of the global market share has been 4% since 2010, which is great especially when the world economy crises are already prevailing. Overall, with quality and performance the brand has engaged with its valuable customers. It has offered low price with quality with which it has brought together both commercial and non-commercial users. This is how the brand has retained its position, not only in Europe but also in major parts of Northern America. The same metrics will be applied and targeted to measure the performance in UAE market. The brand will work in the same metrics to check and increase its performance in the new market (McElvaney, 2010). Positioning Statement Innovation is what we strive for and what we believe in could make a difference. It is green that what we are here for. We are offering renewable energy solutions with a mission to protect the planet and making power generation a reliable and safest operation. It could take five years or possibly a decade to execute this mission. The Duke Energy Systems are meant to bring the change, not only to consumers but a change for the society and its different segments (Lehmann, 2008). Marketing Objectives To earn customer value by offering a practical and a workable renewable energy solution To engage consumer not only by price but by means of productive innovation To raise up market share by means of winning customer trust To raise up prospect and growth by means of collecting customer loyalty Market Segmentation For Duke solar renewable energy system UAE constitutes two main market segments, commercial and non-commercial sectors. The commercial sector includes power generation for offices, industrial use, factories, warehouses and high-rise buildings. The non-commercial sector includes houses, hotels and car lots which is also a very important segment after commercial sector (Gilligan, 2005). The primary segment is proposed to be the commercial sector, which is holding a greater demand and a true response for the solar energy systems. Non-commercial sector could be considered as the secondary segment. The following is how the solar energy market of UAE can be composed and targeted: (Lehmann, 2008) Branding Strategy Product The product offered by the brand is a cost efficient highly productive solar energy system (Gilligan, 2005). It includes both thin film and concentrated photovoltaic technology for heavy power generation. This solar energy system holds the capacity of up to 100 MWs, depending upon the consumer use and adaptation. We offer solutions to multi-complexes such as high-rise buildings, to hotels, parking lots, to industry warehouses and to locational business offices. It is a solution for all, for those who want for residential use and those who want large scale industrial power generation (EIA, 2013). Price The product is multiple-ranged as it offers best solution to all types of consumers. In this way, the price range is different too depending upon what type of solution and at what scale the consumer acquires. Starting from a simple 5000-Watt solar energy system, the price set for this system is $60/watt, which is highly suited, and to facilitate the market consumer. Adding panels would add up the cost but it is assured that the price that Duke is offering is distinguished from other market offers (Gilligan, 2005). Place and Promotion Dubai and Abu Dhabi are two main streams of energy sector business, especially when a new scale brand is about to start and locate. These are places of our promotion as if Duke energy systems are successful in these streams could win the advantage for other areas to settle up. Apart from all, we think that every place where our customer is satisfied is the true place of our promotion (Gilligan, 2005). Marketing Plan Expensive Oligopolists New Entrants Emerging Brands Low Quality Innovative The Duke Energy System Low Priced (Wood, 2012) The above positioning map describes the distinctive place of Duke energy system in the UAE context. Understanding the market need, Duke is about to come as innovative, practical and customer oriented. Duke is about to come as a solution that competes in terms of price, quality and performance (EIA, 2013). The Strategy Cost Differentiation Innovation The brand is intruding UAE market with two of its major competencies, cost differentiation and innovation. The strategy of the brand is incorporating these competencies in order to strengthen its progress and establishment in the new market (Lehmann, 2008). With this incorporated strategy, an apprehensive solution is been presented to the UAE energy sector. It is a solution that has been awaited, a solution that genuinely touches the emotion and perception of the UAE market consumer. Hopes are there that the brand will bring its place in the first three quarters of the market. Aligning both of the above competencies will enable the brand to achieve this objective (Gilligan, 2005). Bibliography EIA. (2013). Overview. Dubai: EIA. Gilligan, C. (2005). Strategic Marketing Management: Planning, Implementation and Control. Routledge: London. Lehmann, R. S. (2008). Analysis For Marketing Planning. New Delhi: Tata McGraw-Hill Education. McElvaney, L. (2010). Challenges to Developing Technological Innovation Systems Energy in Abu Dhabi. Abu Dhabi: Masdar Institute of Science and Technology. PIPSO. (2014). UAE plans renewable energy projects. Retrieved May 3, 2014, from www.pipso.org: http://pipso.org/uae-plans-renewable-energy-projects-in-five-pacific-nations/ Wood, A. (2012). Solar Power in the UAE. Abu Dhabi: ESIA. Read More