Carbon Tax - Research Paper Example

Carbon Tax Executive Summary The government of Australia have proposed a new environmental tax to be effective from July It would be levied on the basis of the quantity of carbon dioxide emitted into the atmosphere. Initially the tax rate is set at $23 per tonne of emitted carbon dioxide. It is supposed to affect most of the Australian industries along with the household people. Carbon tax has been proposed with the view of associating cost with carbon emission and encouraging people to make use renewable sources of energy. An IMC plan has been set out to promote this new carbon tax in Australia. The target audience has been identified to be the Australian households and the industries in Australia. Relevant communication objectives have also been developed focusing more on the awareness amongst people about carbon tax and its implications and thereby helping to create a brand image of the same. Creative strategies towards the achievement of each of the communication objectives have also been developed. Media plan have been formulated and is considered to be the key of the effectiveness of this IMC plan. A proper media mix has been taken into consideration to enable effective communication with the specific target audiences. Table of Contents Table of Contents 3 1.Introduction 4 2.Segment Analysis 4 3.Literature Review 5 3.1Global Warming and Climate Change 5 3.2Carbon Tax 6 4.Communication Objectives 7 5.Creative Strategies 7 6.Media Plan 9 7.Conclusion 10 Works Cited 11 1. Introduction The climate change as a consequence of global warming is an important environmental issue in today’s world. The earth’s temperature has been rising at an alarming rate in the recent years. All the nations in the world are concerned about it, and Australia is no exception. The government of Australia has come up with the proposal of implementation of a new environmental tax, namely carbon tax. Initially carbon tax would be levied at a rate equivalent to $23 per tonne of carbon dioxide emitted into the atmosphere. Hence it would attract most of the industries operating in Australia and also the household people engaged in activities that result in carbon emission either directly or indirectly. The primary objective of the introduction of carbon tax is to make carbon emission more expensive, so that people are encouraged to the utilisation of more of renewable source of energy. This study discusses the development an Integrated Marketing Communication (IMC) plan so as to promote carbon tax, its implications, and advantages associated with it. A proper segmental analysis along with the formulation of specific communication objectives has been included in this study. Creative strategies to achieve the communication objectives have also been included in this study. Lastly, a proper media plan has been developed for creating an effective communication with the target audience. 2. Segment Analysis The key principle behind IMC is the knowledge of customers. This knowledge is made possible through proper segmentation of target audience or customer in order to identify them (Duncan 204). Segmentation of customers is usually done on the basis of certain parameters like geographic, psychographic, demographic, and behavioural characteristics. This study is about developing an IMC plan for the promotion of the proposed carbon tax by the government of Australia. Hence the first primary task in developing such plan would be the proper segmentation of a target audience. Carbon tax is designed to be imposed on those adding to the carbon emission in the atmosphere. Carbon emission occurs mainly from two sources: from the production of goods, which results in carbon emission, or from the consumption of goods and services, which results in the emission of carbon into the atmosphere. Hence the Australian economy can be thought of as two broad segments, namely the Australian households and the companies in Australia that are involved in consuming and producing energy from sources that cause carbon emission. Australian households are engaged in many activities which require consumption of energy. Majority of the households in Australia are engaged in activities which uses mainly electricity as the primary energy source. More than one third of the households in Australia utilises electricity as the primary energy source for heating. Moreover, there has been a significant increase in the proportion of coolers in use in Australian households, coolers utilising electricity as the primary energy source (“Heaters and Coolers”). Furthermore, if we look at the electrical appliances used in the Australian households, it can be found out that people are encouraged to consider the ratings based on energy stars of the appliances. Thus households can be made to realise and be aware of the energy issues related to using appliances run on electricity (“Household Appliances”). Utilisation of these electrical energy sources results in carbon emission and thus attracts carbon tax. Hence targeting the households of Australia will prove to be a better strategy for promoting the benefits of carbon tax. Next target audience would be the Australian industry. Significant portion of the industries in Australia are engaged in business activities which result in the production of huge amount of carbon dioxide. Australia is very rich in mineral resources, and mining industries contribute a significant portion of the Australian economic development by having a huge profit margin. Besides, manufacturing industries also play a vital role in producing carbon dioxide gas. Large business corporations are involved in the business activities of producing electricity, and other allied services form a considerable portion of the total income generated in Australia (“Industry Analysis”). All these industries contribute towards carbon emission and thus attract carbon taxes. Hence Australian industries can prove to be a good target audience for the promotion of carbon tax and its objectives and benefits. 3. Literature Review 3.1 Global Warming and Climate Change Global warming is an important issue related to environment in today’s world. Earth’s temperature is controlled through the balancing of energy received from the sun and the loss of the input energy from the earth into the space. Some of the gases in the atmosphere named as greenhouse gases play a critical role in this temperature balance. The greenhouse gases have the property of trapping the reflected infrared radiations from the earth’s surface which are of longer wavelength and thereby resulting in the increase of temperature of earth’s surface. Some of these greenhouse gases occurring naturally in the earth’s atmosphere are carbon dioxide, water vapour, methane, etc (Maslin 9). The increased amounts of carbon dioxide in the earth’s atmosphere are leading to the global warming, and, as a consequence, to the climate change. The year 2010 has been declared as the hottest year recorded on earth (Graph 1). Human activities contribute to the increasing negative effects of global warming, which is mainly due to the increasing emission of greenhouse gases like carbon dioxide into the atmosphere (“Humans are causing this Warming”). Chart 1 Source: (CSIRO) 3.2 Carbon Tax It is a specific type of tax which uses carbon as the basis for taxation. It is the tax levied per one unit of carbon dioxide and other greenhouse gases. Normally, carbon tax is levied per one tonne. The main objective of carbon tax is to impose a cost penalty on the emission of greenhouse gases. Carbon taxes result in the increase of prices of goods or services which are related to the emission of greenhouse gases, its consumptions, or productions (Dawson, and Spannagle 74). Recently Australian government has proposed the introduction of carbon tax, and its initial cost is set to be $23 per tonne of carbon emitted to the atmosphere. This carbon tax mechanism is supposed to be the most cost effective way of reducing carbon emission and thereby reducing the climate change levels in the atmosphere (“What is Carbon Tax?”). 4. Communication Objectives Marketing communications is all about persuading customers, informing them, and then reminding them of the products or services which are to be promoted. In a way, marketing communications helps to establish a strong relationship between the firm producing the product or service and its target customers (Kotler and Keller 301). Now, with the target audiences being already set up, the next step in developing the IMC plan would be setting up communication objectives. In order to communicate about the advantages and benefits associated with carbon tax amongst the Australians, the following four communication objectives would serve the purpose in a better way: 1. Development of awareness amongst the target audience about carbon tax and its implications. 2. Creating interests amongst the target audience about the carbon tax. 3. Development of positive and favourable attitude towards the carbon tax by the target audience. 4. Creating and developing the carbon tax brand image amongst the target audience. 5. Creative Strategies Creating and developing strategies is one of the key elements in the IMC planning of the promotion of any product or service. The target audience has already been identified in the form of the Australian households and industries. Keeping in mind the four communication objectives that have been developed, each of the two target segments must be addressed separately. Creative strategies must be developed for catering for the needs of each of the two target markets. The first strategy would be to develop means to make people aware of carbon tax and its implications. With respect to households, people must be aware of the background phenomenon that led to the creation of such environmental tax. People must be aware of what is happening in the country, the outside world, and the developments that have taken place in other countries regarding the development of carbon tax. People must know why the Australian government is proposing the implementation of such a tax. Concerning the companies, everyone in the industry should be aware of the fact of carbon tax and its impact on the industry. The industry people must be aware of the facts how the industrial activities are adding to the worries about environmental issues. The industry people should also be made aware of the facts how they can be benefited through the implementation of carbon tax. In brief, the first strategy would be reaching out to as many people as possible in Australia. The next strategy would be to better accentuate the advantages of carbon tax. Regarding the households, the key strategy would be to make people think of carbon tax, to create more interest amongst people, and to get them more involved in it. People would be provided with different incentives to bring a change in attitude of other people towards carbon tax. The industry people would also get incentives to participate in the promotional campaigns related to carbon tax. Next strategy would be creating a feel good factor amongst people regarding carbon tax. In households, strategy can be employed by developing competition amongst themselves regarding who can save more through carbon tax. People would develop a positive attitude towards carbon tax and be encouraged to respond to it in a positive way. For industries, the industry people can also be made to feel good about the carbon tax by letting them know that carbon tax would not be an additional tax burden for them but they can actually boost their profits by utilising the carbon tax. Lastly, once people are aware of carbon tax and its implications and are happy about it, the next strategy would be to create a brand image of carbon tax in the mind of people. The people in household should know that carbon tax is a brand, and it is for the benefits of them only. People would be encouraged to shift to use of goods and services that uses renewable sources of energy. They would know that carbon tax could be avoided through a change in their daily household activities. Regarding industry people, they would also develop a brand image about carbon tax being a beneficial tax for them. 6. Media Plan The next key strategy in IMC planning is the development of an effective and efficient media plan through relevant and proper use of media vehicles so as to achieve the four communication objectives that have been set up. Important consideration while formulating the media plan would be to make proper use of all available media so that each of the two target audiences are communicated about the carbon tax in a best possible way. Media vehicles include broadcasting media like television and radio, print media like newspapers and magazines, outdoor advertising media like billboards and hoardings, internet and social media, different transit advertising media, etc. The key strategy would be utilisation of specific media to address each of the creative strategies that have been discussed earlier and thereby leading to the effective communication with the target audiences. The first creative strategy is to make people aware of the background of the carbon tax. Television would be the best medium to reach out most of the household people. A short movie can be produced about the development of carbon tax and its background issues. This movie would then be broadcast in the prime hours. For industry people, print media like business magazines and newspapers would be the best medium of communication. Industry people usually read newspapers in their recess times. Hence newspaper advertisements would be the best option to reach out industry people and make them aware about the carbon tax. For implementing the next key strategy regarding creating interests amongst people for carbon tax, different media can be used. For households, television broadcast is the best option. Moreover, with the increasing interest in internet and, especially, social media, it can be utilised to a good effect to communicate with the people. Different images related to carbon tax and its implications can be posted on social networking websites. Furthermore, in order to create a favourable attitude of people towards carbon tax, other various media can be helpful in the communication process. For household people, television advertisement showing the benefits of carbon tax would be the best option. Internet advertising can be utilised to a good effect by letting people know about different scenarios of carbon taxation and how they would be able to reduce the tax burden. In other ways, people should try to switch to the use of products which do not cause carbon emission. Hoardings can also be a good option. Industry people will also develop a positive attitude towards carbon tax from knowing the benefits associated with it. Furthermore, transit advertising media options like posters on carbon tax on the exteriors of public transport can also be a good option; it would create a carbon tax brand image in the minds of the people. 7. Conclusion Australian government has come up with a new environmental tax in the form of carbon tax which has been proposed recently. An IMC plan has been developed to promote carbon tax in Australia. Firstly, a segmental analysis has been performed in order to find out the target audience. Carbon tax is supposed to be levied on tax payers who are involved in activities resulting in carbon emission. The principal objective of imposition of carbon tax by the Australian government is to promote the use of renewable sources and discourage people of getting involved in activities resulting in carbon emission. Two broad target audiences have been identified. One is the Australian households and the other is the Australian industry. Secondly, four different communication objectives have been set up. Achievement of those communication objectives would result in creating a positive attitude of people towards carbon tax and development of a brand image of carbon tax in the minds of the people. Thirdly, the key creative strategies have been developed. Those strategies have been formulated to achieve the communication objectives that have been set up previously. Fourthly, a media plan has been formulated to develop an effective communication with the target audiences. A proper media mix utilising various media vehicles like television, newspapers, magazines, internet, and social media, etc. have been taken into account for reaching out to the target audience. Hence the primary emphasis of developing the IMC plan would be on the media plan, so that more people are aware and develop a favourable attitude towards the imposition of carbon tax by the Australian government. Works Cited “Heaters and Coolers.” Australian Bureau of Statistics. 21 October, 2011. Web. 4 May, 2012. . “Household Appliances.” Australian Bureau of Statistics. 21 October, 2011. Web. 4 May, 2012. . “Humans are causing this Warming.” Carbontax. n.d. Web. 3 May, 2012. . “Industry Analysis.” Australian Bureau of Statistics. 7 July, 2011. Web. 4 May, 2012. < http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/D5FA0E97E0C7F421CA25789C0023E04A?opendocument>. “What is Carbon Tax?” Carbontax. 12 July, 2011. Web. 3 May, 2012. . CSIRO. “A shift of just a few degrees can cause major changes.” Csiro. n.d. Web. 3 May, 2012. . Dawson, Brian, and Matt Spannagle. The Complete Guide to Climate Change. USA: Taylor & Francis, 2008. Print. Duncan, Tom. Principles of Advertising And IMC. India: 3rd Ed. Tata McGraw-Hill Education, 2005. Print. Kotler, Philip, and Kevin L. Keller. A Framework for Marketing Management. 3rd Ed. India: Pearson Education, 2007. Print. Maslin, Mark. Global Warming: Causes, Effects, and the Future. USA: MBI Publishing Company, 2007. Print. Read More